Every conflict has a price

For last couple of weeks everyone was looking with the feel of anxiety on everyday news about current situation in Ukraine. Yes it is true that they have bought their freedom by blood but it was not end of the story. Since the puppet Janukowytsch was overthrown something had to be done by the puppet master which was the great Mother Russia who decided suddenly to protect their “citizens” and Russian speaking part of the Crimea population. But when we look deeper to this problem we can see that Crimea is an important for Russia from geographical point of view. Why? Because if there is something that Russia lack is the access to the sea, it is landlocked and what does it mean? It means that it has limited access to world markets, besides Sevastopol is a great place to create for a naval base. 

Since the tensions between Ukraine and Russia was growing, every country of Western World decided to help to stabilize situation. In my personal opinion not because of the ideas of “freedom” or “democracy” but to prevent the spread of conflict and they succeeded  in some way. But what about the prices of the conflicts? That is a good question because according to the Wall Street Journal the threat of sanctions shuddered Russian economy, the price of Rubel (Russian currency) has dropped significantly and the Central Bank of Russia had to sold $10 billion dollars to save their currency (it is 2% of foreign currency reserves and gold of Russia). At the same time in London, stocks of Gazprom had lost 17.5%. CBR had to raise the interest rates from 5.5% up to 7%. It means that basically it was an extremely large sale of every Russian stock. So who lost in that? Clearly oligarchs who are carrying interests outside Russia and in my opinion the biggest loser of this situation is Vladimir Putin who certainly made a fool from himself with his speech earlier, but apparently he did not care less and something is telling me this is only the beginning of problems in Eastern Europe. 

Jacek Bazis

 

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