NATO’s big bad wolf may be gasping and puffing, but Vladimir Putin’s brick house of aggression is unlikely to collapse anytime soon. While it allegedly imposed the strictest sanctions yet on Russia – and indeed on any country – the West has failed to declare a full-blown economic war on Moscow. That’s because such a drastic move could backfire and cause serious damage to the economic well-being of the West. So the oil and gas industry – which are the mainstay of the Russian economy – has been left untouched. No wonder, because…
NATO’s big bad wolf may be gasping and puffing, but Vladimir Putin’s brick house of aggression is unlikely to collapse anytime soon.
While it allegedly imposed the strictest sanctions yet on Russia – and indeed on any country – the West has failed to declare a full-blown economic war on Moscow.
That’s because such a drastic move could backfire and cause serious damage to the economic well-being of the West. So the oil and gas industry – which are the mainstay of the Russian economy – has been left untouched.
No wonder, because Europe gets about 40% of its natural gas supply from Russia. Gas prices are already rising and will do so even more because of the crisis.
Any attempts to cut off Russian oil exports as well could further accelerate the upward spiral in crude oil prices. Disruptions to Ukraine’s grain supply (the country produces 8% of the world’s total) will push food prices up around the world and hit the West hard.
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It is unlikely that Russia will be forced out of the SWIFT system of international payments, which includes 11 000 banks worldwide. Russia already has an alternative payment system and is in any case moving towards a backdoor payment system via China.
Removing SWIFT would speed that up. And therein lies perhaps the even greater consequence of Putin’s move to Ukraine.
If the West is provoked enough to try to pressure him, he and his Chinese friends will accelerate their plans to establish an alternative global financial system, where the almighty US dollar will compete for the first time since World War II. to get.
That would be an even greater threat to global peace and stability. So keep a close eye on Moscow and Beijing in the future…