Russian forces have been advancing in Ukraine, but not without opposition. Shelling continues against several Ukrainian cities and into Kyiv itself, as people are taking shelter in the metro. Closer to home, prime minister Justin Trudeau announced another round of tougher sanctions against Russian oligarchs and other key leaders, and there is talk that yet more sanctions are on the way, but it also sounds like there is some difficulty in getting all of our allies on-side, and the thing about these kinds of sanctions is that everyone needs to do them so that there aren’t loopholes that Russia can slip through. (Trudeau also announced measures to help Canadians in Ukraine get safe passage to neighbouring countries, as well as expeditated immigration processing for Ukrainians).
Chrystia Freeland also delivered a message to Ukrainian- Canadians in the mother tongue. pic.twitter.com/UTiZyTfDih
— Courtney Theriault (@cspotweet) February 24, 2022
But one of the biggest measures—cutting Russia out of the SWIFT global financial transaction system—has not yet been implemented because Europeans are balking (though Canada has reportedly been pushing for this, along with the UK). Canada is somewhat fortunate because we are less exposed to Russian trade and money than other allies, but it’s that exposure which will make sanctions harder on Western allies the tougher they are on Russia—and that’s something that a lot of the talking heads can’t seem to get their heads around. If you look at what European countries are trying to get carve-outs for, it’s because they don’t want to lose the Russian money in their economies. And that’s a tough pill to swallow, especially as all of our economies are still recovering from the pandemic recession.
I'll have more tomorrow, but I can confirm Canada has encouraged debated on the United Kingdom's proposal to cut Russia off the SWIFT payment system. Other European allies are not onboard, but Ottawa and London are hoping to keep the conversation going.
— Justin Ling (Has Left) (@Justin_Ling) February 25, 2022
https://twitter.com/LillyResearch/status/1496964138962386945
https://twitter.com/MatinaStevis/status/1496758467943866374
Where this will hurt us especially is higher world oil prices, as cutting Russia out of the market will further restrict supply at a time where energy shortages in certain countries have turned to oil to fill that gap, creating demand and limiting supply. That will mean higher gasoline prices in Canada, and while these higher prices will be good for the Alberta economy (oh, look—one more boom for them to piss away), it’s going to be felt in the inflation data, which will have more people lighting their hair on fire, demanding Something Must Be Done, but they won’t come out and spell out that they mean wage and price controls, or a new NEP. Jason Kenney, unable to read the room, is trying to make this about a new pitch for Alberta’s so-called Ethical Oil™, and we have federal Conservatives demanding a fast-tracked LNG infrastructure to export to Europe, but seriously, that’s a multi-year and multi-billion-dollar investment that is going to be short-lived the fast were decarbonise our economies.