Ones and Tooze How Biden's Sanctions Against Russia Fall Short
Feb 25, 2022
Cameron and Adam dive into Biden's sanctions against Russia and reveal significant loopholes that let Moscow keep exporting oil and gas. They delve into Europe's precarious dependence on these Russian fossil fuels, especially Germany's vital role. The discussion highlights how the ongoing war could trigger global food insecurity, echoing historical conflicts. Lastly, they unpack the complex web of U.S. energy imports and the rising gas prices in Europe, questioning the reliability of Russia as an energy supplier amidst heightened geopolitical tensions.
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Sanctions with Loopholes
- The US imposed sanctions on Russia after its invasion of Ukraine, targeting major banks like Sberbank.
- However, energy payments are exempt, potentially undermining the sanctions' effectiveness.
Scale of Economic Impact
- While a major conflict, the war in Ukraine isn't as economically transformative as World War I or II.
- Its impact is more analogous to the 2003 Iraq invasion, causing regional disruption but not global upheaval.
Commodity Market Disruptions
- Russia and Ukraine are major exporters of wheat, corn, and sunflower oil.
- Disruptions to these exports will significantly impact global commodity markets, potentially doubling wheat prices and affecting vulnerable countries.