Europe Goes "All In": Will Sanction Rosneft, Gazprom Neft And Transneft

Tyler Durden's picture




 

Until this moment, the main reason why everyone mostly dismissed Europe's sanctions against Russia is that despite all its pompous rhetoric, Europe consistently refused to hit Russia where it would hurt: its energy titans Gazprom, Rosneft And Transfneft. The reason is simple: by imposing sanctions on these core energy exporters, Europe would directly threaten the stability of its own energy imports (Russia accounts for up to 30% of German gas imports), and as winter approaches with every passing day, playing with the energy status quo would seem like economic suicide. This all appears to have changed last Friday, when as the FT reports from a leaked copy, Europe's latest sanctions round will boldly go where Europe has never dared to go before, and impose sanctions on the big three: Rosneft, Gazprom Neft and Transneft.

 

This is what is known in game theory terms as a major defection round.

It also means that suddenly the stakes for Russia, and thus Europe, just got all too real, as Putin will now have no choice but to really ramp up the retaliatory escalation, which following the food ban can only mean one thing: a staggered reduction in gas flow to Europe.

 

It also means something else: recall that it was just ten days ago when we reported that Gazprom would begins accepting payment for oil in Ruble and Yuan.

If today's news is confirmed, Europe's dramatic shift in sanctions strategy means that Europe's embargo of both the US Dollar and the Euro will accelerate as Russia further intensifies its shift away from both the west and the petrodollar. The only and clear winner here: China, which will almost certainly step in to provide the funding Russia needs however on Beijing's terms in effect making the symbiotic link between Russia and China even stronger, forcing Moscow to rely almost exclusively on China for trade and funding relations, and suddenly give Xi Jinping all the trump cards.

What China's president will do, now that he has all the leverage in the world to call shots both to the West, the East, and of course, Africa, remains unknown, although those thousands of tons of gold imports that mysteriously enter the country and are never heard from again, may provide a hint.

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Sun, 09/07/2014 - 11:17 | 5190472 ArkansasAngie
ArkansasAngie's picture

Fighting over resources. We know who the losers are. Just who are the winners?

What do the obamicans get out of this?

Sun, 09/07/2014 - 11:21 | 5190478 Arius
Arius's picture

Russia's move next ....

Nato chief rasmussen seems to be very weak though beyond his tough words and appearances. europeans are old continent, old blood, families ... no survivors ... no tough people any longer

Sun, 09/07/2014 - 11:22 | 5190484 Publicus
Publicus's picture

As usual, the European elites makes the decisions, and the people suffers.

Sun, 09/07/2014 - 11:26 | 5190499 DeadFred
DeadFred's picture

The Germans bet once before that the 'Fire and Ice' of their nation would save them from the effects of winter when they were in conflict with Moscow. Resulted in a lot of cases of frostbite if I recall

Sun, 09/07/2014 - 11:26 | 5190508 CH1
CH1's picture

NATO has gone insane.

I can only guess that they are that desperate for a war.

Sun, 09/07/2014 - 11:35 | 5190543 globozart
globozart's picture

Makes no sense. Last time I checked the Russians had nukes. It's not fighting a few dessert tribes without risk.

 

The truth must be burried deeper.

Sun, 09/07/2014 - 11:43 | 5190584 Terminus C
Terminus C's picture

Energy vs food.

Russia produces energy, Europe produces food...

Going to be an interesting winter.

Sun, 09/07/2014 - 11:46 | 5190604 Keyser
Keyser's picture

This will be the end of the Brussels ruled EU... Once energy constraints kick in, the people will demand that their leaders to do what's right for the people and not what's good for US hegemony... 

Sun, 09/07/2014 - 11:59 | 5190645 strannick
strannick's picture

As long as there is an alternative to the Petrodollar, it risks collapse from its absurd debt levels. If vassal nations can go elsewhere, American financial collapse is inevitable, along with its military power. If alternatives are eliminated, the system survives.

Russia/Putin is enemy #1 to the most important pillar of American hegemony, the PetroDollar. America has to squash Putin at all costs, here and now, or America collapses.

One cold winter in Europe, massacres in Ukraine, Syria and Iraq to stop Russian gas from going to Europe; so what. 

These are the people that collapsed the World Trade Center. Power is their prime driver, and they will do whatever is necessary to maintain it.

Sun, 09/07/2014 - 12:04 | 5190669 Pinto Currency
Pinto Currency's picture

 

 

Get ready for Europe-wide uprising this winter.

The pols have completely lost it.

Sun, 09/07/2014 - 12:08 | 5190688 GetZeeGold
GetZeeGold's picture

 

 

Quick note.....winter.....is coming.

 

I assume there is a backup plan....

Sun, 09/07/2014 - 12:10 | 5190700 Pinto Currency
Pinto Currency's picture

 

 

There certainly is.

The backup plan runs by the code name "Let Them Eat Cake".

Sun, 09/07/2014 - 12:14 | 5190720 Slave
Slave's picture

After the inbred chosen ones force Russia into China's open arms, they will begin stoking a war between those two.

Sun, 09/07/2014 - 12:37 | 5190803 Pinto Currency
Pinto Currency's picture

 

 

China realizes that if it gives up Russia, it is next in line.

Sun, 09/07/2014 - 13:01 | 5190878 Oracle 911
Oracle 911's picture

Well the winter in Europe will be long and cold. I think we don't have other choice then get out from the EU.

Sun, 09/07/2014 - 13:07 | 5190894 Manthong
Manthong's picture

It’s supposed to be a pretty nippy this winter.

So what will a third of Europe look like with no trees in a year of two?

I suppose they could always burn Euros and FRNs, too.

Sun, 09/07/2014 - 15:50 | 5190951 The Big Ching-aso
The Big Ching-aso's picture

The real dilemma: What freezes faster, German beer or German asses?

Sun, 09/07/2014 - 17:15 | 5191584 HardlyZero
HardlyZero's picture

Finland at 100% reliance on Russia and far to the north will freeze before Germany.

Sun, 09/07/2014 - 18:45 | 5191838 Calmyourself
Calmyourself's picture

Yeah, Finland is not a Nato member, more of a vassal really, WWII notwithstanding..

Sun, 09/07/2014 - 20:11 | 5192096 Enslavethechild...
EnslavethechildrenforBen's picture

Germany is fucked if they side with the Jews again...

Sun, 09/07/2014 - 21:18 | 5192306 kaiserhoff
kaiserhoff's picture

Yes, this is the way wars are fought, by  sanctioning each other's corporations.  Or maybe it's Susie won't invite Jamie to her post prom party.  Oh, the humanity!

Sun, 09/07/2014 - 22:05 | 5192391 DanDaley
DanDaley's picture

They say that adult life is just like high school, but with money.

Sun, 09/07/2014 - 23:28 | 5192547 old naughty
old naughty's picture

so not just the sheeples suffer...the oligarchs are "helped" too?

They eat their children (eh, lieutenants), no? Must be near the End.

Mon, 09/08/2014 - 03:39 | 5192793 Elvis the Pelvis
Elvis the Pelvis's picture

War over the Ukraine?  I'm just not feeling it.  Maybe I'm crazy.

Mon, 09/08/2014 - 08:36 | 5193038 Huckleberry
Huckleberry's picture

Your blog is lame so I downvoted you.

Mon, 09/08/2014 - 07:35 | 5192970 Paveway IV
Paveway IV's picture

All this doom and gloom, and nobody is pointing out the obvious?

The EU and NATO are little more than oligarch support groups. It's one thing for Ukraine to unsaddle themselves from oligarch clan A and immediately be saddled with oligarch clan B. When the Ukrainian army revolts, it will only change the oligarch clan to C. Ukraine is doomed - it has been permanently destabilized adn will be disassembled, just like the U.S. wanted from the start. It doesn't need all Ukraine - it only needs some of the leftover parts for ABM sites and enough oligarchs left to bleed Russia with left-over terrorists and mercs for an eternity. Remember: the U.S. had it's 'littel green men' (Xe or Academi or whatever the fuck they call themselves today) in Georgia and Ukraine way before Putin did.

Now the EU is an entirely different matter. The EU states' people cannot be ordered about like cattle to slaughter in such a ham-handed fashion. Let me take that back: they're getting fat and lazy just like Americans and demand the comforts of modern civilization. This isn't WWII anymore. They're damn well not willing to 'sacrifice' anything for any politicians. There will be no pesonal sacrifice by the Europeans this time around. They will feed their politicians to the dogs, first.

If you want to make European countries rise up against their governments, turn off their gas (or quadruple the price) and hyperinflate the Euro (=take away pensions). They will go fucking nuts - that will be the end of the EU and several current governments there. 

I only draw that conclusion based on what's clearly happening in the U.S.: .gov are going full-retard trying to keep gasoline prices down, inflation and real unemployment 'hidden' and baby-boomer 401K's intact (= banks buying every loose share in the S&P and Dow). Everyone here knows exactly how that's going to end, we just don't know when.

Losing control of fuel prices will usher in the terminal phase in the U.S., just like it will in the EU. Either the EU leaders know something else nobody else does, or they just infected themselves with financial ebola and are hoping the citizens don't notice. 

Mon, 09/08/2014 - 08:34 | 5193033 MarkAntony
MarkAntony's picture

Excellent conclusion. up 1.

Mon, 09/08/2014 - 09:29 | 5193184 Savvy
Savvy's picture

And when the economy implodes they'll blame Russia.

Sun, 09/07/2014 - 15:39 | 5191317 Herodotus
Herodotus's picture

Don't fight the Fed.  They not only have the power to manipulate markets, but the weather as well.

Mon, 09/08/2014 - 00:53 | 5192659 LostandFound
LostandFound's picture

I would give you more than one upvote if i could.

Sun, 09/07/2014 - 12:16 | 5190733 strannick
strannick's picture

Merkel is the most exposed Pol in the world at the moment. 

Sun, 09/07/2014 - 12:54 | 5190861 buyingsterling
buyingsterling's picture

What does Obama get out of this? In his mind, America is the racist, enslaving monster, so anything that threatens it or makes things harder for its mostly white inhabitants is a win for him. Yes, he's a tool of other powers, but hatred is what gets him out of bed each day.

Sun, 09/07/2014 - 17:03 | 5191303 Lore
Lore's picture

This is Black Nobility business, well outside President Obama's jurisdiction. He takes his script from a teleprompter. Scapegoating Russia is for public consumption, to rally patriotic sheeple and keep their thinking constrained along narrow national lines. The greatest threat by far is internal: those whose welfare depends most on preservation of the outgoing model of fractional-reserve trickery have most to lose, hence are most likely to grasp at any solution, no matter how desperate and destructive, even self-destructive, to preserve the status quo.  Fostering war serves the Military-Industrial Complex, the protectionist arm of oligarchy.  The last backing of the USD is the utterance of threats and ultimate follow-through (assuming power is not taken away in pre-emption and there are no major tactical or technological surprises).  Today's announcement of more sanctions is a poor substitute for real economic growth as a backing for national and international currency.  The powers continue to show a weak hand, and subordinate nations are rightly seen to be cutting off their noses to spite their faces. Putin is bound to jack prices and demand payment under new terms.  The Euro will collapse.  The USD, excluded completely, will collapse also, especially when it becomes clear that America cannot deliver on all its petroleum export promises.  Various nations and groups have surely seen the writing on the wall and are working together to accelerate new, more nimble alliances to avoid the most pathological outcome. 

Sun, 09/07/2014 - 17:01 | 5191540 angel_of_joy
angel_of_joy's picture

Europe goes "All In'' is the PC speaking for "Europe goes Full Retard".

Mon, 09/08/2014 - 00:21 | 5192617 mkkby
mkkby's picture

Let's play chess. 

The Saudis played a large role in attacks against Syria.  So Syria and Iran have scores to settle.  Suppose Russian merks were to help them attack Saudi oil supply lines and political targets.  Stir up a popular revolt there.  Might that make Russian oil and gas more valuable right before a EU embargo and winter?

There's lots of ways Russia can make it dicey for the west.  So far all they've done is sign trade agreements.

Mon, 09/08/2014 - 03:59 | 5192803 jeff montanye
jeff montanye's picture

they can buy silver futures and stand for delivery.  ditto gold.

if this guy knows this much: https://wikispooks.com/wiki/Document:Fifty_Years_of_the_Deep_State

(not to mention laurent guyenot) what more does the kgb? 

Mon, 09/08/2014 - 05:46 | 5192872 Squid-puppets a...
Squid-puppets a-go-go's picture

syria is pinned. it has to focus 100% on defence to have any chance, it aint gonna go on any saudi offensive

Sun, 09/07/2014 - 21:20 | 5192312 kaiserhoff
kaiserhoff's picture

As opposed to Bath House?

Sun, 09/07/2014 - 13:21 | 5190941 Andre
Andre's picture

They don't think they have. Think about all the preparations that have been going on since 9/11 - even Europe has been militarizing its police forces/increasing its civilian surveillance.

This game has been planned for many years.

Sun, 09/07/2014 - 14:24 | 5191118 disabledvet
disabledvet's picture

More like 911 AD. I did see Russia celebrated its 1000 year anniversy.

We'll see how the next 1000 years go.

Mon, 09/08/2014 - 06:15 | 5192880 Tall Tom
Tall Tom's picture

Release, Release - Yes

 

https://www.youtube.com/watch?v=0xkSFJgZ5bg

 

Have you heard before, hit it out, don't look back
Rock is the medium of our generation
Stand for every right, kick it out, hear you shout
For the right of all of creation

We've heard before, but we just don't seem to move
The pressure's on is there lack of concentration

Power defy our needs, lift us up, show us now
Show us how amid the rack of confusion
Drive in thoughts of high, satisfy, in a plan
Set it out for all to understand it

We've heard before, but we just don't seem to move
The pressure's on is there lack of concentration

We are lost and wondering, maybe, how it is
Seems to me, it's as simple as this
No matter, where you go, you're going to find
You won't see me in front, but you can't leave me behind

Power at first to the needs of each others days
Simple to lose in the void sounds of anarchy's calling ways
All unaccounted for in the craziness of power
In the craziness

 

Release all, release all, or abandon your hope for your brother
Release all, release all, or abandon your hope for your sister
Release, release, enough controllers
Show some signs of appreciated loyalties
Release, release, enough controllers
Show some signs of appreciated loyalties

 

We've going to get it, got to get it, got to get it right

 

Straight jacket, freedom's march, is it all, far beyond
Our reason of understanding
Campaign everything, anti-right, anti-left
Anticipate the love of creation

 

Stand for every right
Kick it out, hear you shout
Further the right
Further the right
Further the light
Of all of creation

Power at first to the needs of each other's days
Simple to lose in the void of anarchy's calling ways
All unaccounted for in the craziness of power
In the craziness
Release all, release all, or abandon your hope for your brother
Release all, release all, or abandon your hope for your sister
Release, release
Release, release
Release, release
Release, release

Sun, 09/07/2014 - 15:05 | 5191220 Rip van Wrinkle
Rip van Wrinkle's picture

Sorry to say, PC, not a fucking chance. Unfortunately.

 

It will be Putin's fault....all Putin's fault. The average guy is incapable if understanding that we are being run by psychotic gangsters.

Sun, 09/07/2014 - 19:15 | 5191921 mt paul
mt paul's picture

"European Spring"

 

in the winter time ..

Sun, 09/07/2014 - 13:07 | 5190898 PeakOil
PeakOil's picture

Yes. This would appear to be a continuation of a theme. Of Petrodollar and Anglo-American-NeoFascist-Ziocon BIS/WB/IMF/NWO dominance. Except Putin won't play ball. Russia is not Iraq. And Russia is not Libya. Russia is Russia and Russia has nukes. Lots of fucking nukes. I highly doubt that western Europe is suicidal.

The NWO led by the sole exceptional nation is desperately attempting to hold onto power. This is a brazen gambit. WTF are these idiots thinking? They're losing. Just a question of how rapidly.

Sun, 09/07/2014 - 16:04 | 5191394 Glasnost
Glasnost's picture

Is it time to change my dollars for rubles yet?

Sun, 09/07/2014 - 19:55 | 5192048 TungstenBars
TungstenBars's picture

Best bet is gold, or other PM.

 

Won't get you sent to a FEMA camp as fast as Rubles. 

Mon, 09/08/2014 - 12:38 | 5193915 Glasnost
Glasnost's picture

Can't quite function too well in the world of cities without a fiat right now.

Second point is why I already left Murica. 

Sun, 09/07/2014 - 21:25 | 5192324 Volkodav
Volkodav's picture

just go there

13% Flat Tax only and more free

Sun, 09/07/2014 - 18:35 | 5191808 ThroxxOfVron
ThroxxOfVron's picture

"Russia/Putin is enemy #1 to the most important pillar of American hegemony, the PetroDollar. America has to squash Putin at all costs, here and now, or America collapses."

 

It is China that is actually undermining the US/PetroDollar if undermining the PetroDollar is the big issue.

China cut the long term energy deal with Russia: Energy will NOT trade in US$  Russia has a right to sell it's goods and services and to take payment in whatever it wishes.  Interesting that the seller and not the buyer is reviled...

China cut a trade deal with Argentina: they will trade in yuan, they will NOT trade in US$.

AFAIK, China is creating bi-lateral YUAN-centric trade agreements faster and of larger size than any other nation.

 

Is aggression the big issue?

China seems to be rather intent on the South China Seas, Japanese-claimed islands... and there was once this place called 'Tibet'...

Agression takes other forms as well.  

IMHO, the blatant counterfeiting of technology is a type of aggression as well as selling inedible and/or toxic substances marketed as safe foodsuffs...

Sun, 09/07/2014 - 20:37 | 5192185 robertocarlos
robertocarlos's picture

Sorry but in this socialist world patents are BS. Maybe the USSA should try capitalism.

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