As the European Union presses ahead with its 15th sanctions package, aimed at further restricting Russian liquefied natural gas (LNG) exports, the geopolitical landscape is revealing a stark irony. While the EU struggles with its own economic challenges—exemplified by the energy crisis battering German industries—Russian President Vladimir Putin is hosting several heads of state at the 2024 BRICS Summit in Kazan. Far from being isolated, as the West’s sanctions intended, Russia is actively engaging with key global economies, particularly through its BRICS alliances with China, India, Brazil, and South Africa. This gathering underscores how Russia, rather than being cornered, is playing a strategic game that enhances its global influence, particularly in the Global South.
The Kazan summit highlights the growing divide between the West and the rest of the world. While Europe’s sanctions aim to isolate Russia, they have inadvertently driven Moscow to deepen ties with non-Western powers, many of which are unwilling to participate in the EU’s sanctions regime. These countries see opportunities in Russia’s pivot eastward, from energy deals to infrastructure projects, expanding their trade while the West loses influence. Russia’s relationship with China has become particularly strategic, with energy exports to China surging as Europe cuts ties, and now China is gaining a stronger foothold in both Russian and European markets.
While Europe is intent on playing checkers with rapid, short-term moves aimed at immediate goals, Russia is playing a more calculated game of chess. Putin’s hosting of world leaders in Kazan is a clear signal: Russia may be under pressure from Western sanctions, but it is far from isolated. In fact, by fostering stronger ties with BRICS nations, Moscow is solidifying a parallel international system that sidesteps Western dominance. The EU’s aggressive sanctions, instead of isolating Russia, have provided an opportunity for it to deepen its relationships with countries willing to challenge Western influence, reshaping the global geopolitical and economic order.
Meanwhile, Europe is suffering the economic blowback from its own sanctions. Germany’s industrial giants, like Siemens, are halting investments in their home country, driven by skyrocketing energy costs and regulatory uncertainties. Europe’s reliance on expensive U.S. gas from fracking, compared to the cheaper Russian alternatives it once relied on, has left it economically vulnerable. In contrast, China has positioned itself as a major winner in this global realignment, expanding its market share in both Europe and Russia.
China’s thriving industry, buoyed by stable and affordable energy supplies, obviously supported by Mother Russia, continues to outcompete Europe. In the first half of 2024, China’s exports to the EU surged by over 12%, while exports to Russia increased by 27%, filling the void left by Europe’s industrial downturn. Europe’s sanctions may have hurt Russia’s economy to an extent, but they have unintentionally facilitated China’s ascent as the dominant player in global markets, while Europe falls further behind.
In this geopolitical chess match, Russia is maneuvering with foresight, aligning with powerful partners who stand to benefit from the West’s miscalculations. The EU’s checkers-like approach—focused on short-term punitive measures—has weakened its own industries, alienated key energy suppliers, and created openings for China and Russia to thrive. The Kazan summit is just another move in a long game that shows Europe’s missteps are not isolating Russia but instead isolating Europe from the growing global economic shifts toward the East.
About the author:
Dr. Leandro Pinto is a highly respected senior attorney with extensive expertise in international law, particularly in the fields of banking regulation, crypto-assets, and financial markets. As the founder of Dr. Leandro Pinto Law Firm, he has advised clients on complex global transactions and regulatory frameworks, positioning his firm as a leader in navigating the challenges of modern business environments. Dr. Pinto is also the creator of the Encrypted Infinite Point Algorithm (EIPA), a groundbreaking concept in cryptographic algorithms, which explores new possibilities in blockchain technology. He frequently lectures and writes on these topics, offering insights into the evolving intersection of law and technology. His innovative approach to legal and financial strategies has earned him recognition as a key figure in shaping the future of global finance.