Russia bill could hurt Western economies
Growing up near Vancouver, my friends and I often hopped over to the U.S. in search of a bargain. During one such trip, some pals were caught with dozens of cheap American chocolate bars hidden in the glove compartment of the car. Instead of paying the duty, they chose to consume all of the chocolate on the spot. Believing that they were sticking it to those customs officials, they really just made themselves violently ill.
That episode was not unlike a scenario playing out in the U.S. — just substitute members of Congress for my buddies and Russian President Vladimir Putin for the customs officials they think they’re sticking it to.
Last week, the Senate sent the Countering America’s Adversaries Through Sanctions Act to President Donald Trump’s desk. On Wednesday, Trump signed what he called a “seriously flawed” bill into law. Someone needs to explain why the Washington establishment wants to upchuck all over America’s best interests with this piece of legislation.
The law is meant to hold Russia responsible for the anti-Russian psychosis afflicting much of the establishment. It does so by explicitly targeting any person who “sells, leases, or provides to the Russian Federation, for the construction of Russian energy export pipelines, goods, services, technology, information, or support.”
Where is Secretary of State Rex Tillerson, the former ExxonMobil CEO, on this? You’d think that Tillerson would have a lot to say, given that the U.S. Treasury Department fined Exxon $2 million for violating sanctions through a joint partnership with Russian oil company Rosneft. You’d expect Tillerson to say, “Hey, guys, I’m secretary of state and even I’ve been nailed by this.”
Instead, Tillerson turtled, saying: “The near unanimous votes for the sanctions legislation in Congress represent the strong will of the American people to see Russia take steps to improve relations with the United States.”
Yeah, sure. That’s what the establishment had in mind when it included Russia in a punitive sanctions bill with Iran and North Korea — two other countries with whom the establishment wants warm relations, right?
The act would also punish anyone who “engages in a significant transaction with a person that is part of, or operates for or on behalf of, the defense or intelligence sectors of the Government of the Russian Federation.” How are American defense and aerospace companies supposed to do business with their Russian partners and suppliers when the industry is intricately linked to the defense and security establishment?
U.S. sanctions harm not only American companies but also European companies that have any sort of U.S. presence and are engaged in joint ventures with Russia.
Germany’s economy minister, Brigitte Zypries, has urged European retaliation, calling the sanctions illegal and telling a German newspaper group, “The Americans can’t punish German companies because they have business interests in another country.”
European Commission President Jean-Claude Juncker also expressed unhappiness with the proposed sanctions.
“‘America First’ cannot mean that Europe’s interests come last,” Juncker said.
Russia has already ordered the reduction of U.S. diplomatic and support personnel in Russia by 755. Now that Trump has signed the bill, the U.S. can expect further retaliation.
This is where Tillerson should have supported Trump in throwing this bill back in the establishment’s face. Force Congress to explain to citizens why they think their Russian fantasies are more important than the economic health of the Western world.
When the military-industrial complex is complaining about a bill meant to economically disadvantage the other guy, it’s a pretty good sign that it’s half-baked.