"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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Kirk2NCC1701's picture

Bob, don't forget "Where are the transcripts from two other nearby planes that were asked to contact the silent MH17"?

A:  [crickets]

JohninMK's picture

Only three places in Europe to process them, UK, France, Russia.

There was no way the Russians wanted them, think of the potential for US propaganda on the Russians fixing the data. Much better to have enough time to copy the contents and then ship them to the UK for processing. Even if they didn't copy them some might believe they did.

There is no way that Europe or Russia want sanctions, they are imperitive in the USA strategy though.

Russia in now blocking Polish exports of food, due to 'quarantine' issues.

Cathartes Aura's picture

if it's in their newsy broadcasts,

then it's in their scripts.

and they'd like you to pay attentions.

Jano's picture

Russians have enough evidence to put on the table. as valid, as the BBoxes.

They do not need them at all evaluated.

Circle of DNA's picture

Worst case scenario -Russia would have to build a totally independent economy that cannot be manipulated by the outside powers, in other words -real economy. Meanwhile, banning McDonalds or any western-agricultural products that are made to suppress immune system and destroy our genetic balance is what every responsible government should do.

rainingFrogs's picture

This action will, of course, render the Big Mac index totally useless for measuring relative currency values.  Bummer.  Now we'll never know when currencies are being manipulated.  We're doomed.

notadouche's picture

Didn't trade wars and protectionism stall recovery efforts then extend and deepen the Depression of the 30's?  

Tall Tom's picture

The more important question is did not those Trade Wars and Protectionism lead directly to World War II?

 

If a country refuses to sell necessary items to another then the other will strike back by attempting to take them by force.

 

Another step closer to the abyss...Onward...Forward...Over the Cliff to Destruction.

 

/sarc

Uncle Remus's picture

Energy was at the root then as well - specifically oil.

notadouche's picture

Absolutely spot on.  However doesn't it already seem as though the world is at war, just not officially declared?  I don't think the US troops were battle fatgued prior to entering WWII.   Nor was the average citizen.  Finally the american people, media etc... were all in behind entering WWII even if it took longer than the Brits liked.  

I suppose the Churchill statement couldn't ring more true today when he stated something to the affect that the "US will do the right thing when all other options are exhausted".  I doubt I quoted exactly  but I think the point is made.  

I'm not so sure the US can be counted on " doing the right thing"  eventually.  I doubt the US government has a clue as to "what the right thing is" anymore.  That may actually be the most important point concerning this entire situation and the bigger picture.   

So many "foreign entanglements" that we may have 15 clauses with 50 countries that determine that we go to war based on a simple "if, then" statement.   Hell we may even be contractually obligated to attack ourselves under the right circumstance.

no1wonder's picture

Russia's reaction, (from today's govt meeting):

Developing regional air transport, establishing rapid growth centres in the Far East, de-offshorisation of Russia’s economy, and other current tasks were discussed.

de-offshorization = bringing oligarchs money back to Russia ?

no1wonder's picture

and also: business transaction conditions similar to those on Cyprus to be created in Crimea

socalbeach's picture

De-offshorization probably means making stuff in Russia as opposed to importing it.

July 30

Russia to replace imported components for weapons with its own in 3 years

Components for Russian weapons and miliatry equipment which until now were bought in Ukraine will be replaced with domestically manufactured ones in 2.5-3 years, Deputy Prime Minister Dmitry Rogozin said on Wednesday.

“We are moving steadily to make everything, at least military products, in Russia,” he said.

Rogozin said the government would draft a plan for replacing dual-purpose equipment and technologies earlier purchased in Western countries as it has already done for products made in Ukraine.

“We are now working on issues relating to the substitution of import from NATO countries,” he said.

ThisIsBob's picture

You got missiles coming in your general direction?  Who you gonna call?

q99x2's picture

They can't do that. I'm on their side.

no1wonder's picture

In other news:

1) Interfax, 14:59 - Russia, India developing method for mutual payments in national currencies - CBR

2) ItarTASS - China Southern Airlines launches direct air traffic between central China, Moscow

3) Interfax - Russia can build second Mistral itself - Rogozin

Kirk2NCC1701's picture

Building a second one themselves was probably the plan all along.

Jacksons Ghost's picture

Once trade stops across a border, bombs usually follow.  Hedge acordingly.

Singelguy's picture

Ok, so how long before Russia turns off the oil and gas taps to the EU? November perhaps?

Itchy and Scratchy's picture

It's startin' to look like the Kenyan is sanctioning himself!!!???

p00k1e's picture

Go long Saiga 12's.  E-Z double. 

smacker's picture

Putin should announce a reduction of gas supplies to Europe by 10% and 10% price increase until the loons in Brussels disconnect themselves from sanctions being applied by madmen in Washington.

ThisIsBob's picture

No.  That sounds like what Obama would do.   Take their money.  Sell them all the gas they want.

Wahooo's picture

Yup. Make it so easy to buy Russian gas that they'd be crazy to look elsewhere.

Ghordius's picture

smacker, you know that the "loons in Brussels" are, among others, the British PM, the Polish PM and the Balts' Ministers, all fervently pro-sanctions against Russia

the same group of nations that is openly and vocally blocking the nomination of the Italian FM to the Commission because "she is too Russia-friendly"

seriously, sometimes I have the impression that you need something like the myth of Brussels faceless, nameless, unelected and unaccountable bureaucrats

Dublinmick's picture

Polish PM and the Balts' Ministers and parts of the EU have had their asses whacked by the tsars for so many centuries I think some of them would be willing to die in an atomic holocaust for revenge. 

Boogity's picture

Actually from the 14th - 18th centuries, the Poles and Lithuanians, along with the Swedes, attacked Imperial Russia several times.  During this time period, the Poles and Lithunainans were essentially the vanguard of east-facing Catholic fanatical militant Fascism.  The warmongering Popes told their stooges in Poland and Lithuania to attack Russia to destroy the Russian Orthodox Church, steal their lands and money, and "convert" more little boys for the purpose of servicing their horny horde of pedophile priests.

Dublinmick's picture

Yeah I know, I have the book Ivan The Terrible by Henri Troyat. It is a great read.

The vatican sent a mission to Russia to enable a base there. Ivan told them that he was the emmissary of Christ on earth and they should turn around and go home.

This confrontation is still playing out today.

Ivan wasn't so terrible until they poisoned his wife. That is when enemies of the empire began being sat on kegs of dynamite and blown into a fine mist in the town square.

Also when Ivan was young the boyars thought he was about to die of a fever. They tried to set it up so his heirs would not reign. Thing is Ivan did not die and vowed revenge. When he became tsar he took all of the boyars lands and routed them, setting up the siloviki which is now about the same as the KGB or now FSB.

smacker's picture

You are right. Cameron is becoming almost feverish about even harsher sanctions against Putin. He never explains exactly what it is he wants Putin to do. I believe Putin has been selected as the West's whipping boy to camouflage Part II of the forthcoming financial crash. They are desperate to find someone to blame.

A German political commentator was on RT.com earlier stating that the West has squandered the opportunity for global peace and co-operation offered by Russia after the Soviet Union collapsed. I totally agree with him.

But your view on the Brussels crats is misplaced. Recall they were stirring up and part-funding the revolution in Ukraine. Truth is none of them are worth a rat's ass.

Freddie's picture

Check out Cameron's wiki.  He and his wife are tribe members and banking families.  His grandad raised money for the Red Shield clan for wars.

crazybob369's picture

He will probably do just that. But remember that, unlike our fearless leader, Putin actually plans things out. The time to cut off the gas isn't in the middle of summer, when Europeans are taking their 8 weeks vacation in the Riviera, but in the middle of a wintery cold spell when they're freezing their butts off.

Kirk2NCC1701's picture

Russia can hurt the US the most by pulling the EU away from the US.  You do that by avoiding aggression with the EU, and focus on win-win trade and business deals: People vote with their pocketbooks, in the end.

The US is trying to prevent/front-run this growing Eurasian alliance/trade -- with increasing desperation.  The regimes in the Baltic states, Brussels, Poland, the UK and Ukraine are its stooges.

FYI, the expat Zio-Bolsheviks in the US (Nuland ilk) and in Israel (Nuttynyahoo+Likud) are the ones who are "stirring the pot" the most, as they are still licking their wounds (bruised egos), decades later after being kicked out by Stalin.  Those fuckers/sociopaths seem to think that they are entitled or chosen (yeah, self-chosen) to rule whatever country they are in.  It's time for the rest of the populace in each country to put them in their proper place:  "Demographically Representative Influence" (DRI), no more, no less. 

Dublinmick's picture

They captured a Polish American pilot trained in Poland bombing the east Donbas. His plane was shot down.

Itchy and Scratchy's picture

Jumpin' Vlad Flash is a gaz, gaz, gaz!!!

richsob's picture

Since Putin is 100% right in everything he does I think the U.S. government should adopt his attitude toward Mexico. Let's start arming U.S. citizens and let them take over northern Mexico. We'll give them tanks, missiles, whatever they want to use on that Mexican joke of an army. There wouldn't be any shortage of volunteers willing to blow Mexicans away and we'll use the same excuse: Mexico is dangerous and needs to be put down for its fascist tendencies. Immigration problem solved.

Gregor Samsa's picture

The proper analogy here would be for Russia to spend billions of dollars to destabalize Mexico, eventually leading to an armed overthrow of the government in Mexico and the installation of a pro-Russian government in Mexico, financed, armed, and advised by Moscow. In response to this, the Northern Mexican states declare independence from Mexico and vow to defend their way of life from the new pro-Russian government. Civil war breaks out right next to the U.S. border.

In this situation...

Does the U.S. move any troops next to the U.S. border? (The answer must be no, because that's what Putin did and Putin is evil).

Does the U.S. sit by and do nothing and watch the bloodshed in Northern Mexico unfold, including the killing of many American citizens living in the region? (The answer must be yes, because Putin chose to act in this situation, and Putin is evil).

Does the U.S. passively allow a Russian state to be imposed on Mexico, and ballistic missles and Russian military bases to be put along the U.S. border, within spitting distance of millions of American citizens?

If you have a fucking brain, you've realized by now that if the tables were reversed, the American reaction would have been much more severe than what Russia has done with Ukraine to date.

JohninMK's picture

Brilliant satire. Top of the class.

richsob's picture

Chill, dude. Putin is perfect. I didn't say anything against him. How could I? He's perfect.

And your comment took some time to write but it's off on a couple of important points. But we both agree Putin is perfect.

Dublinmick's picture

We think you should find a good plastic surgeon and have your foreskin sewn back on.

Kirk2NCC1701's picture

Question of the Day:  "richsob", how can you be rich, yet be consistently so thick?

Please tell me what you do or how you got rich.  And is being an "SOB" part of your success, since you seem to value both in your name?

jomama's picture

unfortunately, the current form of corrupted domestic government doesn't consider immigration a problem.

Dublinmick's picture

It works in occupied Palestine, is that where you get your model? Go steal some organs. You are suffering from anti-gentilism and should be on medication.

atthelake's picture

So, that means chicken in America will be less expensive, right?

Itchy and Scratchy's picture

Just looks like another racist game of 'chicken' to me!!?

Uncle Remus's picture

No, the chicken will actually be less chicken as in, unknown.

NuYawkFrankie's picture

Yes - though Chicken Kiev might be harder to come by.

basho's picture

salmonela shits du jour lol

you guys don't really eat that stuff do you.

"Chickens raised for their flesh, called “broilers” by the chicken industry, spend their entire lives in filthy sheds with tens of thousands of other birds, where intense crowding and confinement lead to outbreaks of disease. They are bred and drugged to grow so large so quickly that their legs and organs can’t keep up, making heart attacks, organ failure, and crippling leg deformities common. Many become crippled under their own weight and eventually die because they can’t reach the water nozzles. When they are only 6 or 7 weeks old, they are crammed into cages and trucked to slaughter.

Read more: http://www.peta.org/issues/animals-used-for-food/factory-farming/chickens/#ixzz38yJ3Ry53

"

gcjohns1971's picture

I have some very good Russian Vodka downstairs right now.  It is not the best Russian product, but it is the most visible in my house.

I am not going to throw it out.

I am not going to stop buying Russian products.

Why should I?

Just because governments are insane doesn't mean I should follow them in their march to the sea.

I hope individual Russians will reciprocate.  But if they don't I will not change.  Each has to act as he understands the world.