"US Will Feel Tangible Losses," Russia Prepares To Unleash Retaliatory Trade Wars

Tyler Durden's picture

"It's a troubling continuation/expansion of trade as a geopolitical tool," warns one Washington-based consulting firm as Russia prepares to unleash retaliatory actions to US and European sanctions. As Bloomberg reports, Russia said yesterday it may ban imports of chicken from the U.S. and fruit from Europe and is investigating McDonald's cheese for safety. In addition, a Russian lawmaker has drafted legislation that might result in U.S. accounting firms being barred from doing business in his country. All of this is odd given Jack "trust me" Lew's reassurance that Russian sanctions would have no impact on the US economy. Russia's response, US will feel 'tangible losses' from 'destructive, myopic' sanctions.

 

As Bloomberg reports, while Russia and the U.S. have long sparred over agricultural trade, the actions fueled speculation they could be retaliatory.

Russia’s food safety agency said it may ban imports of U.S. poultry and some European fruit due to contamination of the products, according Bloomberg BNA, citing Russian state media. The food safety agency, known as Rosselkhoznadzor, also said it will examine suppliers of McDonald’s cheese for their use of antibiotics.

 

Russia was the second-largest market, after Mexico, for U.S. chicken last year, according to the USA Poultry & Egg Export Council. The U.S. exported about $309 million worth of broiler chickens to Russia last year, according to the council.

 

Russia, which joined the World Trade Organization in 2012, is considering banning some European fruit that includes seeds and pits from the entire EU or from bloc’s individual member countries, said Alexei Alekseenko, an aide to Rosselkhoznadzor director Sergei Dankvert, BNA reported.

 

Fruit shipments from the EU have recently contained Oriental fruit moths, he said, according to the Russian news agency RIA. He proposed talks with EU suppliers over the issue.

Seems like that would impact the US and European economy...

“This is not a surprise,” Mike Cockrell, chief financial officer at Sanderson Farms Inc. (SAFM) of Laurel, Mississippi, said by phone. “It’s not unusual for Russia to find something wrong when they have a political reason to do so.”

 

Officials from McDonald’s, based in Oak Brook, Illinois, didn’t respond to a request for comment.

Russia explained these are not anti-US sanctions...

“These are not sanctions against U.S. We don’t have a goal to harm U.S. citizens’ quality of life,” Fedorov said. “There are companies in Russia which have sensitive positions in terms of Russia’s sovereignty and economic security.”

 

Fedorov said consulting firms and audit firms will be the first to be targeted by the new bill. Next will be U.S. media, he said.

And Russia issued a statement that US will feel 'tangible losses' from 'destructive, myopic' sanctions.

We have repeatedly spoken about the illegitimacy and groundlessness of the US sanctions against Russia. Washington will gain nothing from such decisions except for further complication of Russian-American relations and the creation of an unfavorable atmosphere in international affairs, where the cooperation between our countries often plays a key role.

 

The U.S. administration, strained creating the appearance of "sequence" in its current behavior, in fact, is merely trying to avoid responsibility for the tragic developments in Ukraine. Not Russia, and Kiev regime and its overseas patrons guilty of a growing number of civilian casualties in the eastern regions. In his pompous manner prosecutorial White House, covering the bloody military operation of Kiev, which contrary to all international norms sunk to rocket attacks peaceful cities, continues to put forward baseless claims against us.

 

One gets the impression that the U.S. sanctions pressure, transformed now at sectoral level, has one goal - to get even with us for an independent and uncomfortable for Washington politics. Please also note the obvious elements of unscrupulous trade and economic competition in the U.S. actions.

The losses that Washington will sustain from such a destructive and myopic policy will be very tangible

US officials are not happy...

“Assuming that they take this action, it would be blatant protectionism,” Clayton Yeutter, a U.S. Trade Representative under President Ronald Reagan, said in a phone interview. “There is little or no legitimacy to their complaints.”

*  *  *
Putin warned of boomerangs... and sure enough here they come...

  • *EU ENERGY SANCTIONS `IRRESPONSIBLE' STEP, RUSSIA SAYS
  • *EU ENERGY SANCTIONS TO CAUSE PRICE INCREASE IN EUROPE: RUSSIA
  • *RUSSIA TO WEIGH `UNCONSTRUCTIVE' EU ATTITUDE IN FUTURE TIES
  • *EU BANKS WORKING IN RUSSIA MKT TO SUFFER FROM SANCTIONS: RUSSIA

And France is screwed...

Russian Deputy Prime Minister Dmitry Rogozin said Wednesday that Russia has the capability to build Mistral-class helicopter carriers on its own if France cancels the existing contract, RIA Novosti reported. “The French must prove they are serious partners and reliable contractors,” Rogozin said after a meeting between President Vladimir Putin and government ministers.

 

“If they fail to do so, we will build the [Mistral] ships on our own. We are finally capable to do it,” Rogozin said. On Monday, he expressed doubts that France would cancel the contract, which he said would be worse for France than for Russia.

And it seems Russia is not as isolated as President Obama would like everyone to think...

  • VEB IN TALKS W/ CHINA, JAPAN, ARAB COUNTRIES ON FUNDING

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Latitude25's picture

"and is investigating McDonald's cheese for safety"

 

Investigation already complete.  That shit's one chemical reaction away from napalm.

espirit's picture

Would like to know the missing ingredient.

(might come in handy some day soon)

B190769Sonny's picture

Russia and China control 98%  of the world's rare earth metals.  If they collectively said "Enough"......electronic devices, medical equipment, batteries, etc would significantly be impacted.   Oh...btw...the US has rare earth metals but the EPA restrictions are too cost prohibitive. 

Kirk2NCC1701's picture

And don't forget they got the corner on Titanium.  Can you say "US Aerospace is grounded"?

If/when things get serious, and the Russian Aggression Prevention (RAP) bill that just had its 2nd reading, paves the way for the US escalating the situation (is raising the bet), then Russia will HAVE to impose its own American Aggression Prevention bill (AAP). 

A consequence of AAP would be bans on exports of strategic and precious materials (metals, minerals and ores), with airtight sales channels that do not redirect to the US via intermediaries. 

A closer alliance with Europe's Airbus (for example) would suit the French, British, Germans and Italians, but hurt its arch-rival Boeing.  IOW, pull the EU away from the NWO, and pro Free-EU, free from imperialist powers.

Freddie's picture

Can you say "US Aerospace is grounded"?

That might not be so bad.  Boeing's crap disappears nears S. Pacific atolls so far away that no one knows what goes on there.  These planes then reappear over war zones.  

espirit's picture

Judging Putin's responses to the sanctions, the USSA is acting like an irritable knat.

potato's picture

If US companies hadn't offered the best price or value, they wouldn't have been getting the business in the first place. Protectionism increases costs on both sides.

Kina's picture

Europe' thinking, shit the USD as a reserve curreny led to the trashing of the world economy, and has doubled down on that since 2008. The USD as a reserve currency is going to be a never ending nightmare for Europe.

 

Ghordius's picture

why do you think we made the EUR? for fun? note how less big currencies are in danger of being trashed or are hiding under a peg or floor

look how the new BRICS bank has provisions in it's statutes for funds reserved in case one of it's member's currency is "under a speculative attack"

tony wilson's picture

cheese and chicken wars

 

the winds day blow

and der

chickens must flow

russia cannot be allowed to get away with this.

those chickens are full of monsanto corn see.

vaccine full of bill gates love juice

money has been spent.

russia must be given an ultimatum

eat the cia cancer dosed gmo chickens

or die.

 

Irishcyclist's picture

Incremental steps on boths sides as the fissures grow wider and wider.

If there was any real common ground between the opposing parties, it is fast disappearing.

Europe is allowing herself to get caught in the middle of the mess.

Merkel needs to get her thinking cap on and quickly.

Dublinmick's picture

Merkel is part of the Rothschild family. She needs to keep her ear piece in place to await the next order.

socalbeach's picture

U.S. counsel received a bullet on the beach Mariupol, Ukraine

30.07.2014

Bathing in the sea, American Advisor of those 180 that arrived recently to Ukraine, was shot through a sniper's bullet.

While his colleagues tried to find a place to hide, which at a bare beach and has not appeared, the wounded American managed safely to choke, informs the Agency "new Russia".

As it is marked in the message. this is the third killed American instructor. Earlier, two counselors were shot dead in Mariupol on July 24.

Remember that four Americans were killed on the day during the battle under the Dubrovka. These unexpected losses led to the fact that half of the instructors have zaprosili home, and the others agree to the continuation of the mission only away from the front line.

Lmo Mutton's picture

Its all in the script.

Infinite QE's picture

Another tax on real Americans due to the stupid support of the parasite nation Israel.

NotApplicable's picture

All collective abstractions d.b.a. "states" are parasitical in nature, as no people desire to live with a gun to their head "for their own good."

The ones that believe they do? They live in fear of others, and pretend that there has to be a gun pointed at them.

esum's picture

4% ............... to be adjusted to 0%........ combined with the -3% 1st qtr......... white house / media doublespeak

1/3 in collections..... part time is the new full time job...  obamacare just starting to kick in... love those deductibles do ya?? 

and employers will be dumping millions from company health plans... yowza.... great news huh?? mr softee lays off 18000,

illegals flooding in draining local resources fucking up schools,hospitls and yobs.....committing crimes and being set free to do it again...  WHAT FUCKING RECOVERY ???? 

AND LET US SEE WHO SUFFERS FROM OBUMBLER'S SANCTIONS..... banks, oil companies, UNFUNDED / UNDERFUNDED STATE AND CORPORATE pensions / yeah that is going to help the bottom line and taxes in the near future..... any momentarily distorted view of "growth" will be completely reversed and then some... as sson as next quarter.... inflation is rising in basics and the people are not fooled into thinking all is well.... the idiot in charge has everything headed for total chaos.... TIME FOR THE VINEYARD... incompetency surrounded by ass kissers .... fubar

NotApplicable's picture

The adjustment will be interesting to see, as it will come just before "Selection Day."

alexcojones's picture

France builds Mistral warship for Russia. Or not.

Russia takes blueprint to China.  China builds knockoff warship at half the price.

Another stake in the heart to NUTO and the Nulandanders

JohninMK's picture

Russia statement on building Mistrals

http://en.ria.ru/news/20140730/191483499/Russia-Could-Build-Mistral-Clas...

What the French think

http://en.ria.ru/news/20140730/191477624/Mistral-Deal-With-Russia-Unaffe...

Note that the ship is to be stationed in the Far East, not the Black Sea.

Sending a message to the locals that being friends with Russia/China might be a good plan.

fel.temp.reparatio's picture

They don't need the EU's fruit or America's chickens. Russia, Belarus and Kazakhstan will officially kick-off the EEU (Eurasian Economic Union) January 1, 2015... that's an economic market of approx. 175 million people and a GDP of $3 trillion right there. If Armenia, Kyrgyzstan and Tajikistan (and perhaps, even China) joins... booom!!

youngman's picture

The McDonalds Cheese scandel..now there is a Saturday Night live skit if i have ever seen one....three Russians in white coats....with a piece of cheese....calling Vlad to see what to say.....lol...I just spit out my vodka shot

JohninMK's picture

Looks like we might have just avoided WW3. Looks like the S3/4/500 series of anti missile defences really are good. Don't expect to see much of this in the MSM.

First from the Saker

Information from very reliable sources. These sources are in Novorossiya, Russian Federation, EU and Ukraine, their bold type:

29.07.2014 in afternoon Ukraine time 4 SS-21 Tochka tactical ballistic missiles were fired by Ukraine Armed Forces. At least two were clearly aimed at Saur Moglia with the idea of the Ukes trapped in The Cauldron having a sudden escape route opened for them. Moments before launch Russian Federation units surged toward the border at The Cauldron area and to the north of The Cauldron.

None of the 4 Tochka missiles reached their targets. I repeat, none of the 4 Tochka missiles reached their targets and none impacted with the ground anywhere that can be found in anything close to one piece. As you know this missile can carry a tactical nuke, chem/bio, cluster munition or HE in the weight of just under 500 kilos.

When the 4 missiles failed to reach their targets the Armed Forces of RF immediately halted their surge and held position. They are in the same positions 30.07.2014.

There has been a noticeable slow down of fighting activity since the launches and Strelkov has pointedly said again that Novorossiya is open to negotiations.

The 4 Tochka missiles were shot down over Novorossiya territory occupied by Ukraine Armed Forces before the missiles reached their programmed height. They were shot down from inside RF according to normally reliable sources. No visual evidence has been provided of RF shooting down the Tochka systems nor of the system used to shoot down the Tochka missile

 


Then from https://www.facebook.com/TruthfromUkraine/timeline

By logical opinion of blogger several short range ballistic missiles Kiev junta could firing toward territory of Russia, but they were destroyed...

Source: http:// luciusvorren.livejournal.com/ 121264.html

The Wind of Armageddon

luciusvorren
July 30th, 2:42
Chronology of today’s events:

Lavrov makes a statement that he has no intention to talk to Kerry

After this CNN reports launch of missiles by the Ukrainian military. The main point of this report is that Russia was not the target of these launches.
After this there was a conversation between Lavrov and Kerry (initiated by the Department of State).
After this a joint statement about immediate ceasefire is made by Kerry and the Foreign Minister of Ukraine.

This is probably a CONDITION PUT FORWARD BY MOSCOW, which has to be complied with in order to prevent Moscow’s military action against the Ukrainian armed forces.

Russia shot Ukrainian missiles down repeating the story with Israeli missiles launched at Syria.
It looks like Russia has really got some unique quality equipment, and it is the second time during the recent 12 months, when it has demonstrated what it is capable of.
And this scared the shit out of the States.

According to CNN three missiles were launched, but they did not hit any targets…
Russia shot the missiles down and the Americans realized that it will not take long before the military operation starts. No matter what our “5th and 6th columns” say about us “being dragged into a war”, but it is Russia’s direct involvement despite all the warning and sanctions, which the US fear most of all.

This is because if it happens, everyone will realize that the emperor has no clothes! The States will then only provide moral and diplomatic support to their “ally”.

No other support will be provided. They won’t even give them some money.
The Junta will be left alone with Russia, who will be free of any restrictions (Ukies stopped caring about restrictions themselves – “we are no brothers any longer”) – from any economic or any other restricting factors. This will be the end – not for Ukraine, but for the US hegemony. This is the scenario, which Washington gang, who caused all this mess, is desperately trying to stop.

I think that once again, the military operation, which is ready to start, will be stopped. This is the goal, which the US State Department statement is looking to achieve. On the background of Kerry’s statement about readiness to stop the fire and start the negotiations Russian army crossing the border will be regarded as a deceitful assault.

However the conflict has moved to a new stage – Novorossian militia has been recognized as a party to the negotiations by the US Secretary of State. We will see, what comes next

upd.
Looking at the comments I understand that some explanations are required.

Last year an Israeli ship in the Mediterranean launched missiles at Syria. Russia shot them down.

After this incident all conversations about US and its allies military operation in Syria were stopped.

According to the information from CNN Ukrainian military launched at least THREE Tochka-U’s targeting objects in the East of Ukraine.

CNN statement was released specially for Russia – it was not about launches. It was about Ukies not targeting Russia, but targeting Donbass. I think Russia took this into account.

However a missile flying in the direction of our border carrying unidentified charge in the warhead (with this said I have to note that Tochka-U is capable of delivering tactical nuclear charges) – this… this is fucking beyond permissible. Junta is insane.

Russia WAS BOUND to shoot the missiles down, and this is what it did.

An adequate reaction had to follow this. I.e. a strike on Ukraine and then a military operation and etc. This is because it is impossible to tolerate a monkey with a grenade at your threshold any longer. This was the red line. Junta stepped over it without blinking, and they probably weren’t even realizing wha they were doing.

Just a couple of hours ago Kerry stopped Russian army invasion into the Ukrainian territory.

Upd 2. If the missiles were launched with the permission of the Masters, if the trajectory was showing that they were flying into Russia… if the USA giving such an order to their slave servants were ready to take responsibility for the consequences to the very end – we would already have Armageddon today.

Explanations were provided to Moscow.

Judging by the fact that they even had to use CNN to help with this, we can say that Moscow was preparing and expecting the worst case scenario, and it was ready to strike back.

morongobill's picture

Excellent post and quite chilling.

JohninMK's picture

UPDATE

You couldn't make it up. This announced today

"A spokesman from Ukraine’s National Security information center, Andriy Lysenko, rejected the report, saying that Ukraine has no such missiles."

This is after their allies, the US, had publically stated via CNN that US Intelligence had tracked the missiles from their launch yesterday in Ukraine and the Russians 'Iron Domeski' had shot them down.

Oh, and Wiki says they have 90 of them. Better correct that to 86.

OTR-21 Tochka  Soviet Union tactical ballistic missile Scarab-B 90[39]

http://en.ria.ru/politics/20140730/191485997/Russia-Concerned-by-Reports...

fel.temp.reparatio's picture

great post... good to get the 'un-spun' version of events

Duffy's picture

oh, they have those missiles. not that .gov or the controlled us or uk press will mention it.... it's...awkward:

US-Supported “Good Guys” Firing Ballistic Missiles In Ukraine?

http://landdestroyer.blogspot.com/2014/07/kiev-fires-ballistic-missiles-...

 

How long before two or three make it over the border?  Can you imagine what the story in the american media would be if Russian jets responded with strikes on the launchers?

JohninMK's picture

As you can see, it sounds like the Russians were on their way as soon as the launch was detected, that was a REAL red line, not an Obama red line. Only stood down when the missiles were downed.

If the Russians had retaliated I doubt there would be much Ukrainian military infrastructure left, let alone the launcher sites.

One has to wonder what the Pentagon and NATO top brass thought was about to happen yesterday when they saw on their screens the Russian ABM missiles lift off, thousands of Russian troops on the move and fighters/bombers being scrambled all over Western Russia.

Shitting themselves springs to mind. I suspect no re-run of Dr Strangelove on their TVs last night.

As you say Duffy, all quiet on the MSM, apart from more 'evil' Putin propaganda.

Kirk2NCC1701's picture

Maybe they should let some through:  Then "all bets are off" -- IDF-Gaza style.

What's good for the goose (IDF, US), is good for the gander (Russia).

general ambivalent's picture

As others have said, this is more serious than the Cuban Missile Crisis, and it seems Russia is again trying to prevent Nuclear War. Wonder what else we'll hear of these events.

Urban Redneck's picture

The second half has too much speculation, especially considering this was also reposted there on July 25th:

http://www.liveinternet.ru/users/2125404/post331795866/

JohninMK's picture

Agreed Redneck.

I should probably have edited a lot of it out but when I can't quote a source in English, where ZH'ers can read the lot, I am nervous about slicing bits out.

At least the core information seems to be withstanding scrutiny.

Dublinmick's picture

Another interesting quote by a commenter on the saker

 

https://www.blogger.com/comment.g?blogID=4046811478707691837&postID=8733...

Mr. Pragma said...

(part 2)
Finally let me guide your attention to a related and very interesting question: Why does the weztern empire hate Putin so extremely? That is not merely the hate against a political enemy, no, that's very personal and it's more than hate; there is blind rage on top of it.

Why?

Is it because Putin stands against them? No, only in (minor) part.

In fact it is because Putin is seen as a traitor by them. In their eyes Putin was a small "nobody" and his rise to power was completely orchestrated from the evil side.

Putin was put into power to obediently serve them. But they had to find out that they, the deceivers, were the deceived ones when Putin went straight, direct, (mostly) without lies, and completely uncontrollable by them.

Even worse, Putin is living proof that the evil side has not won, that the good side, snip, just like that, put a very major and very strong player against them on the board; even worse, they themselves put him there.

Since then things turn against the weztern side. Where they lie, lie, lie, he simply tells his people how things are. Where they suppress and exploit their populace, Putin actually made the lives of Russians very very much better.

And that constitutes an extremely strong power, a power that is the ultimate threat to the wezt. Because the truth *can* be seen and *is desired* by humans.
While the weztern media (read: propaganda outlets) lose large numbers of readers, media like RT are growing very quickly. While 80 - 90% of the readers in weztern countries have very negative comments on the propaganda they're served, Putin is trusted by many, increasingly even in the weztern system.
Finally, short: How will Russia react to the new sanctions and other evil war actions?
I think, Putin will be perfectly ready for anything, incl. a nuclear war. But he will not attack; even more, he will try any and everything to avoid war or, if unavoidable, to keep it as low level as any possible.

Here is what I expect to come:
- Putin will make new and harsher laws against the 5th colonne. At the same time the Russian authorities will show a considerably higher leniency for self defense and cleaning movements like Fedorovs.
- Putin will find a smart way to deal with the sanctions. Even taking away what the oligarchs have stolen from Russia might be an option. Of course, they will be reimbursed; the value will be what they originally payed (very very little) plus some compensation for increased values in the past years.
Similarly weztern companies will have a lot of small (but debilitating) problems; this will be proportional to the aggressivity of their countries.
- Not only does president Xi get along very well with Putin and is linked through BRICS but, possibly more importantly, Xi knows exactly that China is the next and last on usa's list. Defending Russia directly translates to defending China. Therefore I'm expecting a concerted and very smart - and extremely hard - strike against the usa dollar and economy.

A war with the usa would cost China at least a trillion $ - plus millions and millions of lives. And even then there is no guarantee to win that war; actually there were a very high risk to lose against the usa if Russia was somehow crippled.
At the same time the 2 to 3 trillion usa debths held by China are quite worthless anyway.

It seems just reasonable therefor to assume that dumping a crippling amount of usa debth in the range of up to 1,5 or even 2 trillion us$ simply is the cheapest way for China to settle the matter once and for all.

The us/nato/zionist system will be broken and destroyed and it will happen rather soon. In fact, what we see now from the weztern system may look like an attack (and in some way is) but in fact it's just the last attempt of the big daemon to survive. He won't.

Sandmann's picture

Actually Putin was Yeltsin's insurance against trial and imprisonment. It was protection for his daughter who put Berezkhovsky at the heart of the Kleptocracy  - go watch the film Tycoon

http://www.amazon.com/Tycoon-Vladimir-Mashkov-%C2%A0Mariya-Mironova/dp/B...

 

Remember Platon was the name Berezhovsky used and he was a Mathematician

ekm1's picture

As far as """""energy sanctions""""' on Russia, here is EKM1's infamous

 

USA GDP GROWTH CHEAT SHEET:

 

OIL $20, GDP +6%

 

OIL $40, GDP +4%

 

OIL $60, GDP +2%

 

OIL $80, GDP 0%

 

OIL $90, GDP -2%

 

OIL $100, GDP -4%

 

 

OIL $150, REVOLUTION

 

Use this chart for future estimations and geo-economic feedback loop from geo-political events.

 

Kirk2NCC1701's picture

And yet they've made a "surprise announcement" that the GDP is +4%, with Oil hovering/stagnant at ~ $100-110.

The Grand Deception continues, like the TV soap operas that just won't die.

CHX's picture

Deglobalization in the making ?

ekm1's picture

Yes. Quantitative Easing accelerated de-globalization which is another term for de-dollarization

Latitude25's picture

Somehow the MH17 flight data recorders managed to get to the UK.  How did Russia allow this?  They are complicit with an escalation in tensions.  We are being played for fools by both sides in these silly sanctions.  It's just a distraction from central bank games.

ThisIsBob's picture

And where are the transcripts from the cockpit recorder?  You know they have had those since day 2.  I smell a rat.

Bankster Kibble's picture

Ooops, we accidently scratched the hard drive.  So sorry.

JohninMK's picture

No, it was 4 or so days before they were released to the Malaysians. At the weekend the Dutch said they should get results on the 1st Aug.

are we there yet's picture

It is about power. All the important people want to hear the recording first to prove to themselves that they have power. That way policymakers can have their reactions already pre-canned before the public is shown the voice recordings.

luckylogger's picture

What do you expect....

"Oh shit here comes a missle and it is from russia"????????

Or from Ukrain?????