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Two Major Developments This Weekend Have Complicated the Ukraine War

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Two Major Developments This Weekend Have Complicated the Ukraine War

Author: Greg Valliere

February 21, 2023

WE STILL DON’T THINK RUSSIA can win the war — we said that a year ago and reiterate it now. But two developments this weekend have increased the likelihood of a long, bloody slog.

THE FIRST is a major wild card — is China preparing to provide military assistance to Russia? Secretary of State Antony Blinken reported no progress after meeting with his Chinese counterpart in Munich this weekend; instead of lowering the temperature with China, friction between the two countries has intensified.

CHINA IS HINTING that it might send weapons to Russia, which would cross a “red line,” officials in Washington contend. This could rupture relations between the U.S. and China and would increase prospects for still another blowout defense spending bill in fiscal 2024, focusing on shipbuilding to counter Beijing’s goals in the South China Sea.

THE SECOND DEVELOPMENT is the continued erosion of political support in the U.S. for involvement in the war; new polls show the public is evenly divided, a drop from strong support just a few months ago. Republicans are increasingly opposed to more aid, and Florida Gov. Ron DeSantis and others see an issue to exploit.

DeSANTIS SAID YESTERDAY that Biden is “very concerned about those borders halfway around the world. He’s not done anything to secure our own border here at home.” DeSantis added that “we have a lot of problems accumulating here in our own country that Biden is neglecting.”

FOR NOW, THERE’S STILL remarkable unity in NATO on sending more arms to Ukraine, and President Biden gets high grades for his bold visit to Kyiv this weekend. Biden has enough support in Congress, but that support is not indefinite.

ON THE BATTLEFIELD, THERE’S NO CHANGE in the dominant theme as the war enters its second year: Russian troop morale is dismal, as poorly equipped conscripts and convicts are dragged into the bloodbath. These troops are unwilling to fight for Putin; Ukrainian troops are willing to die for their country.

SO THE WAR WILL DRAG ON, despite staggering casualties and miscalculation after miscalculation on military strategy by Putin. He still has the brainwashed Russian public in his iron grip, so our sense — increasingly — is that the war will not end until Putin is overthrown.

THERE SURELY ARE GENERALS AND OLIGARCHS who agree that only Putin’s ouster can save Russia and end the slaughter. The dominant issue is whether someone can get to Putin. The urgency grows, complicated by China’s aggression and the wavering U.S. public opinion.


The views expressed in this blog are those of the author and do not necessarily represent the opinions of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies.

The views expressed in this blog are provided as a general source of information based on information available as of the date of publication and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Speculation or stated believes about future events, such as market or economic conditions, company or security performance, or other projections represent the beliefs of the author and do not necessarily represent the view of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Any financial projections are based on the opinions of the author and should not be considered as a forecast. The forward looking statements and opinions may be affected by changing economic circumstances and are subject to a number of uncertainties that may cause actual results to differ materially from those contemplated in the forward looking statements. The information contained in this commentary is designed to provide you with general information related to the political and economic environment in the United States. It is not intended to be comprehensive investment advice applicable to the circumstances of the individual.

AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). AGFA and AGFUS are registered advisors in the U.S. AGFI is a registered as a portfolio manager across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.

About AGF Management Limited

Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. Our companies deliver excellence in investing in the public and private markets through three business lines: AGF Investments, AGF Capital Partners and AGF Private Wealth.

AGF brings a disciplined approach, focused on incorporating sound, responsible and sustainable corporate practices. The firm’s collective investment expertise, driven by its fundamental, quantitative and private investing capabilities, extends globally to a wide range of clients, from financial advisors and their clients to high-net worth and institutional investors including pension plans, corporate plans, sovereign wealth funds, endowments and foundations.

Headquartered in Toronto, Canada, AGF has investment operations and client servicing teams on the ground in North America and Europe. AGF serves more than 800,000 investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.

For further information, please visit AGF.com.

©2025 AGF Management Limited. All rights reserved.

Written by

Greg Valliere

Greg Valliere

Chief U.S. Policy Strategist

AGF Investments

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