It’s no doubt that with news of Russia’s invasion of Ukraine, people braced for the worst.
While chain supply is the last thought on our minds as we stand with the peoples thrown into war and fleeing their homes, Ukraine is a vital hub for the chemical industry. Furthermore, embargoes placed on Russia stand to harm chemical businesses worldwide.
Now, as both lives and business come to a halt, we’re taking a look at the harsh global consequences of Putin’s actions on companies that rely on chemicals.
Chemical Industry in Ukraine
Before the collapse of the Soviet Union, chemists in Ukraine held a tremendous amount of chemical knowledge and conducted innovative research not shared with Western scientists. When the country separated from the Soviet Union, its chemical compounds were in high demand from other countries.
Many countries in Europe still rely on Ukraine for large portions of their chemical supply. In recent years, the $2.8 billion chemical industry has been supplying labs in Europe with materials to create drugs used in experimental COVID-19 treatments.
Some fast facts about the current day condition of Ukraine’s chemical industry:
- Accounts for 9% of industrial exports
- Export alone accounts for 30% of their chemical sector
- High pharmaceutical and medicinal chemical production
Industry Impact of the Crisis in Ukraine
Some workers have braved the invasion and remained near their operations, including Enamine and Life Chemicals workers, and are completing the orders they have left to fill.
In addition to the sudden decrease in exports, if lost, the facilities and stock of the Ukrainian chemical industry would take years to rebuild.
The German Chemical Industry Association has also outlined how import bans against Russia stand to harm domestic industries.
Without the natural gas supplied by Russian companies:
- 70% of industries in Germany will face difficulties
- The chemical industry will be highly impacted
- Production levels will decline
- The danger of losing $7.5 billion in exports to Russia and Ukraine
While numbers and industry impact vary, we will see similar issues arising for companies globally.
Those outside of Europe and Asia will be less impacted. For chemical suppliers in the US, this is also an opportunity to expand operations, especially in natural gas and the pharmaceutical chemical industry.
Looking to buy chemicals?
Has your company been negatively impacted by the crisis’s impact on the chemical industry? We’re here to support your company’s industrial and pharmaceutical chemical needs. Bulk Chemicals 2 Go is headquartered in Georgia with domestic and global export capabilities. You can even order online!
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