It is Day 2 of the Russian invasion of Ukraine and India may not be able to escape the economic fallout as certain commodities will get dearer.
Contents
Gas, Oil And Fuel
Experts predict a manifold increase in gas prices due to Brent crude prices reaching nearly the highest since 2014.
This has negative implications for India since the spike in Brent crude prices will worsen inflation and drive up costs of LPG, CNG and electricity.
Petrol and diesel prices are expected to rise sharply in March after the assembly elections conclude.
Edibles
The Indian sunflower oil industry is worried about the crisis delaying imports causing a hike in prices.
Ukraine is India’s biggest supplier of sunflower oil and with Russia it accounts for over three-fourths of the global sunflower oil exports.
Sunoil is the cheapest edible oil, but due to uncertainties regarding delivery the industry is turning to soy and palm oil instead.
Precious Metals
Precious metals including gold will particularly suffer due to the conflict.
Russia is the top global exporter of palladium, a metal used in automotive exhaust systems and smartphones.
Its prices are getting costlier by the day amid fears of sanctions on Russia.
Gold is getting the same treatment.
Reports say that spot gold hit its highest since June 1 2021, reaching $1,919.89 per ounce.
Other Key Metals
Other important metals that are under threat are aluminium, cobalt and copper.
Russia accounts for 6% of the global aluminium supply and its prices have risen about 15% in February.
The country also contributes 3.5% to the global refined copper production and produces more than 4% of the global cobalt supply.
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