Russia's "Startling" Proposal To Europe: Dump The US, Join The Eurasian Economic Union

Tyler Durden's picture

Slowly but surely Europe is figuring out that as a result of the western economic and financial blockade of Russian, it is Europe itself that is suffering the most. And while Germany was first to acknowledge this late in 2014 when its economy swooned and is now on the verge of a recession, now others are catching on. Case in point: the former head of the European Commission, and Italy’s former Prime Minister, Romano Prodi who told Messaggero newspaper that the "weaker Russian economy is extremely unprofitable for Italy."

The other details from Prodi's statement:

Lowered prices in the international energy markets have positive aspects for the Italian consumers, who pay less for the fuel, but the effect will be only short-term. In the long-term however the weaker economic situation in countries producing energy resources, caused by lower oil and gas prices, mostly in Russia, is extremely unprofitable for Italy, he said.


The lowering of the oil and gas prices in combination with the sanctions, pushed by the Ukrainian crisis, will drop the Russian GPD by five percent per annum, and thus it will cause cutting of the Italian export by about 50%,” Prodi said.


“Setting aside the uselessness or imminence of the sanctions, one should highlight a clear skew: regardless of the rouble rate against dollar, which is lower by almost a half, the American export to Russia is growing, while the export from Europe is shrinking.”

In other words, just as slowly, the world is starting to grasp the bottom line: it is not the financial exposure to Russia, or the threat of financial contagion should Russia suffer a major recession or worse: it is something far simpler that will lead to the biggest harm for Europe's countries. The lack of trade. Because while central banks can monetize everything, leading to an unprecedented asset bubble which if only for the time being boosts investor and consumer confidence, they can't print trade - that all important driver of growth in a globalized world long before central banks were set to monetize over $1 trillion in bonds each and every year to mask the fact that the world is deep in a global depression.

Which is why we read the following report written in yesterday's Deutsche Wirtschafts Nachrichten with great interest because it goes right to the bottom line. In it Russia has a not so modest proposal to Europe: dump trade with the US, whose call for Russian "costs" has cost you another year of declining economic growth, and instead join the Eurasian Economic Union! From the source:

Russia has presented a startling proposal to overcome the tensions with the EU: The EU should renounce the free trade agreement with the United States TTIP and enter into a partnership with the newly established Eurasian Economic Union instead. A free trade zone with the neighbors would make more sense than a deal with the US.

It surely would, but then how will Europe feign outrage when the NSA is found to have spied yet again on its "closest trading partners?" Some more on Russia's proposal from EUobserver:

Vladimir Chizhov told EUobserver: “Our idea is to start official contacts between the EU and the EAEU as soon as possible. [German] chancellor Angela Merkel talked about this not long ago. The EU sanctions [on Russia] are not a hindrance”.


“I think that common sense advises us to explore the possibility of establishing a common economic space in the Eurasian region, including the focus countries of the Eastern Partnership [an EU policy on closer ties with Armenia, Azerbaijan, Belarus, Georgia, Moldova, and Ukraine]".


"We might think of a free trade zone encompassing all of the interested parties in Eurasia”.


He described the new Russia-led bloc as a better partner for the EU than the US, with a dig at health standards in the US food industry.


“Do you believe it is wise to spend so much political energy on a free trade zone with the USA while you have more natural partners at your side, closer to home? We don’t even chlorinate our chickens”, the ambassador said.


The treaty establishing the Eurasian Union entered into life on Thursday (1 January).


It includes Armenia, Belarus, Kazakhstan, and Russia, with Kyrgyzstan to join in May.


Modelled on the EU, it has a Moscow-based executive body, the Eurasian Economic Commission, and a political body, the Supreme Eurasian Economic Council, where member states’ leaders take decisions by unanimity.


It has free movement of workers and a single market for construction, retail, and tourism. Over the next 10 years, it aims to create a court in Minsk, a financial regulator in Astana and, possibly, to open Eurasian Economic Commission offices in Astana, Bishkek, Minsk, and Yerevan.


It also aims to launch free movement of capital, goods, and services, and to extend its single market to 40 other sectors, with pharmaceuticals next in line in 2016.

And as a reminder: The Eurasian Economic Union, a trade bloc of former Soviet states, expanded to four nations Friday when Armenia formally joined, a day after the union between Russia, Belarus and Kazakhstan began.

So the ball is in your court, Europe: will it be a triple-dip (and soon thereafter quadruple: see Japan) recession as your Goldman-controlled central bank plunders ever more of what little is left of middle-class wealth with promises that this year - for real - is when it all turns around, or will Europe acknowledge it has had enough and shifts its strategic, and trade, focus from west (speaking of the TTIP, Germany's agriculture minister just said "We can't protect every sausage" referring to the TTIP) to east?

Considering just whose interests are represented by the unelected bureaucrats in Brussels, we won't be holding our breath.

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Infinite QE's picture

Needs a more catchy name. I volunteer my Anti-Bolshevik Federation idea. Has nice ring to it. Images of Soros and the rest of the ZWO being dragged behind freight cars come immediately to mind.

Manthong's picture

Aw c’mon now.. they know better and we don’t want to have to bomb Germany and Italy again.

svayambhu108's picture

What if the four beasts go down all together, leaving a lot of mess (Russia, USA, China and EU)

COSMOS's picture

Ha Ha Ha Ha what is Russia trying to do, get Europe nuked.  The Americans will kill her before they let her out of this abusive relationship.  I mean Uncle Sam listens to all of Europe's phone calls, they monitor where ever she goes with ther foreign policy, and they fuck her constantly with a dollar penis that keeps getting bigger and bigger.  Just look at the pics of Uncle Sam, the guy is a role model for a wife beater hahahah, he looks like one of those trailer trash dudes with his long white hair and beard hahaha

Hey William B.  we need a pic of Uncle Sam in a wife beater T shirt without sleeves pointing at Europa and saying Ill kill you before Ill let you go BIATCH!

Latina Lover's picture

No wonder the USSA is attacking Russia via a puppet Ukraine....the USSA fears  losing the EU colonies. 

Notice how Soros in one of his latest statements, endorsed Merkel as a true European leader.

Tao 4 the Show's picture

Stepping back from the whole situation, what is going on?

I think it is simply "bite the bullet" time for Russia. The ongoing trend has been towards the NWO take over, and at some point, one either keeps going along and gets swallowed, or "bites the bullet" and resists. Once resistance is actually and fully embraced, all sorts of formerly unthinkable actions become obvious next steps, and this latest is one of them.

My concern is that neither side is at all likely to give in or compromise in any real sense. And since both have nuclear arsenals, the outcome is seriously dangerous.

BigJim's picture

Putin should start yanking on chains a bit more.

He should buy hundredes of billions of dollars of gold longs on the COMEX, and then announce he will be discussing the monetary system over the course of a few days, commencing with a couple hour long speech on the gold standard, pointing out everything that was beneficial about it. Everyone would think: he's hinting they're going to start demanding gold for oil & gas!; POG would probably double overnight.

He could then cash out, go short, and for his next speech list all the reasons states like fiat currencies, and how the dominant financial power, the US, would never go back to the gold standard. POG would plummet! He could then go long again, and for his third speech, start off: "did I say the US would never go back to the gold standard? I meant to say: would never willingly go back to the gold standard" and then announce they'll be taking gold for oil and gas henceforth, bitchez.

Fuck the hunting and riding around on a horse bare-chested; if I were Vlad, that's how I'd be getting laughs.

Publicus's picture

Soon they will print jobs. And I welcome that glorious day.

The9thDoctor's picture

A Eurasian Union would be the worst case scenario for the neocons.

GetZeeGold's picture




Look Euroland....America is heading full fledged into communism. We here in Russia already know that doesn't on that....we should know.

scythian empire's picture

You're a moron.  Isn't usage of "neocons" cliche by now?


Trade with EurAsia makes more sense if the only thing you can think to do is look at a map.

Stuart's picture

Europe and especially the UK are still US bitches.... If the US senses the EU is considering something like a more open trading relationship with Russia, they will sabatoge the Euro, the EU, the UK...all to maintain the US hegemony and US control over all other nations.   Wait and see.  

The Chief's picture

Theyve already started...look at what some .gov contractor did to the german steel industry two weeks ago.

sleigher's picture

I will never get this type of story.  Steel mills, power plants, all these types of things worked great before there was internet everywhere.  Why is it they have to attach the controls of a steel mill to a internet connected network?  Could they not have the network or computers/controls work without an internet connection?  I bet they could.  

According to the article some phishing type attack was used, so there is human error there too it seems.  They still had to access over the networks though.  

August's picture

Sounds like the Chavez government's dealings re Crystallex. 

Poundsand's picture

So Merkel comes out and says Greece maybe can go it alone, and within two days Russians are opening up a new trade proposal?  Me thinks this was aimed not at the EU but at Greece.  Imagine the tight puckers around the EU/USA if Greece were to jump over to a new Eurasian economic zone.  Repudiate EU debt with the understanding that the new zone would help with friendlier terms?

ThirteenthFloor's picture

Putin kicked the Rothchild bankers (club of isles) crowd out years back and that is when the western neocons and NGOs came down on him. I think he is ready. No nukes will be used, there is an operation that is stopping that as I write. I bet Obama is not allowed to even touch the nuclear football. The dollar as trade settlement is going to erode and disappear. Plan for that, life will otherwise go on.

fudge's picture

Putin to merkel : No metter what you do, you will be fucked anyway..


Fuck Soros


caconhma's picture

To all illiterate and feebleminded ZH posters,

You know shit about Zionist-controlled Russia. You are stupid idiots thinking that Putin will save you from Zionist Banking Mafia. He is just one of their foot soldiers!

Curiously_Crazy's picture

Given your post history consists almost entirely on Putin, it seems it is you yourself that gets a hard on over the guy.

Took Red Pill's picture

and it just got worse! Seems like every year the POTUS quietly signs controversial acts into law while Americans are busy with the holidays. This year was no exception;

OldPhart's picture

This would be another step in the petrodollar's death.

Ignatius's picture

"...step..." ?

That first one's a doozy off of El Capitan.

OldPhart's picture

The first big step off El Capitan were the China/Russia agreements.

Everything following is the march of pallbearers.

Lore's picture

Re: The NDAA authorizes $578 billion in spending [for FY2015], including $496 billion to be spent by the Pentagon in the upcoming year and $64 billion for overseas wars. < You can raise some fairly serious hell with $64 Billion, but a lot of that is probably allocated already for enrichment of contractors in Syria, Afghanistan and Iraq.  Remaining crumbs might be enough for the Nazis in Kiev to continue shelling civilians in East Ukraine.

Your tax dollars at work:  Ukraine Crisis: Death and Destruction in East Ukraine 

noben's picture
noben (not verified) OldPhart Jan 4, 2015 8:07 PM

Obama also signed the United States-Israel Strategic Partnership Act of 2014 on Dec. 19. The bill is the fruit of the lobbying efforts of the American Israel Public Affairs Committee (AIPAC). The lobbying group which advocates for pro-Israel policies released a statement after the act was signed into law, saying: “[T]he measure lays the foundation for expanded U.S.-Israel cooperation in a wide variety of spheres, including defense, intelligence, homeland security, cyber security, energy, water, agriculture, and alternative fuel technologies.”

"... the bill legally commits the U.S. to making Israel “stronger than all its opponents combined.

"... the bill increases Israel’s stockpile of American weapons to be used in an emergency from a value of $200 million to $2 billion"


Good to know that our tax dollars and the dollar's Reserve status are being well used, in this... Reverse Robin Hood model.  Along a similar vein...

Israel's PM Netanyahu refuses to let his troops get dragged into the ICC: "We will not let Israel Defence Forces (IDF) soldiers and officers be dragged to the International Criminal Court in The Hague"Ref =

RagnarRedux's picture

Lindsey Graham in Jerusalem: Senate vote coming on Iran sanctions bill

US Senator Lindsey Graham groveling before his ethno-oligarch controllers. 

"Graham (R-S.C.), who is expected to take over as chairman of the Foreign Appropriations Subcommittee when the Republicans assume control of the Senate in January, met with Prime Minister Benjamin Netanyahu in the Israeli capital on Saturday night."

"Graham told Netanyahu that “the Congress will follow your lead” and will want to have a say about any final deal."

Jewish Groups Get 94% of Homeland Security Grants

Funds Boosted for 'Jewish Earmark' Once Again

GetZeeGold's picture




Lindsey Graham in Jerusalem


They can keep him....

TheLastMan's picture

Regarding the "controversial acts" included in the NDAA renewal is a land swap of Arizona tribal land containing copper deposits.

The receipient of the land swap gift (drum roll, please ) is Rio Tinto subsidiary Resolution Copper.

Rio Tinto is (tin foil hat, please) a Rothchild entity.

Arizona Sinators (sic) Jeff Flake (actual name) and McCain lobbied for the deal.

Jeff Flake previously served as lobbyist for Rossing Uranium an African mining company owned by (drum roll, please) Rio Tinto.


I haven't read the details of the swap, but would you trade away a gold mine, a diamond field, or an oil deposit?

Economically, true wealth and true substance must arise from natural resources.  Why give away the wealth of the nation?


The Last Man

weburke's picture

uncle sam is obama. 

yogibear's picture

You mean Uncle Scam is Obama.

The9thDoctor's picture

You mean Obama is Uncle Tom.

GetZeeGold's picture




He's half white....and you know how white people will do you.


“He’s leaving our studio and sees a cut-out of Obama and says ‘he’s a rat bastard’ – oh because I’m black I have to like Obama,”


“He mimicked me, he followed me for years, and they wanted me to train him and teach him how to act….like a an educated south side African-American,” adding that Lennix thought Obama was “very stupid” and had “been taught to act like this.”


I know what you're wondering.....who are "they". Well....this is as far as I go today.

Anusocracy's picture

Obama is his wife, Aunt Jemima.

WmMcK's picture

I thought Aunt Jemima was married to Uncle Ben -- now I'm even more confused.

Sudden Debt's picture

Europe is a fragile cookie that has problems staying in one piece as it is.
the only way Russia could join is by breaking up in more little states.
Remember also that Europe is co trolled by the big countries which would loose power if Russia joined and they wouldn’t want to risk that.
But with smaller regions like Ukraine, it might be possible.
And Putin wouldn’t want that because that would exclude him.
And I don’t think the US would be so happy about all that because than there’s the Chinese aliance and that would mean there’s almost nothing left because Europe also has tighter relations with the middle east. And than there’s the Brics!
Everybody would be united besides America.
it would be a world government ex US and Africa which nobody wants officially.

It simply can’t happen.

DaveyJones's picture

that's the funny thing about turning points in history

a lot of things happen when "they simply can't"

the american lap dog over the atlantic is losing energy fast

as the article points out, the putin price punch is very short sighted

with ugly long term affects

the other funny thing here is that Putin, whether his offers are accepted, rejected or debated, is acting like ten times the statesmen as the Ugly Uncle

Parrotile's picture

Love him or hate him, this is a serious proposal, and as such is the equivalent of waving the biggest red cape in front of the proverbial enraged bull!!

If nothing else, this is quite THE show of confidence in National capabilities, to "manage" further "American Aggression". Seems 2015 is going to be a "very interesting" year for future historians . . . .

agNau's picture

Let's not get ahead of ourselves. Winston is feverishly rewriting history now with all the revisions of economic data releases, school textbook (history, constitutional updates). Future history will be a thing of the past? Or the past will be a result of future history?

"I forget what I did tomorrow!" a common problem within The Ministry of Truth.
Housing starts rose today from the prior seasonally adjusted and recently revised numbers. A clear sign we are turning the corner. * An incredibly long corner.

Makes you wonder. Just who wrote that book. Or, which came first, the Chicken or the egg?

DanDaley's picture

In chess terms this is called pushing a pawn...nothing much may come of it, or it could be a game changer. Putin knows this, which is why he did it.

Squid-puppets a-go-go's picture

but most interestingly - certainly for appraisals of Putins character and resilience - is that he is offering an olive branch with confidence, in circumstances where a lesser player would easily be too aggreived at euro sanctions to be so calm and magnanimous

whether russia prospers or fades, putin is not a man out of his depth

king leon's picture

Putin knows that Brussels will decline his offer but this offer is aimed at antagonising the educated guy on the streets of Europe who know that the US are pulling all the sanction strings. The Right wing is starting to take hold in France just as UKIP are in the UK both lean more towards Russia than the US . Remember, the failure of wall the of a Dam starts with only a fine trickle before the gushing flood. 

Debeachesand Jerseyshores's picture

That picture will be a hoot...

king leon's picture

SPOT ON: Remember the lyrIcs to the 'Eagles' Hotel California song, "You can check out anytime you like, but you can never leave!!!"

Torgo's picture

"The Americans will kill her before they let her out of this abusive relationship."


Agreed. I have frequently stated that the psychological profile of Obama mentor Zbigniew Brzezinski and his geopolitical strategy is that of an abusive spouse that prevents the other person from having any close relationships outside of the marriage.

Particuarly as he writes in The Grand Chessboard, "To put it in a terminology that harkens back to the more brutal age of ancient empires, the three grand imperatives of imperial geostrategy are to prevent collusion and maintain security dependence among the vassals, to keep tributaries pliant and protected, and to keep the barbarians from coming together."

"maintain security dependence among the vassals" There it is right there.

One thinks of Chancellor Sutler from V for Vendetta:

"I want everyone to remember, why they need us!"