Russia Exits Black Sea Grain Deal
Vladimir Putin and Russia continues to shoot themselves in their foot on a regular basis. We talked about the issue with wheat and how they said, that’s it, no more wheat getting through the Black Sea. Again, you’re gonna get Turkey involved with this as well. And I do believe that this is gonna be short-lived. I do because again, Russia has tried to make inroads in Africa for a very long period of time and those friendships that they tried to make in Africa are going to go by the wayside if they don’t allow food from the Ukraine to get there and people start to starve. That’s the reality of the terrain. This is why I think this is going to be a short-lived, I’m going to call it embargo, whatever it may be. I think Russia is going to have to give up, or again, they’re gonna have to utilize Turkey and get this wheat out to all of these nations. We’re looking right now at another thing that Russia has been doing, especially when the war started. He’s had various different companies pull out of Russia, and we told you here, okay, you can up and leave. Russia is just gonna seize those assets and start using them. So what, some chain restaurant decides, okay, that’s it, we’re out. Okay, the chain restaurant’s still there. Somebody’s gonna take it over and start operating that. Well, Russia has stepped up this nonsense when they seized the local operations of Carlsberg, which is a brewer, and Danone, which is, again, these are two big consumer goods companies. Decree signed by Vladimir Putin, Russia placed Danone and Carlsberg’s operations under temporary management, putting them under the control of the Federal State Property Management Agency. Moves a second time, Russia has seized Western assets in the country since the Kremlin unveiled a decree in April that allows the state to take temporary control of assets of companies or individuals from what Moscow calls unfriendly states. Russian officials have said the seizures are in retaliation of similar moves by Western companies. and April Russia to control of utilities owned by Germany’s Uniper in Finland’s Forto. Again, these are hurdles that foreign companies have right now trying to get out of the country, having their assets taken. Okay, what does this mean? I talk about Russia shooting itself in the foot. God willing at some point in time, and hopefully it’s sooner rather than later, this… war is going to come to an end. And Russia continues to burn bridges like this. It’s not gonna get the type of investment it needs. It’s going to need a hell of a lot of money and companies that wanna come back into that country. But when you’re looking at that type of political risk, it’s going to be very, very hard. In many respects, this is the type of political risk. We talked about this on the program. China’s been cracking down on all these Western companies and these espionage rules and all this stuff and raiding offices and all of a sudden, Western businesses aren’t so apt to invest in these countries any longer. There are better places to go. Political risk is real. And again, I don’t know how. rush is going to end up coming back from the brink when all is said and done. Watchdog on wallstreet.com.
