Why Ukraine's Infrastructure, Resources Are Pivotal To The Global Economy

At first glance, the recent disruption of the Ukrainian economy may seem like it would have minimal impact on the U.S. or the global economy. But while Ukraine's GDP represents less than 0.2% of the global economy, its key roles in producing some important materials may soon start making life difficult for companies around the world.

The data below is sourced from The World Bank and U.S. Farmers and Ranchers Alliance.

Materials And Infrastructure: Ukraine is Europe’s number one producer of uranium ores. It's also home to the second-largest titanium reserve in Europe and has the second-largest explored reserve of manganese ores in the world.

Uranium, titanium, and manganese are used in producing electricity, aircraft, spacecraft, missiles, iron, steel, and many more significant industrial products and materials that are critical to the global economy.

Related Link: 7 Best Metal And Mining Stocks To Buy

Ukraine also plays a central role in the global defense industry and is the ninth-largest exporter of defense industry products. From an industry infrastructure standpoint, Ukraine is home to the fourth-largest natural gas pipeline in the world, the eighth-largest nuclear power plant network and the eleventh-largest railroad network.

It's also among the four largest exporters of critical industrial materials like iron and clay.

Agricultural Impact: Ukraine is the world's 35th most populated country, but it's ranked fourth in the world in total value of its natural resources. It's particularly rich in coal and has the world's seventh-ranked coal reserves by value. Ukraine is the second-largest country in Europe by area, but it has the most arable land area of any European nation, making it critical from an agricultural standpoint as well.

Ukraine is the world's top exporter of sunflowers and sunflower oil, the second-largest barley producer, the fourth-largest potato producer and the fifth-largest rye producer. All together, Ukraine can meet the food needs of roughly 600 million people.

Benzinga's Take: So far, the SPDR S&P 500 ETF Trust SPY has held up relatively well since the Ukraine invasion began according to Benzinga Pro. However, the longer the conflict drags on, and the more damage is done to Ukrainian infrastructure, the more potential supply disruptions could really start to weigh on the global economy.