"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...


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...


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gcjohns1971's picture

Polugar, actually.

I don't suffer from the Hollywood delusion that one side of every fight is "The Good Guy" and the other is "The Bad Guy".

When speaking of politicians two "Bad Guys" are much more likely than one or both of them being good.

And my personal opinion is that the very best sort of man would be morally repugnant in a position of power - and that that fact is a condition of humanity.


People say, "Government" when they really mean "God-verment" or "Dad-verment". 

I think seeking answers to a person's problems in a 'Leader" is AT BEST snake oil.

Bankster Kibble's picture

" '... it would be blatant protectionism,' Clayton Yeutter, a U.S. Trade Representative under President Ronald Reagan, said in a phone interview."

So, then, does that mean if Russia counter-sanctions USA, it is protectionism?  So we can sue in the WTO court?  Interesting.  That might mean Russia's existing suit in WTO court against our sanctions is just as valid.

falak pema's picture

... this machine has gone bonkers

falak pema's picture

tit for tat...

Just how far is too far, until we start throwing one of those 8000 nuclear warheads at each other or against a proxy surrogate who goes "beyond tolerable limits".

We've had the 298 deaths  of Malaysia line innocents. We had the 170000 deaths of Syrians. We've had the millions who die in obscure places and who don't even get picked up on the radar of the western media. 

The world has got so blasé, and our democracy now looks like the bulbous waistline of Gerard Depardieu in the nude, a dude who could play any prince in his youth, and now plays in this latest drama the ugly face of a shodden, downtrodden prince of corrupt finance, appropriately entitled "Welcome to New York".

The fall of western civilization looks like the view of Depardieu's evolution from triumphant youth to obese and ugly but defiantly assumed present status.

That is the best allegory of our Reaganista financial age, in its current dystopian winner take all, steroid pumped, hubristically defiant and antagonistically divided Oligarchy rage. 


crazybob369's picture

We're just lucky that Barry is dealing with Putin and not one of the old Soviet leaders, who, in a drunken stupor, would have already fired a nuke up Barry's ass and we'd all be floating back down to earth as radioactive dust.

RaceToTheBottom's picture

"tit for tat..."

Breasts for skin art

Toronto Kid's picture

* “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 *

Oh, this brings back not-so-fond memories of the softwood dispute. I doubt there are many in Canada who will have much sympathy for the US if __CLAYTON YEUTTER__ goes around caterwauling about protectionism.

Perhaps the US government can find someone more sympathetic to do its cauterwauling for it?

are we there yet's picture

Our company sells equipment to Russia over the years. But since Crimea we have neither been granted nor denied permission to sell there so we've so we have been on an unexplained hold for sales to Russia. Not an iron curtain, more like a stupid curtain. The movie 'dumb and dumber' comes to mind.

Itchy and Scratchy's picture

Nuthin' moar than the US tryin' to win a trade war ....'cause the others ones haven't gone sew gud!!

Wahooo's picture

I hope you are threatening your congresscritters with some action.

docmac324's picture

If the Fed can print dollars into its demise, they can also produce other nation's currency.  See where I'm going?

NuYawkFrankie's picture

re See where I'm going?

Off the deep end? ;)

Jackagain's picture

Maybe they can get a 3D printer and print chickens too...

Fix It Again Timmy's picture

The Russians moved their entire industrial base eastward as the German army was advancing, the Russians defeated the German army while sustaining 20 million casualties so I'm sure that "sanctions" has them shaking in their boots.  Does Barry think he's playing with kids....?

crazybob369's picture

Not to mention that after the fall of the Soviet Union, the Russian people went through 10 years of hell. So much so in fact that the average Russian life span actually decreased by about 5 years during that period. To quote Yamamoto "I am afraid we have awoken a sleeping giant", I would suggest we do not poke the Russians or we might just awaken a slumbering bear.

Jackagain's picture

And they still like Stalin...

JohninMK's picture

In 1999 the Russians took their medicine, unlike the US in 2008 who 'chickened' (word du jour) out and just started digging a bigger hole.

therevolutionwas's picture

To late, I think we also poked a slumbering Panda.

Q-Q-Q's picture

“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.”


Hmmmm really, and it doesn't work the other way around, lol. Every country is the same.

Freddie's picture

Mississippi last rigged Senate primary where RINO Thad Cochran stole the election shows MS has more corrupt election than Russia.

q99x2's picture

I'm more worried about the 234 thousand per month coming across the border to get the 218,000 jobs.

Xandrino's picture

Jack Lew is a lying piece of shit...

Itchy and Scratchy's picture

He'd be hurt if he heard u saying that!

Kirk2NCC1701's picture

@Xandrino: "Jack Lew is a lying piece of shit..."

Well, he's that too.  FYI, under the ethical rules of his ilk, he's not "Lying" but Pretexting.  The way cops are allowed to lie but you are not:  When cops lie, it's called Pretexting.  When you do it, it's called Lying, and you go to pay legal bills and go to jail.  The cop gets a commendation or promotion.

"Power has its privileges", it seems.  Which is why Lew's ilk have always reached for the top of the socioeconomic Pyramid, and created The Pyramid on top of the (unfinished) pyramid. Along with their All-seeing eye.

luckylogger's picture

So Russia can build its own boats.....

Why did it hire France then???????

What a joke.....

And now they will investigate Mc donalds chease that is probably sourced in russia....

Now that is one serious threat.....

basho's picture

when the orders were placed, they could not build them. you can chk that out for yourself

JohninMK's picture

Yes it can, think submarines, frigates, cruisers etc.

Now if you are Putin and:

- want to get rid of a lot of dollars

- need to upgrade your shipbuilding technology

- need a helicopter carrier

- notice that France has a really good one at an even better price on good delivery timetable

- the French agree that the French carrier can be easily modified for better and more Russian equipment and will train Russians

- the French agree that the rear section of the first can be built in St Petersburg with a full ship (not weapons) technology transfer package

- want to gently poke a stick at Obama.

Bit of a no-brainer really isn't it? Certainly not a joke.

vincenze's picture

I think it was the other way round.

Nobody wanted to buy French ships, only 2 have been built so far. So, the French president begged the Russian president to buy one.

jomama's picture

i guess it's yet another good time to back the truck up.

Wahooo's picture

I've run out of trucks to back up.

marcusfenix's picture

“Assuming that they take this action, it would be blatant protectionism,”

maybe I am the only one who feels this way, but personally I feel Russia has shown admirable restraint given everything that has happened over the past six months.

US policy toward them has turned openly hostile and leaves no room or opportunity for diplomatic solutions based on even the pretense of mutual respect. Washington has just arrogantly plunged ahead with a one dimensional, broken record "blame Russia for everything" program of unwarranted, unhelpful and ultimately, unwise aggression. but as we have seen since 9/11 US foreign policy has been nothing less than destructive for us here at home and the planet in general.

unfortunately this time the freak show in DC has pushed things to a point where those potential consequences are very dire and could be disastrous for all of us. the course they have chosen is dangerously out of touch with reality and they are putting countless innocent lives at risk with there myopic drive for hegemony.

at this point the only thing that would qualify as "blatant protectionism" in my opinion would be if they scrubbed NATO warships from the back sea, closed down the airspace over the eastern Ukraine and put large amounts of military assets on the border with Poland. now that the EU has rolled over and confirmed itself to be nothing more than Washington's bitch Putin's options are narrowing in terms of protecting his country from this expanding western aggression.

once the US NATO Kiev alliance makes it's push on Crimea, which is currently in the preparatory stage, that will be the mother of all red line crossings and the beginning of WW3.                  

therevolutionwas's picture

Yah.  Let's hope the economic war is won soon  -by gold and silver, which means the east.  Perhaps that may send the US military idiocracy back home...oh no, to badger us!

vincenze's picture

What is the purpose of NATO nowadays?

All these European countries, especially the small ones, fear only one enemy. However, they can't do anything against it or they will get hundreds of nuclear blasts in retaliation.

Kirk2NCC1701's picture

Buzzword Bingo decoded:


Embargo/Sanction = when the US and its lackey allies do it

Protectionism = when anyone else does it, especially the Bogeyman of the year.


Freedom Fighters or Rebels = When they fight for US interests

Extremists or Terrorists = When they fight against US interests or that of its Agents and Proxies


Military Aid = Arms from Western MIC (US, UK, IDI).   Where IDI = Israeli Defense Industries

Illegal Arms = Russia, China, Iran, N. Korea


Military Advisers = "Our" Spies and Mercs.  CIA Agents, Private Contractors (ex-DOD, ex-IDF...)

Enemy Forces = enemy forces


Pretexting vs Lying

   Pretexting = When Cops/LEAs lie.  They are allowed to, by law.

   Lying = When Private Citizen tell an untruth. They are not allowed to, by law.

etc, etc.

p.s. Once again I got "Zerohedge Maintenance" after submitting my post. 

messystateofaffairs's picture

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


Dosen't take a rocket scientist to see that the toppling of the USD is the centerpiece of those losses, thats just a matter of time, and we might get a surprise about the timeframe. The big question is what will replace the fiat dollar, another fiat currency of non Jewish Russian/Chinese design and control, a Jewish fiat like the Euro or SDR, or specie like Gold and Silver.

Hongcha's picture

Keep dry powder lads because when the cool September winds begin to blow and this thing gets resolved, Gazprom's ADR will start moving up.  Few realize what a behemoth that company is.

Would you like the option to buy XOM, right now, for $10/share?  But can you live with the uncertainty.  I can.  I am betting on a liveable resolution and not that Chalky is going to raise a flaming sword and charge into Russia.

While they are prying open cheeseburgers on CNN, the grownups (and this does not include Chalky) are very seriously discussing an endgame both sides can live with.

It's all about the gaz.

crazybob369's picture

How right you are my friend. Most everyone is clueless to the fact that Syria and the Ukraine are simply about who controls the gas, and the pipelines to carry that gas. The US leaders, and their corporate masters, can't stand the thought that some upstart country/company might have some say in world energy production and distribution.

22winmag's picture

Lobbing financial missiles... soon to be followed by lobbing nukular missiles.

tsuki's picture

Barry, just give it up.  You are a complete and total fuck-up.  May the words of President Eisenhower to Sec of State John Foster Dull(es) be your guide...Don't do something John, just sit there. 

Dublinmick's picture

Pressure on MacDonalds and focus on their safety is going to cause serious unemployment problems for the wave of illegals now entering.

RaceToTheBottom's picture

Such a shame....  This could all be sorted out on the golf course.  Lowest Gross wins.

Course Putin would have to wear a shirt....

Wonder if Putin has his balls stamped like Obamas??

Jackagain's picture

I'd pay big money to watch them in a judo match...