Tokyo gets helpful shove from unhelpful war 21 Mar 2022 Other nations bewail the prospect of $150 oil barrels, but inflation won’t cripple Japan where price growth remains tepid. Russia is a negligible export market for local companies, and the war has already given officials an excuse to restart nuclear plants and end pandemic lockdowns.
Future militaries will be pricey and fully loaded 18 Mar 2022 Western armies may get an extra $100 bln a year to counter Russian aggression. Orders for tanks, missiles and bombers have boosted defence stocks like Britain’s BAE and Germany’s Rheinmetall. NATO allies will also need more soldiers and revamped nuclear arsenals.
Hot war thaws formerly frozen trade routes 17 Mar 2022 Algeria shunned imports of French wheat in a diplomatic row. That has changed because of shortages after Russia invaded Ukraine. The U.S. has even talked to vilified Venezuela. Amid political hype about self-reliance, globalization still matters – even if it requires compromise.
Nickel gets nixed, French firms linger in Russia 17 Mar 2022 The war in Ukraine is affecting far corners of global finance. In the Viewsroom podcast, Breakingviews columnists explain how the conflict helped bring nickel trading to a halt in London. And why oil giant Total and carmaker Renault are resisting the exodus by Western companies.
Russia kicks default drama into future 17 Mar 2022 Moscow says it sent $117 mln due in bond interest payments. While sanctions made the decision painful, not paying its dues or offering roubles instead of dollars would have meant years of legal disputes and made the economy even more dependent on oil. That may still happen.
China Inc walks tightest of ropes over Ukraine 17 Mar 2022 Alibaba, Didi and ByteDance are at the pointy end of Beijing’s ambiguous position on Russia’s aggression. Others including chipmaker SMIC must tread carefully to avoid secondary sanctions. This war could accelerate the downgrade of Chinese companies’ global ambitions.
Russia punches economic hole above its weight 16 Mar 2022 The country that was a trade minnow during the Cold War became a big commodities exporter. That’s why the isolation of an economy smaller than Texas is pushing up global prices of energy, wheat and other goods. Though some countries can help fill the gap, consumers will suffer.
War crowdfunding is weapon that cuts two ways 14 Mar 2022 The $100 mln raised by Ukraine through cryptocurrencies and a central bank link puts a new spin on an old trend of outside funding for conflicts. Technology makes it easier and faster to supercharge the fight. The catch is that the tools have potential use for an aggressor too.
Refugee bonds can keep humanitarian corridors open 11 Mar 2022 Europe says 7 mln Ukrainians may flee Russia’s invasion. The 2015 refugee crisis showed migrants can boost workforces and economies. But integrating new arrivals is expensive. Impact bonds can pay for the upfront resettlement burden, limiting quarrels between host nations.
Dixon: War boosts need for “green Marshall Plan” 11 Mar 2022 The West needs more allies, not just to turn Russian President Vladimir Putin into a global pariah, but to show China what will happen if it too throws its weight around. A good way to do this is to supercharge its embryonic plan to help developing countries grow in a green way.
Russia fertiliser crisis cultivates world of pain 11 Mar 2022 The country is a major exporter of potash and urea, nutrients underpinning food security. The fallout from Moscow’s Ukraine war exacerbates a price and supply crisis. Top importers India and Brazil will be hit hard; smaller, economically weaker buyers will be even worse off.
Russian shoppers weaken case for companies to stay 11 Mar 2022 Adidas and Unilever are among those cutting back in the country. They make way for locals such as retailer Magnit and Asian consumer giants that stick around to gain market share. The effect of sanctions on disposable incomes, however, makes the financial logic less compelling.
Gauging the global backlash against Russia 10 Mar 2022 The shockwaves from President Vladimir Putin’s invasion of Ukraine are reverberating around the world. In our Viewsroom podcast, Breakingviews columnists debate the country’s isolation, the impact on Asia, Europe’s plan to wean itself off Russian gas, and the fallout for banks.
McDonald’s closure marks ending of Russian era 10 Mar 2022 In 1990, Pierre Briancon witnessed the opening of the fast-food chain’s first restaurant in Moscow. It was the surest sign the Soviet Union was dead and its economy reforming. Similarly, McDonald’s closing its 850 Russian outlets this week symbolises the country’s isolation.
Russian wheat squeeze sows seeds of global unrest 9 Mar 2022 Prices of the grain soared to record highs following Moscow’s invasion of Ukraine, a major producer. A previous spike in 2007 led to riots in Africa and Asia while pushing up subsidy costs. This time major importers like Egypt already have low reserves, spelling greater trouble.
It’s time for Macron to pull Total out of Russia 9 Mar 2022 French governments usually don’t hesitate to meddle in corporate affairs. The oil major’s refusal to sell its 19% stake in oligarch-controlled Novatek suggests uncharacteristic modesty from President Macron. Given the damage to France’s reputation, this doesn’t make sense.
Ukraine speeds global rush to self-sufficiency 9 Mar 2022 Sanctions cutting off Russia’s access to chips and payments systems, plus spiking food and energy prices, will prompt governments to rethink trust in free trade, already rattled by the U.S.-China trade war and Covid-19. An inefficient protectionist era may be in the offing.
What a business sticking with Russia ought to mean 8 Mar 2022 Companies’ decisions to stay or leave have been inconsistent. If they benefit Moscow's coffers or the elite, like firms that deal in oil or luxury goods, it’s a no-brainer: they should go. But if they sell to the masses or employ them, the choice may legitimately be harder.
U.S. Russian oil ban ineffective without partners 8 Mar 2022 Russia produces about 10% of global oil. Given most of its exports go to Europe and Asia, an American import ban is relatively economically easy, especially if other unpalatable foreign policies are considered. But hitting Russian pockets needed much greater coordination.
Russian debt coin toss will get harder to call 8 Mar 2022 Gazprom and Rosneft are repaying bonds despite fears Moscow may renege on its own debt. The depressed prices of Russian corporate debt mean investors who rightly bet on repayment can double their money. Yet rising tensions and murky workouts mean the trade will get riskier.