Militarization of the West, green energy boom and microchip shortage: analysts predict the consequences of the war in Ukraine

Article Republished By Javier Troconis

The role of NATO as the main guarantee of military and political deterrence of Russia will inevitably grow, as will the military expenditures of its members. For many years, they have been economizing on defense spending, allocating less than the recommended 2 percent of GDP. Since the outbreak of the Ukrainian conflict, several countries have announced plans to increase this figure even above the target. Germany alone is going to allocate an additional €100 billion for the upgrade of its armed forces, which is half again as much as Russia’s total known military expenditures for the year.

The growing military threat is also reflected in cyberspace. Digital security challenges are rarely discussed in the context of the armed conflict in Ukraine, but according to the consulting company KPMG, businesses and government agencies will have to respond to much more complex and frequent cyber threats in the future. Boston Consulting Group analysts note that Russia’s capabilities in the field of hostile cyber activities aimed at physical and digital infrastructure far exceed its economic, military and diplomatic leverage. Hence, there is a high probability of the Kremlin using cyberattacks to cause damage to, or influence the actions of, Ukraine’s allies.

A blow to the chip market

Before the war with Russia, Ukrainian companies supplied the world market with approximately 50 percent of the neon needed for high-precision laser systems that produce microchips. Semiconductor manufacturers in the United States received 90 percent of their neon from Ukraine.

Ingaz, Ukraine’s largest neon producer, had its production facilities in Mariupol, which has been virtually razed to the ground by Russian troops and the DNR and LNR militias.

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