As a result of the Russian invasion of Ukraine, a global food crisis is looming on the horizon, expected to begin in autumn 2022, affecting all countries in Europe and having a worldwide impact.
To prevent this, it is crucial to stop Russia, not only by military means, but also with an embargo on all goods imported from Russia. It is especially important to immediately end the purchase of oil and gas.
This group of goods is fundamental for the revenues from which the Russian state finances its army.
Stop funding the war or risk a global food crisis
Cutting off gas and oil supplies from Russia is economically and politically challenging for Europe, but feasible. Above all, however, it is necessary in order to regain independence.
Conversely, the measure will lead to massive economic problems in Russia’s gas and oil sector: overproduction, shutdown of gas transmission system nodes, reduction of production volumes, etc.
In addition, the lack of revenues will also cause political problems because fewer budgetary resources can be reallocated for social purposes.
Sanctions are a powerful and effective tool to influence Russia and all those who support the governing regime in the aggressor state. However, the sanctions need to be tightened.
Joint, unified action by the EU states is required. Only the consistent cessation of deliveries from Russia can be expected to be effective. At the same time, this would provide an opportunity to enhance the development of alternative energy sources and thus unlock the potential for the development of an all-green economy.
Prof. Dr. Serhii Arefiev is an economist and professor at the National Aviation University in Kiev.
