Tag: EU Sanctions

EU Sets Up For Russian Sanctions, But Where’s China? India?

News from the EU today shows last minute preparation underway to impose sanctions against Russia if it fails to unwind its Crimean venture. http://www.reuters.com/article/2014/03/13/us-ukraine-crisis-idUSBREA1Q1E820140313 All EU plans mirror US plans to freeze assets of Russian companies.

The list of companies to be sanctioned will likely begin with about 20 names, but as historically occurred, that list will expand to increase sanction pressures. http://www.ft.com/cms/s/0/bf57f81e-a862-11e3-8ce1-00144feab7de.html#axzz2vr5kxYiY

Analysts at http://HamiltonFinanceServices.com (HFS) pose a question based on October 2013 contracts and support agreements between China and Russia for significantly expanded oil and gas exports to China. http://www.reuters.com/article/2013/10/22/china-russia-energy-idUSL5N0IC10F20131022 The analysts note that pipeline preparations to carry out those 2013 agreements have been completed. Additionally, strong competition between Russian companies to access the Chinese market persist today. http://www.cnbc.com/id/101475550

Further, negotiations now underway contemplate building new pipelines from Russia to India. http://en.itar-tass.com/economy/721066

So HFS poses this question for the EU and US enthusiasts for sanctions against Russia: What do China and India say about sanctions as their economies grow increasingly dependent on Russian oil?

What do you think?

EU Pokes At Russian Bear To Its Peril

A draft seven page document prepared by the EU in cooperation with the US articulates sanctions against Russian citizens holding assets or traveling in the EU. The document will be considered by EU foreign ministers next Monday, 17 March 2014. http://www.reuters.com/article/2014/03/12/us-ukraine-eu-russia-sanctions-idUSBREA2B0QJ20140312

Passage and implementation of the sanctions hinges on whether Russia will halt expansion into the Ukrainian peninsula, Crimea, through its referendum vote in Crimea set for 16 March 2014. http://www.channel4.com/news/ukraine-crisis-uk-to-push-for-travel-bans-on-russian-mps-state-ownership-crimea-companies

To analysts at http://HamiltonFinanceServices.com (HFS) the EU cooperation with the US could easily backfire due to European dependence on Russian petroleum, and if Russia chooses retaliation, not only oil but raw materials for manufacturing could be placed in jeopardy. In the end, say HFS analysts, Russia continues holding the upper hand, and Russia knows it.

What do you think?

Can EU Sanctions Against Russia Work Without Chinese and Indian Support?

Russia Holds Oil Over EU, Despite Threat of US Backed Sanctions