Hitting Putin Where It Hurts

There has been much fulminating about what to do about Russia’s invasion of the Ukraine.  Surprisingly the most sensible thing I’ve read comes from Thomas Friedman:

I don’t want to go to war with Putin, but it is time we expose his real weakness and our real strength. That, though, requires a long-term strategy — not just fulminating on “Meet the Press.” It requires going after the twin pillars of his regime: oil and gas. Just as the oil glut of the 1980s, partly engineered by the Saudis, brought down global oil prices to a level that helped collapse Soviet Communism, we could do the same today to Putinism by putting the right long-term policies in place. That is by investing in the facilities to liquefy and export our natural gas bounty (provided it is extracted at the highest environmental standards) and making Europe, which gets 30 percent of its gas from Russia, more dependent on us instead. I’d also raise our gasoline tax, put in place a carbon tax and a national renewable energy portfolio standard — all of which would also help lower the global oil price (and make us stronger, with cleaner air, less oil dependence and more innovation).

The Times’ editorial page sounds a similar note:

American officials should use natural gas exports as one component of diplomacy that also includes assisting other nations with conservation and renewable sources of energy like solar and wind. The State Department, under Hillary Rodham Clinton, set up the Bureau of Energy Resources to do just that; it has, for example, helped European nations reduce their dependence on Russian gas by, among other things, buying more gas from Africa.

This won’t get Russia out of Crimea tomorrow (nothing will) but it is the surest way to weaken an autocrat who seems bent on restoring Russia’s position as our geopolitical enemy #1.

By: Stuart Shapiro

Stuart is a professor and the Director of the Public Policy
program at the Bloustein School of Planning and Public Policy at Rutgers
University. He teaches economics and cost-benefit analysis and studies
regulation in the United States at both the federal and state levels.
Prior to coming to Rutgers, Stuart worked for five years at the Office
of Management and Budget in Washington under Presidents Clinton and
George W. Bush.