Share on Google Plus Share on Twitter Share on Facebook 1 Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend 1 (2 Shares)  
Printer Friendly Page Save As Favorite View Favorites (# of views)   8 comments

OpEdNews Op Eds

The US-EU-Russia sanctions puzzle

By       Message Pepe Escobar     Permalink
      (Page 1 of 2 pages)
Related Topic(s): ; ; ; ; ; ; , Add Tags Add to My Group(s)

Well Said 5   Must Read 4   Valuable 4  
View Ratings | Rate It Headlined to H2 9/17/14

Author 73066
Become a Fan
  (162 fans)
- Advertisement -

Cross-posted from RT

From EU Flag
EU Flag
(image by YouTube)
From US Flag
US Flag
(image by kennethkonica)

Whatever Russia does, doubt does not even enter the equation. The answer is sanctions. So here we go again. The US Treasury-EU latest sanction package targets Russian banking, the energy industry and the defense industry.

The sanctions are mean. The sanctions are nasty. And there's no euphemism to describe them; they amount to a declaration of economic war.

Sberbank, Russia's largest won't be able to access Western capital for long-term funding, including every kind of borrowing over 30 days. And the current 90-day lending bans affecting six other large Russian banks -- a previous sanctions package - will also be reduced to 30 days.

On the energy front, what the US-EU want is to shut down new Russian exploration projects in Siberia and the Arctic, barring Western Big Oil from selling equipment and technology to offshore, deepwater or shale gas projects.

This means Exxon and Shell, for instance, are frozen in their operations with five top Russian oil/gas/pipeline companies: Gazprom, Gazprom Neft, Lukoil, Surgutneftegaz, and Rosneft.

- Advertisement -

No one ever lost money betting on the stupidity of the usual, unknown "senior US officials" -- who are now spinning the latest sanction package is to force Moscow to "respect international law and state sovereignty." A cursory examination of the historical record allows this paragraph to be accompanied by roaring laughter.

And then there's the US Treasury's Under Secretary for Terrorism and Financial Intelligence, David Cohen, who insists the package will further "isolate" Russia from the global financial system.

From European Parliament
European Parliament
(image by YouTube)

The package was also described by Western corporate media as capable of "unnerving already jittery financial markets." Well, they were not exactly "unnerved." In Russia, the stocks of companies on the sanctions list went up. In the US, energy stocks went down. Short translation; the "unnerved" markets interpreted the latest package as yet another own goal by Washington and Brussels.
- Advertisement -

Splitting up Eurasia

As for Russia's "isolation," companies are barred from, in Washington-Wall Street newspeak, "important dollar-denominated funding sources." Or, euphemistically, "Western capital." This means the US dollar and the euro. Anyone following superimposed moves towards a multipolar world knows Russia does not need more US dollars and euro.

Moscow might use both to cross-purchase goods and services in the US and the EU. Yet these goods and services may be bought elsewhere around the world. For that, you don't need "Western capital" -- as Moscow is fast advancing the use of national currencies with other trade partners. The Atlanticist gang assumes Moscow needs goods and services from the US and the EU much more than the other way around. That's a fallacy.

Russia can sell its abundant energy resources in any currency apart from US dollars and euro. Russia can buy all the clothing it needs from Asia and South America. On the electronics and high-tech front, most of it is made in China anyway.

Crucially, on the energy front, it would be no less than thrilling to watch the EU -- which still does not even have a common energy policy -- trying to come up with alternative suppliers. Azerbaijan, Turkmenistan and Qatar, for a number of complex reasons -- ranging from insufficient gas to be committed, to an absence of pipelines -- are out of the picture.

The Obama administration, for its part, simply won't allow the EU to start importing energy from Iran like, virtually, tomorrow. Even with a now quite wobbly nuclear deal reached before the end of 2014 - presumably opening the way to an end to sanctions.

The "irrational" markets see what's really goin' on; they are not "irrational" but are moved by profit derived from realpolitik.

And all this while Moscow has not even counterpunched. And that could be quite lethal -- targeting EU exporters to Russia and even energy supplies from Russia. Then the EU will retaliate. And Russia will counter-counterpunch. That's exactly what Washington wants: a trade/economic war ravaging and splitting up Eurasia.

Next Page  1  |  2


- Advertisement -

Well Said 5   Must Read 4   Valuable 4  
View Ratings | Rate It

Pepe Escobar is an independent geopolitical analyst. He writes for RT, Sputnik and TomDispatch, and is a frequent contributor to websites and radio and TV shows ranging from the US to East Asia. He is the former roving correspondent for Asia (more...)

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon

Go To Commenting

The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
- Advertisement -

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Why Putin is driving Washington nuts

You Want War? Russia is Ready for War

Why Qatar wants to invade Syria

All aboard the New Silk Road(s)

It was Putin's missile?

Where is Prince Bandar?