Wednesday, March 16, 2022

🤫 CEOs at war

Plus: Ukraine's diplomatic concern | Wednesday, March 16, 2022
 
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Axios Sneak Peek
By the Axios Politics team ·Mar 16, 2022

Welcome back to Sneak. A foreign leader captivated a domestic audience.

Smart Brevity™ count: 924 words ... 3.5 minutes. Edited by Glen Johnson.

 
 
1 big thing: CEOs at war

Illustration: Aïda Amer/Axios

 

Russia's invasion of Ukraine is prompting American CEOs anew to build their own mini-State Departments as they navigate the uncertainties of a war and world increasingly unbound by norms and institutions, Axios' Hans Nichols writes.

Why it matters: Executives traditionally rise to power by creating successful products and business lines, managing expectations and turning profits — not mastering foreign policy. With little margin for error, many are turning to D.C. experts with heightened urgency.

What we're hearing: "Every CEO of a global business today has to make sure they have a real plan for geopolitical disruption," said Robert Gibbs, former President Obama's first White House press secretary.

  • Gibbs subsequently provided strategic communication for McDonald's, which this week closed its approximately 850 locations in Russia.
  • He's now senior counsel at Bully Pulpit Interactive.
  • Such corporate moves came as Russia threatened to arrest those branding its invasion a "war" and to seize corporate assets in retaliation for multinational firms departing from the country.

By the numbers: Nearly 400 companies have announced their intent to withdraw from Russia since President Vladimir Putin invaded Ukraine, according to a list compiled by Jeffrey Sonnenfeld, a professor at the Yale School of Management.

  • Washington, D.C.-based Beacon Global Strategies is monitoring 234 companies at latest count to analyze how they're responding to the crisis.
  • The analysis ranges from sanction compliance to hardening cyber defenses, said managing director and co-founder Jeremy Bash — a former CIA and Pentagon official.

Keep reading.

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2. Ukrainians fear Russian diplomatic head fake
A video showing damage in Kyiv was viewed by Congress on Tuesday.

A video shown by President Volodymyr Zelensky depicts damage to his Ukrainian homeland. Photo: J. Scott Applewhite/Pool/Getty Images

 

The outlines of a potential deal to end the war in Ukraine are coming into focus, but sources on the Ukrainian side tell Axios' Dave Lawler they fear Moscow's newfound enthusiasm for diplomacy is a ruse.

Why it matters: Kyiv has gained unexpected leverage by withstanding the Russian advance for three weeks, though the humanitarian crisis is deepening daily as Russia shells major cities.

  • President Volodymyr Zelensky has hinted at an off-ramp by acknowledging that Ukraine will not be invited into NATO, but Ukrainian, U.S. and European officials doubt Putin is prepared to take it.

Driving the news: After Zelensky said Ukraine wouldn't be invited into NATO, Kremlin spokesman Dmitry Peskov said today that Ukraine's post-war "neutrality" could be based on the Austrian or Swedish models.

  • The FT then reported Russia and Ukraine had discussed a "15-point" draft peace plan during Monday's negotiations, and that significant progress had been made toward a deal. It would include Ukraine ruling out joining alliances or hosting foreign troops, but receiving security guarantees from countries like the U.S., U.K. and Turkey, per the FT.
  • No agreement has been reached on Russia's other core demands, including that Ukraine recognizes Russia's sovereignty in Crimea and the independence of the eastern "republics" of Donetsk and Luhansk.
  • But at least in public, Russian officials have dropped their calls for regime change and "demilitarization," and Peskov's implication that Ukraine could join the EU was particularly striking.

Keep reading.

🌎 Go deeper: Read Dave's twice-weekly Axios World newsletter by signing up for a free subscription here.

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3. Charted: Growing polarization
Reproduced from Pew Research Center; Chart: Axios Visuals. Pew Research notes: "Data excludes nonvoting delegates, as well as lawmakers who officially served but (due to illness, resignation or other factors) didn't have a scorable voting record for a given Congress."

Congressional Democrats and Republicans are further apart ideologically than at any point during the past five decades — and Republicans are more to blame than Democrats, according to analysis by Pew Research Center reviewed by Axios' Stef Kight.

Why it matters: The growing polarization makes it even more difficult for Congress to find bipartisan compromise for important legislation.

  • Both parties have had to deal with internal fracturing, but the GOP has moved further right than Democrats have moved left, the Pew analysis shows.
  • Republicans have ended up with some untouchable partisans.

By the numbers: Pew Research highlighted three major congressional trends in recent decades.

  • On average, Democrats are more liberal and Republicans are much more conservative than in the early 1970s.
  • Moderates have disappeared, and there's far less ideological overlap between Republicans and Democrats. There are now only about two dozen moderate Democrats and Republicans left, compared to 160 in 1971-72.
  • Congress is now far more demographically diverse.

Go deeper: The geographic makeup of each party has shifted, as well.

  • The share of House Republicans from the South has grown from less than 15% 50 years ago to 42% today — and these Southern Republicans have become even more conservative than the rest of the party.
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A message from Climate Power

Clean energy is the key to real energy independence
 
 

By investing in clean energy here in America, we can speed up the production of cheaper, cleaner energy — like wind, solar and electric vehicles — that will expand our energy supply and lower costs for consumers and businesses.

Watch Climate Power's new national ad to learn more.

 
 
4. Worthy of your time
President Biden is seen snapping a photo with an iPhone.

President Biden channels Sen. Patrick Leahy (D-Vt.) as he snaps a photo during an event celebrating the reauthorization of the Violence Against Women Act. Photo: Al Drago/Bloomberg via Getty Images

 

🇷🇺 Sen. Lindsey Graham (R-S.C.) reiterated his suggestion that Russian President Vladimir Putin should be assassinated, stating during a press conference, "It's time for him to go. He's a war criminal. I wish someone had taken Hitler out in the '30s. ... He needs to be dealt with by the Russian people," Axios' Andrew Solender reports.

🐘 Utah Attorney General Sean Reyes, a Trump ally, is preparing to run for U.S. Senate in 2024, according to Politico. It also reported Sen. Mitt Romney (R-Utah) said he hasn't decided on whether to run again but Reyes running would be "the best news I could get."

🗳 Eighteen House Democrats sent a letter to U.S. Attorney General Merrick Garland raising alarms about 2020 election deniers in state and local election administration roles who may "abuse their authority to directly influence the results of future elections."

🔄 Former President Trump told the Washington Examiner he's considering endorsing a new candidate in Alabama's Senate race, calling Rep. Mo Brooks (R-Ala.) — his current endorsee — "disappointing."

📊 A Politico/Morning Consult poll found a slim majority of Americans support "banning the teaching of sexual orientation and gender identity from kindergarten through third grade," after the Florida legislature passed a law to that effect.

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5. Pic du jour
Two people are seen watching the sunset from the steps of the Supreme Court.

Photo: Stefani Reynolds/AFP via Getty Images

 

The Supreme Court served as easy chair to watch Tuesday's sunset.

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A message from Climate Power

Clean energy is the key to real energy independence
 
 

By investing in clean energy here in America, we can speed up the production of cheaper, cleaner energy — like wind, solar and electric vehicles — that will expand our energy supply and lower costs for consumers and businesses.

Watch Climate Power's new national ad to learn more.

 

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