The economic war with Russia

Will the latest round of sanctions be enough to derail the Russian war machine?

A Russian oil rig in the Caspian Sea
An oil rig in the Caspian Sea
(Image credit: Maxim Korotchenko/Alamy Stock Photo )

The discovery of Russian atrocities in the Ukrainian town of Bucha “has horrified the world anew”, said Bloomberg. And there’s been no delay in Western economic retaliation. The US, EU and G7 are “coordinating on a fresh round of sanctions” – including a US ban on investment in Russia, and an EU ban on coal imports. A concurrent crackdown on individuals is reported to include Vladimir Putin’s daughters. That will probably enrage the Russian president, but he may be relieved on two counts. First, Russian gas – a vital fuel for several European countries – is not on the EU list. Secondly, the US had held off imposing “secondary sanctions” affecting organisations and people in countries not subject to its jurisdiction. These would close “the loopholes” Russia uses to trade with third-party countries. But they’re controversial because of the possible impact on US allies. “If Germany continues buying oil and gas from Russia, for example, it could find itself on the wrong side of US sanctions.”

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