That’s what Citi was reporting some “people” believe in a commodity report this week, albeit the investment bank also notes “there are others who believe that they will ‘only’ be as transformative as either the end of the Cold War or the aftermath of 9/11”.
The reason the Russian invasion is seen as so “transformative” is Russia’s influence on markets.
“Russia’s central role in global commodities both in depth and breadth is so significant that whether in terms of consumer inflation expectations, or supply chains for such critical substances as neon gas or titanium, or costs of goods supplied by Russian mines, or indeed inters of shrinkage of Russian market opportunities, the conflicts underway will be transformative,” Citi said.
The major change in the market vista with the Russian invasion is compounded by an energy transition also underway.
“For plus-160 years the model of global growth has been based on the ample supply of cheap fuels, generating power, fuelling transportation, providing the bases of industrial and agricultural processes,” Citi noted.
“Now much of the world has committed to undo all of that in 30 years.”
