Economics/Class Relations

Ruble’s rebound shows de-globalization is impossible

US President Joe Biden said on March 26 in Warsaw, Poland that “the Russian Ruble has been reduced to rubble” thanks to Western-led sanctions. As exaggerated as it was, this claim is now met with a stark reality: The ruble has almost fully rebounded from its losses following Russia’s “special military operation” in Ukraine.

This has profound implications for the realities of modern international conflict because, while the conflict in Ukraine is clearly a proxy between the West and Russia, the West is joining the fight purely in the economic and media spheres. This is where modern wars are fought and on this new, modern battlefield, the West has found that it overestimated its capabilities.

First, a word on what these sanctions were actually meant to accomplish. They were designed to hit the Russian economy and rattle Russian citizens, prompting outrage against the Russian state and lead Moscow to reverse course. It’s true that many Western companies have pulled out of Russia and Western luxury goods are no longer accessible – but the hyper-inflation that the US and its allies hoped for is not happening.

It appears that luxury goods and fast-food chains are not so indispensable for the Russian economy. What is, however, indispensable is energy and that happens to be a very lucrative industry right now.

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