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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quintago's picture

"What is China going to do with all that US paper it holds" we were told? 

...well now you have your answer. They're going ot use this opportunity to reduce their exposure by offloading it to Europe.

mt paul's picture

build inner-structure  

in Africa


as they have been doing 

edwardo1's picture

Whether knowingly or not, these folks are creating conditions that will accelerate a necessary gobal evolution, namely the arrival of the much anticipated monetary reset.

general ambivalent's picture

We're already in a nuclear war with Fukushima. The risk has already been negated, so war on.

Eventually China and Russia must fall, capital is a minor issue in the West.

MsCreant's picture

"Eventually China and Russia must fall"


I guess from the perspective of "On a long enough time line..." but not soon and not before us.

Russia has a lean, mean fighting weight. We are soft, fat, and weak. The have collapsed and trimmed some waste, inefficiency, excess, and most importantly, debt. Us, not so much.

Fuckushima is the globe's problem, I agree. But to say China and Russia must fall...


oudinot's picture

Mscreant: Russia defaulted on their debt in 1998.

angel_of_joy's picture

So what ? They seem to feel much better now... May I ask who swallowed those loses ?

Escrava Isaura's picture


So did the whole world (defaulted), remember?


Do you know why the whole world defaulted?

I think you know the answer.


Now, wonder why these nations want to start trading within their currencies...... thus collapsing US economy without even realizing it?

Well, wonder no more.



Anusocracy's picture

You mean after the West's Carpetbaggers and before Putin?

conscious being's picture

And this is the reason why, the only reason why the Zionists, the banks, their disgraceful MSM, and the undercover as well as out-of-the-closet zino pimps, trolling here have so much hate for V.V.P.

Putin clawed back the ill-gotten gains and gave it to the people. Under Putin, Russian GDP is up 10x. Pensions are up 20x. Inflation has dropped from 36% to 6%. etc.

escapeefromOZ's picture

It would be interesting how Putin will react . He could claim that sanctions are hurting the economy and take over some US firms operating in Russia under the excuse of compensation . The only problem is to find a suitable US company operating in Russia worth many billions of dollars . EXXON ? Then what will the EU and their US masters do ? It is going to be an interesting and cold winter . 

MsCreant's picture

We need to default too. The longer we lie to everyone, promising to pay them back, the worse this gets. We print into hyperinflation in an attempt to cover our crimes or we deflate as the lie of asset values becomes apparent to one and all in the big margin call and sell off. Either route means we violate contracts and trust throughout the world bringing our ability to participate in commerce to a halt. 

Bemused Observer's picture

Yes, either way results in a lot of short-term pain. But I think that recovery would be faster if we took the route of facing the problem head-on, rather than the slow-burn of pretending the system can be salvaged despite the evidence that it simply cannot.
I think we'd find it easier to re-establish economic credibility if the rest of the world could see us acting rationally, even if such rational actions caused widespread disruption for awhile.

Either way, our Western-style economy is going to earn a lot of well-earned disdain and contempt. The only thing we MIGHT be able to salvage from the whole mess is credibility, IF we are seen to have admitted our failure. IF we are seen by history as voluntarily stepping aside and letting something better take over.

The thing is, I believe TPTB are smart enough to know that what they've created is going down in flames. Something new WILL replace our why not at least exit stage left gracefully, and with a little dignity, rather than wait to be yanked off by hook?

oudinot's picture

Russia defaulted,its helped them as they started fresh.  So they don't have the ball and chain of debt that the West does.  Kinda like when Ford went broke in 2006-worked out well as there was alot of private capital available at that time so they came out fine.  In 2008-9 when the other auto companies went broke there was no private capital available so the US government had to step in.  Russia defaulted at a providential time.

Mscreant, you are one hundred per cent right, the US should default forthwith.  That default would unleash all the talent, entrepreneurism potential the US possesses; unfortunately, TPTB won't let that remedy occur as they are the creditor class. So US, the West is experiencing, will experience  a slow motion crash accompanied by a police state, a ruling class and many, many slaves.......


Real Estate Geek's picture

The hangover's always worse if you don't puke before you hit the rack. 

Escrava Isaura's picture


When US defaults, we will be facing something much worse than a financial collapse.

We will be facing a Societal Collapse.


US already used its best natural resources!


We would have the highest unemployment ever. Our military would not get paid.


We could not afford to maintain electrical and water supply grids and infrastructures.


Our institutions such as governments, education, and healthcare will go bankrupted


It would end our geopolitical ability to import more than export.


And this list is long……



Beware what you wish for.


RaceToTheBottom's picture

As long as it is a real default not a handout to WS.  Default Austrian style.

Volkodav's picture

Much more was looted from Russia.




GreedKillz's picture

Thats because they have the only convertible currency in the world that does not depend on another.

Jim Rogers

Russia does not just print money endlessly. 

sun tzu's picture

Yeah and that reset their debt to zero. Ours is $18 trillion and counting

Au Shucks's picture

The US defaulted on it's debt at least once when Nixon closed the gold window.  What's your point?

general ambivalent's picture

I think my comment must have been misunderstood. I'm not saying I want China and Russia to fall, rather the powers that be want this. If Ukraine is not a big move in the progression towards global dominance then what is it? The USNATO strategy is now in full-on destruction mode, that they are supporting ISIS and other groups suggests this, and that they are willing to go ahead in surrounding Russia with nuclear weapons after forcing Russia into stating it will consider a First Strike also suggests this.

We are not seeing everything that is going on here. The West has no capital, it has war and its history of anxious and manipulative politics, not much else. That is what we will see going forward. This does not mean today or tomorrow, but what we are seeing currently are the seeds of a huge confrontation, a catastrophe. Controlling Eurasia is central to geopolitical strategy, and central to scientific advancement is control of the world. These people are thinking world government, colonisation of space.

It may sound fucked up but both capital and nuclear weapons are both minor issues within the logic of world leaders. Just look at what they do with the markets, just come up with a new method of exuberance. Nuclear weapons become redundant, they lose their fear over time. Like all technology and weapons the threat becomes less real. Of course, we could be wiped out as a species, but the world leaders do not think in these terms. Their language spells it out clearly, 'They will use nuclear weapons to prevent weapons of mass destruction.' What does that mean? It means their nukes, in their hands, are not weapons of mass destruction.

Genetic modification, synthetic biology, avatarisation, funding of militants, EMPs etc. all use a similar logic to nuclear weapons. The logic of Mutually Assured Destruction no longer holds sway, no longer drives fear into people, it has become a part of everyday life. That in itself increases the likelihood of a nuclear exchange. Hell, they've dropped the equivalent of many nukes already on the Middle East, we've been in a nuclear war for twenty years and hardly anyone discusses it. The name has changed, the game has changed, and the appearance of the weapon has changed. That coupled with Fukushima and the lining of Russia's border with NATO nukes suggests that a nuclear exchange is very close to becoming a viable strategy for the various Strangelove sociopaths in the deep state.

mkkby's picture

This is nonsense.  You have the mind of a child.  Retarded one at that.

No fear of MAD?  No.  This is just the US flexing it's muscles, where actual military force is impossible.  We watched for 50 years after WWII, where both sides played the chess game with proxies and never went at each other directly.  That is what MAD gets you.  Now shit heads like you think they will end it all in a flash.  Duh.

Putin and the Chinks know all they have to do is wait USSR out.  We are rushing head long into bankruptcy and currency failure.  They are not stupid enough to be goaded into mass destruction.  They will keep leaning on the drunk until he falls from his own illnesses.  The pot will simmer.  Pussies like you will dream on.


Escrava Isaura's picture


The nonsense I see here is your comment. Even Putin DID NOT wait. 

ThroxxOfVron's picture

"Makes no sense. Last time I checked the Russians had nukes."

Last time I checked the US had nukes, too.  

Those precious and oh so expensive nukes were not a deterent on 9/11 and they didn't stop the financial terrorists from fucking up the US financial system pretty badly or stop people from streaming over the borders.

Maybe the use-by date on every last nuke has past and there are nothing but fucking duds snoozing in the silos of both Russia and the US.

Maybe the nukes just don't matter anymore.

Maybe after 60 years people don't think nukes will be used any more.  

-Attitudes change.   Globalism.  Western social values shifted aka diversity initiatives, 'white guilt', etc...

Maybe the nukes are not a deterent to anything unless people think that you will actually use them.

Maybe you have to actually use the nukes once in a while to make people think that you will actually use them.

jeff montanye's picture

 a deterent on 9/11???!!!

deter who, the mossad?  little zionist nukes may well have taken down those heavily-insured, asbestos-laden, larry silverstein enriching, obsolete skyscrapers.

educate yourself.


Joenobody12's picture

The Jews wants to pressure Putin to abandon his support for Syria and Iran. That is why. There is no other obvious reason for this insane relentless moves. 

Keyser's picture

So are uninformed idiots that ignore reality... 

Escrava Isaura's picture

globozart, Joenobody12,

Yes, there is!

“United States is becoming a failed state, and thus a danger to its own people and the world.” – Noam Chomsky, 2006

TheReplacement's picture

Controlling the juice (gas/oil) would seem like a pretty obvious motivator considering they aren't sparring over any barren wasteland that does not have juice or isn't key to moving the juice.

strannick's picture

The Juice will flow... Or will be stopped to apply leverage.

Rakshas's picture

.....Replace Jews with "Zionist-Psycho-Murdering-Sociopath-Fuctards and those who harbor them " so as not to paint  all of the chosen people with the same bush unnecessarily ......... do i need to use a *.Sarc tag there????

WRT Putin abandoning support for Syraq and Iran...... yeah shorter term perhaps but enter the evil ISIS with all the beheading youtube plays and it will become impossible to not allow NAZO to intervene........but ........ but ........ what if Putin helped the North Atlantic Zionist Idiots (I'd of used NAZI but it's been trademarked by the DC already.....don't want to get sued ya know...) anyway if Vlad was to extend the olive branch by let's say incinerating ISIS I think that would be a nice jesture (not a sp mistake)  don't you??? 

Of course that would probably cause a boom - pardon the pun - in the undertaker business in Nazrael, the US, UK and EU........ (repatriation of ISIS fighters and commanders for the bots not digging' my vibe) 


jeff montanye's picture

nazreal, zionazis, etc. are not just contemporary formations from observing similarities between today's palestine and the third reich.

the zionists and the nazis were allies for real.

Greenskeeper_Carl's picture

agreed. Its stunning to watch such stupidity on display. Once russia completes the infrastructure to ship all the energy to china, I hope they remember this and tell europe to fuck off. The only possible good that could come out of this is that once the energy prices skyrocket this winter, the european citizens realize they are being fucked over in a political game, and vote every one of these clowns out of office, and finally stop electing people who will harm their own citizens following the US over the cliff.

cowdiddly's picture

Who gets elected in Brussels? The European s lost their individual Soverienty with Nato and the Euro scam. I pray a few start asking for it back.

EU is being run by the red shield and they don't like you putting BRICS in their wall. They could care less how many millions are put in the ovens.

PT's picture

Oh those politicians make me sooooooo angry.  I'm gonna wait four years until voting time and then vote them out of office!  That'll show 'em.

PT's picture

No point punishing a dog an hour after he's done something wrong.  He won't have a clue what you're angry about.

Politicians?  5 minutes.  And no guarantee that the new politician will change anything that the old one did wrong.

EDIT:  Okay, I confess, with dogs you have to be on the game pretty well straight away too.  I got a little carried away there.

jeff montanye's picture

yes but many can be trained with patience and consistency.

fockewulf190's picture

Well, looks like I´m going to be installing a coal burning stove next week.  Germany will need it´s nuclear power plants  this winter.

crazzziecanuck's picture

Theoretically, the EU could take constructive steps to rebuild it's energy infrastructure along more renewable technologies.  It would necessitate sacrifice from everyone.

But we know that will never happen.  There is even an acceptance amongst those outside the EU elite that it's the best plan, but it's the EU elite itself which will never entertain such an idea.

Russia, Putin and all his advisors know this and so the EU elite itself is it's own worst enemy.

For that reason, I shed no tears.  They are not leaders.  They are wastes of space and threats to social and economic order.


booboo's picture

"renewable technologies."

Just what the fuck is that? and no that will not work either.

Kirk2NCC1701's picture

Selling it all to only ONE country (China!)???  Yeah, there's a Risk Manager, who's ass I'd fire in a hearbeat.  Ever heard of D-I-V-E-R-S-I-F-Y ?

ebear's picture

They don't need to sell in perpetuity - just enough to get their economy growing.   Russia has something no other nation it's size has in the world today:  the potential to be entirely self-sufficient.  Keeping them from achieving that is the west's aim, which ironically just pushes them further down that path.

In the meantime, it helps if your #2 threat (China) is dependant on you for energy.  Less likely they'll mess with you, plus you get technology transfer in exchange, which helps your primary goal.

Lea's picture

"Once russia completes the infrastructure to ship all the energy to china, I hope they remember this and tell europe to fuck off".

They won't do that. That wouldn't be like the Russians. They will watch the EU disintegrate, and once the countries will go, with big embarrassed smiles, one by one, back to Russia to cut gas/food/whatever they'll be sorely missing deals, they will accept without even saying "we told you so". Best way to make their oponents feel like pieces of shit two inches tall. The Russians love that.

crazzziecanuck's picture

NATO is desperate for a win in their column.  Afghanistan is a mess.  Libya is a mess.

Most of the world has figured out that the US and NATO are now paper tigers.  And both the US and NATO are having a hard time adjusting to the fact they can no longer threaten the world with impunity.

Last thing NATO needs is yet another black eye.  It's not confined just the US, but because most other NATO countries have hitched their wagons to the US empire, they have to "go all in."  Any diminishment of NATO or the USA is detrimental to the constituent parts (particularly the elites) of its membership.  The elites collectively know who butters their bread and so move in concert; no conspiracy required.  They all think alike and share identical worldviews and aspirations.

And the key to sustained elite rule is to convince a large portion of the population that their interests coincide with our own.  Not even a majority, either.  The other key component is to make many more indifferent and accepting of their own exploitation.

So, they need to "win" in the Ukraine.  NATO has backed itself into a corner repeatedly over this crisis.

All this posturing in NATO countries is about domestic politics, not international security or the myriad of bogus reasons they publicly offer up.