Russia Threatens Response If Sectoral Sanctions Imposed

[Purveyor]

Source: Bloomberg

By Olga Tanas Jul 8, 2014 11:18 AM ET

Russia will respond against the U.S. and its European allies if measures targeting entire industries are levied over the crisis in Ukraine, according to Deputy Finance Minister Sergey Storchak.

“If the situation continues to develop and sectoral sanctions are imposed, it will be necessary to prepare more serious countermeasures,” Storchak said on the ministry’s Facebook page today. “In particular, there may be difficulties with money transfers if sanctions are applied to big banks and the financial sector.”

The European Union and the U.S. are considering further penalties after imposing asset freezes and travel bans on scores of Russian officials and businesspeople close to President Vladimir Putin or linked to unrest in Ukraine. In a May interview, Russian Economy Minister Alexei Ulyukayev likened the threat of punishing industries to “a nuclear weapon” that won’t be deployed in practice.

While the sanctions used so far are having a “serious indirect influence” on the economy, the world’s biggest energy exporter has for now escaped any direct fallout that would affect purchases of foreign equipment, Storchak said. U.S. Treasury Secretary Jacob J. Lew said July 1 that additional sanctions might push Russia into a recession.

Read more: http://www.bloomberg.com/news/2014-07-08/russia-threatens-response-if-sectoral-sanctions-imposed.html

[dipsydoodle]

1. Meanwhile US exports to Russia are increasing

and its increasingly unlikely the EU will back trade sanctions.

[William769]

2. Would like to see some stories about that with links of course.

[dipsydoodle]

3. Here Will........................

There’s some evidence to the fact that U.S. sanctions against Russia for their part in the civil unrest in Ukraine has not hurt trade between the two countries. The U.S. exported more good and services to Russia in May, the latest month for data, than any month this year.

That said, Russia and U.S. are only marginal trading partners. The U.S. sold $1.25 billion worth of exports in May, up from $1.03 billion in April and $1.01 billion in March when the sanctions were announced.

http://www.forbes.com/sites/kenrapoza/2014/07/04/u-s-exports-to-russia-rise-despite-tensions-minor-sanctions/

And also from last week : Even With Sanctions, U.S. Sales to Russia Hit New High http://www.democraticunderground.com/10025194159

On the other subject you need to understand that for the EU to pass/agree sanctions requires the agreement of ALL 28 member states - not a majority vote. I doubt that Bulgaria for example would agree to anything other than token gestures as its already clear anything stronger would cause their government to fall.

[Igel]

4. "Sanctions are an offensive weapon."

It seems that Putin came to this conclusion--or his advisors did--in the last week or so.

Meaning that as far as they're concerned, the US has used an offensive weapon in a first strike against Russia. That's the media presentation at least.

Of course, none of the sanctions that Russia's participated in have been "offensive" weapons. Even blockading natural gas isn't an offensive weapon. (Russia is very sensitive: It can send tanks against somebody and that's not offensive; but if you institute sanctions against individual Russian oligarchs, that's a frontal attack on the Russian world, the Great Russian people, and a historical injustice.)

(Yes, if you read a certain genre of Russian politico-ideological thought that's quite in vogue these days you'll find that "Russian World" and "Great Russian" have returned to the contemporary lexicon. And words like russkost' "Russianness" that were fairly innovative in the late '80s and early '90s are still around. Sadly.)

[dipsydoodle]

5. EU Council meeting ends without approving anti-Russian sanctions - source

BRUSSELS - The European Union Council, at a meeting in Brussels on June 9, considered further sanctions against Russia but made no decision, a senior diplomat told Interfax, adding that the council would return to the matter.

http://www.kyivpost.com/content/politics/eu-council-meeting-ends-without-approving-anti-russian-sanctions-source-355382.html