Limits of American power

All the sanctions imposed so far have done little to deter Putin. [View in browser]( [Bloomberg]( Follow Us [Get the newsletter]( In the capital of Kosovo stands a 10-foot statue in honor of Bill Clinton, a celebration of the decisive role the U.S. president played in ending the bloodshed that marked the breakup of Yugoslavia. Some 20 years on, with another war at the European Union’s door, the U.S. is again being asked to step up following Russia’s invasion of its neighbor. Ukrainian President Volodymyr Zelenskiy implored Joe Biden to be the “leader of the world” and to enforce a no-fly zone over his country. Key reading: - [Biden Takes Tough-on-Putin Message to Allies Riven by Own Needs]( - [Biden to Unveil New Russia Sanctions, Energy Aid in Brussels]( - [NATO Nations’ Faith in U.S. Leadership Saw Biden Bump, Poll Says]( - Follow the latest with our [rolling coverage]( The fact that there is zero chance of that happening, since the U.S. and its NATO allies have ruled out military intervention, is a reflection of the massively increased stakes in confronting Russia rather than Serbia during the 1990s. But it also hints at the limits of American power after a series of humiliations overseas, most recently in Afghanistan. That is the backdrop for the U.S. president’s arrival in Europe, where tomorrow he’ll try to rally allies to embrace harder-hitting sanctions to punish Vladimir Putin. Sources: IOM, UNHCR Sources: IOM, UNHCR But Europe’s dependence on Russian oil and gas means it simply hasn’t been willing to go as far as the U.S. in terms of cutting the Kremlin’s biggest source of revenue. As one French minister pointed out, it’s easy for the Americans to ban Russian fuel when they barely consume it. What’s more, all the sanctions imposed so far have done little to deter Putin. If anything, there is a growing dread that a cornered Russian leader, frustrated by his military’s slow progress four weeks into the war, could resort to deploying weapons of mass destruction. For millions of Ukrainians, words and displays of unity will be of little comfort and Biden likely won’t be the savior that Clinton was in the Balkans. — [Flavia Krause-Jackson]( A man outside the Retroville shopping mall after a Russian attack on Kyiv on Monday. Photographer: Aris Messinis/AFP/Getty Images Sign up [here]( for the Special Daily Brief: Russia’s Invasion of Ukraine and share this newsletter with others too. They can sign up [here](. Global Headlines Unintended outcomes | Putin’s decision to invade Ukraine appears to be [changing]( the international order, just not necessarily in the way he planned, [Marc Champion]( reports. From Berlin to London and Baltic capitals like Tallinn, the metrics of defending Europe have been torn up. Nations are reconsidering what they spend, what they buy, and how they would need to fight. Rapid retreat | For decades, global finance firms eagerly catered to Russian companies, billionaires and the government. In perhaps the harshest and fastest [exclusion]( in living memory of a major industrialized economy, the past few weeks have been a frantic dash to understand and implement sanctions on Russia that are being continually updated by jurisdictions including the U.S., U.K. and the EU. Europe is facing the prospect of a [shortage]( of diesel as flows from Russia dwindle in the aftermath of its invasion of Ukraine, senior executives at three trading houses said. Rocketing diesel prices, alongside higher utility bills, are probably the most tangible inflationary impact for consumers. New routes | As the war rages, exporters and logistics firms [transporting]( auto parts, cars, laptops and smartphones are looking to avoid land routes through Russia or the combat zone. That’s left more than a million containers due to ride 6,000-plus miles of railway linking Western Europe to eastern China via Russia having to find new routes by sea. - More extreme weather caused by rising temperatures — compounded by geopolitical turmoil and the coronavirus pandemic — is [hindering]( China’s effort to ensure food supplies for its 1.4 billion people. Best of Bloomberg Opinion - [China’s Ukraine Juggling Act Isn’t Over: Clara Ferreira Marques]( - [People Think Putin Is Losing. What If He’s Not?: Mark Gongloff]( - [Ethiopia’s War Toll Grows as the World Looks Away: Bobby Ghosh]( Tense ties | Chinese Foreign Minister Wang Yi will visit India Friday, a person familiar with the matter says, the [highest-level]( visit from Beijing since deadly clashes along their mutual border in 2020. As [Sudhi Ranjan Sen]( reports, Wang will meet with National Security Adviser Ajit Doval and External Affairs Minister Subrahmanyam Jaishankar to discuss the war in Ukraine and their own Himalayan conflict. Explainers you can use - [How Europe Is Responding to Ukrainian Refugees]( - [Rising EV Sales in Latin America, India Are Reasons for Optimism]( - [Finance Industry Climate Pledges Don’t Touch Oil and Gas]( Marathon questioning | Judge Ketanji Brown Jackson [inched]( closer to becoming the first Black woman on the U.S. Supreme Court after holding her own against Republican attacks centering on crime and race during testimony before a Senate panel. The session, which lasted into the night, underscored the deep partisan divide over Biden’s nomination of Jackson. Bloomberg TV and Radio air Balance of Power with [David Westin]( weekdays from 12 to 1 p.m. ET, with a second hour on Bloomberg Radio from 1 to 2 p.m. ET. You can watch and listen on Bloomberg channels and online [here]( or check out prior episodes and guest clips [here](. News to Note - Poland is preparing to [expel]( 45 Russian diplomats after arresting a low-level civil servant on suspicion of spying, joining a counter-espionage crackdown that’s sweeping the EU’s eastern wing. - The China Eastern jet that crashed Monday was traveling at close to the speed of [sound]( in the moments before it slammed into a hillside, possibly complicating the investigation. - Chancellor of the Exchequer Rishi Sunak pledged to help British families [struggling]( with a surge in energy prices and the cost of living, adding to 21 billion pounds ($28 billion) of measures already announced. - Leaders of Egypt, Israel and the United Arab Emirates discussed energy and food security in a landmark meeting that [showcased]( ever-deepening ties between the three U.S. allies. - Argentina reached an agreement yesterday with the Paris Club creditors’ group to [extend]( talks on a repayment program for $2 billion of debt until June 30. And finally ... As Russia increasingly becomes a pariah in the global financial system, billionaires who have long [sheltered]( their fortunes abroad suddenly have far fewer options for where to put their money, [Benjamin Stupples]( and [Devon Pendleton]( report. Repatriating assets to a country careening toward economic ruin, and putting them within Putin’s grasp, is a dire proposition. But so too is keeping them in the U.S., U.K. or in EU jurisdictions, like Cyprus or the Caribbean, where they face freezes, blockades or possibly seizures. Protesters occupy a mansion reportedly owned by members of billionaire Oleg Deripaska’s family in London, on March 14. Photographer: Jason Alden/Bloomberg Like Balance of Power? [Get unlimited access to Bloomberg.com](, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. 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