Sanctions and the new phase of economic combat by Dominik Leusder
"The evolution of global finance in this period may have also accelerated this process of accumulation. In his compelling new book Price Wars, Rupert Russell argues that the emergence of the over-the-counter derivatives market and the creation of commodity index funds sent commodity markets into overdrive, with prices largely detaching themselves from the dynamics of supply and demand. The transformation of oil and gas into volatile asset classes benefitted Russia greatly. Its propensity for violent conflict increased as a function of windfall gains from high oil prices, which were channeled into both the reserve buffer and defense. The invasion of Georgia in 2008 and Ukraine in 2014 were preceded by extended rallies in the price of oil. So was this latest conflict."
Read the full article at N+1.