When you embark on any blitz in warfare or in business operations you expect phenomenal effects favourable to you and adverse to the opponent that justifies the use of blitz in the first place. When blitz tapers off to the side where you lose and opponent gain then it is strategic failure. How the sanction blitz against Russia going?
How Russia is responding to the sanction blitz and what is her counter strategy? The reports that are coming to the frontline news do not lend evidence to the success of sanction blitz. On the contrary Russia is now doing better than what she did in 2021. China–Russia trade is an apt example. In the first quarter of 2022 it registered US Dollars 38 billion a rise of approximately 28% compared to the Q1 of 2021. You might dismiss this as something Russia did out of desperation or as an alternative route for international trade other than with Europe.
Germany alone speaks volume of the failure of sanctions warfare. Germany continues to receive gas from Russia quietly paying in Rubles. In fact in the first quarter she got 40% of natural gas requirements from Russia. The point is that Germany cannot be without gas being pumped from Russian pipeline. If and when the tap of natural gas pipeline is turned off Germany’s production would plummet to the levels of what she experienced in the aftermath of WWII.
Austria, for example depends on Russia for 80% of her requirements. This prompted Austrian Chancellor Karl Nehammer to visit Russia recently to smoothen the edge with Russia so that Russian gas continues to flow. Hungary goes much higher refusing to sanction Russia at all and agreeing to pay Rubles for gas sales.
In sum, it is the Europe that is running helter-skelter; not Russia. Putin the master strategist is taking the sanction battle as any captain cool does in these circumstances. In a recent meeting with Belarus President Aleksandr Lukashenko, Putin while acknowledging temporary setbacks in receipt of foreign earnings in dollar & euro gave a positive note on the increase of industrial production domestically and the strengthening of Ruble vis-a–vis Dollar in the financial system. Undoubtedly, Ruble is now out-performing European currencies in international financial market.
While sanctions blitz has backfired against the very nations that announced & imposed these, experiencing decline of revenue from finance, insurance and transport sectors, Russia is consolidating her domestic trade and cementing international trade with countries such as India & Iran. Her wheat exports continue to salvage famine and food scarcity in the continents of Africa, Latin America and to some extent in Asia. Sadly, Germany and Italy are working on rationing oil & gas for their citizens. Contrarily, Russians are having gala time with plenty of food & essentials in their departmental stores.
Plainly speaking, Europe tried to shut the door to Russia; the latter opened new windows elsewhere. Sanction blitz is now damp squib!
Cheers!
Muthu
Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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