Ukraine War Impacts Russia Coatings Market

When Russia invaded Ukraine on February 24, the world watched with increasing shock and dismay. As a result of the invasion, many corporations have decided to (at least temporarily) pull their business out of Russia.

This month our Russia correspondent reports on the effects of the Ukraine war on the paint and coatings industry. The Russian invasion of Ukraine is expected to hit the coatings industry, with supply disruptions and decreased demand for automotive, marine and aerospace. He reports that as many as 400 Western companies have pulled out from the county at the time of writing.

In the first week of the war Volkswagen, BMW, Renault, Mercedes, Hyundai, Toyota and Ford Sollers suspended vehicle production at Russian factories. Some forecasts suggest that the entire automotive industry in Russia may have to halt operation soon due to Western sanctions, logistic issues and a lack of components.

Paint and Coatings Companies Leave Russia

Several major paint and coatings companies have decided to sever ties with Russia as a result of the invasion.

Jotun has decided to suspend its operations in Russia until further notice, the company said in a statement on its website.

“We have been operating in Russia for a long time. We have a good team and a modern production site there. However, based on an overall assessment, we now find it both right and necessary to shut down,” Morten Fon, Jotun’s president and CEO, said.
On March 1, Hempel also said it had taken the decision to suspend its operations in Russia until further notice.

“Earlier this week, we proactively suspended all deliveries in and out of Russia and stopped taking new business in Russia. We now take the next step of halting our operations completely,” the company said. “As always, safety is of paramount concern and we are working with our Russian colleagues to complete the safe closure of our production facility in Ulyanovsk.”