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Time is Running Out for Ukraine; GOP Still Eyes Youngkin

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Time is Running Out for Ukraine; GOP Still Eyes Youngkin

Author: Greg Valliere

August 21, 2023

WE HAVE ARGUED FOR A YEAR AND A HALF that Russia cannot win the Ukraine War. That’s still our view, with a new angle — it’s looking increasingly likely that Ukraine cannot win the war either, as a bloody stalemate sets in, potentially weakening support for Kyiv in Washington.

STAGGERING LOSSES: The total number of Ukrainian and Russian troops killed or wounded since the war began 18 months ago is nearing 500,000, U.S. officials told the New York Times this weekend. Russia’s military casualties, the officials said, are approaching 300,000. The number includes as many as 120,000 deaths and 170,000 to 180,000 injured troops.

UKRAINE HAS PROBABLY SUFFERED CLOSE TO 70,000 killed and 100,000 to 120,000 wounded, officials said. That’s a tremendous cost considering that Ukraine has around 500,000 troops, including active-duty, reserve and paramilitary troops — and Russia has almost triple that number, with 1,330,000 active-duty, reserve and paramilitary troops; most of the latter are from the Wagner Group.

OFFICIALS IN WASHINGTON are reluctant to criticize Ukraine openly, but there’s a widespread consensus that Kyiv’s counter-offensive got off to a very slow start this summer — bogged down in dense minefields in the first few weeks, with as much as 20% of its weapons damaged or destroyed.

THIS TERRIBLE TOLL IS ABOUT TO BECOME a more contentious political issue in the U.S. Some of the Republican candidates who will be in the GOP debate on Wednesday will advocate spending less on the war; there’s growing opposition in the party’s base to President Biden’s new $40 billion spending request.

IF DONALD TRUMP WINS the GOP nomination, he is expected to become a more vocal opponent of military aid to Ukraine, even though traditional Republicans will support it. If the fall begins with no major battlefield breakthrough or truce, the war could become increasingly unpopular in the U.S.

* * * * *

ASTONISHING NEW POLLS show Donald Trump with a lead of 40% or more against the GOP field in the presidential primaries; with Ron DeSantis still fading, the issue heading into this Wednesday’s GOP debate is whether anyone can stop Trump. Many Republicans are still looking at Virginia Gov. Glenn Youngkin.

THE WASHINGTON POST REPORTED this weekend that billionaire media mogul Rupert Murdoch twice met with Youngkin earlier this year, urging him to run. Youngkin has been non-committal, but sources believe he has not ruled out running, especially if no Republican candidate catches fire.

OTHER WEALTHY CONSERVATIVES HAVE URGED YOUNGKIN to run; they fear a GOP bloodbath in House and Senate races if Trump is the nominee. Murdoch would be a major factor, with his megaphone at the New York Post, the Wall Street Journal and Fox News.

MONEY WOULDN’T BE A PROBLEM; Youngkin is worth at least a half billion dollars. We think he will jump in at the last minute late this fall, but he would be the underdog. Of course, he was the underdog in Virginia against Terry McAuliffe, who got blindsided.


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. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.

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©2023 AGF Management Limited. All rights reserved.

Written by

Greg Valliere

Greg Valliere

Chief U.S. Policy Strategist

AGF Investments

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