Following Russia’s military operations in Ukraine, Finland and Sweden had declared their intention to join NATO for security reasons. Both countries has always maintained a neutrality status prior to now.
However, Moscow has shut off their gas supply to Finland following Nordic countries unwillingness to pay for gas in Roubles as demanded by Russia. With Finland likely to directly incur the Kremlin’s full awe by breaking neutrality, investors are afraid geopolitical crisis may spit into the Baltic country. Expectedly, Finnish bonds are beginning to tank as uncertainty and political instability means EU countries with stable political environment gets the juices.
“It’s a combination of high inflation and rate hikes and the geopolitical uncertainties that have mostly affected [new bond issues] in the Baltics and Finland”André Küüsvek, chief executive of the Nordic Investment Bank.
Russia warned that there will be consequences for the NATO alliance if it goes through but didn’t speak further on the issue. Again, Turkey is also pulling it’s wait to deny the NATO membership because Finland harboured Kurdish nationals.
Finland may want to punch beyond it’s wait but the fate of Ukraine is very much fresh and the Finnish authorities are expectedly not inclined to follow the path of destruction from unnecessary escalations.
“If you’re in a negative mental state, you see risks and drama everywhere and the [spilling over of the war] is an easy one to focus on.”Greil Castro
Finland is not the only EU country hit hard by the rising cost of living. The Russian gas cut off has expectedly sent prices skyrocketing across the world because everything practically runs on energy, especially the transportation of goods and materials.
Photo Credit: OLTNEWS & S&P Global