International organizations

When I say war effort, I mean the abundance of economic sanctions that hit President Vladimir Putin's Russia: export limits, asset freezes on Russia's most powerful men, closure of airspace to Russian planes, withdrawal of propaganda media in Canada, frontal attack on the country's currency, and this, not to mention the country's international isolation. Add to that the weapons and military equipment that have been given to the fighters of Ukrainian President Volodymyr Zelensky.

Just two years ago, the North Atlantic Treaty Organization (NATO) was weakened. Former US President Donald Trump repeatedly questioned the funding of this defense organization, which is now more relevant than ever. Vladimir Putin directly justifies his invasion of Ukraine by his own security concerns and his fear of NATO expansion into other former Soviet countries, which are naturally pro-Russian, according to him.

The G7 was also badly affected by the friction between Canadian Prime Minister Justin Trudeau and Donald Trump. Let us recall the Charlevoix fiasco! The G7 was also shaken by the disagreements between former German Chancellor Angela Merkel and Trump. To this day, these countries are working together more than ever. It is a strong coalition that makes many decisions together.

Russian oil and dependence

As for sanctions, the energy sector is the hottest topic. As Russia is the third largest oil producer in the world, a blockage of its oil exports could have a considerable impact on some European countries, which are dependent on them. Canada had already announced at the end of February that it wanted to ban imports of crude oil from Russia.

On the US side, Russian oil and refined products represent only 8% of their imports. In this regard, our southern neighbor has much larger partners, including Canada. Under pressure from members of Congress, both Democrats and Republicans, President Joe Biden announced that he would ban Russian oil products from the American market.

A measure that forces the United States to turn to countries like Venezuela, Saudi Arabia and possibly Iran. Who would have believed it three months ago?

Impact on the consumer

The impact of this exclusion of Russian oil from a significant part of the energy market can have a direct effect on American consumers, but also Canadian ones. If the price of a barrel of oil rises, the entire international market is affected. Without wanting to be the bearer of bad news, it is not soon that we will be able to fill up for less than $1.60 per liter...

The increase in the price of gasoline at the pump, combined with the increase in inflation, is putting immense pressure on the costs of goods and services. Consumers are the ones who are paying more for gasoline. Moreover, the prices of a range of other commodities are affected.

In the United States, inflation is the number one concern of the authorities, including the Biden administration. In addition to supporting its Ukrainian ally, Washington will have to find a way to calm the concerns that emanate from within its own country. A major challenge for Joe Biden, the unloved …

Businesses on the battlefield

The great novelty of this conflict is the voluntary involvement of companies. The growing number of multinationals that have decided to take a stand – without being forced to do so – is fascinating. It is probably unprecedented. Last year, it was hard to imagine that McDonald's or Starbucks could stop offering their services and products in a country to boycott its government. All this without taking into account the financial losses…

Yet that is what happened. Adding in bigger players like Visa, Mastercard, Boeing, Ford, Apple, Netflix, Spotify, Nike and Ikea (the list will get longer), a trend is emerging. The private sector, in addition to companies directly involved in supporting the military, will in the future be tempted to support the war effort.

In Canada, Bombardier has chosen to join forces with these multinationals. Are other Canadian companies following suit?