How Europe Can Defeat Russia’s Divide And Rule Strategy

Even with help from China, Russia will be unable to mitigate the immediate impact of Western sanctions. BY: ALICIA GARCIA-HERRERO DATE: MARCH 9, 2022 TOPIC: GLOBAL ECONOMY AND TRADE The unprecedented sanctions imposed on Russia in the wake of its invasion of Ukraine are likely to have devastating consequences. But this will depend on whether Russia manages to bypass the sanctions or, at very least, mitigate them. China offers a clear path to do this, because of China’s economic size and financial clout and also thanks to its growing importance for Russia, since Putin announced Russia’s pivot to the East during his 2012 election campaign.

Importantly, China’s political position on Russia’s attack against Ukraine remains unclear, if not contradictory. Chinese policymakers have been highly critical of Western sanctions on Russia, blaming the West for the situation in Ukraine. Only a month before the invasion, on 4 February during the Beijing Olympics, presidents Xi and Putin sign a cooperation framework, the importance of which was reaffirmed by China’s foreign minister on 7 March. But to what extent can Russia really mitigate the impact of Western sanctions via its economic and financial linkages with China? Russia may face even more sanctions, including a potential European Union ban on energy imports from Russia.

Can China Bail Out Putin?

This would clearly be the most Senegal phone number measure. For Russia as the EU’s energy imports from Russia are four times bigger. Than China’s (Figures 1-4). Notwithstanding the hampering of potential action by excessive EU dependence. On Russian energy, key western economic sanctions are twofold. First, the German government has stop the certification process. Of Nord Stream 2 and the United States has imposed sanctions on the pipeline operator. Second, exports of semiconductors to Russia have been banned. Extending to other major exporters including South Korea and Taiwan.

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Semiconductors are essential inputs for Russia’s high-tech industry. Including for military equipment. Which is a key source of export revenues for Russia after oil and gas. In addition to their economic value during a military conflict. Exports of military equipment have contributed. To building Russia’s successful strategic relationships with countries such as India. Which explains India’s decision to abstain on the draft resolution. On Ukraine at the United Nations Security Council (UNSC) on 25 February. The impact of the inability of Russia to import semiconductors should not be underestimated.

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