Issue link: https://maltatoday.uberflip.com/i/1456665
9 EDITORIAL BusinessToday is published every Thursday. The newspaper is a MediaToday publication and is distributed to all leading stationers, business and financial institutions and banks. MANAGING EDITOR: SAVIOUR BALZAN EDITOR: PAUL COCKS BusinessToday, MediaToday, Vjal ir-Rihan, San Gwann SGN9016, Malta Newsroom email: bt@mediatoday.com.mt Advertising: afarrugia@mediatoday.com.mt Telephone: 00356 21 382741 R ussia's invasion of Ukraine is a senseless act of megalomania that is costing innocent lives to satisfy the expansionist whims of Vladimir Pu- tin. Putin's actions on the ground belie his justifications to engage in war. If the reason was to protect Russian-speak- ing communities in the Donbas region of Ukraine, his all-out war on every city across the country has given short shrift to that justification. If the reason was to prevent the 'threat' of NATO expansion to the east as a re- sult of Ukraine's request to join the alli- ance, the occupation of Ukraine would effectively see Russia moving towards NATO borders. Russian troops have advanced from the north, east and south in what is a multi-pronged invasion that is accom- panied by incessant shelling of key cit- ies. ere is no misinterpretation of what Putin plans to achieve – the complete control of Ukraine. Undoubtedly, this war has plunged Europe, and the world, into turmoil just as the continent had started emerging from the shadows of a global pandemic. But Putin's war has also brought EU member states closer together in an un- precedented way. After what appeared to be initial hes- itation, EU member states realised that Putin could not be treated with kids' gloves. EP President Roberta Metsola told MEPs this week that Europe faces "an existential threat if it does not face down Putin's war machine". Indeed, the raft of financial sanctions adopted by the EU, including the clo- sure of all EU airspace to Russian air- craft and the removal of several Russian banks from the international exchange platform, Swift, will bite deep into the Russian economy. At the same time, the EU has taken the unprecedented move of financing ar- maments to Ukraine, apart from other humanitarian aid. Within this context, Malta has said that with full respect to its neutrality will not be part of the military aid pro- gramme but instead has offered to treat Ukrainian cancer patients. On Wednesday, the Maltese govern- ment also announced the temporary suspension of passport sales to Rus- sian and Belarusian citizens. e move is welcome because it shows Malta is morally aligned with the anti-Putin ef- fort. It made little sense to express solidarity with Ukraine but continue selling pass- ports to wealthy Russians. And not be- cause all Russians are criminals - many in Russia are protesting their president's belligerence - but because Putin and his cronies must be isolated. But it would be foolish to ignore the wider economic implications of Putin's war. e first immediate impact was on the price of oil and gas. Oil surpassed the $110 per barrel mark. is will lead to higher energy and transport costs. Another impact will be on staple foods. Ukraine and Russia are major grain pro- ducers and this will cause prices to rise, leading to higher costs for families. Malta will not be immune to these changes. e cost of living was already going up by the end of last year because of global disruptions in supply chains caused by the pandemic. e situation will only get worse. In the last budget, the Finance Min- ister said government would allocate almost €200 million to cushion the im- pact of energy prices. Last month the government also announced an injec- tion of €70 million in the form of tax refunds and cost of living bonuses. ese decisions are good but we may have to start thinking how sustainable they are over a long period. And in an election campaign where expenditure pledges are being made left, right and centre, it could be wise for politicians to take a step back and adjust their prom- ises to the unfolding reality. Putin's senseless war 3.3.2022