News > Sanctions on Russia will lead to cost escalation, disruption in supply chain: Motilal Oswal

Sanctions on Russia will lead to cost escalation, disruption in supply chain: Motilal Oswal

Russia will lead to a disruption in the supply chain for several commodities and it may take up to several months to reinstate the entire supply chain. In 2020, Russia was also the third-largest aluminium producer (at 3.6 mt) and the third-largest nickel producer (at 250 kt) in the world.

In terms of global trade, Russia currently accounts for 9-10 percent of global aluminium exports, 11-12 percent of nickel exports, 20 percent of thermal coal exports, and 12 percent of global steel trade (excluding intra-regional trade).