Garry R. Moore
In addition to the $70 billion capital flight by Russian oligarchs, the most recent EU and US sanctions will help reduce available capital to Russian industry.
The G7 nations—Canada, France, Germany, Italy, Japan, the United Kingdom and the United States–need to impose all measures to choke off capital to the Russian economy; Russian industry cannot function without capital.
Russian oligarchs’ wealth is declining due to the impact of capital flight and sanctions to date. (See also How far do EU-US sanctions on Russia go?)
Russian oligarchs’ interests counter-balance the extreme Russian interests who dream with Russian President Vladimir Putin about bringing back the “glory days” of the USSR.
Since the G7 nations will not take military action against Putin, then all we can do is choke off capital (i.e. oxygen to the fire) to Russian industry and keep pressure on Putin to stop supplying arms and fighters to the pro-Russian rebels.
This action on the part of the G7 nations would allow the Ukrainian government to destroy the rebels and restore order to Eastern Ukraine with hopes that this region will be able to find a place and peace alongside other Ukrainians in the years ahead.
Upcoming: Yesterday, the EU agreed to expand its sanctions against Russia, according to some public reports. The expanded sanctions list is expected to be released tomorrow. (See also Here’s Why the EU Still Won’t Approve Tough Sanctions On Russia)
Check out out ITE’s earlier posts on this same issue (click on the post title):
- Are Trade and Economic Sanctions Against Russia Really Worth It?
- The U.S. Opts for Ineffective Sanctions on Russia
- Some G7 lobbyists fear sanctions against Russia will harm them also
- G7 sanctions on Russia to date are light
- Putin’s Efforts to Avoid Level 3 Sanctions from EU
Garry R. Moore is a regular contributor to the ITE. He is also president of Moore, Garry R – Solutions, Inc., a Canadian based firm that provides economic and political analysis of EU, EU member state, and U.S. policies. Mr. Moore also served as a Senior Policy Advisor for Foreign Affairs and International Trade Canada. To learn more about Mr. Moore, click here.
The views expressed in this piece are those of the author and do not necessarily reflect the opinions of International Trade Examiner.