foreignpolicy.com 
<https://foreignpolicy.com/2018/03/27/britain-has-no-clue-why-its-punishing-russia/>
  


Britain Has No Clue Why It’s Punishing Russia – Foreign Policy


By Mark Galeotti

7-9 minutes

  _____  

London’s initial, tepid 
<https://foreignpolicy.com/2018/03/21/theresa-may-should-go-after-putins-debt/> 
 response to the attempted assassination of former Russian spy Sergei Skripal 
<http://www.bbc.com/news/world-europe-43291394>  and his daughter has been 
overtaken by the unprecedented international round of expulsions 
<https://www.theatlantic.com/international/archive/2018/03/putin-skripal-expulsion-russia-poisoning-trump/556556/>
  of Russian spy-diplomats. Overall, however, the debate — which has continued 
with calls for Britain to bring more pressure 
<https://www.ft.com/content/ffe0d1c6-2c3e-11e8-9b4b-bc4b9f08f381>  to bear on 
Moscow — has been dominated by tactical questions of political feasibility. 
This is understandable but means that Britain has leapfrogged the most 
fundamental one: Precisely, what is it that it wants? Objectives must determine 
tactics, not the other way around.

As things stand, discussions about sanctioning Russia confuse three broad goals.

Is the main goal deterrence? To punish Russia with a display of retaliatory 
resolution intended to demonstrate to Vladimir Putin that the costs of further 
adventurism outweigh any possible advantages?

In that case, the aim ought to be a broad barrage of measures, some of which 
have serious implications and others of which may be essentially symbolic. 
Actions including further diplomatic expulsions, pushing for a boycott of the 
World Cup 
<http://www.bbc.com/news/av/uk-politics-43516900/should-england-boycott-the-world-cup>
 , and designating Russia as a state sponsor of terrorism are unlikely to have 
a substantive practical impact on Russia, but they demonstrate a will to 
resist. That is crucial, as, until now, Putin’s calculation appears to have 
been that the West’s objective strengths — military, economic, political, soft 
power — were rendered largely irrelevant by the absence of the will to use 
them. Demonstrably closing that “will gap 
<https://raamoprusland.nl/dossiers/kremlin/894-russia-pursues-dark-power-and-the-west-has-no-answer>
 ” is a powerful element in deterrence.

Of course, in the short term the Russians will respond in kind 
<https://foreignpolicy.com/2018/03/26/russia-promises-retaliation-after-western-expulsions/>
 . Indeed, based on their usual track record, they will escalate. Ultimately, 
though, this must simply be weathered as the price of defiance.

Perhaps, though, Britain’s primary aim is to protect itself from the corrupting 
influence 
<https://www.thedailybeast.com/to-punish-russia-for-spy-poisoning-go-after-the-oligarchs?ref=wrap>
  of Russian kleptocracy. Whatever the reasons behind the Skripal hit, much of 
the Moscow-related violence 
<https://www.buzzfeed.com/heidiblake/from-russia-with-blood-14-suspected-hits-on-british-soil>
  in the country, after all, seems more associated with the incestuously 
interconnected worlds of Russian crime and Russian business than with the 
Kremlin. Besides which, so long as “Londongrad” remains a haven for dirty 
Muscovite money 
<https://www.theguardian.com/world/2017/mar/20/how-dirty-money-from-russia-flooded-into-the-uk-and-where-it-went>
 , it not only exerts a limited but definite influence on Britain but also 
facilitates the criminal regime in Russia.

In this case, the target must more directly be the money. Britain actually 
already has a solid array of legal instruments at the authorities’ disposal. 
What it needs is greater political will to apply them. These kinds of cases are 
notoriously complex and lengthy, consuming the time of specialists without 
offering any guarantees of success. It is not as if the National Crime Agency 
<http://www.nationalcrimeagency.gov.uk/>  (Britain’s answer to the FBI) and 
other forces do not want to chase dirty Russian money 
<https://www.theguardian.com/world/2017/mar/21/russia-accused-of-hindering-uk-money-laundering-investigations>
  — but they need the resources and the latitude to do the job.

This is also a project in which further international cooperation would be 
crucial. Chasing that money and the influence it buys out of London but seeing 
it find comfortable new homes in Paris, Frankfurt, and New York is only half 
the job done and will do little to chasten Moscow. Although it will be 
difficult to persuade others to turn away tempting business, the unexpected 
support Britain is receiving from European Union partners in particular 
suggests this may be an opportune moment to convince them that in its 
experience this money is too toxic to be safe and that this is a Western, not 
just a British, problem.

Of course, the irony is that by driving out Russian money, London would in part 
be doing Putin’s work for him. Since 2014, the Russian economy has been in the 
doldrums. Furthermore, Putin is a man who understands power better than 
economics, and he is unhappy to see elites stash their money outside his grasp.

Putin is a man who understands power better than economics, and he is unhappy 
to see elites stash their money outside his grasp.

Putin is a man who understands power better than economics, and he is unhappy 
to see elites stash their money outside his grasp.

He has launched a “de-offshorization 
<https://www.reuters.com/article/us-russia-economy-tax-insight/declare-offshore-wealth-russia-tycoons-would-rather-ship-themselves-off-shore-idUSKBN18X0XJ>
 ” campaign to try to persuade, cajole, and intimidate oligarchs and minigarchs 
into bringing their money back home. Along with the stabilization of the 
economy as a whole, this has had some limited success. While more than $31 
billion 
<https://themoscowtimes.com/news/capital-flight-from-russia-soars-to-313-bln-in-2017-60209>
  flowed out of the country last year alone, this is a dramatic fall from 
2014’s $154 billion 
<http://www.intellinews.com/russian-capital-flight-reverses-for-the-first-time-since-2015-116834/>
 .

The thought that Britain would actually be returning capital into Putin’s grasp 
may be an uncomfortable one. After all, a third possible policy goal would be 
actively to seek to undermine the regime in Moscow. Overt efforts at regime 
change would be dangerous and likely counterproductive, but London may feel 
that it should not pass up opportunities to weaken the Kremlin

London may feel that it should not pass up opportunities to weaken the Kremlin

, in the hope that this may tame its appetite for playing confrontational 
geopolitics.

London may feel that it should not pass up opportunities to weaken the Kremlin

In this case, ironically, we ought to welcome capital flight. It deprives Putin 
indirectly of resources, but more generally one of the reasons Putin wants 
elites not to keep assets abroad is because he fears this could be used as 
leverage to push them into political activity in Russia or use them as sources 
of intelligence. Maybe London ought to prove that fear founded.

While exerting such pressure on the Russian elite, London can also hit Moscow 
in the wallet where it truly hurts: the state’s capacity to continue to raise 
money and service existing obligations by issuing sovereign debt that is then 
bought in the West. Going after this sovereign debt, not the glitzy penthouses 
of the oligarchs, would represent a serious systemic attack on the Kremlin.

There are advantages and dangers in all three approaches. Giving dirty Russian 
money a pass in the name of undermining Putinism is perhaps the most polluting 
and risky one, but it is an idea modern Machiavellians involved in 
behind-the-scenes policy discussions find appealing. Seeking to cleanse Britain 
of Russian kleptocratic influence is an admirable and overdue goal but does 
little to deter future aggression. Likewise, a tough escalation of the 
political pushback against Putin will inevitably mean more flak from Moscow.

But the point is that there needs to be a clear, explicit, firm commitment to a 
strategic goal. Rather than consider what Britain can do (and do easily and 
cheaply, at that) and then cobble a strategy around those measures, it needs to 
finally decide what it wants and let that drive the process.

 
<https://foreignpolicy.com/2018/03/27/britain-has-no-clue-why-its-punishing-russia/>
 
https://foreignpolicy.com/2018/03/27/britain-has-no-clue-why-its-punishing-russia/

 

 

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