The fifth package of sanctions affected the chemical industry, Western suppliers are banned from importing many goods into the Russian Federation.
First of all, highly specialized branches of chemical production will be under attack. However, Russian manufacturers will be able to produce most Western goods themselves or with the help of Chinese suppliers, although it will take time to establish new trade links. But for some products, it will be quite difficult to find an alternative in the near future. This applies in particular to the range of specialty chemicals.
The fifth package of sanctions affected the chemical industry, Western suppliers are banned from importing many goods into the Russian Federation. At first glance, the list looks intimidating, many supply chains will be seriously affected. However, Russia either already produces most of these goods on its own or will be able to quickly set up its own production, including with the help of China. In addition to China, there is an alternative to interacting with other friendly countries.
But it must be admitted that for some highly specialized goods it will be problematic to find a replacement for the products of Western suppliers in a short time.
The share of imports in the entire chemical industry was quite large, but especially in the production of fine processed products and engineering polymers. It is also difficult to imagine how it will be possible to replace some of the goods needed for the production of animal and bird feed (Belgian methionine, for example), or for the textile industry. More importantly, catalysts widely used in oil refining fell under the sanctions. Although Russia produces 90% of catalysts on its own, some were supplied only from abroad. It will be possible to quickly find a replacement for them, but with some loss of efficiency.
The fertilizer sector will not be significantly affected by the sanctions. Russia imports this product to Europe, restrictive measures have been introduced, but not in the form of a complete ban, but in the form of quotas that correspond to the usual average annual supply volume. European countries fear that a total ban could lead to higher prices and even a shortage of this product. Prices for Russian fertilizers have already broken all known records due to rising fuel costs, so the governments of Western countries are even taking measures to stabilize them. For example, in the United States, fertilizers from the Russian Federation are recognized as essential goods. Thus, they are not subject to sanctions. It can be expected that other Western countries will soon make a similar decision.
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