Russia’s “special military operation”—the Kremlin’s legally sanctioned term for the country’s invasion of Ukraine—was a turning point for the lubricants market in Russia and the surrounding region. But the effects of the invasion have proven to be far-reaching and have effectively extended to touch the global lubricants market as well.
Occurring at a time when the world economy was already on volatile footing due to the COVID-19 pandemic, countries around the globe were unprepared for Russia’s war in Ukraine as well as the fallout from the subsequent Western campaign of harsh economic penalties leveled against the administration of President Vladimir Putin.
These sanctions quickly ushered in additional disruptions in food and energy supplies, especially in Europe, that are still being felt today. These include but are not limited to rising inflation; unstable logistics; high fuel, lubricants and base oil prices; and increased shortages of many other commodities.