Analysis by Péter Goreczky
The Ukraine war and the implications of the sanctions on Russia have amplified the need for more resilient and transparent supply chains, which is expected to give extra impetus to the adoption of digital technologies both in supply chain management and in manufacturing. The crisis has the potential to catalyse the development of central bank digital currencies around the world, especially in countries that are seeking alternatives to the dollar-based international financial system. Russia and China have been actively working on the de-dollarisation of their bilateral trade flows, which could be accelerated by the current sanctions. Cutting off the dependency on Russian fossil fuels will altogether speed up the use of clean energy in the EU; however, this may generate imbalances in the green transition. The current crisis has only amplified the challenges that the global electric vehicle supply chain was already facing. The Ukraine war has further boosted the price increase of critical raw materials of EVs, which could hamper the broader adoption of the technology.
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