We have published a special report on “The Toy Intelligencer.” Entitled “The Impact of the Russia-Ukraine War on the Toy Economy,” it details some of the current and coming fallout on U.S. toy and toy-related stocks, the impact on input costs, and the effect on Russian toy companies and retailers.
Here is the opening to the report:
The ongoing war in Ukraine has had an emotional impact on many of us. Russia’s all-out invasion of Ukraine provides images in Europe that have not been seen since World War II.
Beyond the visceral impact, what is the economic impact on the global toy industry? Here are my observations:
Russia is a major exporter of petroleum, exporting roughly 5 million barrels of crude oil per day. Ironically, one of Russia’s major pipelines to Europe runs through Ukraine. As a result, we can expect disruptions in oil flow out of Russia. We can also anticipate that countries currently importing from Russia will punish it by securing petroleum elsewhere.
As a result, we can anticipate oil prices to rise. According to a New York Times article by Jeanna Smialek and Ana Swanson, the cost of oil, currently at $105 per barrel, could reach $120 per barrel.