Putin’s plane heist signals dark days ahead for Russia’s people
Amongst the humanitarian carnage unleashed on Ukraine by Kremlin tyrant Vladimir Putin, what interest should there be in a bunch of expropriated planes? That more than five hundred airlines, owned by leasing companies predominantly based in Ireland, could soon become the (stolen) property of the Russian state is hardly the most pressing issue. But what it does do is demonstrate the damage that Putin is doing to his own people, as well as those unfortunate enough to be in his crosshairs.
As we wrote in this space yesterday in reference to the mansions of Russian oligarchs, property rights are a very valuable concept. When governments start ignoring those – expropriating property, impounding airlines – it makes it very difficult indeed for any business to feel confident doing business in that country.
And right now, it is hard to see any business going back into Russia anytime soon.
This disastrous, mis-managed invasion will have a lasting, miserable impact on the Russian people for a long time yet. And as we have learnt time after time, economic destitution leads to political extremism.
As the West scenario plans for what may come after Putin’s war in Ukraine, it must bear in mind that no matter what you think, there is always the chance it could get worse.
The fate of those planes points to another vital, but often overlooked, segment of the global economy that only gets noticed when things go wrong: insurance. Underpinning global commerce and transactions, the insurance industry in London remains one of the jewels in our collective crown. It may not bring in the same salaries as banking nor have the sex appeal of fintech but the value of London’s insurance industry can never be understated, for it allows businesses to take risks. Insurers will likely take a mighty hit if the Kremlin seizes those planes, but they will also play a vital role in restoring confidence in emerging markets when this is over.