By Peter Sinkamba

WHY I SUPPORT PUTIN’S DECLARATION OF WAR AGAINST IMPOSITION OF FINANCIAL NEO-SANCTIONS AGAINST RUSSIA

It is not the first time that the west has imposed sanctions against Russia. But why is it that this time around, President Putin has declared war against countries that will impose sanctions against Russia?

And why is it that they are hesitating to do so?

The traditional sanctions have been always been trade, political, and social. This has included boycotting procuring of a country’s goods and services and vice versa; not allowing participation of a country in regional and global socio- political programmes and systems.

These sort of sanctions have generally been considered acceptable. Here in SADC, South Africa, Zimbabwe and Namibia are examples of countries that have experienced such sanctioms.

Now a new form of sanctions have emerged. These involved seizure and freezing of a country’s foreign reserves. Last week, the US and its NATO allies announced that they will seize Russia’s foreign reserves.

In the last seven years, Russia has built its foreign reserves in excess of US$600 billion.

Traditionally, countries do not keep their foreign reserves in their countries. They keep such in foreign countries, usually western.

Of Russia’s reserves, only 17% is held in China. There is no problem with that because China has categorically stated that it will not participate in sanctions against Russia.

The rest of the reserves are in western countries, especially the U.S.

It is not the first time the U.S. has impounded another country’s foreign reserves. Last year, the U.S. froze foreign reserves held by Afghanistan’s central bank in order to prevent the Taliban from accessing the funds after it seized power in the country last August.

In a move that outraged Afghans, the Biden administration is now using the frozen assets to compensate families of 9/11 victims and to fund humanitarian assistance in Afghanistan.

The question is: who has ever impounded U.S. and other NATO countries to compensate Iraq, Libyan, Syrians and other countries invaded by NATO in the past?

Before this trend continues, Russia has made it clear that it will retaliate militarily if ever its foreign reserves are frozen, let alone arbitrarily used by any country. If need be, Russia has made it clear it will unleash nuclear weapons to revenge.

I totally agree with Russia that this foreign reserves madness should not become pervasive and widespread. For, it will be used by western countries to seize foreign reserves of poor nations on flimsy grounds to address these western countries’ economic wooes, especially arising from pandemic, and economic meltdowns.

Already, I foresee a global financial and economic crisis. China, which has the highest foreign reserves on earth in excess of US$3 trillion may contemplate withdrawing the funds from abroad to avoid and insulate the funds from such reckless approach. Other vulnerable countries may also follow suit.

In the case of China, the bulk of its foreign reserves are in the U.S. If all its reserves are withdrawn from the US, America will economicallt crumble. And when the American economy crumbles, the inevitable is a global economic and global crisis which can have severe implications for poor nations.

For this reason, I am with President Putin on his position on neo-sanctions.

War is bad, but sometimes necessary.

Zambia, for example, supported wars in South Africa, Zimbambwe, Namibia, Angola, Uganda and Palestine because it was a necessity.