-World commodity markets might want to adapt to an absence of provide from Russia and Ukraine, world miner and commodities dealer Glencore mentioned in its annual report on Wednesday.
“Over time, world commodity commerce flows might want to adapt to some or all of Russian/Ukrainian provide being unavailable, whether or not as a consequence of infrastructure injury, sanctions or moral issues,” Glencore mentioned.
Russia’s invasion of Ukraine has brought on havoc in commodity markets.
Russia is a key provider of oil, pure fuel, coal, aluminium and nickel, whereas Ukraine is a serious grain producer and exporter. Volatility in all these commodities has spiked, Glencore famous.
Uncertainty over the availability of commodities could push commodity costs and enter prices up, Glencore mentioned, inflicting points for availability of funding to make sure entry to uncooked supplies.
“Relying on the length of the battle and the sanctions regime, world commodity flows could change materially from their pre-2022 state of affairs,” Glencore mentioned.
Glencore has mentioned it's reviewing all its enterprise actions in Russia together with fairness stakes in En+ Group and oil big Rosneft. Rosneft boss Igor Sechin is underneath British, European Union and U.S. sanctions.
The truthful worth of Glencore’s 10.5% stake in En+ was $645 million, whereas the truthful worth of its 0.57% stake in Rosneft was $183 million as at shut of buying and selling on Feb. 28, the corporate mentioned.
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