Drip No More? 🛢️

Table of Contents

Drip No More?

Although the Ukraine war has affected the entire world, no one has had to weather the storm like Europe. The European Union and Russia had many economic links despite the coldness between them, but all of those were cut just as Russia made its first steps into Ukrainian soil. The EU’s GDP exceeds Russia’s by an immense margin, with some of its member states outpacing Russia. Despite this, Russia has the EU in a chokehold, and at any moment it can choose to snap the neck with the one advantage it has.

The EU is reliant on Russia for its oil and gas needs. Before the war, many nations in Europe received its energy needs through many supply routes including the Nord Stream Gas Pipeline, which stretches from Russia to Germany across the Baltic Sea. From Germany, the gas would be used to provide energy to parts of the European Union, and this kept the European economy running smoothly. The pipeline was not shut down when the war started, but Russia has cut supplies to many countries, with one of the exceptions being Germany, which distributes on to neighboring countries. Russia has been attempting to use it as leverage, and it might lead to economic doom for Europe.

Last Monday, the Nord Stream Pipeline shut down for annual maintenance and is scheduled to finish in 10 days. Europeans fear that Russia will extend the maintenance by whatever means necessary, and if supplies aren’t switched on by Thursday, then the European Union will face a horde of problems. Energy rationing would have to occur, and prices would skyrocket so that stockpiling can increase to meet the demands expected this coming winter. Germany’s reliance on Russian energy for its economy is the killer: their petrochemical and manufacturing industries are key to the highly interconnected European economy, and rations are likely to hit them first to provide energy to citizens and hospitals. Supply chains would be destroyed, and it would increase the chance of recession in Europe, which would affect the world.

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.