Europe Furious That Putin Dares To Retaliate To Sanctions, Blames Economic Slide On Kremlin

Tyler Durden's picture

Either Europe is run by a bunch of unelected idiots, or... well, that's about it.

After blindly doing the US' bidding over all propaganda matters Ukraine-related, and following just as blindly into round after round of US-inspired sanctions, sanctions to whose retaliation Europe would be on the frontline unlike the largely insulated US, Europe appears to be absolutely shocked and is apoplectic that after several rounds of sanction escalations, Russia finally unleashed its own round of sanctions and yesterday announced a 1 year ban on all European food imports, something which will further push Europe into a triple-dip recession as already hinted by Italy yesterday.

In fact, Europe is so stunned by this unexpected "politically-motivated" retaliation by Russia, it issued a press release.

Statement by Commission spokesman on the announcement of measures by the Russian Federation

 

The European Union regrets the announcement by the Russian Federation of measures which will target imports of food and agricultural products. This announcement is clearly politically motivated. The Commission will assess the measures in question as soon as we have more information as to their full content and extent. We underline that the European Union's restrictive measures are directly linked with the illegal annexation of Crimea and destabilisation of Ukraine. The European Union remains committed to de-escalating the situation in Ukraine. All should join in this effort. Following full assessment by the Commission of the Russian Federation's measures, we reserve the right to take action as appropriate.

Surely, Putin is waiting for the European Commission to also issue a #hashtag before he starts shaking in his boots.

For an indication of just how clueless Europe is, we also read that it is ready to appeal to the World Trade Organization to have the Russian agriculture import bans lifted, a European diplomatic source told ITAR-TASS.

“Politically motivated large-scale trade restrictions are a direct violation of WTO rules, which Russia pledged to comply with,” the diplomat said. “These measures will be thoroughly analyzed, and then relevant claims will be submitted with the WTO.”

 

The source added that the European Commission would start analyzing Russia’s ban on imports from EU states as soon as the official list of banned goods would be published.

 

The EU Council may convene an urgent meeting in connection with Russia's response to European sanctions.

 

It is early to say whether the EU will take measures in response to the Russian ban on imports of food products from Europe, source told.

 

“First, it is necessary to see and analyze the official list of product that Moscow intends to ban. After that, decisions will be made both at the European and the national level,” the source stressed.

The punchline: "The Russian ban on agricultural imports from the European Union is an “irresponsible measure” that can lead to losses of billions of euro for European as well as Russian consumers, the source told ITAR-TASS."

In other words, Europe actually thought it would keep escalating without Russia retaliation. If confused, see the first sentence of this article again.

In the meantime, Europe counter-retaliating to Russia's retaliation to European sanction aggression is sure to make the already bad trade war, worse. A trade war so bad in fact, that what snow was to Q1, "evil Putin" will be to Q3. From Bloomberg:

The crisis in eastern Europe is showing signs of disrupting Mario Draghi’s economic outlook.

 

Evidence is building that the conflict in Ukraine and European Union sanctions against Vladimir Putin’s Russia are undermining a euro-area recovery that the European Central Bank president already describes as weak. With the ECB expected to keep interest rates on hold near zero today and refrain from any new policy measures, Draghi is likely to face questions on how he plans to keep the economy on track.

 

The ECB may have few tools left to mitigate the impact of political turmoil that European companies from Anheuser-Busch InBev NV (ABI) to Siemens AG (SIE) say is hurting their business. A volley of measures introduced in June will take time to work, and policy makers have so far shied away from wheeling out a full-scale asset-purchase program.

 

“The euro-zone recovery is very fragile and the macro situation fluid,” said Andrew Bosomworth, managing director at Pacific Investment Management Co. in Munich. “Expect Draghi to elaborate on spillover risks from the Russia-Ukraine crisis.”

Ironic, because this is just as we said would happen when we predicted that Putin will soon become Draghi's best friend and as a result of Putin "aggression" Draghi will have "no choice" but to boost Europe's monetary insanity, which recently crossed into the NIRP twilight zone, even beyond the rabbit hole.

Finally, Bloomberg actually did touch correctly on what the recent trade war escalation is all about in "Russia Sanctions Accelerate Risk to Dollar Dominance."

U.S. and European Union sanctions against Russia threaten to hasten a move away from the dollar that’s been stirring since the global financial crisis.

 

One place the shift has become evident is Hong Kong, where dollar selling has led the central bank to buy more than $9.5 billion since July 1 to prevent its currency from rallying as the sanctions stoked speculation of an influx of Russian cash. OAO MegaFon, Russia’s second-largest wireless operator, shifted some cash holdings into the city’s dollar. Trading of the Chinese yuan versus the Russian ruble rose to the highest on July 31 since the end of 2010, according to the Moscow Exchange.

 

While no one’s suggesting the dollar will lose its status as the main currency of business any time soon, its dominance is ebbing. The greenback’s share of global reserves has already shrunk to under 61 percent from more than 72 percent in 2001. The drumbeat has only gotten louder since the financial crisis in 2008, an event that began in the U.S. when subprime-mortgage loans soured, and the largest emerging-market nations including Russia have vowed to conduct more business in their currencies.

"No one is suggesting"? We are!

As for the propaganda landscape, the scene is already set:

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Pumpkin's picture

Or maybe another not so fun teaparty.

MalteseFalcon's picture

Ain't worried 'bout no winter.  AlGore got that covered.

#Global Warming #Hating on Putin

Kina's picture

I notice Australia was on the list of banned importers.

I expect Australia to get some bonus banning from Russia since Australia has been out their as the USA's little dog yapping away from the beginning about Russia.

Australian PM Abbott is a total fuckwit moron, a one of a kind idiot whose ignorance is real. His only concern from day one was trade on the MH17 to win himslef as many voters as he could and, suck off Obama as hard as he could.

He is a true froreign affairs embarassment for Australia, probably the worse of any of the world's countries.

 

So -- Australia should get ready for some more counter sanctions from Russia coutresy of PM Abbott's cheerleading stupidity.

gcjohns1971's picture

My sister in Law in Moscow reported last night that food prices are rising sharply in Russia.

 

FWIW, the meme, "Putin is a master chess player, and can do no wrong.  Your situation is hopeless before the might of the BEAR" actually has a name in propaganda and interrogation literature.   It is called the 'Omnipotence Approach'.

In the 'Omnipotence Approach' one tries to convince the target that the subjects' compliance is unnecessary, a mere formality that is sought only to help the subject, because the outcome of the conflict is already decided.

 

Whatever the effect on Russia, Europe, or the US, this line of propaganda regarding Putin and Russia is absolutely a calculated issuance of a well-worn technique.

 

People continue under the illusion that wars are winnable.  They are not, except by avoiding them.

buzzsaw99's picture

putin has no problem whatsoever with sacrificing his own people like pawns and then blaming it on the west. http://www.nytimes.com/2012/12/28/world/europe/putin-to-sign-ban-on-us-a...

NotApplicable's picture

Has any saint ever ascended the throne?

813kml's picture

There is more to the adoption story.  Putin wants to reverse Russia's population decline and passed subsidies and financial incentives for births which I believe extend to adoptions as well.  It doesn't make sense to export a country's most valuable commodity.

But it is unfortunate that Manhattan yuppies will have to find other avenues to boost their self-esteem.

basho's picture

nyt as a source? come on you can do better than that. can't you?

basho's picture

"People continue under the illusion that wars are winnable.  They are not, except by avoiding them."

nicely said but a big so what. humanity doesn't seem to know any other way of conflict resolution. maybe its got to do with their choice of gods.

of course food prices are going to go. that's a no-brainer.

And as for 'Putin is a master chess player and can do no wrong'. The "and can do no wrong" seems to be your take on it so you can tell us all about the 'Omnpotence approach'.

calculated it may be but that chess isn't it?

Clint Liquor's picture

Russia gives Snowden a three residency permit. Another middle finger to Obama.

SubjectivObject's picture

Dear European c-i-t-i-z-e-n-s (you know who you are):

With my full support, please freely tell the Amerwreckan Goforyourmoneyment their complicit Eugivusyourmoneyment to eFF oFF in any/every way possible.

We need to work together on this.

Day_Of_The_Tentacle's picture

Although I profoundly appreciate your sincerity and fine suggestion for broader cooperation on this important matter, you are unfortunately making one grave and highly debilitating mistake that will lead to no tangible result in your otherwise admirable attempt to solicit action.

You are adressing us as European Citizens. But there is no such thing.

That is the whole problem that the Eurocrats find so hard to understand. There are plenty of people from different countries in Europe, who are delighted to work together, travel together, celebrate together, study together and trade together..... in the context of all our mostly adorable cultural differences and quirks. BUT we also mostly agree that we are not the same - and that we quite enjoy our individual quirks - and that we do not like when some bloody globalist bureaucrat from Brussels is ramming homologation directives left, right and center down our thoats until we eventually end up as one bland indistinguisable blob of sewer-coloured BORING slime.

Yes, we are Europeans - but we are not European Citizens, because that implies a European State - a concept they can take and shove in a dark place - but we are first and foremost Italians, French, German, Dutch, Belgium etc.etc.etc.

On a final note: Loved your expression "Goforyourmoneyment" - dat's a keeper!

On a finaler note: I know, you know, but one should never let an opportunity to state the obvious go to waste, ay?

SubjectivObject's picture

I apologize for my poor choice of conceptions (whaddya spec froma na Merican?  The whirld's revolved around us so long we tend to see our illusions in everyone else).

I can be educated.

DeliciousSteak's picture

Phew. And here I thought they might soon have to admit that the Eurozone isn't working, but it was Russia's fault all along! Damn those evil reds, always trying to ruin Europe.

Brokenarrow's picture

Russians know how to live with hardship. Eu and US are terrified their stock markets might go down. Putin is not one bit afraid of the US. Russia is not Viet Nam or some poor country the us can invade and enrich the defense contractors. They have no qualm about sending some great men to death or worse for profit.

himaroid's picture

Thank you Ed Snowden and Mr Putin.

Kina's picture

well Russia could be quite smart here.....cause food prices to drop....then use a proxy to buy the same products for Russia cheaper....lol

shovelhead's picture

As Tony Soprano would say:

Farg me?

No. Farg YOU.

Shove them cukes up your ass.

gcjohns1971's picture

Economic trade wars, like all wars, consist of one of a pair of siamese twins burning themselves to disgust the other with the smell of burning flesh.

It is IMPOSSIBLE to either deliver or receive economic sanctions (or outright warfare) without suffering.  BOTH will suffer.

 

Trade always has two partners.  The idea that only one partner suffers from a distruption of trade is nonsense.

Russia buys things.

If they do not sell gas, they will not be able to buy things.

The China deal is not a replacement for Europe even if it was of equal volume, because the expenses to deliver to China are higher.

 

When China tells Russia, "You go get 'em! Give 'em hell!  I will cheer you from the sidelines!"  They express sympathy while expending none of their own resources.

 

Who is actually a greater security risk to Russia?  Who has actually invaded Russia before?  Encouraging Russia to expend all her resources is a very Sun-Tzu move.

 

Of course the US and EU are threats to Russia, and the reverse is true too.  This is because of the nature of governments.  They are mafia-style gangs.  Simple as that. 

It is a strategic error to expend the majority of resources on other than the most severe threat.

What is happening is a lot of emotion backed by little thought.

Anarchy 99's picture

actually for Putin it's a lot of thought backed by a little emotion. (chess master)

basho's picture

to your post

" a lot of emotion backed by little thought"

SMC's picture

“While no one's suggesting the dollar will lose it's status as the main currency of business any time soon, it's dominance is ebbing.”

Astute readers might investigate beyond the propaganda and think for themselves.

My conclusion is that baring politically unpalatable changes in the oligarch controlled US Government and Federal Reserve, the current version of the US Dollar will be worthless for international trade by 2020, and worthless domestically a few years afterward.

Investigate and think for yourself.

 

Remember: Tomorrow's happiness must be earned today.

Eyeroller's picture

Puzzled as to why Putin doesn't send in the troops to Ukraine.

Europe won't do anything:  Terrified of the gas being turned off.

US won't do anything, except send sleeping bags and meals on wheels.

NoWayJose's picture

Ukraine is swimming in debt, their industry and infrastructure is collapsing, and the western half of the country hates Russia. If Putin invades it will validate all the bogus claims the West has been making. He will not invade - rather he will just wait for the Ukrainian government and economy to collapse - and he might not have to wait long.

Ventnor's picture

OK, he can just wait for the "Ukrainian government and economy to collapse."  But if Eastern Ukraine falls to Kiev before that happens, he's in trouble.  He'll have NATO forces up against the Ukriane/Russia border in the batting of an eye.   I think VVP cannot and should not invade.  But he should supply the East Ukrainians withl all the weaponry they need (esp. anti-aircraft and anti-tank), and he should allow Russians and Russian Cossaks and Chechens to cross from Russia into Ukraine in numbers in order to bolster Strelkov's forces.

JohninMK's picture

I agree he doesn't want the economic basketcase that is Ukraine.

The ammo being used by the Militia must be coming from somewhere. I suspect there is quite a lot of 'smuggling' going on. Even a few tunnels (a proven technique elsewhere).

mogul rider's picture

Russian overlords and the people of Russia can play this fucking game all day....

 

American yuppiy pussies wouldn't last 5 minutes without their donuts, starbucks, and cherry flavored condoms

 

this war will end quickly when OCOMMIE gets bent over in the media when the Yuppy zombies awaken

tony wilson's picture

 

the russian is soft not hardy

thats a mossad rupert murdoch fact.

putin is crazy

he must be.

how can he believe organic dung infested foods

can be good for you.

my fallow americains

in the coming months we will see the russians

wilt

without are dunken donuts,krispi kreams

watch how those vodka drunks wither on the vine.

this soft  putnik clown cannot survive

without team mossad cia and rothschilds pink slime.

with jewish isis balkan strategy

we can win this

come on fatties lets roll

WillyGroper's picture


my fallow americains

JHC i can't quit laughing!

ClowardPiven2016's picture

Draghi should just print up a few billion in food stamps and drop them from helicopters all over Europe. Problem solved!

 

 

robertocarlos's picture

We send the Russians frozen pork. More bacon for me. It will cost our farmers billions.

nah's picture

bigger squabbles over industry agriculture and land bitchez

danpos's picture

The Pariah will be a fun summer flick.

The cyborg, Vladimir Putin, comes from the future to kill the European Union.  And only one man can stop him...Mario Draghi!

From the producers of The War on Terror...

Hey, down here at the bottom of this website it says, "Zero Hedge is intended for Mature Audiences."

IN A WORLD...WHERE QUANTITATIVE EASING...

Two dogs's picture

Maybe part of the master plan is to use the east-Ukrainian refugees and set them up with farms.  Once everyone's tucked up safe in Russia,  they can say "If you like your uninhabited wasteland,  you can keep . . . ."

heywood's picture

 

Oh, those poor peace-loving Russians! Here they to to all that trouble to gather together a force of peace and brotherhood military hardware for the Ukranians. Then they are beset by all that warmongering talk from the EU and America.

 Poor, poor, Russkis.

 

Overdrawn's picture

This is a good thing for the UK, now we can keep all our food to ourselves, as according to the Government we don't grow enough food to feed the population after the 7th August each year.

 

http://www.dailymail.co.uk/news/article-2718548/We-d-hungry-today-ate-Br...

Freddie's picture

Look up Cameron's wiki and you will see he is dual citizen like Millband.  His family and his wife's family were bankers for the Red Shield financing wars.  Tribe members.  Cameron is screaming for war.

WTFUD's picture

Somewhere in the huge bureaucratic monolithic structure that is the EU a lowly graded secretary has responded to Moscow on the sanction issue. Pure Hubris, just listen to Draghi talking for hours and saying FUCK ALL. Pissed that some reporter has dared ask for clarity to one of his responses. Barney Frank was the SAME.

Kina's picture

The price of Freedom, eternal vigalence.

Bad luck Americans, you lost it. Problem is they didn't suffer like most of the planet did during WW1 and WW2... so never learned the valuable lesson.

ramacers's picture

keep up the good work vlad and , btw, remind the eu you're tweakin' the nuke algos.

dogismycopilot's picture

Man, the Chinese are loving this. I can hear the Shanghai traders already laughing and booking their tickets and sharpening their pencils...they are all going to do very well this year. Russia is full of Catepilliars, US Oil equipment, Audis and BMWs and the Chinese reproduction parts are going to FLOW LIKE A FUCKING RIVER INTO RUSSIA AND NO ONE IS USING DOLLARS! 

As for food prices in Russia...yes, they are going to go up. No doubt about it. But I am sure some enterprising Russians will soon set up some nice farms. And honestly, how fucking hard can it be to design and build a good combine. Not like there isn't a John Deere factory in Russia already (or two even) http://www.cnbc.com/id/101675707 where Putin can just make some plans to hand over to the Kashlinikov design bureau for fun and giggles to improve on.

Honestly, how could the EU be so fucking stupid as to follow Obama and Kerry and carry water for them? 

 

 

NoWayJose's picture

Hard to tell the Chinese reproduction parts from the Chinese-made OWM parts in Caterpillar, BMW, etc. That is what destroyed Detroit - all the US parts makers that sold to GM and Ford moved production to China. That's what got Toyota in trouble - Chinese accelerators.

Freddie's picture

When the Russians start getting really good at copying stuff and creating tech then the USA is really screwed.  No one wants that Silicon Valley spying hardware and software.

basho's picture

this is brilliant.

this is about making RU self sufficient.

this is more than just friction between UE, EU, USSA.

this is about rebuilding a country, rebuilding a people.

when you look at it in that way, the whole picture changes.

sacrifice is a necessary element and the RU people have been there before.

imo Putin has reawoken the Russian soul (look at his ratings)

no way the West is going to win this one. no way.

the west has had its day in the sun. it's over.

 

no1wonder's picture

New Straits Times (Malaysia) - 7 August 2014:

"US analysts conclude MH17 downed by aircraft"

http://www.nst.com.my/node/20925

KUALA LUMPUR: INTELLIGENCE analysts in the United States had already concluded that Malaysia Airlines flight MH17 was shot down by an air-to-air missile, and that the Ukrainian government had had something to do with it.

This corroborates an emerging theory postulated by local investigators that the Boeing 777-200 was crippled by an air-to-air missile and finished off with cannon fire from a fighter that had been shadowing it as it plummeted to earth.

dogismycopilot's picture

intersting. i have been wondering why no one has shown a video of the exhaust plume from the missle going up 30K into the sky in broad day light. Not like several hundred thousand people under it had smart phones and cameras to take a video of a missile the size of a telephone pole going up and leaving an exhaust plume a kilometer wide up into the sky.

smacker's picture

This NST article confirms my own suspicions of late except that I thought the missile may have been a BUK ground-to-air from either side in the civil war. The fuselage sections with 30mm bullet holes can only have come from one of Ukie air force fighter planes who were seen trailing MH17 before the incident.

And it raises the big question: what is the real operational ceiling of the SU-25?? currently reckoned to be 23,000ft. Clearly it's higher even with missiles on board.

And when this is confirmed, I'm sure the SU-25 pilot(s) will be arrested and charged with mass murder. ho-ho.

Two dogs's picture

According to the local dealership in Kiev:

http://en.uos.ua/produktsiya/aviakosmicheskaya-tehnika/84-cy-25

anything up to 10,000 m (about 33,000 ft)