The War in Ukraine and European Import Substitution: Effects on Supply Chain Sustainability

Supply chains between Ukraine, Russia and Europe have been affected either by fighting or political sanctions. European governments and firms are looking for alternative suppliers. However, the German and the planned European supply chain laws require adherence to minimum social and environmental standards in procurement. These requirements provide the background for this paper. It investigates 18 major products exported by Ukraine and Russia to EU27 and it identifies potential alternative suppliers. For each product group, the sustainability profile of the potential supplying countries is assessed. This analysis provides governments and firms with a tool to identify supplying countries that improve European supply chain sustainability.