Who makes money from the Ukraine war? (How to use it to your advantage)*
Welcome back to our channel, today’s video is all about the ongoing battle between the two largest nations in Europe Russia and Ukraine. You will be amazed to know that’s this battle is not a new one, it’s going on since 2014 when Russia annexed Crimea. You can watch here the details about Russia’s Annexation of Crimea. Since then both countries are at War. On 24th February 2022 Russia escalated the war, and opened an attack on Ukraine’s mainland, which led to the worst refugees crisis in Europe ever, the battle is still going on, and people are still dying, but, there are people who are getting benefitted from it, there are leeches making profits from the ugly ware, so let’s see the full video for more details.
In the battle, Ukraine has been portrayed as a victim of Russia’s atrocities and received help from several nations. The Belgian government announced it would contribute €8 million worth of non-lethal equipment for the Ukrainian army through NATO’s Comprehensive Assistance Package, Denmark has provided military aid worth €400 million from February to August, French President Emmanuel Macron announced plans to create a fund worth 100 million euros to buy arms to support Ukraine directly from arms manufacturers; you must have listened to these headlines of the news, and you might have also questioned yourself, how much money is involved in this war? Belgium, Denmark and France are just a few names, there are many more countries that provided Ukraine with military aid.
Now consider where such a large sum is going. Have you heard of Raytheon Technologies, Lockheed Martin, Boeing, or Saab AB, which control large portions of the world’s weapon industry? Some of them are also government-backed. All funds will be credited to such companies for weapon procurement. These weapons will be used in Ukraine’s defense against Russia.
Simply looking at company growth since the beginning of the war, a few reports that came out on March 10 say that Lockheed and Raytheon shares are up by around 16% and 3%, respectively, since the invasion. BAE Systems, the largest weapon manufacturer in the UK and even Europe, was up by 26%
Not only is the weapon industry profiting from this battle, but there are numerous industries profiting from it as well; they don’t care about the humanitarian crisis that is sweeping Ukraine; they are only concerned with their own profit.
Can you see how companies from various industries are making a lot of money? Coal companies and offshore drilling companies have performed the best in this field during the geopolitical crisis, with a 42% increase in market value. In a report analyzed by the Center for Research on Energy and Clean Air, it has been revealed that Oil companies mostly from Russia have earned a huge profit, another research organization based in Helsinki stated that Russia has earned 97 billion dollars from oil exports.
Another sector that is going high in this battle is the Agriculture sector, agriculture commodity traders have observed 10 % growth in market capitalization within the two months of the War, even after seven months after it is still rising, Ukraine crisis has disrupted the entire market structure, as most of the European countries were dependent on them for Wheat Supply and also other agricultural commodities. Recently, we have heard the news about the attack on cargo shipment by the Russian troops that were carrying agricultural products to Europe. Because of instability in the market, and broken supply chains, this industry is going high
It has also been reported that agricultural traders are promoting food system disruption in order to profit from it. Whatever the reason is, we all know that during a battle, the price of agricultural products will rise because food is more important than anything else.
As we have stated earlier that Russia-Ukraine war has created the biggest refugee crisis in Europe, and that led to the growth of the hospital and hospitality sector. This sector is doing exceptionally well this time; a report published just two months after the battle stated that this industry had experienced 9% growth in such a short period of time.
Now we all know that war is not beneficial for mankind but still this is not the only battle we see every day. Everyone is fighting their own battle, a battle with their past, a battle for a better life. So let’s see how we can use this battle as an opportunity for our growth.
If you are a stock market investor, this can be a really good opportunity to make some gains, even if you are not someone who invests in the market, we would suggest that this is the time to start.
We can put our money into growing sectors such as healthcare, food, and defense, especially the defense sector. Throughout the war, we have seen how the majority of nations around the world have boycotted Russian companies. So we can use this as an opportunity to find alternatives to the largest Russian companies that are doing well everywhere else in the world and buy their stocks. With the increasing conflict, these companies will grow and so will our money.
Just think of what alternatives can you find for Russian companies such as Aeroflot and Siburl, the two most important Russian companies, make sure to do your research and let us know in the comment section about your investment decisions. This brings us to the end of this video, We hope you enjoyed it, don’t forget to subscribe to our channel to watch more amazing videos like this. We will see you in the next video. Good Bye.
