Financial market reaction to 2008 South Ossetia war

Financial market reaction to 2008 South Ossetia war

AFP reported that unidentified analysts believed that Russian stock exchange declines in August/September 2008 were attributed to "a mix of falling energy prices, global market turmoil and political issues including worries over the war with Georgia." [ [ Russian stock market still shut after plunge: market official] ]

Harvard B-School professor Noel Maurer sharply disagrees with the view that 2008 South Ossetia war had a substantial negative impact on Russian financial markets: "Russian indices were in decline well before the war started. If anything has happened since, it is that the decline has slowed. This is not consistent with the hypothesis that the markets are punishing Russia for the war." [ [http:// Who cares about Georgia? Not the markets.] ]

The Georgian financial markets also suffered negative consequences as Fitch Ratings lowered Georgia's sovereign debt ratings from BB- to B+, commenting that there are increased risks to Georgian sovereign creditworthiness. Standard and Poor's also lowered Georgia's sovereign credit rating. [cite news |last = Lesova |first = Polya |title = Fitch lowers Georgia's debt ratings to B+ |publisher = MarketWatch |date = August 8, 2008 |url ={FA377F13-52F9-4AA2-A3C2-A57170314903}&dist=msr_2 |accessdate = 2008-08-10 ]

Baku-Supsa and Baku-Tbilisi-Ceyhan pipelines through Georgia
While Georgia has no significant oil or gas reserves on its own, it is an important transit route that supplies the West, and journalists expressed fear that the war may damage the Baku-Tbilisi-Ceyhan (BTC) pipeline, 30% of which is owned by BP. [cite news |last = Pagnamenta |first = Robin |title = Analysis: energy pipeline that supplies West threatened by war Georgia conflict |publisher = "The Times" |date = 2008-08-08 |url = |accessdate = 2008-08-10 ] The BTC pipeline was shut down before the conflict because of the blast in Turkey on August 6, 2008, that was threatened and then claimed by the PPK [] ' and the war created further problems for the operating company Botas International Ltd.cite news |last = Watkins |first = Eric |title = BTC export alternatives on hold as Russia, Georgia clash |publisher = Oil and Gas Journal|date = 2008-08-08 |url =,-Georgia-clash/ |accessdate = 2008-08-10 ] Georgia claims Russia is targeting the pipeline. [cite news|url=|title=Russian jets targeted major oil pipeline: Georgia|publisher=Reuters|date=2008-08-09|accessdate=2008-08-10] On August 8, 2008, Russian air forces devastated the port of Poti, which the Georgian government calls "a key port for the transportation of energy sources," close to the Baku-Supsa pipeline and the Supsa oil terminal.cite news|url =|title=UN row flares over Ossetian conflict
publisher="Financial Times"|date=2008-08-08|accessdate=2008-08-09
] On August 12, 2008, BP, an operator of the main pipelines through Georgia, closed the BTC pipeline, the Baku-Supsa Pipeline and the South Caucasus Pipeline for the safety reasons.cite news
url =
title = BP shuts in Georgia links
publisher = Upstream Today
date = 2008-08-12
accessdate = 2008-08-13
] Gas supplies through the South Caucasus Pipeline were resumed on August 14, 2008.cite news
url =
title = BP turns on Georgia gas taps
publisher = Upstream Today
date = 2008-08-14
accessdate = 2008-08-14

The price of oil was not negatively affected by these events, on August 8, 2008 light sweet crude for September delivery settled down $4.82 to $115.20 on the New York Mercantile Exchange. [ [ Oil sinks to 3-month low] , CNN, August 8, 2008]


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Comparison of United States presidential candidates, 2008 — This article compares the presidential candidates in the United States 2008 presidential election. It does not cover previous elections. Because of ballot access restrictions in the United States, not all candidates appeared on the ballots in all …   Wikipedia

  • Kosovo War — Part of the Breakup of Yugoslavia …   Wikipedia

  • Dates of 2008 — ▪ 2009 January As we meet tonight, our economy is undergoing a period of uncertainty.… At kitchen tables across our country, there is a concern about our economic future. U.S. Pres. George W. Bush, in his final state of the union address, January …   Universalium

  • Civil war in Iraq — Civil war/sectarian violence in Iraq Part of Iraq War and Iraqi insurgency Date February 2006 May 2008 …   Wikipedia

  • Dmitry Medvedev — For the Hero of the Russian Federation, see Dmitry Gennadyevich Medvedev. For the Soviet partisan and Hero of the Soviet Union, see Dmitry Nikolayevich Medvedev. This name uses Eastern Slavic naming customs; the patronymic is Anatolyevich and the …   Wikipedia

  • Political positions of John McCain — U.S. Senator John McCain (R AZ), a member of the U.S. Congress since 1983, a two time U.S. presidential candidate, and the nominee of the Republican Party in the 2008 U.S. Presidential election, has taken positions on many political issues… …   Wikipedia

  • Vladimir Putin — This name uses Eastern Slavic naming customs; the patronymic is Vladimirovich and the family name is Putin. Vladimir Putin Владимир Путин …   Wikipedia

  • History of post-Soviet Russia — With the dissolution of the Soviet Union in December 1991, the Russian Federation became an independent country. Russia was the largest of the fifteen republics that made up the Soviet Union, accounting for over 60% of the GDP and over half of… …   Wikipedia

  • Revolutions of 1989 — Fall of Communism redirects here. For the fall of the Soviet Union, see Dissolution of the Soviet Union. Revolutions of 1989 Top left: Round Table in Warsaw. Top right: Fall of the Berlin Wall. Middle left: Romanian Revolution. Middle right:… …   Wikipedia

  • Russia — /rush euh/, n. 1. Also called Russian Empire. Russian, Rossiya. a former empire in E Europe and N and W Asia: overthrown by the Russian Revolution 1917. Cap.: St. Petersburg (1703 1917). 2. See Union of Soviet Socialist Republics. 3. See Russian… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.