Sanctions alone won’t win the war against Russia, according to Gertrud Traud, a senior economist at Landesbank, a conglomerate of state-owned banks.
The Problems
The expert claims that: ‘Although the consequences of the conflict in Ukraine are becoming more and more clear to us, the impact of the conflict and the sanctions on the Russian economy has been far less severe than anticipated. In contrast to what Western nations had anticipated or hoped, Russia is both well-prepared for conflict and much less isolated.’
Traud continued that even while more than a thousand Western businesses have scaled back, paused, or shut down operations in Russia since the beginning of the war, those who have done so fully were presumably relieved to receive any compensation at all for their assets. Who gained from this? The answer is obvious, the economist remarked. According to her, there would be more “alternative” supply sources accessible the tougher the penalties were.
Russia is Not Vulnerable
‘The West has overstated Russia’s susceptibility and undervalued the value of its natural resources to the rest of the globe. Additionally, the sanctions are hurting us Germans and the majority of the globe more than the nation they are intended to punish.’ In her explanation Traud noted that in addition to being a significant energy supplier to the world, Russia is also one of the major exporters of wheat, particularly to the world’s poorest nations. The probability of a food and economic crisis in these countries is indirectly rising as a result of the sanctions. She noted that the increase in wheat prices is an obvious clue. She claims that due to China’s purchase of natural gas from Russia and India’s acquisition of Russian oil, Russian commerce with both nations is actually increasing.
Russia is also one of the major exporters of wheat, particularly to the world’s poorest nations
Sanctions Hurt Europe
While more and more European experts warn that sanctions have failed, governments abroad have also been forewarned that harsh measures will only hurt their own countries. Tulsi Gabbard, a former Democratic representative stated on Tucker Carlson’s Fox News programme at the end of February saying that the measures will simply make life more difficult for Americans.
‘And this is the core issue with the Biden presidency. They don’t care and aren’t focused on what is genuinely in the best interests of the American people because they are so preoccupied with how we should punish Putin. Therefore, when Biden stands there and says, “You know, protecting freedom will cost us,” he ought to be saying, “This will cost you”, staring directly into the eyes of the American people’ the former Democratic politician stated during the programme. She emphasized that neither the country’s power elite nor even Russia’s power elite will be significantly harmed by the sanctions. The victims will be regular folks.
Hungarian Outlooks
To conclude, more and more experts agree on the real value of sanctions. They started to express that long-term sanctions only hurt European countries while Russia manages to stand firm. Hungarian expert, Olivér Hortay the Head of Energy and Climate Policy Division of the Századvég Foundation has also discussed the issue with sanctions. He said that the aggressive words from European politicians are ending up hurting all countries, adding that the sanctions are the real reason behind the rising inflation in countries, not the war itself.
