To Fight Russia, Europe's Regimes Risk Impoverishment
Apr 21, 2022 3:39:37 GMT -5
Post by Midnight on Apr 21, 2022 3:39:37 GMT -5
To Fight Russia, Europe's Regimes Risk Impoverishment & Recession
THURSDAY, APR 21, 2022 - 02:00 AM
Authored by Ryan McMaken via The Mises Institute,
European politicians are eager to be seen as “doing something” to oppose the Russian regime following Moscow’s invasion of Ukraine.
Most European regimes have wisely concluded—Polish and Baltic recklessness notwithstanding—that provoking a military conflict with nuclear-armed Russia is not a good idea. So, “doing something” consists primarily of trying to punish Moscow by cutting Europeans off from much-needed Russian oil and gas.
The problem is this tactic doesn’t do much to deter Russia in anything other than the short term because Russian oil can turn to numerous markets outside of Europe. Most of the world, after all, has declined to participate in the US and European embargoes and trade sanctions, opting for more measured approaches instead.
By limiting energy sources for Europeans, however, Europe’s regimes are likely to succeed in pushing up the cost of living for Europeans while doing little to cut off Russia’s economy from global markets.
Can Europe Totally Cut Itself Off?
For understandable reasons, most European regimes have been reluctant to completely cut themselves off from Russian oil and gas. This is because Europe has become increasingly dependent on Russian natural gas as Europe’s regimes have increasingly committed themselves to unreliable “renewable” energy sources. This is especially the case in Germany—Europe’s largest economy—which faces a “sharp recession” if it cuts off Russian gas. There has been much talk of heavy sanctions against Russia, but this has stopped short of a full-on ban on Russian oil and gas imports.
Nonetheless, the European Parliament last week began drafting a plan for a full embargo of Russian oil and gas.
Yet, even as pressure mounts for Europe’s regimes to be seen as doing more to stymie Moscow, European politicians want to proceed slowly. This, however, only gives Moscow more time to adjust logistics to transfer oil exports to other parts of the world.
Continued at link
THURSDAY, APR 21, 2022 - 02:00 AM
Authored by Ryan McMaken via The Mises Institute,
European politicians are eager to be seen as “doing something” to oppose the Russian regime following Moscow’s invasion of Ukraine.
Most European regimes have wisely concluded—Polish and Baltic recklessness notwithstanding—that provoking a military conflict with nuclear-armed Russia is not a good idea. So, “doing something” consists primarily of trying to punish Moscow by cutting Europeans off from much-needed Russian oil and gas.
The problem is this tactic doesn’t do much to deter Russia in anything other than the short term because Russian oil can turn to numerous markets outside of Europe. Most of the world, after all, has declined to participate in the US and European embargoes and trade sanctions, opting for more measured approaches instead.
By limiting energy sources for Europeans, however, Europe’s regimes are likely to succeed in pushing up the cost of living for Europeans while doing little to cut off Russia’s economy from global markets.
Can Europe Totally Cut Itself Off?
For understandable reasons, most European regimes have been reluctant to completely cut themselves off from Russian oil and gas. This is because Europe has become increasingly dependent on Russian natural gas as Europe’s regimes have increasingly committed themselves to unreliable “renewable” energy sources. This is especially the case in Germany—Europe’s largest economy—which faces a “sharp recession” if it cuts off Russian gas. There has been much talk of heavy sanctions against Russia, but this has stopped short of a full-on ban on Russian oil and gas imports.
Nonetheless, the European Parliament last week began drafting a plan for a full embargo of Russian oil and gas.
Yet, even as pressure mounts for Europe’s regimes to be seen as doing more to stymie Moscow, European politicians want to proceed slowly. This, however, only gives Moscow more time to adjust logistics to transfer oil exports to other parts of the world.
Continued at link