According to George Soros, sanctions placed on Russia for invading Ukraine have done the damage. One of the sanctions includes blocking Russian financial institutions from the global markets. Soros is well familiar with finance and how such a block can wreak havoc to economy. After all, he made billions speculating on the global markets.
Additional difficulties Russia faces come from low oil prices. Overall, Soros thinks that these sanctions are doing their job in keeping Putin from causing more turmoil. However, when it comes to Ukraine, the country needs help from the West in order to get its economy going.
Even before Russian invasion in 2014 Ukraine suffered economically. The country is run by oligarchs (in similar fashion to Russia) and there’s widespread corruption. So, money alone won’t solve the problem. The Western nations need to help Ukraine eradicate widespread corruption which chokes the country.
George Soros calls for European leadership in solving the crisis. Specifically, he has Angela Merkel in mind as she’s the leader of Europe’s biggest economy. But, the German chancellor is preoccupied with other issues: migration crisis, Greek debt, and now Brexit.
Merkel stood up to Russia, but didn’t do much to help Ukraine. Soros feels that she has already spent her political capital on fending off the Greek crisis. But, Soros says, Ukraine shouldn’t be treated like another Greece.
Ukraine is a large nation when it comes to its territory and population. In fact, it’s among the biggest in Europe. There are forces there that seek to pursue radical political and economic reforms, something Soros calls “new Ukraine.” But, the entrenched interests of the “old Ukraine” are still strong. Otherwise, Putin will have more room to play.