November 29, 2022

Dubai Week

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Russia's war in Ukraine marks the end of globalization

Russia’s war in Ukraine marks the end of globalization

The head of BlackRock, the world’s largest asset manager, said the Russian invasion of Ukraine had put an end to globalization.

The company’s CEO Larry Fink said in a statement:Partition of Russia In the wake of its attack on Ukraine on the world economy, it has prompted governments and corporations to consider the dependence on other countries.

The Russian invasion of Ukraine has put an end to the globalization we have seen over the past three decades, ”he added.

The CEO of the company that manages $ 10 trillion in assets predicts that Russia’s loneliness will “provoke companies and governments around the world to reevaluate their dependencies and re-evaluate their production and assembly effects.”

But he said some countries could benefit by focusing on building their local businesses. He pointed out that the effects of the corona epidemic were strongly encouraging local industries and production.

In the early days of the epidemic, nations struggled to protect much-needed personal protective equipment made in China. As economies reopened – as demand increased – supply chain barriers helped push inflation to a decades-old low. The shortage of semiconductor chips in particular has hit the industry over the past year, and the crisis has spread from automakers to technology companies.

Currently, Russia’s invasion of Ukraine, followed by rapid sanctions by Western countries and the withdrawal of companies from the Russian market, have destabilized international export markets.

Global Brent crude rose by more than $ 139 a barrel in early March as buyers feared supply shocks, despite a subsequent fall in oil prices.

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“Energy security is a key global priority in energy transformation,” Fink said. Coal consumption is expected to increase next year as Europe and Asia try to distance themselves from Russian oil and gas, making higher energy prices more renewable and more competitive.

“In the long run, I hope recent events will really accelerate the transition toward clean energy sources in many parts of the world,” Fink wrote.