Comment: Impact of Russia sanctions on rubber industry

ERJ has received the following viewpoints from an industry observer:

London – Whatever sanctions the EU imposes, the impact on Russia is too small but households and entire industries in Europe are suffering with higher [product] costs, higher energy costs and disrupted supply-chains.

Ecologically there is also an impact, as only a small part of the sanctioned synthetic rubber and carbon black materials can be covered locally in Europe.

Handling around 1,000 kilotonnes of Russian material – synthetic rubber and carbon black combined – from other sources, means much more container-handling by trucks, transloading, another transport means across Europe.

Nevertheless, there is enough time, until the middle of next year, to organise the supply-chains, approvals and applications.

For now, there is enough material available – helped by a slowdown in tire production due to high inventories and unexpectedly poor winter tire sales.

So, for the moment, I don’t see price impacts because there is enough material supply.

Contributor preferred to remain anonymous