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Russian stock markets are diving.




Image: https://markets.ft.com/data/world/countries/russia


Russian stock markets are diving. And that thing is a good example of how military actions are affecting the economy. When we are thinking about things like strong leadership and authoritarianism we forget one thing. In an authoritarian nation, the leased has a different position than, in a non-authoritarian nation. 

In an authoritarian government, leadership has a bigger purpose than in a non-authoritarian government. And that thing means that the words of that kind of leader mean bigger things than in a non-authoritarian nation. 

When we are thinking about the crisis there is always the possibility that the investments would be confiscated. And the other thing that causes uncertainty in marketing is the thing that being fellow with the attacker is bad for business. If there will be some kind of sanctions. That means that those investments to the nation that will get sanctions can cause problems for that investor. 

The thing is that uncertainty in the marketing means that the investors will start to remove their investments from that nation. The thing is that people are afraid the authoritarian and violent governments. And that thing means that the investments to the authoritarian nation would be a hard thing for investors. 

Threatening to use force means that other governments must react to that kind of thing. And that means there is the possibility that investments that are made to that country would be withdrawn. The thing is that the marketing statuses tell about the trust for that country. 

Things like corruption and non-predictable actions would destroy the trust. And without trust nobody makes investments. The thing is that there is the possibility that nobody buys products like gas from Russia. The reason for that might be that the customers are afraid. That Russia would cut the energy shipments. If other nations would not follow its orders. 

When we are thinking the words that Nordstream-2 pipeline is a non-political project we must remember one thing. Nordstream-2 is the thing that brings billions of Euros in Russian cash. And those billions are free to use in all projects including nuclear weapon research. This means that all energy shipment contracts have a political dimension. The problem is that if Russia attacks Ukraine, the energy shipments would be a good political weapon in the hands of Russia. 

If Russia attacks there would be problematic things. One of them is the Russian as a business partner. If the Russian government turns very unpopular in the west. That causes problems with Russian investments in western Europe. 

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