Russian markets battered by Western war talk

RUSSIA / FSU POLITICS - In Brief 25 Jan 2022 by Alex Teddy

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Since January 1 Russian companies have lost over USD 160 billion in value on the stock market. The RUB has slid to 80 to the USD. That is the RUB's lowest in years. Already high inflation has risen rapidly. The threat of severe Western sanctions has spooked the market.There is no doubt that Russian business executives do not like this situation. But they dare not speak out for fear of seeming unpatriotic. Billionaires are not worried. It is people below them are feeling the pinch. Many of Russia's biggest companies are semi-stated owned. They will never criticize government policy. Russia has over USD 1.1 trillion assets in Western countries. If that were frozen then it would hurt Russia very badly. Western companies also have assets in Russia but far less. So far no one is threatening to freeze assets much less sequester them. Russia also has business interests in Ukraine. There is a possibility of travel bans on many people. Russian elitists have homes in the EU and US.There is no doubt that the business community in Russia does not want war. There will probably be no war but people talking about it as a serious possibility is harmful in itself. Some of the Western accusations of a Russian buildup on Ukraine's border are overblown. Some of the units said to be on the border are hundreds of kilometers inside Russia.Russia has not called up reserves. This is another sign that war fears are overblown. Some Russians are transferring assets to to safe third countries where they will not be touched. But to say there is a blind panic exaggeration. Prolonged negotiations have calmed people a little. People have been predicting a war since November 2021. These claims seem les...