As we warned previously [6], it appears Russia is stepping up its sanctions-retaliation confirming its threat that "US will feel tangible losses." [7]
- *PUTIN ORDERS GOVT TO PREPARE RETALIATORY SANCTIONS: RIA
- *PUTIN ORDERS GOVT TO READY STEPS IN RESPONSE TO SANCTIONS: IFX
- *PUTIN: RETALIATORY MEASURES SHOULDN'T HURT RUSSIA CONSUMERS:IFX
Russian stocks and currency are sliding this morning, not helped by this announcement. Of course, Putin has already put pressure on major US companies such as MSFT, IBM [8], MCD [9], INTC, AMD, and car manufacturers [10]. And as far as "isolation" - the signing of a 5-year trade agreement with Iran would suggest there are still plenty of nations willing to work with Putin.
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It seems Putin is comiong through with his promise:
And Russia issued a statement [11] that US will feel 'tangible losses' from 'destructive, myopic' sanctions.
We have repeatedly spoken about the illegitimacy and groundlessness of the US sanctions against Russia. Washington will gain nothing from such decisions except for further complication of Russian-American relations and the creation of an unfavorable atmosphere in international affairs, where the cooperation between our countries often plays a key role.
The U.S. administration, strained creating the appearance of "sequence" in its current behavior, in fact, is merely trying to avoid responsibility for the tragic developments in Ukraine. Not Russia, and Kiev regime and its overseas patrons guilty of a growing number of civilian casualties in the eastern regions. In his pompous manner prosecutorial White House, covering the bloody military operation of Kiev, which contrary to all international norms sunk to rocket attacks peaceful cities, continues to put forward baseless claims against us.
One gets the impression that the U.S. sanctions pressure, transformed now at sectoral level, has one goal - to get even with us for an independent and uncomfortable for Washington politics. Please also note the obvious elements of unscrupulous trade and economic competition in the U.S. actions.
The losses that Washington will sustain from such a destructive and myopic policy will be very tangible
And perhaps Russia is not so "isolated" as President Obama would like everyone to believe:
Russia signs 5-yr MoU on expanding trade with Iran, Energy Ministry in Moscow says in e-mailed statement.
Russia planning to buy Iranian oil under trade accord, ministry press official says by phone, asking not to be identified due to internal policy
Accord covers cooperation in oil-gas industry, construction of power plants, grids, supply of machinery, consumer goods, agriculture products: statement
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Costs? But Jack Lew said there would be no effect on the US economy?