Financial Times (April 9)
“Among the many consequences of the stand-off in the Strait of Hormuz, it seems that we may look back on this as the week in which one of America’s most powerful geopolitical tools was shown to be a weakened stick. Threatening to limit access to the global dollar system now seems less fearsome.” US Treasury sanctions cover the entire country of Iran. “But not only does this not appear to have prevented it from selling oil while at war with the US, it has not seemed to stop it from charging ransom fees to international shipping seeking to pass through the Strait of Hormuz.”
Tags: Consequences, Fearsome, Geopolitical tools, Global dollar system, Iran, Oil, Ransom fees, Sanctions, Stand-off, Strait of Hormuz, Threatening, Treasury, U.S., Weakened
Bloomberg (January 26)
“Oil fell as President Donald Trump imposed his first set of sanctions and tariffs in a move that highlighted risks to the global economy and to trade.” U.S. tariffs and other sanctions have now been imposed on Columbia, and the Trump “administration has also threatened actions on flows of goods from a host of other nations, including Canada and China.” On top of that economic uncertainty, Trump is advocating for “OPEC to bring down prices, potentially raising the pressure on Russia to end the war in Ukraine.”
Tags: Canada, China, Columbia, Global economy, Oil, OPEC, Prices, Risks, Russia, Sanctions, Tariffs, Threat, Trade, Trump, U.S., Uncertainty, War
Foreign Policy (August 1)
The U.S. economic pivot to Asia began in 2011, but its tenor “has switched from economic offense to defense.” In the intervening years, “America’s positive economic agenda in Asia—opening markets, lowering barriers to trade, sealing agreements—bore virtually no fruit.” Largely driven by China, the U.S. instead raised tariffs, imposed sanctions, and “moved to de-risk and ‘friendshore’” supply chains.
Tags: 2011, Agenda, Agreements, Asia, China, De-risk, Defense, Economic offense, Economic pivot, Friendshore, Lowering barriers, Opening markets, Positive, Sanctions, Tariffs, Trade, U.S.
The Economist (March 23)
“On Ukraine China has played an awkward hand ruthlessly and well. Its goals are subtle: to ensure Russia is subordinate but not so weak that Mr Putin’s regime implodes; to burnish its own credentials as a peacemaker in the eyes of the emerging world; and, with an eye on Taiwan, to undermine the perceived legitimacy of Western sanctions and military support as a tool of foreign policy.”
Tags: China, Legitimacy, Peacemaker, Perceived, Putin, Russia, Ruthlessly, Sanctions, Subordinate, Taiwan, Ukraine, Undermine
Reuters (February 20)
“Europe, which was late to appreciate the danger posed by Putin, won’t quickly forget the lesson even if he goes.” National defense budgets are being hiked and “Europe will be paying more for its protection for years to come,” not to mention bearing costs related to supporting and rebuilding Ukraine. Still, “these costs pale by comparison with a scenario where Putin had triumphed in Ukraine. In that case Europe would now be worrying how to protect the Baltic States and Poland from his aggression. Yet even a Russia weakened by a year of war and sanctions remains a problem for Europe.”
Tags: Aggression, Baltic States, Costs, Danger, Defense budgets, Europe, Poland, Protection, Putin, Rebuilding, Sanctions, Triumphed, Ukraine, War, Weakened
Barron’s (June 27)
“Russia’s first default on its foreign debt in more than 100 years is the latest sign that the sanctions… have consequences,” but it’s a “symbolic win.” Energy prices remain the biggest impact of sanctions. “Oil prices aren’t coming down as long as Western powers are working to wean themselves off Russian supply. Faster inflation and rising interest rates, meanwhile, are bringing the global economy to its knees.”
Tags: 100 years, Consequences, Default, Energy prices, Foreign debt, Impact, Inflation, Interest rates, Oil prices, Russia, Sanctions, Supply, Symbolic win
Washington Post (March 27)
“North Korea’s leader, Kim Jong Un, has a way of reminding the world that he has not gone away.” North Korea’s launch of “its most powerful intercontinental ballistic missile ever, in defiance of sanctions and prohibitions” is a reminder of a “foreign-policy headache for the United States and its allies.” The North’s “potential for trouble should not be underestimated.” Kim does not deserve “concessions for his unruly behavior. There is a need for some fresh thinking about how to resolve this long-festering threat.”
Tags: Allies, Ballistic missile, Concessions, Festering, Foreign policy, Fresh thinking, Intercontinental, Kim, Launch, North Korea, Prohibitions, Sanctions, Threat, Trouble, U.S., Unruly
Wall Street Journal (March 7)
“Oil and gas revenue makes up about half of the Kremlin’s budget and is critical to financing Vladimir Putin’s bloody war on Ukraine.” The trouble is “sanctions on Russian energy could also harm the world economy and especially Europe,” which depends on Russia for a quarter of its oil and 40% of its natural gas. “Unless the West is willing to grasp this nettle, the world will continue to finance the Putin war machine.”
Tags: Budget, Critical, Economy, Energy, Europe, Financing, Kremlin, Natural gas, Oil, Putin, Revenue, Sanctions, Ukraine, War
CNBC (March 1)
“A run on Russian banks is underway.” In the wake of “unprecedented sanctions” imposed by the EU and U.S. for the invasion of Ukraine, the ruble “dropped dramatically in Monday’s trading. Lines at ATMs snaked down sidewalks and around buildings in Moscow and at Russian banks in Europe as depositors rushed to withdraw cash.”
Tags: ATMs, Banks, Depositors, EU, Invasion, Lines, Moscow, Ruble, Run, Russia, Sanctions, Trading, U.S., Ukraine, Unprecedented, Withdraw
The Guardian (February 28)
“Moscow is bracing for economic panic when markets open on Monday morning, with the value of the rouble expected to plummet at least 25% after the US and European Union announced unprecedented sanctions over the weekend.” The resulting economic turbulence “will mark a key moment when the gravity of the crisis in Ukraine hits home for many ordinary Russians.”
Tags: Bracing, Crisis, Economic panic, EU, Gravity, Markets, Moscow, Ordinary Russians, Plummet, Rouble, Sanctions, Turbulence, U.S., Ukraine, Unprecedented
