Russia’s invasion of Ukraine and its consequences for the international community have dominated the headlines for almost a year. After initial rapid gains, the Russian military and its allied separatist militias encountered setbacks in several critical regions. Now, the pace of the conflict has slowed from miles to inches.
As Russia grinds down Ukrainian defenses and power lines with artillery, the United States government has led an aggressive campaign to wear Russia out economically. The Biden administration has directed fellow NATO members to send military aid to Ukraine. It is also pressuring the world, and especially the European Union, to cut off Russia as a trade and development partner. This has resulted in disagreements between Europe’s pro-American power players and more cautious EU members such as Hungary - but it’s clearly a priority to stop Russia.
How the campaign against Russia unfolds will have long-term implications for America’s leading role on the world stage, especially if – or when – America’s other global rival, China, decides to make its own decisive geopolitical moves. The world has looked to America for diplomatic, economic, and military leadership for almost a century. And, overall, sanctions against Russia have been effective, as the U.S. and its allies have demonstrated considerable resolve despite the disruptive effects on their own economies.
One component of economic warfare that America can’t control is how most private companies engage - or disengage - from rivals like Russia. For example, companies like Cloudflare and Patreon have not divested despite considerable pressure from state and private actors alike.Ultimately, it’s up to consumers to determine if that’s acceptable in the market. But even within the private sector, the U.S. must apply consistent accountability standards to companies that take taxpayer money, particularly defense contractors
One noteworthy holdout is Airbus - the world’s largest airplane manufacturing company - which has lobbied against sanctions for months. The company is supposed to, if not obliged to, help the West build a secure national defense apparatus. Yet, Airbus has been fined for unethically and illegally opposing U.S., Britain, and other Western interests - and was recently fined $16 million for similar actions in other countries.
Despite these actions, the U.S. government rewarded Airbuswith a federal contract just a few months after Russia invaded Ukraine. And now the company is seeking another major contract to build the Air Force’s next tanker aircraft. Clearly, receiving American taxpayer dollars is not contingent on aligning with American foreign policy.
I believe in the free market internationally as well as at home. Corporations should be able to do what they want – but the game changes when the American taxpayer foots the bill. The government has an obligation to be consistent when funding these companies because of the impacts on today’s conflicts and the ones likely to come - especially with China, which appears comfortable flexing its muscles domestically, regionally, and around the world. Eventually, world leaders like America will be unable to avoid a reckoning as China continues to mistreat Uyghur Muslims, subvert accountability for the Covid-19 pandemic, and make threats against top U.S. officials for the temerity to support Taiwan’s independence and freedom.
The Russia-Ukraine war may last months or years. So far, America has been an effective leader in supporting Ukraine. How we continue to engage in that conflict will be a serious indicator to China and the world about what to expect in the future.