Applying reverse gear in geoeconomics

The rationale for applying reverse gear in geoeconomics affairs cannot be overemphasised. Tools & techniques such as sanctions need constantly be reviewed to ascertain whether to reverse these or continue as it is. Performance of recent sanctions against Russia present one such opportunity.

A plethora of sanctions in the areas of diplomacy, military and in geoeconomics field have presented a big dilemma to the American led west. Most of these are rendered useless or in some cases backfired in that the contrary to the expected result has happened. This is where reverse gear need to be applied first and followed up with either removal of these sanctions altogether or deliberately tone down their ambit. Here are few of the sanctions that failed to bring about the expected outcome:

1. Export of fertilizer by Russia to Western Europe was sanctioned but the contrary has taken place. Since Russia began SMO Germany alone has imported more than nine times the quantum of fertilizer that was imported before the start of Ukraine war. By the way, production of nitrogen requires hell of a lot of gas which is available in plenty in Russia.

2. In the military sphere sanctions were imposed on artillery pieces and associated shells exported to Russia by the globe. The startling fact is Russia now roll out three times many artillery pieces and shells than America plus west combo, that too at a fraction of their cost.

3. Putin quickly built a wartime economy with military industrial complex given pride of place that went on to improve existing arsenal and produce new weaponry. Not only the west failed to install war footing in their respective economies but were unable to marshal resources both financial and material to turn out necessary weaponry anew not to forget that uncontrolled spend of existing stockpile resulting in a position where if war is escalated there is not sufficient armaments  available to mount defence or counter attack.

4. There is no stopping whatsoever regarding the expansion of nuclear plant sale by Rosatom. Recently it signed a memorandum with the Government of Ghana for constructing a nuke plant for electricity generation.

5. Geoeconomics heavyweights Russia, China and Iran have become ‘brothers in arms forever’ to counterbalance the portfolio of existing sanctions and deny America led west to enlarge the scope of any future prohibitions that could derail geoeconomics wagon, that all three civilizational states have embarked upon.

6. All three as a group have made the purported sanctions regime by the west a dubious affair marked with a huge patch of self-interest that at the end of the day affected the third parties along with imposers as well.

7. Financial transmission is all about how money can be interchanged and exchanged via multiple platforms. All three countries are joined in their hips by promoting their respective national currency between and amongst them. For Example, nearly 90% of trade between Russia and China takes place via Ruble & Renminbi. Not to be left out Iran is making all efforts to promote Iranian Riyal as well as using Russian Mir card payment system & Chinese CIPS exchange platform.  FYI: Mir is now operative in more than 12 countries and also accepted by Eurasian Economic Union. That tantamount to be a coup de grace for western hegemony in geoeconomics!

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist