RUSSIA – UKRAINE CONFLICT: THE GLOBAL COCOA MARKET AND FACTORS TO WATCH OUT FOR
The Russian Federation and Ukraine play an integral part in the global economy as both are major exporters of commodities (crude oil, natural gas, different metal ores, etc.) as well as being important actors within the global agricultural sector (wheat, fertilizers, edible oil etc). The halt or even a reduction in the exports of one of these commodities will fuel inflation on a global scale which will add up to the inflation resulting from the supply chain disruptions still caused by the COVID-19 pandemic. Nevertheless, at this junction, it is difficult to evaluate the economic and financial impact of the conflict. It is unknown how long it will last; when the current sanctions will be lifted; and whether other sanctions will be imposed. These tragic events and their global economic spill-over effects will also have an impact on the world cocoa market.