Entries tagged with “russia”

Articles

15 articles found for russia:

  • Fertilizer Sector on Fertile Ground in 2022

    Fertilizer prices have considerably increased over the last year. Growth was driven by higher demand on account of economic recovery in 2021 after the pandemic, jump in raw material prices (especially for natural gas), ban on exports by major producers such as Russia and China, and geopolitical tensions.

  • Security of Natural Gas Supply (Europe)

    Prices of gas and electricity increased substantially across Europe in 2021–22 and are expected to rise further in 2022–23, as Russia began limiting gas supply to the region in response to the sanctions imposed. However, individual countries have taken several initiatives such as expanding storage capacity and coal and oil generation to reduce dependency on gas; reducing industrial, residential, and commercial demand; increasing imports from other countries; and investing in new infrastructure that would help secure supply and ultimately lead to stability in prices. 

  • Virtual Power Plants: The Way Forward

    Growth of distributed energy sources (renewable energy) and fluctuations in demand for electricity has led to the development of Virtual Power Plant (VPP) systems. A VPP is a cloud-based system that uses software and algorithms to integrate and manage distributed energy resources. Currently, most VPPs are being established in developed countries such as the US, the UK, Germany, and France. Over the past year or so, VPP’s growth has been fueled by COVID-19 and Russia’s invasion of Ukraine.

  • Friendshoring: Strategy to Reduce Supply Chain Dependency on China

    Supply chains globally have barely recovered from the unprecedented challenges posed by the pandemic. The Russia–Ukraine war has added to the woes of already fragile supply chains. The only silver lining is that companies realize the perils of relying on a select few countries for manufacturing, raw materials, and components. For decades, companies have followed strategies such as offshoring, nearshoring, and outsourcing business operations to low-cost countries. However, recent events accelerated the movement to safeguard supply chains and move away from depending entirely on countries like China. One such concept that could be a game-changer for global trade order is “Friendshoring.”

  • Price Corrections in Global Caustic Soda Market

    The global caustic soda market observed substantial price corrections in 2023 following the elevated energy costs in 2022. APAC, commanding 55–65% of chlor-alkali capacity, saw a 19% drop, led by China. In contrast, North American suppliers were resilient to declines, maintaining a strong market stance. After Russia-Ukraine challenges, Europe faced surging prices and reduced utilization rates. Nevertheless, the caustic soda market shows promise, driven by stable demand in traditional applications and emerging Li-ion battery opportunities. The outlook foresees price recovery in APAC and Europe, with North American suppliers expected to concede to lower prices for better plant utilization.

  • Shifting Tides: The Silent Rise of De-Dollarization

    The US dollar has been the world's dominant reserve currency for decades, with countries around the globe holding large amounts of it to facilitate international trade and investments. However, the trend toward de-dollarization has been growing recently, as countries seek to curtail their dependence on the US dollar and diversify their reserve holdings. Will the dollar be replaced as the global currency?

  • Evolution of AI in Modern Military Warfare

    Artificial intelligence (AI) has recently been making significant strides in various fields including military operations. The integration of this emerging technology with modern warfare could revolutionize how armed forces operate, enhance decision-making processes, and provide tactical advantages. This has led to niche investments and a surge in innovations in this industry.

  • US Economic Slowdown – An Opportunity for India?

    As the US economy edges toward recession, equity investors are seeking opportunities in other countries. The focus is on emerging economies, specifically in Southeast Asia, and the main contenders are China and India. Both countries have positive and negative factors influencing investor decision. Which country would attract the bulk of the diverted investments is yet to be seen.

  • Boron Revolution 2030 – Quest for Resilience Amidst Supply–Demand Disparity

    The decarbonization-led future with applications of e-mobility, wind energy, and solar energy is expected to drive an unprecedented rise in demand for boron and its derivatives. However, with no major supply expansions in the immediate pipeline, the supply–demand disparity is anticipated to widen, leading to a 25–40% projected price upsurge in the next 4–5 years. Therefore, reassessing supply chains and developing resilience to maintain competitiveness is crucial for companies in industries such as glass/composites, industrial manufacturing, automotive components, ceramics, and chemicals. It is imperative for procurement heads to secure future supplies by outlining forward-aligned sourcing strategies.

  • Modern Technologies to Clean Up Space Debris

    While space technologies are evolving and leading to the discovery of many facets of the universe, they are also creating space junk. Researchers, space engineers, and startups are deploying various technologies to remove these debris, since the materials floating around space can collide with a space station or satellite and damage it beyond repair. As space technologies continue to advance and increase space traffic, the process to monitor and clean space debris must become continuous and automatic.

  • Reshoring in US: Need for Locally Resilient Supply Chains

    US companies are increasingly reshoring their operations from China in response to supply chain disruptions and global uncertainties. CEOs in the US are investing in emerging technologies to enhance productivity and gain a competitive edge. The reshoring movement aims to build locally resilient supply chains and mitigate future risks. By adopting reshoring, the US can strengthen its manufacturing sector, foster economic growth, and create sustainable jobs.

  • Mexico's Nearshoring Promise to Supply Chain Adversities

    As the world navigates a series of supply chain disruptions, staying ahead of the curve is crucial. Exploring nearshoring opportunities becomes increasingly important to mitigate risks and build resilience. Mexico is emerging as a promising nearshoring destination to global companies (especially in North America) due to inherent benefits such as logistical proximity, reduced lead times, cost efficiency, and strategic trade relations. Procurement organizations have actively embraced Mexico, making regular investments, expanding capacities, and fostering supplier partnerships to reap the benefits of nearshoring. Are you prepared for nearshoring to build a resilient supply chain strategy?

  • Mexico – A Promising Sourcing Destination for US Procurement Organizations

    With the global supply chain disruptions, countries are looking to develop strong supply base near to them. For the US, Mexico has emerged as a strong contender. Many drivers contribute to the country being a preferred option. The number of collaborations and trading transactions between the two countries rose in the past year, and this will only increase further. In this article, we discuss why sourcing from Mexico is an attractive option for large US organizations to procure key categories such as metal & electronics components, automotive parts, and other manufacturing products.

  • USMCA - A Three-Year Retrospective and its impact

    The US–Mexico–Canada Agreement (USMCA), implemented in 2020, replaced North American Free Trade Agreement (NAFTA) and has significantly benefitted North American trade. It led to a substantial surge in trade, with North American trade volume exceeding USD 1.5 trillion in 2022 led by double-digit growth in trade since 2022. This free trade environment created 9.5 million jobs, and the three countries now account for one-third of the world's GDP. Investments in the region posted remarkable growth, with capital investments increasing 134% to reach USD 219 billion. However, USMCA faces challenges, such as trade disputes, and public opinion on international trade has shifted with 66% of Americans now supporting restrictions on imported foreign goods. The agreement's future will depend on addressing these issues before the joint review in 2026. If successful, the agreement could boost trade relations, enhance digital trade, and promote economic growth in North America.

  • Revamping R&D Strategies as Per the New Normal

    While countries struggle with macroeconomic issues and geopolitical tension, companies need to revamp themselves to maintain business continuity. Businesses are already fighting to survive, with pressure from economic downturn, global inflation, supply chain disruptions due to war situations, and climate changes. Is there a game plan that can help them not only ride out this tough time but also thrive?


Special Reports

9 special reports found for russia:

  • Changing Energy Dynamics Amid Russia-Ukraine Conflict

    In line with the Paris Agreement, countries across the globe have implemented net-zero emission (NZE) initiatives to decarbonize electricity generation by 2050. However, the conflict between Russia and Ukraine has put pressure on countries to reuse various energy sources to meet the energy requirement. In this scenario, the green power transition hinges on surge in usage of coal and acceptance of nuclear as the future source for energy generation. Moreover, solar energy is anticipated to benefit significantly from the Russia–Ukraine war as several developed nations have increased solar installations by quickly approving these projects. However, we see an immediate risk related to the installation of solar modules due to increase in photovoltaic prices and imposition of tariffs.

  • Impact of Russia–Ukraine War on Global Commodity Markets

    The Russia-Ukraine conflict has had rapid and extensive effects on global commodity markets. Both nations stand amongst the world's largest commodity exporters, with global influence over critical commodities such as natural gas, oil, metals, wheat, etc. Whereas Russia is a key supplier of oil, natural gas, coal, aluminum and wheat, Ukraine is a key exporter of wheat and oilseeds

    The ongoing conflict and unprecedented sanctions towards Russia have resulted in record-high inflation levels across developed and developing regions, disrupted supply chain, and severely impacted global economic recovery from the COVID-19 pandemic. Notably, prices of many essential and industrial commodities have been skyrocketing since February 2022, surpassing the peak in 2008 during the global financial crisis.

    With expectations of these geopolitical tensions to continue, energy and food prices are forecasted to stay elevated in short to medium term period. This is evident as global growth forecasts have been cut and economic indicators suggest a drop in activity as nations grapple with tightening markets.

  • Global Fertilizer Industry: Emerging Stronger Post-Plunge

    The global fertilizer industry witnessed significant challenges during 2022 due to the high natural gas prices. The key raw material got costlier because of supply chain bottlenecks arising from the Russia–Ukraine conflict. The worldwide farmers’ affordability took a hit despite an increase in crop prices and hence the fertilizers’ demand suffered. The industry is on a path to recovery as the natural gas prices pull back from their peak and the long-term drivers such as population and economic growth remain resilient.





  • High Yield - Europe Spotlight

    European HY bond market returns declined in YTD 2022, owing to heightened geopolitical tensions and rising interest rate risks. Issuers largely stayed on the sidelines in 2022 due to higher refinancing costs. Despite recession fears, the 10-year–2-year European spread steepened in 2022, in contrast to the US curve inversion. That said, the Eurozone recession is likely to stem from energy supply concerns owing to the Russia-Ukraine crisis and not from ECB tightening its monetary policy. Notably, S&P expects the European high yield corporate default rate to rise to 3.0% by March 2023 from 0.7% as of March 2022. 

  • Islamic Finance

    The global Islamic finance industry is worth over USD2 trillion and is projected to grow to ~USD5 trillion by 2025. However, the global economy has been severely impacted by the pandemic, volatility in oil prices, and uncertain macroeconomic environment (Russia-Ukraine war, possibility of another recession). Thus, the Islamic finance industry's development and expansion will be challenging over the next few years. Most of the sustainability efforts are led by governments globally. However, environmental preservation and social development targets are shared responsibilities of public and private sectors. Accordingly, the scope of Islamic finance is not limited to raising debt. Islamic finance now contributes to building a greener planet via funding sustainable businesses, which will benefit from perks such as lower interest rates compared with those for conventional debt.


  • How Conflicts and the Pandemic Reshaped Investment Strategies

    Between 2020 and 2023, the world grappled with a global pandemic and various conflicts, resulting in notable movements in major asset classes. The pandemic led to widespread lockdown, disrupting economic activity and precipitating a significant decline in major equity indices, which lost more than a third of their value within weeks. Extensive fiscal support fueled inflationary pressure, which has yet to reach central bank targets in major developed countries. In March 2022, the outbreak of the Russia-Ukraine war sent shockwaves across the markets, leading to food and energy shortages and pushing their prices upward. A global slowdown started as central banks across most of the world started increasing rates, signaling an end to the era of cheaply available money. However, by the end of 2023, asset classes had largely recovered from the impact of the pandemic and conflicts, and the markets were optimistic of future rate cuts.

  • Manufacturing on the Move: Reshoring Trends in Mexico and Vietnam

    In a world shaped by the seismic shifts of the COVID-19 pandemic, the Ukraine-Russia conflict, and the Red Sea crisis, a new narrative of resilience and adaptation is unfolding. Major companies are navigating through turbulent waters as supply chain disruptions cast a spotlight on the imperative of diversification. The World Container Index echoes this tumultuous journey, soaring to US$3,659 amidst the Red Sea crisis, symbolizing the challenges and opportunities in global trade. In a surprising turn of events, Mexico has emerged as a formidable contender, outpacing China as the leading importer to the US in 2023. This shift reflects a paradigm where unfavorable sentiments towards Chinese trade practices have paved the way for Mexico's ascent. With significantly lower average wages and strategic advantages stemming from the USMCA trade agreement and proximity to the United States, Mexico stands tall as a beacon of opportunity in the trade landscape. Meanwhile, Vietnam's ascent in labor productivity adds a new dimension to the global manufacturing stage, drawing attention and admiration from investors worldwide. As the allure of countries like India, Indonesia, and Thailand grows stronger, fueled by their proximity to China, competitive labor costs, and demographic advantages, a new era of exploration and innovation beckons. These nations stand at the crossroads of possibility, offering a canvas for companies to paint their supply chain futures with hues of diversity and resilience.

  • Fintech Decoded: 1H23

    Fintech deal activity in 1H23 witnessed a period of notable turbulence, with subsectors such as Payments+ and Blockchain/Crypto receding, while Business Solutions and Financial Markets domains gained prominence.

    While venture capital funding experienced a substantial decrease in value, deal volume remained remarkably robust throughout this timeframe. Projections based on the current funding trajectory suggest that 2023 could potentially rank as the third-highest year in terms of total investment, following the precedent set by the years 2021 and 2022.

    The economic landscape was greatly influenced by the surge in U.S. inflation, the Federal Reserve's withdrawal of stimulus measures, and a sequence of interest rate hikes contributing to a fragile economic environment marked by the impending gloom of recession. Regulatory uncertainties from GDPR, China's cryptocurrency ban, and geopolitical tremors like the Russia-Ukraine conflict added further complexity.

    Venture capital investors displayed a noticeable shift towards directing their attention to angel and seed-stage companies while taking a more rigid stance towards early and late-stage VC firms due to increased valuations arising from the 2021 surge. In this edition of Fintech Decoded, we bring you insights into the sector’s performance following the macroeconomic headwinds, along with notable funding trends across the globe in the fintech space in 1H23.


  • Fintech Decoded: 2022

    Fintech deal activity in 2022 witnessed high volatility, with subsectors such as Payments+ and Blockchain/Crypto receding, while Business Solutions and Financial Markets domains gained prominence.

    The emergence of new Covid variants, soaring US inflation, withdrawal of stimulus measures by the Fed and successive interest rate hikes leading to a recessionary environment, regulatory uncertainty caused by GDPR, China’s ban on cryptocurrency, a worse-than-anticipated slowdown in China, geopolitical impacts of the Russia-Ukraine war, and soaring Eurozone inflation have caused the downturn in 2022.

    The global economic and political landscape is becoming increasingly uncertain, which has made venture capital firms more cautious about investing. Fintech companies with strong value propositions and sustained profitability will continue to attract investment, particularly in sectors such as RegTech and Cybersecurity.

    The Blockchain/Crypto segment plunged significantly owing to the Terra (Luna) crash and FTX bankruptcy in 2022. As investor interest in crypto solutions pulled back, the broader blockchain space started to gain more traction with companies using blockchain-based technologies.

    The increasing complexity of the regulatory environment with several changes in different jurisdictions (e.g., Basel IV, the EU Market in Crypto-assets Regulation, the Digital Operations Resilience Act, the AI Act, the Digital Services Act, ESG standards) enables greater focus and investment in the RegTech segment.

    In this edition of Fintech Decoded, we bring you insights into the sector’s performance following the macroeconomic headwinds, along with notable funding trends across the globe in the fintech space in 2022.