After three rounds of US-inspired sanctions against Russia, Moscow has finally retaliated. We’re now on the brink of a fully-blown East-West trade war. Since March, the West has imposed successive travel bans and asset freezes on various lawmakers and other prominent individuals – the most wide-ranging restrictions on Russian commerce since the Soviet era. In late July, the screw was turned even tighter, as America and then the EU limited Russian state-owned banks’ access to international capital markets.
President Putin then snapped. A 12-month ban on food imports from America, the EU, Australia, Canada and Norway was imposed and there’s talk of stronger measures to come. Diplomacy having failed – having barely been attempted – the economic gloves are now off. Will tit-for-tat sanctions between Russia and the West escalate, worsening the commercial and political damage? Or will they be contained?