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April 7, 2022

Ukraine crisis: Where is trade most likely to be disrupted in the military industry?

Russia's invasion of Ukraine has large-scale implications for trade in the defence industry.

By Data Journalism Team

The Russian invasion of Ukraine has had large knock-on effects on global trade. Energy prices have spiked, and the sharp rise in wheat has prompted fears of a food crisis.

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Although rising energy prices already have a knock-on effect on many industries, oil, gas and wheat aren’t the only items traded out of Russia and Ukraine. Many nearby nations will also be feeling direct supply chain disruption in other industries, including the military industry.

Trade with Ukraine has become more difficult as supply lines have been blocked, and many industries have struggled due to bombings and a lack of labour as people have fled the country or joined the military.

Many countries and companies have also ceased trading with Russia, either due to sanctions or business choices. However, not all countries will have ceased trading.

What are the main commodities traded with Russia and Ukraine in the military industry?

Not including trade between the two nations, within the defence sector, around 0.1% of global imports of arms and ammunition, parts and accessories thereof comes from Ukraine. Looking at global exports to Russia, the most-traded commodities are arms and ammunition, parts and accessories thereof (0.3%).

Which countries' military industry could be most affected by the war?

When it comes to the military industry, the country that has the largest proportion of imports from Ukraine is Georgia, at 99.1% of the country’s military industry imports worldwide, followed by Mongolia (5.7%), and the United Arab Emirates (3.5%).

The countries that import the most from Russia are Georgia (75.7%), Angola (44.3%), and Egypt (25.4%).

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