Leaked copy of Fri night #Russia sanctions deal confirms 3 energy cos to be hit by #EU capital markets ban: Rosneft, Gazprom Neft, Transneft
— Peter Spiegel (@SpiegelPeter) September 7, 2014
Europe Goes "All In": Will Sanction Rosneft, Gazprom Neft And Transneft -- Zero Hedge
Until this moment, the main reason why everyone mostly dismissed Europe's sanctions against Russia is that despite all its pompous rhetoric, Europe consistently refused to hit Russia where it would hurt: its energy titans Gazprom, Rosneft And Transfneft. The reason is simple: by imposing sanctions on these core energy exporters, Europe would directly threaten the stability of its own energy imports (Russia accounts for up to 30% of German gas imports), and as winter approaches with every passing day, playing with the energy status quo would seem like economic suicide. This all appears to have changed last Friday, when as the FT reports from a leaked copy, Europe's latest sanctions round will boldly go where Europe has never dared to go before, and impose sanctions on the big three: Rosneft, Gazprom Neft and Transneft.
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My Comment: I agree with Zero Hedge .... these sanctions are now major, and it will impact the Russian economy seriously. Putin will have to respond. On a side note .... I also agree with Zero Hedge that the big winner will be China .... The Ukraine Crisis Has Accelerated Russia-China Energy Ties (AFP)
3 comments:
This is not good news, any guess how Putin will react? Also will this lead to Russia backing down from the Ukrainian conflict or will it harden Russias stand with the seperatists and maybe lead to the ceasfire being broken?
I see no hint of what the US's part is in this. Europe will not do this without the US's approval and some sort of US promises (monetary). This is a whole different ball game if they do this monday. This is the type of thing that can topple governments and entire social orders in even the best of times. If Germany's economy goes south all of Europe will go with it.
I concur James, if this happen there can or will be catastrophal consequenses. But good night
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