The new Cold War intensifies
Business in the firing line as governments spar
- Dateline
- 2 April 2015
Forget about McDonald’s trying to outperform KFC or Coca-Cola aiming to increase sales over Pepsi. Those were the days, my friend! Lately, businesses are primarily competing against governments’ geopolitical agendas – and then against each other.
Let’s refer to the best case in point: Russia. Following the Crimean crisis, the 2014 sanctions against Russia and Donetsk have been ratcheted up, but Russia has decided that the party is not nearly merry enough yet. After banning several G20 nations from exporting certain foodstuffs to Russia, it seems that Russia is firing another warning signal.
For three consecutive days last week, Latvia, Estonia and the Czech Republic experienced power blackouts as their Russian gas supply was (dare we say, deliberately?) cut off. This happened on the very weekend that Germany’s SAP spin-off company, MGT, launched its new offices and software suite in Eastern Europe.
Needless to say, Herr Koch, SAP chairman was less than impressed. In a TV interview, he was recorded saying: “This is insane! How are we supposed to run a business if Merkel and Putin keep testing their game theory skills!” Word on the street is that president Putin wants European and US debt markets fully reopened to Russian financial institutions, but so far his plea has fallen on deaf ears.
Western capitalists are tired of taking the punches and honestly, Cold War tactics are so last century. When will pragmatism prevail over politics?
Links to related stories
- Putin’s Loss of German Trust Seals the West’s Isolation of Russia - Time, 17 November 2014
- The New Cold War On Business - Fortune, 8 October 2014
- The Other EU - The Economist, 23 August 2014
- Moscow's McDonald's Fans Not Lovin' Closure - Radio Free Europe Radio Liberty, 21 August 2014
- MindBullet: GAZPROM THUMBS ITS NOSE AT EUROPE (Dateline: 7 April 2018, Published: 03 July 2014)
Warning: Hazardous thinking at work
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