When it comes to Russian President Vladimir Putin and his current tribulations in Ukraine, I’m reminded of a Latin phrase that I learned as a schoolboy: Sic semper tyrannis (“thus always to tyrants”). Some of the top managers at Big Oil must know their Latin, too.

Below, I’ll explain why recent moves by energy super majors to leave Russia is generally good news for investors.

President Biden’s State of the Union speech on Tuesday provided soaring idealistic rhetoric about the need of democracies to stand up to authoritarians such as Putin. Biden’s words were a rallying cry that garnered bipartisan praise on Capitol Hill and helped lift the stock market.

On Wednesday, the major U.S. stock market indices surged as follows: The Dow Jones Industrial Average +1.79%; the S&P 500 +1.86%; the tech-heavy NASDAQ +1.62%; and the small-cap Russell 2000 +2.51%. Oil prices surged past $110 per barrel.

Investor sentiment was bolstered by renewed hope for further diplomatic discussions between Russia and Ukraine, as well as measured remarks from Federal Reserve Chair Jerome Powell about the forthcoming March rate hike.

Also driving stocks higher was data released Wednesday by the payrolls processing firm ADP, showing that private job creation in February rose at a faster-than-expected pace, driven by robust gains in leisure and hospitality.

In pre-market futures trading Thursday, the U.S. stock market indices were little changed, as investors nervously awaited the latest news from strife-torn Eastern Europe.

Keep your eye on Big Oil…

The Russian ruble is collapsing, and the Russian stock market has been shuttered to prevent it from melting down.

But if you want the most convincing indication that Putin is cornered and his country’s economy is in trouble, don’t listen to what the politicians say. Watch what the giant oil and gas companies do.

In recent days, BP (NYSE: BP) announced it would dump its 20% stake in Russian oil behemoth Rosneft, and Shell (NYSE: SHEL) said it would sell off all of its joint ventures with Russian oil company Gazprom. Norwegian oil and gas company Equinor (NYSE: EQNR) also has begun to exit its joint ventures in Russia. By dumping their Russian investments, the three energy giants are taking multi-billion-dollar hits to their top and bottom lines.

The list of “Big Oil” companies giving Russia the boot is likely to grow longer. Don’t be naive: these moves by huge energy companies aren’t driven by morality or public relations. Companies that were willing to get in bed with murderous kleptocrat Vladimir Putin in the first place aren’t suddenly developing a soft spot for human rights and the rule of international law.

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BP, Shell and Equinor are saying nyet to Russia because they’ve made the cold, hard calculation that their investments in that country are about to go straight down the toilet. Both Rosneft and Gazprom have been rapidly losing value. Global investors are realizing that, due to sanctions, Russian oil producers will have an extraordinarily difficult time finding customers.

Also consider, the Russian government owns the largest stakes in Rosneft and Gazprom, so this wealth is getting directly drained from the coffers of Kremlin-linked oligarchs. The billionaire pals of Putin are about to get very unhappy with their benefactor.

China stays loyal (sort of)…

Among Russia’s eight most crucial import partners, China and Belarus are the only two countries not participating in tough economic and financial sanctions against Moscow.

The fact that China is standing by its new-found ally Russia is among the few bright spots for an increasingly isolated Russia. China’s influence in Russian trade looms large (see graphic).

China is Russia’s biggest trading partner, representing 13% of the country’s exports in 2019. China is even more crucial as a supplier of goods for Russia, accounting for 22% of the country’s goods imports in the same year.

China isn’t condemning Russia for its invasion of Ukraine. However, the world’s second-largest economy isn’t giving Putin fulsome support, either.

China is taking a wait-and-see attitude. The country in the past has argued for national sovereignty, but then again, China might want to invade Taiwan someday and Beijing will want support for that adventure.

Military conflicts tend to evolve in unexpected ways. Putin certainly never expected such fierce resistance from the Ukrainians. (My favorite image to emerge from the war so far is that of an ordinary Ukrainian farmer, using his tractor to steal a Russian tank.) Russia’s initial invasion timetable has been thrown into chaos by local insurgents.

The end game of the Russian-Ukraine crisis is a huge unknown, but one thing already is clear: Putin has bitten off more than he can chew. The solidarity of the West against his aggression in Ukraine is remarkable and bodes well for future global security…and for global investors.

Until we know how this brinkmanship ends, expect volatility and, of course, even hotter inflation. But in one of history’s ironies, Putin’s actions have brought the Western alliance much closer, a sanguine development for economic stability and growth.

Make sure your portfolio is hedged for inflation (commodities, energy and gold make sense now). Stay cautious, but don’t overreact to the Russia-Ukraine crisis. Balanced portfolios always outlive political tyrants.

John Persinos is the editorial director of Investing Daily.

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