Geopolitics

Ukraine-Russia War: Europe may be the Economic Loser

The Herland Report

Herland Report: Ukraine-Russia War: The strategy of imposing economic sanctions in order to hurt Russia for its invasion of Ukraine, may produce an economic fallout that is different from what the leadership in Europe currently expects.

The question is who will the sanctions hurt the most? Who will be the the economic losers from the steadily widened Ukraine-Russia conflict in the short and long run? 

Probably not the Americans who do not depend to the same extent on Russian commodities. 

With soaring oil, gas and other commodities prices, Russia’s economy is booming with money flowing like water into its reserves. The ruble is stronger than anyone could foresee.

The set-back from Western sanctions may therefore not be as hard as Europe, threatened by its own recession, hopes for.

The situation is not comparable to the end of the Soviet Union, in which the West played its central part. At the fall of the Soviet Union, the oil price was historically low and the Saudis flooded the oil market helping the Americans to dip the Soviets down as the Soviet economy crashed.

The American strategists are, of course, fully aware economic sanctions at this point will not have the same effect on Russia amid the highest energy and commodity prices in years.

The U.S. led unipolar world has for long had Washington strategists who know very well which buttons to push in order to produce wished-for conflicts that America is set to gain economically from. 

They know that sanctions on Russian commodities delivered to Europe would result in the prices going through the roof – and Russia gaining massively from that.

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Categories: Geopolitics

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