The folly of investing in Russian peace talks
Plus: California’s new deal with insurers
In today’s edition:
— Why Russian peace talks are not the next big market play
— California’s new deal with insurers
— Mystery of the disappearing green crabs
— How snow farming is keeping ski resorts open
— Data driven: swirling clouds on a roll
Even in the best of times, investing in Russia carried high risk and enormous pitfalls. Its stock market would rise one year and collapse the next. Entrepreneurs could see their share of partnerships suddenly seized or their partners arrested.
So expectations that peace talks with Russia will yield a bonanza of re-investment from Western companies and investors are significantly over-optimistic.
Turning back up oil and gas flows to Europe, which Vladimir Putin had dangled ahead of his talk with President Donald Trump this week, also carries risk. It sets back the work that renewable energy companies have done to step up in the absence of Russian energy in the past three years. And it returns Europe to the hostage situation of having to swing with the whims of Russian energy providers like before the Ukraine invasion.
Whatever peace talks — or peace agreement — there is will only mark the beginning of a new phase of Western markets having to deal with Russian political risk.
Investors have seen this movie before. Now is not the time to forget.
Don’t forget to contact me directly if you have suggestions or ideas dcallaway@callawayclimateinsights.com.
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