6 Safe Investment Options During the Russian-Ukrainian War

Published March 10th, 2022 - 12:00 GMT
investment in the time of war
Many markets have been experiencing negative reactions to the war in Ukraine. (Shutterstock: Maria Vonotna)

When the global economy was hit with COVID19 two years ago, we watched it crash badly for the second time in 12 years as businesses around the world halted operations for several weeks. Yet, this did not stop many smart investors from making the right decision of investing in the "right" assets.

Every time a major crisis hits our world, people rush to sell their stocks and keep the cash to avoid losses. However, such decisions can be more costly than doing proper research and investing the money in industries that have the potential to achieve gains during a given crisis.

Two years into COVID19 and as we watch the Russian military invasion of Ukraine continue, the world braces for high inflation rates, ones that can only be overcome by making the right investments.

investment in the time of war

DAVID DEE DELGADOGETTY IMAGES NORTH AMERICAGetty Images via AFP

For example, while stocks of airlines, restaurants, and oil companies paid the highest toll following the pandemic outbreak in the spring of 2020, stocks of video-conferencing technologies, e-commerce, pharmaceutical, and medical companies soared to historic highs, giving investors the chance to score huge profit in some of the most challenging times for the economy.

What was different about these investors that made them gain so much profit when everybody else was in the red? Investment choices.

It is understandable for inexperienced and small investors to withdraw their money from the markets when crises hit, but a successful investor is one who learns the lesson.

Today, as the world feels the consequences of the war in Ukraine on the global economy, investors can, once again, make sound judgments and choose to carry on in their pursuit of financial gains, but using the right options.

6 Safe Investment Options During the Russian-Ukrainian War

It is no brainer that stocks of Ukraine or Russia-based businesses should be avoided during the current crisis. Similarly, stocks of industries that have received huge blows as a result of the war are not the right ones to put money in at the time being, such as airlines, or the food industry.

In this article, we will shed light on a few options that, according to experts, are set for major gains during the current crisis in Ukraine.

1. Oil and Gas Stocks

If you have been following the oil prices during the last few months, you will notice that the crucial commodity which suffered the most during the COVID19 outbreak is generating spiking profit lately.

Oil prices were gaining strength at a reasonable pace for several months, mostly pushed by the lifting of lockdown restrictions around the world and by the growing travel activity. Yet, tensions between Ukraine and Russia and the ongoing military conflict in Ukraine have caused prices to soar to historic highs.

However, individuals looking to buy shares in oil companies need to make sure they are going for options in countries that will be making up for the absence of Russian oil in global markets, and not ones with close proximity to eastern Europe.

Investment Aramco
Source: Twitter

The same applies to countries that produce natural gas and can fill in the gap left by Russian outputs, especially with the many reports doubting the sustainability of the Russian gas Nord Stream 2 to Europe.

Other gas producers who can provide Europe with natural gas in case its countries decided to end their dependencies on Russia, will be hitting record highs in the stocks market.

2. Wheat Market

Wheat is one of the major commodities produced and exported by both sides of the war; Russia and Ukraine. They provide the world with around 25% of its annual needs, which explains its surging prices for the second consecutive week.

Stocks of Wheat producing companies from other regions in the world could be the way for guaranteed profit as their sales are expected to rise as long as Ukraine and Russia fail to offer their regular amounts of wheat.

3. Mining Metals 

Similar to wheat, metals are some of the strongest exports of sanctions-hit Russia and under-fire Ukraine, which is evident in metals' soaring prices for the past two weeks.

If the war persists any longer, the world might be facing an acute shortage of Platinum, Palladium, Nickel, Magnesium, Aluminum, Steel, Neon, and many other metals, making investing in non-Russian and non-Ukrainian mining companies a good option.

4. Renewable Energy

Considering the expected effect of soaring oil and gas prices on most other commodities and services, including electric power, the world is expected to put more serious effort into switching to renewable energy. 

Stocks of businesses specialized in building solar or wind energy can brace for some gains, if the current political situation continues to push oil and gas prices higher.

5. Defence Firms

Since the most recent global emergency is a full-scale war/invasion, it is only natural to see arms manufacturers prepare to roll their sleeves and increase their production rates, especially as Western countries continue to promise to purchase the latest and most developed military equipment to support Ukrainian forces with.

6. Cybersecurity

Here is another industry bracing for higher gains, as cyber warfare has become a major part of the largest military confrontation in Europe since WWII.

Cyber attacks on government, intelligence, financial and military websites in Russia, Ukraine, and other countries involved in the war are pressuring all sides to strengthen their cybersecurity measures, meaning more expensive software will be in demand from now on.


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