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Guest Post: The US-EU-Russia Sanctions Puzzle
Submitted by Pepe Escobar via Russia Today Op-Ed,
Whatever Russia does, doubt does not even enter the equation. The answer is sanctions. So here we go again. The US Treasury-EU latest sanction package targets Russian banking, the energy industry and the defense industry.
The sanctions are mean. The sanctions are nasty. And there’s no euphemism to describe them; they amount to a declaration of economic war.
Sberbank, Russia’s largest won’t be able to access Western capital for long-term funding, including every kind of borrowing over 30 days. And the current 90-day lending bans affecting six other large Russian banks – a previous sanctions package - will also be reduced to 30 days.
On the energy front, what the US-EU want is to shut down new Russian exploration projects in Siberia and the Arctic, barring Western Big Oil from selling equipment and technology to offshore, deepwater or shale gas projects.
This means Exxon and Shell, for instance, are frozen in their operations with five top Russian oil/gas/pipeline companies: Gazprom, Gazprom Neft, Lukoil, Surgutneftegaz, and Rosneft.
No one ever lost money betting on the stupidity of the usual, unknown “senior US officials” – who are now spinning the latest sanction package is to force Moscow to “respect international law and state sovereignty.” A cursory examination of the historical record allows this paragraph to be accompanied by roaring laughter.
And then there’s the US Treasury’s Under Secretary for Terrorism and Financial Intelligence, David Cohen, who insists the package will further “isolate” Russia from the global financial system.

The package was also described by Western corporate media as capable of “unnerving already jittery financial markets.” Well, they were not exactly “unnerved.” In Russia, the stocks of companies on the sanctions list went up. In the US, energy stocks went down. Short translation; the “unnerved” markets interpreted the latest package as yet another own goal by Washington and Brussels.
Splitting up Eurasia
As for Russia’s “isolation”, companies are barred from, in Washington-Wall Street newspeak, “important dollar-denominated funding sources.” Or, euphemistically, “Western capital.” This means the US dollar and the euro. Anyone following superimposed moves towards a multipolar world knows Russia does not need more US dollars and euro.
Moscow might use both to cross-purchase goods and services in the US and the EU. Yet these goods and services may be bought elsewhere around the world. For that, you don’t need “Western capital” – as Moscow is fast advancing the use of national currencies with other trade partners. The Atlanticist gang assumes Moscow needs goods and services from the US and the EU much more than the other way around. That’s a fallacy.
Russia can sell its abundant energy resources in any currency apart from US dollars and euro. Russia can buy all the clothing it needs from Asia and South America. On the electronics and high-tech front, most of it is made in China anyway.
Crucially, on the energy front, it would be no less than thrilling to watch the EU – which still does not even have a common energy policy - trying to come up with alternative suppliers. Azerbaijan, Turkmenistan and Qatar, for a number of complex reasons – ranging from insufficient gas to be committed, to an absence of pipelines – are out of the picture.
The Obama administration, for its part, simply won’t allow the EU to start importing energy from Iran like, virtually, tomorrow. Even with a now quite wobbly nuclear deal reached before the end of 2014 - presumably opening the way to an end to sanctions.
The “irrational” markets see what’s really goin’ on; they are not “irrational” but moved by profit derived from realpolitik.
And all this while Moscow has not even counterpunched. And that could be quite lethal – targeting EU exporters to Russia and even energy supplies from Russia. Then the EU will retaliate. And Russia will counter-counterpunch. That’s exactly what Washington wants: a trade/economic war ravaging and splitting up Eurasia.

About that $20 trillion…
On the political front, Ukraine and EU had initially agreed to “postpone the EU Association Agreement until the end of 2016.” You can’t make this stuff up; that’s exactly what Yanukovich did last November, as he knew Kiev could not allow itself to lose most of its certified trading with Russia in favor of a vague “free trade” with the EU. This agreement to “postpone” the agreement was in fact overseen by astonishing mediocrity and outgoing European Commission (EC) President Jose Manuel Barroso.
But then the European Parliament, during a plenary session in Strasbourg, hurried up to ratify Ukraine’s Association Agreement as President Petro Poroshenko simultaneously submitted it to the Ukrainian Parliament. This does not mean the agreement goes immediately into effect. Economic “integration” with the EU – a euphemism for a one-way invasion of Ukraine by EU products - will start only in January 2016. And there’s no way a crisis-hit EU will incorporate Ukraine anytime soon – or ever.
On Thursday, Poroshenko meets his master, US President Barack Obama, and addresses a joint session of the US Congress. Expect “evil empire” rhetoric to reach interstellar levels.
But it’s on Saturday in Berlin that the real thing starts unfolding; energy negotiations between Russia, the EU and Ukraine. Needless to say, Moscow holds all the key cards.
Washington’s humongous debt is reaching almost $20 trillion – and counting. With a monster crisis approaching like a tsunami from hell, no wonder Washington had to resort to the perfect diversionary tactic; the return of the “evil empire.” It’s the Marvel Comics school of politics all over again.
Russia has a huge surplus of foreign capital - and is able to weather the storm. Germany – the EU’s top economy – on the other hand, is already suffering. Growth is already at a negative 0.2%. This is the way the hysterical sanction wind is blowing – further derailing EU economies. And no one is betting the EU will have the balls to stand up to Washington. Not in vassal-infested Brussels.
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"Do what must be done"
They will!
the west is pushing russia way too hard....
and that bear will bite...
bitchez!...
Rand Paul gets accused of isolationism all of the time, yet the current regime is isolationist with these stupid sanctions against Russia.
German manufacturers are already feeling the blow back. Some of my contacts at large German construction equipment manufacturers are reporting lost sales to Russia due to sanctions to the tune of "hundreds of machines and tens of millions euros in cancled orders"
They make a lot of that stuff in China and Brazil.
Good soon Russia wont be able to dig a hole in ground to hide from the flash.
Now that is interesting - the last time I checked a (different) troll account, it also said "member: 3 years, 33 weeks". Is that a fixed membership descriptor for official Freemason accounts?
Oops - looks like I forgot the secret hand sign...
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Thanks for taking the time for the picture but your mom wants you upstairs to do the dishes.... now
Its an NSA account.
Well, they should overthrow the Washington puppets in politics. If not, then they deserve what they get.
"On Thursday, Poroshenko meets his master, US President Barack Obama,"
Sex dungeon master? Cause pretty sure Obama is only master of his own bathtub, he answers to the same bankers everyone else does!
They both wear black sequined collars
with their leashes held by their AIPAC
zioNazi Dominatrix.
Man, I hope you're a plant because I hate the idea that you could actually be serious about this howling drivel.
worse still, porky gets to address the feckless congress. vlad, they're comin' for ya. really the nuke algos.
Oh, come on, Nord. Just use 14/88. You know you wanna do it.
Being australian i'm not really up with the latest nazi symbolism....had to google it to work out what you were talking about. Years of dealing at the casino to put myself through uni meant i picked up the chinese obsession with lucky number 8...that and fnord was already taken.
I wonder if i should care? Will historians years from now assume all my most excellent commentary is somehow worth less because i appear to have been a nazi?
When i was in india I saw the swastika everywhere....apparently it is a hindu symbol for fertility or some such shite.....i wonder how they feel?
It's called a "twisted cross" for the nazis. I've also seen the symbol in the Chicago museum dating back hundreds of years. Hitler boy turned it a little.
People keep saying this around here, but what does it really mean?
That Putin is a dangerous lunatic armed with nuclear weapons who will go off if he doesn't get want he wants?
X.inf.capt;
Another Scenario is that NATO will dissolve or later reappear without the USA. Granted they need the Funding & Military Power of the USA... But the USA has separate interests from Europe.
Sure, Oil, Gas, Natural Resources, & Corporate Earnings have United NATO in the Past. US Funding & Employment of European Foreign Nationals is Icing on the Cake.
But aside from Wealthy Elites & Royals... I'm sure many people are feeling some stress & distress. There were a lot of unemployed before, and there are many poor people depending on trade, warehousing, shipping, trucking, retail.
What will powerless & disenfranchised people of EU do?
I hear there is an "Occupy the US FED" rally that brings in 20-30,000 people throughout Europe.
Maybe as ZH Posters say "the model is the Welfare State" and people will go along with anything and everything including living under nuclear threat, a Cold War Repeat, a Sino-Soviet Pact, and permanent war on East European Fringes...
FUCKING PARASITES!
the euronazis will take a hit, and if germany defects as willie supposes, it will be game, set, and match. the russian gold hoard will tide them over.
The sanctions are part of the same failing plan to defend the petrodollar that also resulted in the US spending $5Billion funding the coup in the Ukraine. Russia knows all this and knew what was coming when it started dealing in Roubles and other currencies for oil. As Europe is failing thanks to too much banksters debt the Eurozone cannot cope with sanctions for long and so an increasingly likely outcome is they backfire and America ends up isolated. That might be the best outcome for the majority of people on the planet.
forget all the hide the 20T theft blather vlad. it's done. just ready the nuke algos and when the time arrives, and it will, let loose. you'll come out on top.
Russian technology for Iran, and Iranian oil for Russia; then Russia moves this oil to China. The exact oil does not have to move. It can be a location swap of oil. Iranian oil booked to Caspian Sea Ports. Russia gives some oil to China.
And many many similar deals all around the Trans EurAsian region
We are stopping using of the dollar. In few years for a question " can someone exchange my dollars" - people will punch you to your face.
The illuminatus ussa dollar is not worth the paper it's written on. It's worth Jackson hole shit!
Apologies to Jackson Hole Burgers, East 64th. Unfortunate name choice when linked to the beard Bernanke and hobbit Yellen
The EU got sucked-in because they allowed The Fed to use swap lines and get the European banks right by the nuts.The U.S. has got the printed reserve currency to hold you up.Obey Washington now all you Europolitians who are Washington slaves to the Dollar.They own you now suckers,do what your told.
The EU got sucked in because in order to join the EU,
the individual countries had to sign their individual
sovereign rights over to the USAIPAC puppets in Brussels.
The EU got sucked-in because they allowed The Fed to use swap lines and get the European banks right by the nuts.
THIS ^^^
Europe is no longer sovereign, all their financial system is propped up with freshly keyed-in FRN
More Evidence of a COUP in the USA:
‘Interceptor’ cellphone towers found near White House, Senate
http://www.washingtontimes.com/news/2014/sep/18/several-interceptor-cell...
Mysterious “interceptor” cellphone towers that can listen in someone’s phone call despite not being part of any phone networks have turned up near the White House and Senate.
A company that specializes in selling secure mobile phones discovered the existence of several of the towers in and around the nation’s capitol.
“It’s highly unlikely that federal law enforcement would be using mobile interceptors near the Senate,” ESD America CEO Les Goldsmith told the technology website Venture Beat on Thursday.
http://www.telegraph.co.uk/news/worldnews/europe/ukraine/11102292/Myster...
newsprinter,
the guardian uk reports the anonymous investigator is an insurance company. shouldn't be hard to search out which one.
End the NWO before old man Bush dies.
Mercedes Benz OWNS 33% of Russian Truck maker Kamaz
So what now................................................?
BP owns 20% of rosneft. TPTB don't seem too impressed---although i would've thought BP, XOM, shell and mercedes benz would have some influence with TPTB. apparently not so much.
Putin will say to Mercedes, "Many Russian officials like to have a black Mercedes as a personal car, but it has to be made in Russia at KAMAZ. Otherwise, they'll have to use a BMW."
They are already building a Russian limousine with Porsche as design consultants on the engines
Mercedes Benz OWNS 33% of Russian Truck maker Kamaz
So what now................................................?
It's called asset seizure. That'll come farther down the road.
That's nothing compared to BP's 19,75% share at Rosneft...
Guess they may lose their investment unless Merkel remembers that she is first a German official, rather than an Israeli stooge.
The West wants an orange revolution in Russia too. It wants to make the oligarchs who surround Putin to suffer economically and expects them to dethrone Putin.
Also, it wants to weaken Russia and then China, as they are becoming economical superpowers. Russia and China had abandoned their socialist idealogies and now experience tremendous improvements.
We learned the other day that demand for oil is down.
In his guest post, Pepe Escobar says
You don't have to be Sir Isaac N. to see that the US does not want to the supply of oil to increase when demand is weak. Funny that demand is still weakening after the 5 year long recovery since the sub prime bubble bust.
(Yes, Virginia, I know that the exploration and technology denied to Russia today, won't add anything to the supply of oil for a few years.)
The High Potentate of Petroleum (among other High Potentacies) decided that the best way to curb the supply of oil is to sanction Russia and Russia's production, thus protecting the price of oil for America's ME buddies, the "Good Beheaders"of Saudi Arabia and also for America's producers themselves.
Didn't sanctions on Iran keep the price of oil higher for years? Well, it should work with Russia as well.
That the slimy Negro in the Oval Office wants to be remembered as the Nadir of Negrocity is something I'll never understand. How could I?
I believed his deceit and voted for him twice.
The "choice" we were presented was him or McCain who would have blown up the world 20 times by now. Slime wins over destruction.
Yes, it could have been McCain.
Obviously the gods are pissed.
for me "Death before Disgusting"
Upvoted for "good beheaders" and "nadir of negrocity."
SUBSTANCE. Barry O sitting down with Poroshenko. Dude your making heavy weather of your civil war; I thought these Nazi battalions would kick ass quick with our mercs helping with logistics. And those two jets shooting down . . . Come on Chocolate Boy Missy Nuland assured me you were the MAN.
I am certain that everyone on here understands the EU is a proxy for CONgress which in turn is a proxy for Goldman, JPM and TBTF.
Yes, but... When to they Take Kaliningrad which is Isolated Seaport in the North?
Or will we have to blockade Kaliningrad with huge waste of fuel for a fleet of Ships.
- My best guess is they will either leave Kaliningrad alone or they will have to Bomb it to Ruins.
https://en.wikipedia.org/wiki/Kaliningrad geographically separated from the rest of Russia.
In 1996, Kaliningrad was designated a Special Economic Zone. Manufacturers based there get tax and customs duty breaks on the goods they send to other parts of Russia.
I guess all this is a gambit to overthrow Putin and take control of Russian resources.
The world is due to a major reset with all systems entering the collapse phase. There are just not enough resources in the world to maintain all the existing infrastructure let alone improve and expand. Stealing of resources keeps the game going for a little longer but at some point the system will crash. Maybe sooner than we think.
What Europe doesn't understand is that they are the sacrificial pawn in the gambit.
Or they do, and only the threat of nukes could be making them follow WDC orders.
A gambit (from ancient Italian gambetto, meaning tripping) is a chess opening in which a player, more often White, sacrifices material, usually a pawn, with the hope of achieving a resulting advantageous position.[1]
You gentlemen may be smarter than me.
I'm thinking it is in Europe's nature (& US) to take sides, and force one side to lose. Conquest. It looks a lot like our sports games that we love to cheer on so much.
A game played against humanity. Zero Sum Game.
https://en.wikipedia.org/wiki/Zero-sum_game
Big Boy with Big Toys must conquer. There is lots of land, sea, but only a few will profit. And if you profit someone else will always come along & try to take it from you.
Israel, Jesuits, Catholic Church, all European Empires... it is in our blood & history, our culture. We want to win and that means someone else must lose.
Obama & Putin now say "No More". "We aren't giving up in this case".
- It is the Business of Empire to Escalate, so it is on
- European People are the Pawns in this Gambit
- Businesses, Homes, Economy, Lives, Crippled people, culture, heritage, family...these are the losses
The US has started a war with Europe using Russia and Ukraine. It is to render Europe subservient to the Evil Empire in DC that this game is about, it will unseat every regime in Europe.....watch these secessions build up and turn violent.
The US has done its old trick of backing unrepresentative regimes to hold down their populace throughout Europe and it will explode.
Scotland is where the English Civil War started in 1640 and changed history being the first execution of a king in Europe which inspired the French a century later.........things are brewing up
KILL THE DOLLAR BY DESIGN. Eventually, all nations will agree.
Sanctions, my ass.
30 years ago Soviet people had to wait in 2-hour long lines for the privilege of buying a blue skinny chicken OR (not and) a slice of bologna made of cardboard.
20 years ago these people saw their entire COUNTRY disappear, with street wars, perogies with human meat, mason jars of cigarette butts for sale - as a dessert after 2 money reforms.
And these fruits talk about "sanctions"?
The thing that nobody seems to understand in the West is that a Russian only acts under pressure. When things are fine, why bother? Why fix something that ain't broken? Why contract a muscle without a reason? Life is good.
Now this so-called "Western civilization", the mother of hypocrisy and swindling, the source of all that's mean and rotten, the Babylon whore is yapping about "sanctions"?
If Russians squint hard enough, that might, juuuuuust might look like a shadow of the pressure that might, juuuuust might get a Russian to CONSIDER lifting a finger.
First time in 40 years I am proud to be Russian.
Don't judge us by our whores. :) that's the end result of any broken society. What we see happening in the west is a failure of centrally planned socialism. It denies our human nature and tries to force a square peg into a round hole. Humanity is much better than this crap, technology is changing everything.
Harbanger;
If EU, Scandanvia, Switzerland, UK, Ireland & USA are failing due to our Socialism...
Why is it we see such tremendous wealth held by the Vatican, Royal Families, Rothschilds, Hacienda Families in Mexico & South America, and many Bankers & Private Executives??
- Wealth is Extracted from Land, Shipping, and from Labor
- Wealth People are experts on Gaming the System, and may have set up the Systems themselves (like the FED)
- Virtuous Circles reinforce the US Constitution and Equality
- Vicious Circles deprive people access to markets and Equality
- Seems like the West is in Debt and Failing due to Wealthy who "Gamed the System"
- Pitchforks come out when people can't tolerate the "Wealth Extraction" any more
I know that you, personally, have very little choice. The problem is that even this tiny choice is not exercised. You seem to still be living in one of those countries, using one of their banks, being a unit of their inventory.
I hated Russia, I couldn't change it, so I left it. I hated my next country, I couldn't change it, so I left it.
It's as simple as not buying from the merchant you don't like. What makes you keep buying from the merchant you don't like?
Only death denies human nature. As a human you have a choice: to be miserable or to pursue your own goals. Nothing can stop you. Just stop doing what you don't like.
Technology changes nothing except creating the illusion of strength in numbers. You are as alone today as 5,000 years ago: you were born alone, you will die alone, you alone are responsible for your decisions. Whether there are millions of people agreeing with your or just you, it's irrelevant: it's about your confidence, your self-respect.
There is no shame in being forced to do what you don't want to, but all the shame in pretending to like what you don't.
When you try to lie to yourself, you fail, which only makes you miserable twice.
You cannot delegate your life. In the process of dying you will be ashamed of yourself for not doing what you thought was right, and this will be the hell everyone's talking about.
Right now, if you are writing this from London or New York, you are responsible for what your rulers do, because you are one of the energy cells that keeps them running.
How about all those sanctions against South Africa years ago? Boycotts etc forced South Africa to become the rape, murder, and AIDS capital of the world as it is today.
excellent criticism by Pepe Escobar
"Crucially, on the energy front, it would be no less than thrilling to watch the EU – which still does not even have a common energy policy..." Well, that's the crux of the matter, isn't it? The Atlanticist Connection is strongly based on energy provided by Big Oil / Big Energy and protected by American military assets. All the attempts - mostly German-led, but with support of the French (national) Nuclear Biz - of the EU to have a common energy policy can immediately go into conflict with the US-led conventional energy nexus, which itself is in conflict with all the new renewable energy nexus of solar, wind, etc. on both sides of the Atlantic
the newest attempt to forge a common energy policy came from Poland, from PM Donald Tusk: the EU to set up a single buyer of gas to confront on an equal standing Russia's single and national seller, Gazprom. This is somewhat flanked by the ordo-liberal incipient regulation of forcing pipeline operators to be separate from buyers and sellers and act market-neutral. Donald Tusk was made "EU-Prez", i.e. president of the EU Council, lately, and it will be interesting to see if this means this is the Council's path, in future
"The Obama administration, for its part, simply won’t allow the EU to start importing energy from Iran like, virtually, tomorrow. Even with a now quite wobbly nuclear deal reached before the end of 2014 - presumably opening the way to an end to sanctions."
I still suspect this is because China raised the claim of becoming the near-single customer of Iranian oil, and the US is, up to a point, fine with that. After all, there is plenty of Western money invested in China in order to produce for the whole world, and this production needs oil from somewhere
Too many people it appears a struggle is occurring to unseat America as the worlds most dominate nation. For many proud Americans who see the world from the unenlightened and possibly undefendable position of the United States having a right to be in control it is both threatening and frustrating to see control slip away. When it comes to Ukraine Putin has out-played Obama and holds all the cards.
It is threatening to think the country might quickly fall to the position of a second rate power mired in debt with many of the options we have come to see as our right suddenly ripped away. It is frustrating that in many ways the country has become its own worse enemy guilty of political inaction and squandering its power through a series of bad choices and missteps. More on this shift in power and our best response in the article below.
http://brucewilds.blogspot.com/2014/06/americas-struggle-to-stay-on-top....
Take a closer look at the guy in the top left of the picture.
He is sitting down with his arms crossed and his body language says it all.
He is thinking to himself: "I can't believe these fucking morons; this is going to end badly".