La Vigie Nr 188 : A difficult awakening | Attrition in Ukraine | Lorgnette : Economic backlash

Letter from La Vigie dated 16 March 2022

Difficult awakening from a long strategic sleep

Ukraine is the revelation of the strategic sleep of the Euro-Atlantic world seeing a threat suddenly appearing on its doorstep. The outsourcing of defence, the primacy of economic factors, the prevalence of national interest: these are all reasons for this abstention. Does the EU still have a heart for strategy after years of lethargy?

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Attrition in Ukraine

The armed conflict in Ukraine is in its third week of fighting. The strategist observes it from multiple angles: first of all, from a military strategy point of view, with several focuses: the course of operations on the ground, aspects of information warfare, the fate of populations or vital infrastructures. He also broadens his view to other aspects, diplomatic or geopolitical, whether they concern Russia, Europe, America or the rest of the world.

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Lorgnette: economic backlash

The economic sanctions are already causing a chain reaction that we do not yet fully understand. They are occurring in an economic context that was already convalescing from the pandemic from which we had not yet fully recovered. Now, the sanctions against Russia are hitting us and many countries around the world as a backlash.

First and foremost, the hydrocarbon market (oil and gas) is permanently affected. No supplier can replace Russia in the short or medium term, contrary to what some hope. The decisions taken in favour of electricity and against nuclear power are a clear obstacle here. In addition to this rise in costs, the fall in the euro is aggravating inflation.

The situation for cereals (wheat, maize, sunflower, nitrogen fertilisers) is even more worrying, as the sanctions affect Russia, while Ukraine can no longer export (and will soon be unable to sow). Many countries in Africa and Asia are likely to experience a violent food crisis, not to mention our farmers. It is not only Russia that will be affected by the sanctions.

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JOCVP

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