May 22, 2022

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Billionaire Larry Fink: The war in Ukraine is the end of globalization

Billionaire Larry Fink: The war in Ukraine is the end of globalization

Billionaire and president of the company Black stonewho manages assets of $10 trillion, Larry Fink wrote in a letter to shareholders that The Russian aggression against Ukraine is the end of globalization that lasted 30 years We read in the Financial Times. According to the billionaire, the war in Ukraine will change the shape of the global economy, cause even more inflation and induce companies to withdraw from global supply chains.

The war in Ukraine will change the global economy

Fink points out though Penalties They have essentially hit Russia, isolating it from global capital markets, and may induce companies and governments to reorganize their approach to dependence on other countries. According to the president of Blackrock, changes in supply chains on a large scale could lead to another increase in inflation.

Fink did not mention the countries that may suffer from changes in the global economy only Black Rock Head He wrote that countries such as the United States, Mexico, Basil, and manufacturing centers in Southeast Asia could benefit from this. According to the Financial Times, investors see it as Asian countries They can replace China.

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See also: Will Europe cut itself off from Russian oil? “unlikely”

The war in Ukraine will accelerate the energy transition

According to Fink The search for an alternative to Russian fuel may affect the energy transition. Although initially research may slow this process down, according to the billionaire In the long run, it will accelerate the transition to greener energy sourcesdue to rising fossil fuel prices. Green energy will simply be more profitable.

Fink also argues that one cannot give up fossil fuels immediately and completely. According to the billionaire, fuels such as gas will be an important transition fuel.

According to Fink, the war in Ukraine will also affect the development of the cryptocurrency market. “Global digital payment systemBecause it is carefully designed, it can improve the settlement of international transactions, while reducing the risks of money laundering and corruption,” we read in an excerpt from Fink’s letter cited by FT.