Economic Fears and War

It would seem that European fears of the damage done by properly thorough economic sanctions against Russia for its invasion and occupation/partition of Ukraine might be overblown. As has been suggested before.

French bank Société Générale SA said Wednesday that a €525 million ($731.26 million) write-down on its Russian business pushed first-quarter net profit down 13%, while Carlsberg A/S and Imperial Tobacco Group PLC both said that falling sales in Russia and a weak ruble had cut profit and would weigh on revenue for the remainder of the year.

“Net profit down,” “cut profit.” Sounds like profits remain. Pretty small potatoes in some circles of sacrifice. That 13% drop for Société Générale, by the way, is to €315 million ($438.76 million) from €364 ($507). The pain…. And

Russia today accounts for only about 5% of the group’s total revenue….

The “damage” done Carlsberg and Imperial Tobacco is similar.

It’s true enough that Europe’s energy enterprises—especially Germany’s—that depend on Russian oil and gas will be hit harder, as well as those enterprises’ customers. But this is a wakeup call concerning the wisdom of depending on an aggressive and territorially acquisitive Russia for much of anything.

It’s an easily enough remedied situation, too, if time consuming.

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