Chapter 1: Michelin's Exit from Russia

As of May 26, 2023, the prestigious French tire manufacturer, Michelin, has officially announced its departure from the Russian market.

According to sources, Michelin has finalized an agreement with local entities—namely, the Russia Tyre Manufacturing Company (MRTMC) and Camso CIS—to facilitate the sale of its tire business in Russia to Power International Tires. The tire plant, established in Davydovo since 1997, is now left behind due to the stringent sanctions imposed by the United States and the European Union in response to Russia's military actions in Ukraine.

The political landscape in Russia is shifting, with intentions to reshape industrial strategies that align with an "anti-West" stance. Geographically, the country's raw materials are predominantly located in areas vulnerable to supply chain disruptions caused by sanctions, prompting a push for greater "sovereignty" over global commodities.

This drive forms a critical part of Russia's geopolitical strategy regarding global commodities, mirroring China's similar objectives in this domain. Both nations are poised to potentially dominate raw materials in some of the world's most precarious regions.

In the current global scenario, the demand for commodities—often criticized as leverage for hostile governments—raises significant questions about foreign policy implications. What commodities are at stake, and against whom are they being wielded?

Living in this context can be unsettling, as the urgent need for raw materials and energy is heavily influencing the foreign policies of numerous countries, both developed and developing. I have previously explored how nations and corporations are shaping their industrial policies around oil and gas in anticipation of future energy transitions.

If you haven't been tracking energy markets this year, you've missed valuable insights into market volatility and geopolitical shifts. For more detailed analyses on how sanctions against Russia are elevating global commodities on the geopolitical stage, check out the publication "Areas & Producers: Russia Sanctions and Their Impact on Industrial Policies and Energy Cooperation."

Chapter 2: Understanding the Broader Implications

The current climate of international relations is increasingly complex, especially as it pertains to energy resources and commodities. The repercussions of the Russia-Ukraine conflict extend beyond immediate political concerns, influencing global economic strategies.

Curious about the cultural and intellectual dimensions of these shifts? Explore the insights from this publication's authors as they delve into the interplay of geopolitics, future industrial policies, and advanced technologies.

Stay informed with The Weekend Brief (TWB) newsletter, where you can keep up with developments in publicly-traded companies that straddle the intersections of technology, industrials, and global commodities.