Calibrated G-7 response to Russia makes sense

THE leaders of the major industrial nations meeting in The Hague this week suspended Russia indefinitely from the Group of Eight (and hence becoming again the Group of Seven) and warned that they would impose stronger economic sanctions against Moscow if President Vladimir Putin expands his military intervention in Ukraine. The decision was a sign that US President Barack Obama has succeeded in forming a united front with the leaders of six allied nations (Britain, Canada, France, Germany, Italy and Japan) against what they regard as Russia's violation of international law with the annexation of the Crimean Peninsula this month.

Mr Obama and the leaders agreed to boycott a planned G-8 summit meeting in Sochi, Russia in June, and instead to convene as the G-7 in Brussels. The Western governments were also planning to offer a package of economic and financial support for Ukraine's new pro-Western government, which took power in February after a protest movement ousted pro-Russian president Viktor Yanukovych. The United States has already adopted sanctions against members of Russia's political and economic leadership. But members of the G-7 such as Germany, which have close trade and investment ties with Russia, are understandably less inclined to adopt tighter sanctions against segments of the Russian economy, including its energy and banking sectors.

But if Russia decides to pursue new aggressive moves, such as deploying troops in eastern Ukraine, the Western leaders are expected to move towards more punishing economic steps against Moscow, although neither the US nor its allies are considering the use of military force against the Russians under any scenario, barring a direct attack on a member of the North Atlantic Treaty Organization.