Russia-Ukraine War Shakes Global Markets Across Sectors

(MENAFN) The Russia-Ukraine conflict, now entering its fourth year, has disrupted global markets across industries, from agriculture to tourism, energy, transportation, and logistics.

One of the most notable effects has been on the global energy sector, where both Russia and Ukraine hold significant influence. The war has underscored the fragility of supply chains during the post-pandemic recovery and revealed the world's reliance on key sectors.

Prior to the conflict, Russia was responsible for approximately 14% of the world’s oil and 9% of its natural gas supply. It was the EU's top natural gas supplier, holding a 40% market share, supported by decades of investment in pipeline infrastructure.

However, since the war began, Russia has been overtaken by other liquefied natural gas (LNG) providers, including the US, Qatar, and Norway. In 2023, Russian gas exports to the EU plummeted to 15 billion cubic meters (3.96 trillion gallons), a stark decline from 201.7 billion cubic meters (5.3 trillion gallons) in 2021.

This drop is mainly due to the shutdown of key pipelines that previously carried Russian gas to Europe, including Nord Stream 1, Nord Stream 2, and Yamal-Europe, all halting shipments from Ukraine as of January 1 this year.

Now, the TurkStream pipeline is the sole remaining route for Russian natural gas to reach Europe.

In contrast, the U.S., which was exporting roughly 17 million tons of LNG annually before the war, boosted its shipments to the EU to 50 million tons in 2023.

To mitigate the loss of European markets, Russia is increasingly turning to Asia, particularly China, as a destination for its natural gas. This is being facilitated through the Power of Siberia pipeline, and Gazprom, Russia's state-owned energy giant, plans to enhance this by launching the Power of Siberia 2 (Altai) pipeline to further increase exports to China.

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