Editorial - February/March 2023
As this edition of Global Insight went to press, the world was anticipating an intensification of Russia’s military invasion of Ukraine as the brutal war enters its second year. Ukraine’s Prosecutor General, Andriy Kostin, announced in early February that the authorities have already registered more than 65,000 alleged Russian war crimes. At the same time, a former Russian army officer, Konstantin Yefremov, spoke out alleging that troops have been torturing Ukrainians, something Russian leaders have repeatedly denied.
Speaking on BBC Radio Four’s Today programme, Stephen Powles KC, who sits on the Advisory Board of the IBA War Crimes Committee, highlighted the significance of such insider testimony: evidence of who gave the orders is key to holding those responsible to account. Powles remains hopeful that Putin himself could face trial at the International Criminal Court (ICC) in the Hague – just as Slobodan Milošević did following the atrocities in the Balkans – and reminded us that the ICC was created to put on trial those responsible for ‘crimes that shock the conscience of humanity’.
At the same time, energy companies were reporting record profits as a result of the inflated prices caused by the war. In the case of UK oil company Shell, this amounted to more than $39bn. The company paid just $134m in UK windfall tax – as it only derives five per cent of its revenue there – while also taking advantage of UK legislation that makes it tax-beneficial to channel funds into fossil fuels, rather than incentivising investment in renewable energy. Exxon had already announced a record profit of $55.7bn, which the White House called ‘outrageous […] after the American people were forced to pay such high prices at the pump’. The company’s Chief Financial Officer responded to such criticism, suggesting the answer is not higher taxes when increased supply is needed.
In various articles throughout this edition, we tackle the major issues in play, from energy security and the climate crisis to the importance of fair and transparent taxation. One feature assesses the impact of Russia’s invasion of Ukraine on energy markets and the imperative of investing in renewable energy. Meanwhile, in ‘The future of international economic co-operation and development’ we explore the OECD’s approach of ‘Better Policies for Better Lives’. Amid the cost of living crisis – with the world’s economies facing the challenging combination of emerging from a pandemic and dealing with the consequences of the war in Ukraine, while also making the ever-more urgent choices needed to arrest the climate crisis – this seems more pressing now than ever.