European Union agrees to impose broad economic sanctions against Russia
Moscow did not stop after annexing Crimea but continues to foment insurgency in Ukraine. Western intelligence assessments indicate that Russia continues to transfer heavy weaponry and fighters on the eastern fringe of Ukraine even after Malaysia Airlines flight MH17 was shot down on July 17. It has also deployed troops near the border to assist the rebels. It’s possible that a full-fledged invasion of Ukraine is in the works. Europe can’t just stand by and watch, especially as most of those who died in the MH17 crash were Europeans. A calibrated response, such as the so-called ‘Phase-3’ sanctions which envisage imposing severe restrictions on trade with Russian defence, banking and energy sectors, will deter Kremlin from its belligerent moves in the region bordering Europe. Past measures, such as asset freezes on wealthy oligarchs who are close to Russian President Vladimir Putin, have been symbolic and ineffective. While the current Phase-3 sanctions have more teeth, there is room for flexibility as they will be reviewed every three months. Should the situation change on the ground and the threat to Ukraine recede, they can easily be withdrawn. On the other hand, Europe would have given ample warning that should Russia invade Ukraine that would be met by full-spectrum Western sanctions that will cause the Russian economy to collapse. It is not in India’s interest that Russia’s moves on Ukraine should succeed. They are similar to Pakistan’s moves on Kashmir and India would like the principle of national sovereignty to be upheld. Russia is mostly dependent on energy exports for its place in the global economy and if a trade war were to erupt between Russia and the West, the Russian economy will collapse much sooner. It’s important, therefore, that the West sends a unified message of resolve in response to unacceptable Russian actions.