After President Vladimir Putin called for 300,000 reservists ready to invade Ukraine, the Russian stock market crashed. The dictator was not quite demanding a national draft. But he apparently was uneasy about the Ukrainian military pushing his military back and out of areas Moscow had initially taken.
Wednesday the ruble dropped like a rock, a full 10 percent, according to the Trading Economics data. The MOEX Russia Index had already taken a hit when Moscow verified that it planned to annex all the territories it had taken during the initial invasion into Ukraine. These included Donetsk, Kherson, Luhansk, and Zaporizhzhia. Experts anticipated that the annexation process could begin next week, according to The Newsweek magazine.
Then Russian president hit his Stock Market with the final blow in a video he released addressing his nation. In the video Putin claimed that calling up the reservists could not be avoided. The reason was that the West had “crossed all lines” by supporting Ukraine militarily.
The Kyiv Independent reporter Illia Ponomarenko tweeted:
‘A couple of thoughts: – The situation with the Russian military in Ukraine is even more dire than we expected, since the Kremlin adhered to such a risky and frantic move – It will take many months to get 300k drafted – otherwise, there will be nothing but useless crowd.’
Trading Economics’ site gives 196 countries economic information. The website assured people that the dramatic plunge of the Russian stock market was in direct correlation with the Russian president’s “first mobilization since World War II.”
In President Joe Biden’s address to the United Nations on Thursday. There the president remarked, as MSNBC reported:
‘[Putin’s atrocities and war crimes] are extinguishing Ukraine’s right to exist…Our sanctions explicitly allow Russia to export foods and grain.’
Putin’s current campaign intended to flood Ukraine with 300,000 more soldiers, the most since he began his invasion, according to TASS, which is the Russian’s muted equivalent of the Associated Press (AP). The Russian president called for anyone with “military experience to step forward.” They would be sent to link up with soldiers already in his neighboring country:
‘Vladimir Putin speaks during the concert marking the 100th Anniversary of Karachay-Cherkessia, Adygea Republic and Kabardino-Balkarian Republic, at the Grand Kremlin Palace, September 20, 2022, in Moscow, Russia. Russia’s stock market crashed on Wednesday after Putin announced a partial mobilization.’
Should Moscow manage to annex those areas of Ukraine, Putin said that any attack on them should be considered an attack on Russia:
‘If the territorial integrity of our country is threatened, we will certainly use all the means at our disposal to protect Russia and our people. This is not a bluff.’
Trading Economics wrote that “the possible escalation of the conflict” most concerned potential and current investors:
‘This ongoing “offensive action” by the Wagner Group near Bakhmut, where they spend months to seize a couple of local hamlets, makes ZERO sense. Especially now that Russia has lost its Izium axis against Donbas. They’re literally wasting their cannon fodder for absolutely nothing.’
Putin continued to undermine his economy by announcing:
‘[Russia] will tax exports to raise 3 trillion rubles (over $49 billion) to cover its incoming budget deficit.’
Early into Russia’s invasion of Ukraine, economists worried about the impact of sanctions on Moscow’s economy. Europe and North America continue to squeeze the invader’s economy. Oil and gas are the main lines that run the Russian economy. And those sanctions are beginning to hurt. In the meanwhile, European countries have been seeking alternative energy sources.
Could the Russian Stock Market crash be what finally does Putin in?
Featured image is a screenshot via YouTube.
In Gloria Christie Reports & Three White Lions Substack newsletters. Christie is a political journalist for the liberal online newspaper The Bipartisan Report. Gloria Christie Report her newsletters are for people on the go. Written in her own unique style with a twist of humor in a briefer version of Bipartisan Report. Christie’s Mueller Report Adventures In Bite-Sizes a real-life compelling spy mystery (in progress). Find her here on Facebook. Or at Three White Lions her book on Amazon Kindle Vella.