Absolutely! (although remember, when it came out, it was shown in theaters as the television hadn't been invented yet) Varrick had several incentives to incite anti-North, pro-South sentiment. For one, he was from the Southern Water Tribe. Perhaps more importantly, though, given his personality, he stood to make a lot of money off of the arms deals that would result if Republic City joined the war. He even orchestrated a false-flag bombing of the Southern Water Tribe Cultural Center to inflame tensions.