Fallout of the Ukraine crisis on tire production and material supply chains

Circular Economy & Remanufacturing

How production stoppages, surging commodity prices, and international sanctions are creating disruptions in the global tire market while simultaneously driving demand for sustainable tire materials

On 24 February 2022, Russian forces initiated military operations in neighboring Ukraine, provoking a massive international geopolitical response aimed at financially isolating the country’s economy from the rest of the world. Western governments have since initiated wide-ranging sanctions that have cut off the country’s supply chains while simultaneously causing a large-scale exodus of international businesses from the country. While negotiations calling for a diplomatic solution to the crisis continue, the supply chain corrections initiated by stakeholders in the automotive industry are likely to have macroeconomic ramifications with effects that will be felt long after the conflict is over.

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