Kerry on Russian reaction to sanctions

[ProSense]

<...>

SECRETARY KERRY: You can’t run around knocking around Georgia and taking over Abkhazia and South Ossetia and then – and threatening Moldova and Transnistria and other places and win friends. That’s an important part of existing on this planet, and I think they’re going to have some problems.

QUESTION: So what are we prepared to do about it? What is Europe prepared to do about it? What’s the United States --

SECRETARY KERRY: Well, we’ve already put some sanctions in place and --

QUESTION: Which he ignored.

SECRETARY KERRY: Well, they say that. What do you expect? That’s what bullies do. But the fact is when they go home and their cronies and friends lose their apartments and their rich properties and they can’t move their money and they can’t travel to places, this bites. And over time, there’s a lot more that will come in that will make a difference.

- more -

http://www.state.gov/secretary/remarks/2014/03/223669.htm

Yeah, I don't think they're laughing: http://www.democraticunderground.com/10024685278

Russia Sees Billions Spent on Crimea as Putin Pushes Treaty (1)

By Olga Tanas and Anna Andrianova

Russian lawmakers are preparing to ratify a treaty this week to annex Crimea, hailing as a victory the return of the Black Sea peninsula that may require billions of dollars even as the national economy comes under strain.

Parliament plans to finish all legal procedures to accept the breakaway region into Russia this week, Sergei Mironov, leader of the Just Russia party, told reporters today in Moscow.

President Vladimir Putin, facing the weakest economic outlook in four years and forecasts of surging capital outflows, is defying Western threats of sanctions and pressing ahead with plans to absorb Crimea, a predominantly Russian-speaking region that houses the Black Sea Fleet. Putin blamed the West for forcing him into a corner and vowed to protect those of Russian heritage from Ukrainian nationalists. Crimea will need billions of dollars of investment in infrastructure, according to Russia’s Economy Ministry.

<...>

Even before the protests in Kiev turned deadly last month, Russian Deputy Economy Minister Andrey Klepach said capital outflows were increasing and may reach $35 billion in the first quarter, more than half of the $63 billion for all of 2013.

- more -

http://www.businessweek.com/news/2014-03-19/russia-sees-billions-of-crimean-spending-as-putin-pushes-treaty

Investors are fleeing Russia and they are losing billions of dollars
http://www.democraticunderground.com/10024685574

[geek tragedy]

1. You should work this story into your repertoire

http://www.bloomberg.com/news/2014-03-17/russia-sees-economy-tipping-into-crisis-as-western-sanctions-hit.html

Russia’s economy is showing signs of a crisis, the government in Moscow said as the U.S. and the European Union announced sanctions over its plan to annex the Crimea region from Ukraine.

“The situation in the economy bears clear signs of a crisis,” Deputy Economy Minister Sergei Belyakov said in Moscow yesterday. The cabinet needs to refrain from raising the fiscal burden on companies, which would be the “wrong approach,” he said. “Taking money from companies and asking them afterward to modernize production is illogical and strange.”

[dilby]

2. I don't think sactions will work.

I just think this is a drumbeat for war, US will put sanctions on Russia. Russia will seize US assets located within their borders and it will just go down from there. All for some piece of land no one cared about 6 months ago.

[ProSense]

3. No,

"I don't think sactions will work. I just think this is a drumbeat for war"

...it's not, and the sanctions will have an impact base on Russia's weak economy.

QUESTION: Let’s talk about that because critics argue that Putin is sort of a classic strongman, that he took our measure in Syria, Iran, other places and figured out that the West didn’t have the will to stop him from doing what he was doing.

SECRETARY KERRY: Again, I think that’s a complete mischaracterization. I don’t know anybody in America who has suggested to go to war over Crimea. You want to go to war over Crimea? I don’t know anybody who says, “You ought to go to war over Crimea.” So therefore, your options are economic and diplomatic and isolation.

[VanillaRhapsody]

5. How much "assets" do we have there?

Not nearly as much as the Russian Capitalists have OUTSIDE Russia....there in lies the rub...

[former9thward]

11. No real assets are being seized by either side.

[William769]

4. I've said all along that he's a fucking bully.

And will continue to bully till he gets knocked down.

Nothing would please me more to see Russia spiral into the worst depression not seen since the U.S.S.R. and the people rise up and throw that mother fucker out on his ass.

[okaawhatever]

7. I think that is one of the reasons he engaged the west when he did. The economic outlook for Russia

this year was already pretty blah. Putin's popularity came from increased socioeconomic status for Russians. With the protests in 2012 he needed something to stay in power if the economy remained poor. Since the not-so-good economic numbers didn't include losing gas business to Ukraine or getting a lower price for the gas, it seems he would have faced a pretty bad year at home. Now that all the economic suffering will be blamed on the West, or on reclaiming and rebuilding Crimea he stands a much better chance.

[William769]

8. Lets hope the sanctions work.

So much for laughing at them.

[Fumesucker]

15. Just to be completely clear

You are wishing suffering on the Russian people because of who their leader is?

[William769]

16. They have the power to change their leader if they so desire.

[Fumesucker]

17. OK, just so we are clear on that wishing suffering thing n/t

[Cha]

6. Thanks PS

[BeyondGeography]

9. The sanctions target the kleptoniest of the kleptocrats

It's a highly evolved approach that would have more fans here if not for ODS and KDS. Instead we get stfu, Kerry, you voted for IWR.

[ProSense]

12. On this issue,

"It's a highly evolved approach"

...I'm fairly certain Kerry knows more than his critics.

[sheshe2]

10. No they aren't laughing.

This is going to hurt them, they can spin it all they want, it's going to be painful.

[ProSense]

13. No, they're not. n/t

[treestar]

14. Rec'd for Kerry using the word "bites" in that fashion

[Iterate]

18. Germany Halts Export Of Battle Simulation Facility To Russia

Germany Halts Export Of Battle Simulation Facility To Russia
[e-mail] - Ankara 03/19/2014 22:33

Germany has stopped the planned export of a modern battle simulation facility that was destined for the Russian army.

German Economy Minister Siegmar Gabriel ordered to stop the delivery.

In a statement to German News Agency DPA, German company Rheinmetall said, "The German government considers the export of the combat training center to Russia unjustifiable in the current situation. The federal government is in contact with the firm while no shipments are planned at the moment. The firm will inform the federal government in time if exports are to be made, so that the government can take the required steps if necessary in the light of further developments."

Rheinmetall had signed the agreement to supply the Russian army with the facility worth 120 million euros in 2011. It was supposed to be installed in the Russian city of Mulino by the end of this year where 30,000 troops could have been trained a year.
http://en.haberler.com/germany-halts-export-of-battle-simulation-facility-400727/

Probably all for the best to cancel this anyway, being as they can't afford insignia.

[ProSense]

19. Thanks for posting. n/t

[marked50]

20. Not to rain on anyone's parade

Just as a historical note, it was "sanctions" that prompted Japan to bomb Pearl Harbor and Philippines and Malaysia and Indonesia- in otherwords- the Wests response to Japan and its incursion into China --Japan's expansion of it's view of Empire (remember the militarist and nationalist Tojo)---was to impose sanctions on Japan around oil and other such things. Japan felt that it really had no other option other than to engage the West in battle. So in short- Empire building- response sanctions from the West-Result World War....

Beware of using Sanctions as the solution here- sometimes it works, sometimes it doesn't

[ProSense]

21. Kick! n/t