Ukraine/Russia

Chinese sanctions would be a warning versus a slap

24 Mar 2022

The White House vowed consequences if the People’s Republic helps Russia evade restrictions. It requires a delicate jig to avoid pushing the pair closer. Penalties, such as secondary sanctions, may be narrow at first but could quickly ratchet up beyond past punishment playbooks.

Total becomes unlikely Russia sanctions poster boy

23 Mar 2022

The French group has belatedly started to pull out of its Russian business. Although it’s not selling local assets or exiting gas, it will stop buying oil. That strengthens the private-sector boycott of Moscow’s crude and puts pressure on governments to take tougher measures.

On the Ukraine refugee crisis, watch Canada

22 Mar 2022

The country that claims the second-largest Ukrainian diaspora has already done more than its southern neighbor to help those fleeing war. Unlike trade, immigration is one area where Ottawa has clout. Canada could prove an example to countries far removed from the crisis.

Ukraine truce or not, pre-war order is gone

22 Mar 2022

Investors are cheering any progress in talks between the country and invading Russia. But even if the fighting stops, the West won’t lift sanctions right away. Relations with Russia will take years to mend. And Europe will still crank up investment in energy security and defence.

Russians lose private banks’ golden goose status

21 Mar 2022

Spooked by sanctions, wealth managers are treating all Russian clients as suspicious. That limits the scope to offer lucrative loans or new products to customers who have $213 bln stashed in Swiss banks. Higher compliance costs will turn them from cash cows to financial baggage.

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.

M&A bankers, like cockroaches, survive everything

17 Mar 2022

Two years ago, top consiglieri convened in New Orleans days before global lockdown. The pandemic in the end didn’t dent business. This week’s convention, the first in person since then, comes with the backdrop of war in Europe. Bankers still have ways to keep the deals coming.

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.

EU energy crisis is a 130 bln euro joint problem

17 Mar 2022

That's how much it could cost to wean the bloc off Russian gas, at a time when energy bills are already soaring. States could tax energy companies or draw unused pandemic loans to offer subsidies. Common grants look like a better option.

Frozen Russia investors can copy hedge fund trick

17 Mar 2022

Many asset managers with exposure to Russian stocks and bonds have locked their funds. One solution is to park illiquid assets in a separate vehicle – a tool known as side-pocketing. But before approving the move, regulators should ensure it’s not an excuse to charge extra fees.

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.

Gas guzzlers face reckoning from Ukraine shock

14 Mar 2022

Prices of raw materials and fuel have soared after the Russian invasion. That could push drivers to swap big cars like the Jeep Wrangler for more energy-efficient rides. With big vehicles currently bringing in roughly half of sales, that’s a problem for the $4 trln auto industry.

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.

Renault’s Russian options range from bad to ugly

14 Mar 2022

The French carmaker dominates the local market and owns the country’s largest auto factory, which it cannot operate or sell. Its association with Rostec, a key defence player, is an added headache. The 40% drop in Renault’s share price in the past month points to broader damage.

Review: UK corporate servants neglect their manor

11 Mar 2022

The country has become a concierge to the globe’s shady rich, Oliver Bullough argues in “Butler to the World”. Kleptocrats benefit from amenable bankers, assertive lawyers and pliable politicians. But the flow of cash erodes the foundations that make the destination so appealing.

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.