Russia’s default is a blow for Putin Business

It has tested Western resolve, which host Olaf Scholz admitted at a meeting of G7 leaders on Sunday in the Bavarian Alps. All G7 states are worried about the “crises we are currently facing”, said the German Chancellor.

Boris Johnson also warned of ‘fatigue’ among ‘people and politicians’ but reiterated the need to maintain consensus, and Scholz said he was confident the group would send a ‘very clear signal of unity and solidarity’. ‘decisive action’.

Reports that the G7 is close to reaching an agreement on a proposed Russian oil and gas price cap are reassuring. Putin, like any autocratic leader, draws great strength from any signs of weakness in his enemies. Ukraine’s allies must stay the course and keep turning the screw.

With Joe Biden and US Treasury Secretary Janet Yellen in the lead, Britain, France and Italy are said to have backed a cap, and Berlin is expected to follow suit shortly, the West may soon have a potent new weapon to wield. its disposition.

The theory is that a cartel of buyers would drive down the value of the Kremlin’s most lucrative export by only allowing Russian oil and gas to be sold and stored below a certain price, while a comprehensive boycott drove prices up.

A plan to give China and India access to cheaper Russian energy is also a smart move, as previously the Kremlin had tried to circumvent sanctions by selling its crude and gas to more expensive countries. sympathetic.

The Kremlin is wrong to claim that the war has changed nothing. The defect, however “fabricated” it may be, is in itself proof that the sanctions work.

Meanwhile, the promise of another round of sanctions suggests that, far from tired or intimidated, the West remains more determined than ever to help Ukraine defeat Putin’s invading army.