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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FeralSerf's picture

He makes the traditional fallacy (The Big Lie) of "Communist" vs. "Capitalist" that we've all been conditioned (brain-washed) since kindergarten to believe is the way the world works.

Rather than this false "Communist" vs. "Capitalist" fallacy, it would be much more accurate to make the comparison as "Tribe Z" vs. the "Second World".

(The "Second World" also has a "Tribe Z" component just in case things don't work out as planned.)

Eahudimac's picture

Yeah, fuck those eastern Ukranians for defending themselves against the Euromaidan Nazis! Hooray for the USA and democracy!

For those of you who refuse to read the link here is the [/sarc]

Keyser's picture

For an American Patriot you sure are uninformed... Perhaps disinfomred would be a better term, just like most of the sheeple in the US... Let's here it now, USSA.... USSA..... USSA...... 

conscious being's picture

More like amerikan bankster whore, not an American Patriot.

Look how he spells Amerikan. Is that how they teach it in TelAviv??

flash338's picture

I'm not pro-Putin...  Just anti-stupidity which the west seems to show a lot of.

Freddie's picture

Putin respects and defends Russia, the Russian people and Russian culture.  The Obama-AIPAC-Z-US Govt does everything to destroy America and the American middle class.  The same Z-scum is doing this to Europeans, Aussies, NZ and Canadians.

TheReplacement's picture

I am extremely pro-American and I consider myself a patriot.  This means I am against the lies and deceptions of the US government against its people and the peoples of the world. 

You would seem to be a blind loyalist to the government of the US, not the country itself.  I feel sorry for you. 

F0ster's picture

Unfortunately a lot of these so called patriots suck off the US Gov payroll teet (CIA, FEDS, COPS etc) So they support the criminal direction and policies of DC. This blind support isn't patriotism but treason IMO.

JR's picture

What’s ahead? The Bankers will decide. And if there are intelligent people left who don’t understand what world government is like, they are shortly to find out.

…because tyrants serve the needs of tyrants. And the people perish.

The Bankers’ disregard for the people of Europe, first to provoke war and now to submerge their standard of living, means those leaders meeting in Wales are like little errand boys sent off to do the masters’ bidding. Likewise, those little errand boys in Washington, D.C., are doing the same masters’ bidding and America's standard of living, likewise, is plummeting.

These current descendants of the Bolsheviks who slaughtered the people in the U.S.S.R. have the same disregard for humanity and the same goals for humanity: rape, pillage, kill – until there is no opposition.

Mises Weekends: Dr. Philipp Bagus Explains The Tragedy of the Euro  |

Ryan McMaken

Jeff Deist and Philip Bagus discuss not only the history and possible future of the Euro, but also the ECB under Draghi; the nationalist sentiments sweeping some European nations that want their own currency back; how the ECB has effectively monetized the sovereign debt of the PIIGS; and how Germans may well be nostalgic for the Bundesbank.

Philipp Bagus is an associate professor at Universidad Rey Juan Carlos. He is an associate scholar of the Ludwig von Mises Institute and was awarded the 2011 O.P. Alford III Prize in Libertarian Scholarship. He is the author of The Tragedy of the Euro    so far translated and published in GermanFrenchSlovakPolishItalianRomanian,  FinnishSpanishPortugueseBritish EnglishDutchBrazilian PortugueseBulgarian, and Chinese. See his website.

Hapa's picture

Sounds like a pro sports man, all about picking a team and holding on, no matter the franchise has moved to another town and once again on a losing streak.

Ginsengbull's picture

Cord wood hasn't escalated in price more than 50% since the 1970's.


Eventually it has to appreciate.

conscious being's picture

To late to cut now for this winter. Firewood has to dry.

Keyser's picture

Obama:  Driver or 3 wood?


WVO Biker's picture

I bought this 1947 german booklet on wood gas generation. Trust me, most of you would not be commuting on wood gas. 

cheech_wizard's picture

I own wooded acreage. If it comes down to having to use a wood gas generator, it won't be for transportation, it will be used for running the generator to keep power to the freezers and refrigerators when the electrical grid comes apart...

But I agree with your premise 100%. Most would not be commuting with it.

WVO Biker's picture

I use wood for generating heat and photovoltaic cells to make electricity, storing electricity still being a problem of course. The sheer abundance of wood is fascinating.


DeliciousSteak's picture

Well, well, well. Mr. Putin faces tough times ahead. Will mighty Russia survive a senior partner like China? Or might the Russians still prefer a more, hmm, western orientation? Whatever you choose, Mr. Putin, there is no saving face. Cut your losses, accept western dominance and perhaps, just maybe, Siberia won't be overrun by the Dragon. *cough*

Spastica Rex's picture

I have no love for Putin, but what you wrote there is just utterly fucking retarded.

oudinot's picture

I think the appropriate phrase is, "mentally challenged."

BlindMonkey's picture

The Dude: Walter, this isn't a guy who built the railroads here. This is a guy …
Walter Sobchak: What the fuck are you…?
The Dude: Walter, he peed on my rug!

Keyser's picture

Who died and made you emperor? Barry will be upset that you are calling the shots without consulting him... Be wary of nail guns and mail men...


schatzi's picture

It's an escalation, but far from "all in". Stop being hysterical.

While these listed companies may be targeted, actual gas contracts are not affected. It's mainly oil and banking that will feel the pinch - obviously, because that's where there's the least dependency. "All in" would be gas and that would really be economic end game for both us Europeans and Russia and since Tylers' assumptions regarding Putin's reaction are based on information he has pulled out of his arse, I'd see this whole event slightly less dramatic.

himaroid's picture

"Stop being hysterical."

They said.

Until they became hysterical.

Keyser's picture

Putin's reaction will be to cut off fossil fuel transport to the EU... Don't believe it? Wait until around November - December time frame... 

angel_of_joy's picture

Wishfull thinking, German flavor. Better watch out this winter...

conscious being's picture

Schatzi - why do you assume the AngloZionist set the terms and scope of the engagement. Go read some Sun Tzu while there's still time.

RonBurgundy's picture

People freezing in Europe might be just enough to turn a cold war into a hot one, if only to provide an alternative for heating up those frozen toes

BlindMonkey's picture

Europe has done that "invade Russia in the winter" thing a few times before. Doubt they will get a different outcome this time.

FlipFlop's picture

Wow. Has stove no longer the most useful?

studfinder's picture

Just take 10 million barrels of oil a day off the market for a week and see what happens...

BlindMonkey's picture

Shale oil will save us!!


HardlyZero's picture

Whale oil, using sails to get out on the high seas without Oil.

Without Nuclear, and high Oil prices, it might be difficult to get shale oil out of the ground in many regions.

Duc888's picture



Amerikan Patriot: We need more pro-Putin supporters here voicing their unvarnished support for reconstituting the Soviet Union.

Come on, anti-Americans, speak up!


Explain to me again why this is a US problem?

Aussie V's picture

Oh, it's not a US problem in the sense that you will be affected. At least not directly. Yet!

However, it IS a problem for those dying in Ukraine of which the US funded and orchestrated. I suppose that may be considered a moral problem but one which you will nit be affected. I doubt any of this would see you affected anyway unless of course it hits your wallet which, it more than likely won't, at least directly.

But be aware that hese immoral acts of your Govt have a way of boomaranging on its people over time and then, you may be affected but personally, I doubt it.

You should read this awesome article about how western people can watch their governments kill people and feel totally unaffected or any blame. I think it is an EXCELLENT article and very very deep and well thought through. Then again, you probably won't 'get it'.

buyingsterling's picture

I think he meant we should butt out.

Carpenter1's picture

This story is unclear, what do these sanctions involve? They could be utterly meaningless or devastating. 

css1971's picture

Well. You started it...

Why DID you start it?

George Soros's picture

Germany has a 6 month strategic reserve of gas. Even for german winters that should be more than enough. Sorry to burst that bubble dream though

NoIdea's picture

The UK probably has about 3 weeks of gas reserves. Better pray for a warm winter!

George Soros's picture

Can´t remember one cold winter in England.. Scotland is a different story but they wont be part of the empire anyway until then so who give a fuck

Sandmann's picture

Try living in Yorkshire it can be colder than Aberdeen and darker

Freddie's picture

The British GP is held at Silverstone which I think is in Oxfordshire.  They say it is cold as hell there even in the summer.  The UK also gets damp and cold because it is an island.

Sandmann's picture

UK is damp and cold especially in North which is on same latitude as Nova Scotia.....

Sandmann's picture

I would not believe it.....they will price ration. Wait for the hikes to start in October although wholesale prices dropped dramatically no change in retail

Keyser's picture

Of course the tactic will be for Brussels to blame Putin to gain the support for NATO action against Russia... The US administration is serving up the EU on a platter for utter and complete destruction... Oh what a wicked web we weave... 


crazzziecanuck's picture

If the EU is allowing itself to be sacrificed by the USA, then it's not the USA's fault.  It's the EU's fault.

nowhereman's picture

Well George it's like this, Germany will have a choice to make vis-a-vis said gas reserve.  Heat homes or run factories, one or the other I'm afraid.