As Russia Invades Ukraine – Major Impacts for Web Hosting, DeFi, and All Aspects of the Tera and Metaverse Global Economies

Thirty-six hours ago, I published an article dedicated to the speech of the Kenyan Ambassador to the UN, Martin Kimani. I was making a somewhat delicate plea to Vladamir Putin. Just a small voice with many louder and louder voices that were out there. None were heard. My thoughts go out to the Ukrainian people, and also to many young Russians who are forced to take on a war they don’t want.

This article now focuses on trade impacts, some of which relate to Nigeria.

In a statement by European Commission President Ursula von der Leyen:

“We will target strategic sectors of the Russian economy by blocking their access to technologies and markets…weaken Russia’s economic base…freeze Russian assets…aligned with…the United States, the United Kingdom, Canada,… Japan and Australia.”

Von der Leyen also announced that he was ready to create a reverse flow of gas from the EU to Ukraine to cushion the effects of his decoupling of energy ties with Russia.

This is what caused the price of Brent Crude to jump overnight to its highest level since 2014.

While this sounds like good news for Nigeria and other African oil-producing countries, it is important to understand that this is a market “sentiment” reaction.

“Feeling” reactions anticipate something that seems likely, but hasn’t happened yet. There are simply two types of sentiment – a perception of future supply or a perception of future demand. If the sentiment turns out to be correct, the price should remain stable (sentiment has already priced in the upside).

On the other hand, if the sentiment doesn’t translate, or if other players bring something to the table (like EM countries dumping a load of product into the market to cool it down), then the price will drop again. .

High oil prices are also not universally good news for Nigeria. According to the famous discussion with Bill Gates and Mo Ibrahim, Aliko Dangote pointed out that while the oil and gas sector is Nigeria’s main source of foreign exchange and the FGN derives the majority of its income, it only accounts for 8.8% of the Nigerian economy.

Given that the sectors the masses “feed” on include 91.2% and not O&G, then if oil prices were to rise, but the FGN removes the subsidy on downstream products, while the federal system benefits from larger budgets, further hyper-inflation would ensue, plunging the masses deeper into poverty.

Again, the problem in Europe is natural gas. Crude oil is not the same thing. Although there is also a problem such as “sentiment transfer”, when this occurs, it is the products/services that most closely resemble the primary sentiment target that are affected first.

Bitcoin fell 8% to a one-month low and other cryptocurrencies wiped out $150 billion in the crypto market in the past 24 hours (Arjun Kharpal/CNBC)

Cryptocurrencies are already banned in 10 countries… Algeria, Bangladesh, Egypt, Iraq, Morocco, Nepal, Nigeria, Qatar, Tunisia and China

Prior to this conflict, Russia seemed to be leaning towards an outright ban on cryptography (source Jeff Benson on January 20, 2022 for decrypt.co), on LinkedIn, Philip Weights reports that Vladamir Putin made a “U-turn” to this subject in a few weeks.

The market “sentiment” here would be that since the major global centers of the world are going to shut down the “traditional” liquid asset movement vehicles for Russia, Russia will resort to crypto to transact. But the same actors shutting down Russia will also be prepared for this, and so a broad global consensus of multiple sovereign states will shut down crypto, not because of any dislike for crypto in particular, but simply because it is a vulnerable means of transaction to be used by Russia to circumvent other imposed restrictions.

There are many raw materials and agricultural products for which Ukraine is among the top three suppliers in the world.

On the equities front, a week ago Kiera Rawlings (Reuters) said: “Worries about a possible Russian invasion of Ukraine could fuel short-term equity weakness, but most of the fallout from the US market related to Geopolitics will likely be short-lived, if history is any guide.

One of my support services this morning expired. I know for sure that the support team is based in Ukraine.

The medium-term factor that could most affect Nigeria could be access to various remote customer and technical services.

There are a few countries in the world that have a strong presence in remote phone, online and OTT support services. They offer round-the-clock support that ranges from customer service to billing inquiries, basic sales inquiries, and technical support. The clients they represent range from conventional banks, telecommunications, electricity and utility providers, crypto exchanges, web hosting companies, DeFi providers, and a wide range of other services.

The strongest geographies for these services are India, the Philippines, and…

UKRAINE

Another support service provided by Ukraine is down. This usually responds to live queries within 1 minute.

Ukrainian operators are particularly competent in terms of technical mastery.

Ukrainian citizens have centuries of excellence in technological development, and their engineers and scientists played a central role in the former Soviet Union’s space and nuclear races with the United States of old.

There was an old adage: “If you want technological intelligence from the Soviet Union, you go to Kiev, because that’s where Moscow keeps its brains!”

As cyberattacks from Russia escalate, all global players that have Ukrainian nodes on their global data center networks and cloud solutions are particularly vulnerable to the breach.

BANK OF ENGLAND seems to think that the use of digital currency can be restricted by “programming”, but does that mean all digital currency or just the CBDC?

But as conscription begins and support officers swap their helmets for firearms in the field, the true impact on service addiction will be unknown.

Again, my thoughts are with Ukraine.

Please visit www.johnmckeown.eu

All URLs accessed on 02/24/2022

www.linkedin.com/posts/sarang-pokhare-iim-calcutta-digital-marketing-expert_ukraine-cyberattacks-all-you-need-to-know-activity-6902557395789205504-WBiT

www.linkedin.com/posts/european-commission_russias-aggression-against-ukraine-press-activity-6902542894180507648-NLtZ

ec.europa.eu/commission/presscorner/detail/en/statement_22_1322

decrypt.co/90886/bank-russia-wants-bitcoin-ban-how-other-countries

www.linkedin.com/posts/philipweights_vladimir-putin-rejects-ban-on-crypto-mining-activity-6894177763025125376-FW6z

www.Reuters.com/markets/europe/markets-churn-over-russia-ukraine-conflict-history-shows-fleeting-impact-2022-02-14/

johnmckeown.tiny.us/ukraineafrica-mypush

johnmckeown.tiny.us/decadepredictions-mypush

James S. Joseph