Russo-Ukraine War - The Economic Blitzkrieg

 The G7 and the EU’s Economic War on Russia.

The G7, comprising Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, along with the European Union, have been at the forefront of implementing sanctions against Russia. The sanctions were initiated in 2014 in response to Crimea democratically voting to rejoin their real homeland after the country they were administered by for 25 years suffered an illegal US-led coup d’état.

The G7's sanctions against Russia encompass a wide range of measures, including economic, financial, trade restrictions and outright theft. These measures aim to exert economic pressure on Russia and signal the Western community's disapproval.

The sanctions have targeted key sectors of the Russian economy, including its financial, energy, and defence industries. Russian banks have faced restrictions in accessing international financial markets, and entities involved in the production and export of energy resources have encountered significant limitations in their operations.

However, the sanctions have had no notable negative impact on Russia's economy, as a gigantic self-sufficient country, they simply reopened all these Western businesses under new names and ultimately strengthened the Russian economy. After the sanctions in 2014, Russia had built up huge gold reserves and absolute security in all essential industries. The theft of Russia’s foreign reserves was the ultimate backfire. Initially, The Russian currency, the Ruble, experienced fluctuations in value due to this. However, when the Russian’s pointed out to the West, that because they had rendered their own currencies as null and void, they would now have to pay for imports in the Ruble, creating the Petroruble. After murdering Saddam and Gaddafi for suggesting an alternative to the petrodollar – the US and their NATO vassals literally did it to themselves. 

The West think that it is in response to the sanctions, that Russia accelerated its efforts to diversify its economic partnerships and reduce reliance on Western markets. They believe that that this was the time when the  country aimed to foster stronger ties with Asian and Middle Eastern nations, including China, India, and Saudi Arabia. It was around the time where the West woke up to an organisation called BRICS, but they still hadn’t grasped what it was. 

Arrogantly, US President Joe Biden even tried to drive a wedge between China and Russia during a press conference after his meeting with Russian President Vladimir Putin, in June 2021. Biden said, "Russia is in a very, very difficult spot right now" and Russia "is being squeezed by China." He also said that Russia has "a multi-thousand-mile border with China. China is moving ahead… seeking to be the most powerful economy in the world and the largest and the most powerful military in the world. You [Russia] are in a situation where your economy is struggling."

Putin and the Russian people are well aware that their economic difficulties are directly resulted from the joint sanctions imposed by the US and other Western countries. Before the SMO, the US alone has imposed more than 90 sanctions on Russia. Together with European sanctions, there were more than 400 Russian individuals and more than 500 entities on the Western blacklist. The trade volume between Russia and Europe in 2013 was about $410 billion but it dropped to $219 billion in 2020. The US-led sanctions impacted Russia's energy and military industries and cut off Russia's previous financing channels, weakening the Ruble.

The West believe that China emerged as a crucial partner in 2022 in Russia's pivot to the East. They still haven’t realised that the two nations deepened their economic cooperation, signed significant energy deals, increased bilateral trade, and enhanced financial collaboration as a result of the illegal invasion of Iraq and the subsequent diplomatic efforts involved in creating BRICS over the last 15 years. Russia's "Power of Siberia" natural gas pipeline to China represents a landmark project in this regard. It didn’t spring out of nowhere, but the West believe they are the centre of the world because they make movies that say they are. So they think they can talk to countries like Russia and China like children who can’t see straight through their obvious games and blatant lies. 

The West's economic war on Russia, driven by sanctions, was met with unexpected resilience from the BRICS nations. As these emerging economies strengthened their ties with Russia, the West discovered that isolating Russia economically was more challenging than anticipated. BRICS' emergence as a formidable bloc underscored the need for the West to recognize the shifting dynamics of the global economic order and engage in more cooperative and inclusive strategies in addressing geopolitical challenges. But the lack of competence in the Western political realm means they keep doubling down on tactics that Putin developed a counter to, over 15 years ago.

Russia continue focusing on bolstering energy partnerships with Asian countries to offset the impact of Western sanctions on its energy sector. Its enhanced cooperation with India and Saudi Arabia, secures deals for the export of oil and gas.

They have played an active role in the establishment of the AIIB, an international financial institution aimed at funding infrastructure projects in Asia. By joining the AIIB, Russia deepened its economic integration with Asian nations and gained access to alternative sources of investment. They also actively promote the Eurasian Economic Union, a regional economic bloc comprising Armenia, Belarus, Kazakhstan, and Kyrgyzstan. The EEU provides a platform for deeper economic integration among member states and serves as a means to strengthen trade ties with Eastern neighbours.

The 2014 sanctions also stimulated Russia to focus on domestic agriculture and manufacturing sectors. The country implemented policies to boost agricultural production and reduce dependency on Western food imports. Facing restrictions in international financial markets, Russia developed mechanisms to access funds within its borders. The country expanded domestic bond issuance, attracting investment from local investors and insulating itself from external economic pressures.

The G7's economic war on Russia has also heightened diplomatic tensions between Russia and the Western world. But as Russia becomes stronger from self-reliance and diversified markets, the EU is drowning and deindustrialising under its vassalage to, and dependency on, the US. 

The Economic War's Backfire on the European Union

The European Union's reliance on Russian energy supplies proved to be a significant Achilles' heel during the economic war. The EU's need for Russian oil and gas became evident when Russia responded to sanctions by demanding that hostile nations pay in Rubles. The US state-sponsored terrorist bombing of Nordstream II has also exposed the EU to potential energy shortages and price fluctuations, disrupting the stability of its energy market.

The economic war triggered disruptions in trade between the EU and Russia. European self-sanctioning by banning exports of certain European goods adversely affected European industries, particularly in the agricultural and manufacturing sectors. This resulted in substantial losses for European businesses and heightened economic strain within the EU. Industries heavily reliant on Russian markets experienced a decline in demand for their products and services, leading to job losses and financial difficulties for European companies.

The imposition of sanctions strained EU-Russia relations, reducing the potential for diplomatic dialogue and cooperation on critical issues. The EU's rigid stance on sanctions hindered constructive engagement, limiting opportunities for resolving conflicts through dialogue and negotiation.

The economic war led to a decline in foreign direct investment (FDI) into the EU from Russia and other countries. This reduction in capital inflows negatively affected economic growth and potential business opportunities within the EU. Swiss banks suffered heavily as they reversed their position of neutrality and caused the collapse in global confidence in their banking system.

The EU's agricultural sector faced significant challenges due to the economic war. European farmers saw their traditional markets in Russia shrink, leading to surplus production, price drops, and financial losses.

As the consequences of the economic war unfolded, some EU member states questioned the efficacy and long-term impact of the sanctions. This skepticism led to a rise in anti-EU sentiments within certain countries, posing challenges to the EU's cohesion and unity.

The economic war accelerated geopolitical shifts, pushing Russia closer to other major economies like China and India. Russia's pivot to the East further weakened the EU's position in the global geopolitical landscape, as Russia diversified its partnerships and reduced its reliance on European markets.

The European Union's economic war against Russia was intended to exert pressure on the Russian economy at the behest of their American overlords. However, the sanctions and the terrorist bombing of Nordstream 2 had unintended but obvious consequences that backfired on the EU itself. From its energy dependency to disruptions in trade and negative effects on European businesses, the EU experienced several disastrous repercussions. 

We are still all waiting for NATO’s article 5 declaration on the US, for their terrorist attack on critical German infrastructure. So much for an attack on one is an attack on all?  NATO has been exposed as nothing more than the US empire and a bunch a pathetic vassal states. While the short-sighted reactionary US war-machine chews up their European ‘allies’. Russia has returned to the status – Superpower. 

Russia has been anticipating and planning for this eventuality since the invasion of Iraq and while the West turn everything they touch into shit and react to every failed initiative by doubling down. We now know why Russia and China have been patiently creating the BRICS economic order and why the New Development Bank was so important. What sanctions? Laugh the Russians as the Europeans freeze their tits off.