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Siemens CEO Explains Why Russian Sanctions Will Never Happen

Tyler Durden's picture


With the UK rapidly backing away from sanctions against the Russians (and the Russians suggesting the confiscation of US and EU assets should sanctions occur), it appears President Obama is becoming increasingly isolated in his calls for sanctions. As the CEO of Siemens - Germany's massive industrial conglomerate explains Russian natural gas provides “lifeblood” to western Europe and there is substantial “dependency.”


Via WSJ,

The head of German industrial conglomerate Siemens AG said he doesn’t expect European governments will press hard for sanctions against Russia in response to the Kremlin’s authorization to potentially deploy  troops into Ukraine.


Siemens President and Chief Executive Joe Kaeser was asked about the situation in Ukraine during an appearance at the IHS CERAWeek energy conference in Houston, Texas. He said it was important to remember that Russian natural gas provides “lifeblood” to western Europe and there is substantial “dependency.”


“Maybe the American people or the government or whoever raises their eyebrows can say how could the Europeans be so moderate on the debate over sanctions. Guess what? You don’t want to sanction anyone you depend on,” Mr. Kaeser said.



Mr. Kaeser went on to say the U.S. is in a better position to consider economic sanctions against Russia because of its recent surge in oil and gas production.

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Wed, 03/05/2014 - 15:04 | 4512839 SilverIsKing
SilverIsKing's picture

If Putin doesn't behave, they should just give him a time out.  That should do the trick.

Wed, 03/05/2014 - 15:08 | 4512860 Levadiakos
Levadiakos's picture

Is that what your uncledad says?

Wed, 03/05/2014 - 15:11 | 4512876 SilverIsKing
SilverIsKing's picture

My uncledad can't say anything.  He's dead.

Wed, 03/05/2014 - 15:42 | 4513030 jughead
jughead's picture

even a dead uncledad says smarter things than Obamadaddy

Wed, 03/05/2014 - 18:01 | 4513724 aminorex
aminorex's picture

much cheaper to do a decapitation strike.

Wed, 03/05/2014 - 15:04 | 4512840 Cursive
Cursive's picture

Realpolitic has to be explained to a nation reared on the Monroe doctrine, the Wilson doctrine and the Bush doctrine.

Wed, 03/05/2014 - 15:42 | 4513020 Dollarmedes
Dollarmedes's picture

Here's RealPolitik explained to the inventors, the Europeans: Putin/Ukraine is the Green Energy chickens coming home to roost. You believed in fairy dust and unicorn farts, and now you're dependent on a Russian strongman to keep the lights on.

Wed, 03/05/2014 - 16:12 | 4513148 DogOfSinope
DogOfSinope's picture

It means that when you find yourself exposed to consequences of batshit-crazy unilateral "fuck the yoEU" hegemonist foreign policy against your neighbor who just reliably delivers paid groceries you need to feed your family, you refuse to side the hegemonist against your neighbor despite having fear from hegemonist. Because, it's about your family, not hegemonist's family.
Fixed that for you.

You must be desperate to sell some nuclear power plant, eh?
Try Japan.

Wed, 03/05/2014 - 16:31 | 4513256 Dollarmedes
Dollarmedes's picture

Right. Becuase Europe's energy policies played no part in setting this situation up...it's all the evil Americans' fault. /sarc

Wed, 03/05/2014 - 16:45 | 4513353 DogOfSinope
DogOfSinope's picture

I was a bit hyperbolic in expressing myself.
You are, of course, right.
To clarify further, when speaking about hegemonist I don't think about Americans - the people. Apparently, their say in this is about as much as that of Europeans, Russians, Ukrainians.. Or any other cannon fodder , on that matter.

Wed, 03/05/2014 - 16:43 | 4513344 Dollarmedes
Dollarmedes's picture

The simplest explanation of RealPolitik is: balance-of-power politics.

But Europeans don't practice that anymore. They barely have militaries, and everyone on the continent is singing kumbaya.

There's no power to balance, and no will.

Maybe you should stop riding on America's military, and develop some ability of your own.

Wed, 03/05/2014 - 16:48 | 4513370 DogOfSinope
DogOfSinope's picture

Does Europe keep US soldiers hostages in their bases? I didn't get impression that anyone is preventing them going home...

Wed, 03/05/2014 - 20:23 | 4514410 jez
jez's picture

You leave Marilyn out of this.

Wed, 03/05/2014 - 15:04 | 4512843 TrustWho
TrustWho's picture

You talking to me! What you going to do?

Wed, 03/05/2014 - 15:05 | 4512846 Joe Davola
Joe Davola's picture

But I thought everything in Euroland was ultra green and didn't need energy to run.

Wed, 03/05/2014 - 15:05 | 4512850 CrashisOptimistic
CrashisOptimistic's picture

The previous article never really spoke of what Russia can do:

1) Support China's claim on the Senkaku Islands.

2) Provide Iran with an outright Caspian conduit of oil around the Iranian sanctions.

3) Gently close the spigot, not fully, partially, driving the price up and losing no revenue at all because of the price increase.

4) Make overtures of support to the government of North Korea.

5) Fund snipers to kill oil production executives in Libya, Nigeria and Iraq.

There are more, we can stop with those.

Wed, 03/05/2014 - 15:11 | 4512874 the phantom
the phantom's picture

#6) Make good on delivery of S-400 missle defense system and other advanced weaponry to Iran

Wed, 03/05/2014 - 17:36 | 4513622 Urban Redneck
Urban Redneck's picture

There are certain types of weapon systems one does not like to SELL to other states, as they may be used against you one day (e.g. US stingers, or Russia trying to get its nukes out of Cuba, or the history of conflict between Iran and Russia).

The way around this, that makes everyone (except neocons and other flavors of war monger) happy is FOREIGN BASES.

Did you know Armenia has nuclear ICBMs? And that this not a violation of the Nuclear Nonproliferation Treaty...

If the Russians open a base in Iran, it changes the game, if they outfit such a base with weapons that they cannot sell to it by treaty obligation, it really changes the game.

The the question then would become do the Saudis go with crappy cash & carry from the 7-11 clerks, or do they mirror Iran with overseas storefront for China MIC Inc.?

Wed, 03/05/2014 - 18:08 | 4513766 HyperinflatmyNutts
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#7)“authorities should dump US government bonds in the event of Russian companies and individuals being targeted by sanctions over events in Ukraine....We hold a decent amount of treasury bonds – more than $200 billion.. Russian presidential advisor, Sergei Glazyev,

Wed, 03/05/2014 - 15:17 | 4512903 Shameful
Shameful's picture

I always wondered what would happen if some foreign power started attacking Saudi Arabia's pipelines.  An awful lot of pipeline to defend in a veritable wasteland, pretty big pair on Prince Bandar to threaten Putin earlier.  Wonder how FSB is on desert sabotage...I mean it's not like higher oil prices would benefit Russia at all...

Wed, 03/05/2014 - 15:20 | 4512914 CrashisOptimistic
CrashisOptimistic's picture

Pipelines aren't that vulnerable, they have multi route redundancy, and it's hard to target them secretly -- in comparison to just another murder or three in Iraq or Nigeria or Libya.

Wed, 03/05/2014 - 18:33 | 4513873 MeelionDollerBogus
MeelionDollerBogus's picture

Who said anything about secretly? It's out in the fucking desert and there's heavy munitions, rocket launchers, available.
Those pipelines aren't meant to withstand active shelling.
PLUS Russians can barter with ter'ists by offering all that military hardware free! For just one eeency weency little favour.

Wed, 03/05/2014 - 18:32 | 4513868 MeelionDollerBogus
MeelionDollerBogus's picture

I'm sure everything will be juuuuuust fine :)

Wed, 03/05/2014 - 19:41 | 4514151 Volkodav
Volkodav's picture

FSB is internal security.

Wed, 03/05/2014 - 21:36 | 4514776 StychoKiller
StychoKiller's picture

Right, and the NSA is only "supposed" to spy on furreners!

Wed, 03/05/2014 - 15:25 | 4512939 saints51
saints51's picture

#7 - give Germany a few tons of gold with a postcard stating" We were just thinking of you unlike your other friends."

Wed, 03/05/2014 - 16:28 | 4513239 Freddie
Freddie's picture

I would bet Siemens looks at their order books and sees an imploding European and American middle class being decimated while the Russian middle class is growing.

Wed, 03/05/2014 - 18:09 | 4513773 nightshiftsucks
nightshiftsucks's picture

" while the Russian middle class is growing" Due to Russia's strong mfg base. sarc/

Wed, 03/05/2014 - 15:30 | 4512957 cossack55
cossack55's picture

I like the way you think.


               Sam K

Wed, 03/05/2014 - 15:59 | 4513106 SilverRhino
SilverRhino's picture

5a) Fund snipers to kill banking executives & Rothschild family members in London / EU / USA.   

Wed, 03/05/2014 - 16:51 | 4513400 Bioscale
Bioscale's picture

That would deserve a crowd founding campaign, I see big piles of money flowing to support this generous act.

Wed, 03/05/2014 - 18:20 | 4513808 Invinciblehandaxe
Invinciblehandaxe's picture

10k of ninjas is the way to execute

silent & deadly

Thu, 03/06/2014 - 09:38 | 4516220 FlyingDutchman
FlyingDutchman's picture

Can we donate in Bitcoin.

Couldn't help myself, just kidding.

Wed, 03/05/2014 - 16:05 | 4513133 I Write Code
I Write Code's picture

Close the "northern route" for supply and evacuation of about 30,000 of our troops (and related "contractors") still in Afghanistan.

Wed, 03/05/2014 - 16:28 | 4513240 Kirk2NCC1701
Kirk2NCC1701's picture

Re #3: Respectfully disagree.  Here's why:  At the heart of the energy wars are CURRENCY wars, with Oil & Gold priced and paid in USDs.

On this basis, Russia can play a much stronger hand by simply pricing and selling  Oil vs. Gold and NatGas vs. Gold.  THAT would really take away from the global demand for petro-Dollars, and undermine the CONfidence in the over-indebted USD and its endless QE (Bond, USTs.). 

It would be the ultimate "Fuck You!" to the Fed.  And we all know that w/o the Fed, the Dollar is toast, as is the MIC, and all the Beneficiaries & Parasites of its privileged position (Wall St, and EBT cards).

The US has gone to war for less: e.g. Afghanistan, Iraq, Libya.  Afghanistan refused a pipeline through it to Pakistan, Saddam wanted Euros for oil, and Gaddafi wanted to turn the Libyan currency into a Pan-African currency backed by gold.  We all know how those stories ended - when the US was picking on the Little Guys.

Wed, 03/05/2014 - 17:54 | 4513690 CrashisOptimistic
CrashisOptimistic's picture

It would be ever so much better if threads to which gold is completely irrelevant had no mention of gold.

Gold has no value to Russian society.  If you want to back a currency with something, back it with joules or calories.  Gold's value is based only in the minds of the parties transacting the gold quantity.

Joules and calories have measure independent of the imagination that defines the value of gold, or of currency.  It is for this reason that banking lives in terror of them.  They can't be printed.  They can't be decreed.

This didn't matter in worlds of less than 7 billion people.  The sheer population changes the game.

Thu, 03/06/2014 - 06:59 | 4515893 JustUsChickensHere
JustUsChickensHere's picture

The fundamental thrust of your argument about joules is correct, but Gold has network effect .... 5000 years of trust. Dont ignore that

Wed, 03/05/2014 - 15:06 | 4512853 pods
pods's picture

Who runs Bartertown?


Wed, 03/05/2014 - 15:18 | 4512907 Joe Davola
Joe Davola's picture

Sun comes up,

Sun goes down,

Doesn't really matter in Bartertown!

Wed, 03/05/2014 - 15:52 | 4513076 superflex
superflex's picture

Listen all! This is the truth of it. Fighting leads to killing, and killing gets to warring. And that was damn near the death of us all. Look at us now! Busted up, and everyone talking about hard rain! But we've learned, by the dust of them all... Bartertown learned. Now, when men get to fighting, it happens here! And it finishes here! Two men enter; one man leaves.

Wed, 03/05/2014 - 15:20 | 4512916 Oldballplayer
Oldballplayer's picture

Master Blaster.

Not that Douche, Aunty.

Wed, 03/05/2014 - 18:28 | 4513855 MeelionDollerBogus
MeelionDollerBogus's picture

This calls for a Banzai7

Wed, 03/05/2014 - 15:09 | 4512863 VladLenin
VladLenin's picture

FUCK the EU just made the connection that Vlad is about to break it off in them. The white house occupier isn't bright enough or else is getting poked in the back to stand up to Vlad and is just stupid enough to do something. The result... Russia (and China) declare financial war on the U.S. and watch the collapse while enjoying some good vodka and Happy Family.

Wed, 03/05/2014 - 15:10 | 4512872 Mr Giggles
Mr Giggles's picture

I have, you want, bite me.

Wed, 03/05/2014 - 15:11 | 4512877 Joe A
Joe A's picture

The hope is also that Europe just like the US will frack for gas.

Wed, 03/05/2014 - 15:18 | 4512905 CrashisOptimistic
CrashisOptimistic's picture

Two facts you need:

1) The US imports natural gas.  The gas boom doesn't supply all of US consumption.

2) The US imports 7 million barrels of oil every single day.  The oil boom doesn't supply all of US consumption.

Wed, 03/05/2014 - 15:32 | 4512971 cossack55
cossack55's picture

Yes. Apparently Joey has not done his homework on fast playout of fracking well.  Germany has mucho water, but if you think they are going to frack in the (holy) forests, well....

Wed, 03/05/2014 - 16:13 | 4513163 frenzic
frenzic's picture

For starters it's going to happen in the neighbouring country of the Netherlands though. And they are not or barely dependant on important gas as it is right now.

Wed, 03/05/2014 - 18:20 | 4513815 PHantomofthemarkets
PHantomofthemarkets's picture

Gas reserves in the Netherlands are running out.

Already huge problems with the current way of getting it up and they lowered the output.

Fracking in the Netherlands? If they die out of hunger, maybe.

Wed, 03/05/2014 - 15:12 | 4512882 buzzsaw99
buzzsaw99's picture

Fuck the E-USA bitchez!

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