Author: Pepe Escobar
Affiliation: Independent Geopolitical Analyst at the Cradle, and Editor-at-large at Asia Times
Organization/Publisher: The Cradle
Date/Place: April 7, 2022/ N.M
Type of Literature: Blog
Word Count: 1600
Link: https://thecradle.co/Article/columns/8853
Keywords: Sanctions, Rublegaz, Recession, Geoeconomics
Brief:
The anti-Russian foreign policy adopted by the European Union in its favors to American policy is nearly suicidal, posing great threats to its economic well-being with no real benefits. Sanctions on Russia have already caused a backlash against Europe and added momentum to the existing inflation; energy bills are rising exponentially; and product prices have become burdensome on the average citizen while Russia is more secure with its commodities reserves. Russia’s selling natural gas with Rubles—Called Rublegaz—is what drives change in the current economic landscape, especially with the EU’s inability to find a viable replacement from countries like Norway or Algeria. There is also no liquid natural gas surplus from either the US or Qatar to replace Russian Gas. Meanwhile, Russia is undergoing a shift in logistical lines to Asia, with China projected to be the biggest Russian gas importer. EU ambitions to replace Russian gas are unrealistic and only serves American interests, as it becomes more clear that Russia is being harmed less by European hostilities than Europeans themselves. The EU’s obsession over replacing Russian natural gas will have an impact on the future of the global economic system and may cause a recession, leading to much harm in Europe and beyond.
Critical Commentary: The European Union’s policy is shown to be an exercise in self-harm for the sake of the US’ attempts to contain Russia, and there is no clear benefit to justify the European logic behind following American foreign policy in this regard. The author details the consequences, however the reasoning behind the EU’s actions remain unanswered. Could it be ideological reasons as to why the EU is hostile towards Russia, or is it primarily American influence over decision making? Or is it a combination of various factors that have led to this outcome? The current predicament has shown that hegemonic foreign policy and following the will of a hegemon will not always bring profit nor will it bring further security—it will probably lead to further destabilization and risk escalation of hostilities.
By: Omar Fili, CIGA Research Assistant
