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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crazzziecanuck's picture

Illustrates just how effective EU propaganda is.

And people claim Russia is where the propaganda is.

q99x2's picture

If a Rothschild or a Rockefeller or a Blankfein or Dimon don't run into Rooskie trouble on this get ready people because they are coming for us.

kdervin's picture

This just in from the BLS:  Adjusting for weather Napolean took Moscow in 1812.


damicol's picture

 Tihis is when we find out just how tough and rubbery merkels fucking tits are.

 because they are about to be ripped off

RisingSun's picture

"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."


For all the USD collapse talks, how many of you are BUYING RUBLES????? Ruble is at record lows vs USD. You will make shitloads of money if you buy the ruble, Russian economy is doing great, full with natural resources and GDP per capita equal to the poorest EU member states.

schatzi's picture

I like your post. Even though I only have a suspicion where you stand in this politically (your avatar might be the giveaway), I always love a "put your money where your mouth is" challenge. I bet most would fight tooth and nail to avoid being dragged from their cozy lives in the US or Europe to the more rugged and hardy environs of Russia.

himaroid's picture

It's not about the dollar/ruble. I believe the dollar will be stronger. It's not about moving to Russia. It is about reclaiming this country from weasel statist fucks like you guys. The coming collapse will be our chance to reclaim and rebuild. I look forward to seeing you.

Winston Churchill's picture

Funny you should mention that Onenut. I just did.

7.62x54r's picture

All countries on the planet are using fiat.

If you convert to gold or silver backed, you will be bled dry of currency by desperate bankers who want out of fiat. So you don't convert to hard currency. You wait until the fiat bubble bursts, and then you issue new hard money out of the wreckage.

People who think they can escape by buying better fiat are just whistling in the dark.

Bemused Observer's picture

Yes, that is exactly what would happen. A country that went to PM currency would watch as their currency disappeared as soon as it was circulated...bought up by people everywhere. They wouldn't be able to keep it at home, it would be the hottest-selling thing on the market.
So yes, the world fiat system has to come down first. But perhaps that is what these gold-buying countries are waiting for...

Quaderratic Probing's picture

It broke through a double bottom pattern more down to come.

ndree's picture

which means it could only go up once we wade thru' the mess, and things settle down!

supermaxedout's picture

Rubles can only obtained from Russia. Dollars are not accepted anymore to purchase Rubles. Euros have to be converted into Yuan first via the fixed rate exchange mechanism which is in operation between the EU and China (excluding the Dollar in this process). 

45North1's picture

Even flouride addled idiots will only (willingly) make sacrifices for their country when it makes sense.

luckystars's picture

Zibig Brzezenski is back pulling the strings.

Keyser's picture

I'm not sure which is more evil, Brzezenski or Kissinger...

crazzziecanuck's picture

Two sides of the same coin.

Final Authority's picture

Yep, they work for the same bankster familes. They do not work for us mundane's. They could care less if you are shot in the gut, blown apart, frozen to death or bankrupted in the process.

trader1's picture

wasn't too long ago that exxon started drillingdestroying humanity together with rosneft in the arctic (if you were paying attention)

these new sanctions: a strange way to address climate change?  call me a wishful thinker...

the elephant in the room:


FRANKFURT, August 31, 22:52 /ITAR-TASS/. Russia’s state-controlled oil company Rosneft will invest $400 billion in the Arctic Region before 2030, its President Igor Sechin said in an interview with the German Der Spiegel magazine on Sunday.

“Our company sets a high value on cooperation with ExxonMobil, which has continued for already 20 years starting from Sakhalin. In the Kara Sea, we are working at such high altitudes where nobody drills at the moment. We expect to open a new oil province there, with reserves comparable to the developed reserves of Saudi Arabia,” Sechin said.

On August 9, Rosneft with ExxonMobile started drilling in the Kara Sea, Tass reported earlier. The head of ExxonMobil Russia, Glenn Waller, said in June that if oil and gas were found in the Arctic Region, the company would increase by times investment in its exploration.

ExxonMobil is an American multinational oil and gas corporation headquartered in Irving, Texas.

Dewan's picture

Well, now it's very clear that the US are using their obedient European slaves to start a war against Russia. They are pushing the situation to the limit, but of course any negative consequences for any possible development are blamed only on Russia, the West is never guilty of anyting. I can't believe that there doesn't to be any single European leader who rejects such kind of suicidal measures. Possibly European countries lost their independence after World War II, once the US soldiers came here to stay; that meant the end of any freedom of all of our countries.

Cycle's picture

That is correct.  Your central banks are now the field offices of Goldman Sachs.

7.62x54r's picture

All of the major banks have been personal possessions of the Meyer family for decades. And the central banks, including the fed, are run by people who used to work for those same banks.

You are about a century behind the curve here. Gratz on getting up to speed.

Winston Churchill's picture

US nukes can be retargeted in minutes. A fact I'm sure is mentioned in informal

discussions, often.

Bribery and ordinary blackmail  don't allow any other explanation.


Wahooo's picture

Now, it's very clear that the Sauds are using their US and EU slaves to start a war against Russia. Only the Sauds have everything to lose by 1) Russia becoming the ascendent energy empire; and 2) Russia devaluating the Saud's petrodollar reserve currency.

By itself, the US has very little at stake in the Uke.

Rip van Wrinkle's picture

"I can't believe that there doesn't to be any single European leader who rejects such kind of suicidal measures."


I can. A control mechanism. Kiddies.

Cycle's picture

Do as I say or I'll blow my head off!

intelectualForeigner's picture

Like Mad 'Buy Bonds' Ben said: buy the dip! :)

Joe A's picture

A cold winter and a collapsing European industry will not go down well with the European people. When they need to chose between staying warm/having a job and 'freedom and democracy for Ukraine' they will chose the former. But a cold winter and people losing their jobs might be the strategy of TPTB in order to make people put up with what they have planned.

crazzziecanuck's picture

You totally underestimated the effects of continued anti-Russian propaganda and conditioning.

Like George Carlin said, look at your average voter and remember that half are dumber than they are.

Joe A's picture

George Carlin quotes always +1

You are right, there is a lot of anti-russian propaganda. Not everybody is as critical and smart as the average ZH respondent. People are being brainwashed but there are also a lot of people who don't buy the propaganda.

luckystars's picture

Jews along with Obama want to destroy Europe.

Euros should all be out in mass together, and so should we.

rejected's picture

This proves beyond a doubt how broke and desperate the e.u.s.s.r and western nations are.Insanity is rampant while intelligence is nil.

"When all else fails they take us to war" G Celente.

"The business of America has become War" G Celente.

I note that many dislike Celente but these two quotes (and many others) are rapidly becoming a reality. If something, someone doesn't diffuse this situation it will quickly get out of control.

" It would be well for your government to consider that having your ships and ours, your aircraft and ours, in such proximity... is inherently DANGEROUS. Wars have begun that way, Mr. Ambassador."

The Hunt for Red October"


The possibility of being incinerated because of insane fascists in Washington, London and Berlin will definitely ruin your day. What we're watching is not a movie,,, it's real and it's disgusting.



Paracelsus's picture

No bankers jumping for several weeks now.Hmmm...

Worldwide shortage of nailguns,faulty hottubs,and chipped mercedes coupes?

Hannibal's picture
Donetsk Republic Sends Captured Ukrainian Soldiers Home to Mothers and Wives.

This is an extremely interesting 9 minute video from the Donetsk Republic. It shows extraordinary
humane treatment and release of captured Ukrainian soldiers. The Christian behavior of the Donetsk Republic puts to shame the crude barbarians who rule in America and Europe and the media shills who whore for the Western barbarians.

css1971's picture

It's also military genius.

Unlike ISIS, if you are taking some incoming heat from the Rebels, just surrender. You will be well treated and sent home to tell everyone how well you were treated when you surrendered.

Encourage your opponents to surrender as quickly as possible. Make it easy for them. Hell, make it a pleasant experience! Give them a warm cup of soup and a free vodka!

Quinvarius's picture

The West will not allow a ceasefire in their Ukraine war.  Especially not a Russian created one.  They want a bigger war, not a smaller one.

luckystars's picture

Putin is a chess player. He saw what we did in Iraq and Libya. I'm sure this was long in the planning.

just has to hang tough for two years till pipeline is finished.

cheech_wizard's picture

Two years? I'm thinking more like 6 months or less if China throws it's population at the problem.

Andre's picture

The US/EU (possibly) just handed the Chinese world hegemony.

The US sent almost all its manufacturing to China. No manufacturing, no sustainability for a longer war. By getting the EU into supporting sanctions, EU manufacturing is toast. As was pointed out, China is also now the market of last (only) resort for Russia, at least Russian energy.

With most manufacturing in China, the US has no leverage. Possession being 9/10th the law, US corporations can scream all they like - they are still fucked. Socialist control freak education has also decimated the ability of the workforce to recover. The US can't rebuild without massive Chinese support, which gives them enormous leverage.

I guess all those campaign donations to Bill and Hill really paid off.

ramacers's picture

this is good read on situation. add to it covering tracks for "missing" 11 trillion since lehman in bailouts, stimulus, QE in God knows what else, et al. plain and simple, west is house of cards; just a matter of time.

Quaderratic Probing's picture

The pipeline that is less then 1 tenth of what he sells to EU?

your_moms_basement's picture

August sanctions netted my GZPFY:US just over 20% last month.  Yes, by all means sanction away!!!   

Son of Captain Nemo's picture

Well at least blankets and winter coats will be selling like "hot cakes" this winter in Western Europe!...

limacon's picture

“Those who cannot remember the past are condemned to repeat it." (George Santayana)

In Europe , there is always someone who wants war .

 the King informed Sir Edward it was "absolutely essential" Britain go to war in order to prevent Germany from achieving “complete domination of this country”.

Freaky - Freaky's picture

Has EU heard of an expression: Shooting yourself in a foot?

Frankly Speaking's picture

If Russia tells the EU only rubles, yuan or gold for it's oil and gas, this will further wound US petro dollar hegemony. It's the US that is shooting itself in the foot. And it somehow seems intentional to me? I smell a rat!