What Do Russians Think Of Western Sanctions

Zero-Hedge: What Russians Think Of Western Sanctions

Submitted by Vineyard of the Saker,

I parse the Russian media (corporate and social) on a daily basis and I am always amazed at the completely different way the issue of western sanctions is discussed. I think that it is important and useful for me to share this with those of you who do not speak Russian.

First, nobody in Russia believes that the sanctions will be lifted. Nobody. Of course, all the Russian politicians say that sanctions are wrong and not conducive to progress, but these are statements for external consumption. In interviews for the Russian media or on talk shows, there is a consensus that sanctions will never be lifted no matter what Russia does.

WNU Editor: I have been saying the same thing in this blog since last year.

EU Extends Sanctions On Russia And On Ukraine Rebel Leaders

WSJ: EU Foreign Ministers Extend Targeted Sanctions on Russia

Sanctions Extended by Six Months But Ministers Showed Little Appetite for Broader Measures

WNU Editor: No surprises in this extension of sanctions .... but I am detecting a reluctance among many EU members to even contemplate more sanctions for the future. There are now splits forming, and I suspect that these divisions will intensify by July when the full range of Russian sanctions will be up for renewal.

More News On The EU Extending Sanctions On Russia And On Ukraine Rebel Leaders For Another Six Months

Ukraine conflict: EU extends sanctions against Russia -- BBC
EU to extend existing Russia sanctions over Ukraine -- AP
EU foreign ministers agree to extend Russia sanctions over Ukraine -- Deutsche Welle
EU foreign ministers extend sanctions against Russian officials, E. Ukraine rebels -- RT
EU FMs Decide to Extend Individual Sanctions Over Ukraine Until September -- Sputnik
Russia to respond to US expansion of sanctions under Magnitsky Act — Foreign Ministry -- ITAR-TASS

As The Fighting In Ukraine Escalates A Call For More Russian Sanctions. Russia Reacts

Christian Science Monitor: Russia threatened with new sanctions as Ukraine conflict intensifies

WNU Editor: All bark .... no bite .... that about sums up EU threats of more sanctions against Russia .... Europe Is Reluctant To Add Russia Sanctions As Putin Pushes On (Reuters). But Russia better listen .... sanctions and falling oil prices has just resulted in Russia's credit rating being put at a "Junk Status" .... S&P Cuts Russia's Rating to Junk; Sanctions and Oil Slump Hammer Ruble (Bloomberg).

More News On A Call for More Russian Sanctions

U.S., Europe Threaten New Sanctions Against Moscow -- WSJ
U.S. has 'more tools' to put pressure on Russia: Lew -- Reuters
US, EU Threaten New Russia Sanctions Over Ukraine -- VOA
EU hawks lead calls for tougher sanctions on Russia -- Reuters
EU Renews Push for Russian Sanctions; Putin Blames Ukraine -- Bloomberg
EU threatens more Russia sanctions after Mariupol attack -- EU Observer

Russia Responses To Threats Of New Sanctions

Russia defiant after threats from West over Ukraine -- AP
Russia warns West not to blackmail it over Ukraine -- Reuters
Russia's Putin to Hollande, Merkel: Kiev at fault for east Ukraine violence -- Reuters
Russia dismisses "hysteria" over Ukraine bloodshed -- CBS/AP

France Is Pushing To End Sanctions Against Russia

French President Francois Hollande walks past the Republican Guard as he arrives at the Elysee Palace in Paris to attend the first weekly cabinet meeting of the year January 5, 2015. Credit: Reuters/Philippe Wojazer

Daily Mail: Francois Hollande suggests sanctions on Russia should be lifted and says Putin 'does not want to annex eastern Ukraine – he has told me that'

WNU Editor: France is not only facing billions in penalties for refusing to send to Russia two Mistral warships .... but it's agricultural sector has also been severely hit by sanctions. French President Francois Hollande is the first to come out to call for the end of sanctions .... I expect others to follow soon .... especially if progress is reached on ending the crisis in Ukraine.

More News On French President Hollande Calling For The End Of Russian Sanctions

Hollande: economic sanctions against Russia must be stopped -- ITAR-TASS
Russia sanctions 'must be lifted now' - Hollande -- RT
Anti-Russia Sanctions to Be Lifted if Progress on Ukraine Reached: Hollande -- Sputnik
Russia sanctions should be lifted 'if progress' on Ukraine: Francois Hollande -- Business Standard/AFP
France seeks end to Russia sanctions over Ukraine -- BBC
France Calls for Lifting Russia Sanctions if Progress on Ukraine -- VOA
Hollande: Russia sanctions should be lifted now 'if progress' -- Deutsche Welle
Francois Hollande calls for lifting of Russia sanctions 'if there is progress' on Ukraine -- IBTimes

Sanctions And The Falling Price For Oil Is Hitting The Russia Economy

A man holds ruble banknotes at an automated teller machine inside a branch of Russia's Sberbank in St. Petersburg. Alexander Demianchuk / Reuters

Sanctions, Falling Oil Prices Costing Russia Billions -- Voice of America

Russia's finance minister says the country is on course to lose $130-140 billion annually due to Western sanctions and falling oil prices.

Speaking Monday at an economic forum in Moscow, Anton Siluanov signaled that slumping oil prices are a more serious challenge for Russia than Western punitive measures over Ukraine.

"We're losing around $40 billion a year because of geopolitical sanctions, and about $90 billion to $100 billion from oil prices falling by 30 percent," he told a news conference.

Read more ....

More News On How Sanctions And The Falling Price For Oil Is Hitting The Russia Economy

Russia loses $140bn with sanctions and falling oil prices – Finance Minister -- RT
Oil price slide and sanctions 'cost Russia $140bn' -- BBC
Russian Official Says Oil Slump and Sanctions Cost $140 Billion a Year -- Reuters
Russia Is Losing Up To $140 Billion Per Year From Western Sanctions And Oil Price Fall -- Business Insider/AFP
Russian Official Says Oil Slump and Sanctions Cost $140 Billion a Year -- Time
Russia to lose some $40B a year due to sanctions: minister -- Daily Star/AFP
Russia faces recession as oil crash and sanctions cost economy £90bn -- The Telegraph
Russia Calls Western Sanctions Over Ukraine ‘Blackmail’ Tool, Costing Country $40B A Year -- IBTimes
Russia specifies losses over sanctions -- Deutsche Welle

EU Prepares Sanctions Against Ukrainian Separatists. No New Sanctions On Russia

E.U. To Toughen Sanctions on Ukrainian Separatists, But Not Russia -- New York Times

BRUSSELS — The European Union’s foreign ministers decided on Monday to impose more sanctions on individual separatists in Ukraine, but shied away from toughening sanctions against Russia despite its recent military incursions into Ukraine.

Federica Mogherini, the bloc’s new foreign policy chief, said that sanctions should be just one part of a wider approach to Russia that must also involve diplomacy.

The “main discussion today was how to relaunch, or how to re-engage, in a dialogue,” Ms. Mogherini said at a news conference, "given that Russia is for sure part of the problem, but is also for sure part of the solution — part of the possible solution — to the crisis.”

Read more ....

More News On The EU Preparing Sanctions Against Ukrainian Separatists While Undecided On New Sanctions On Russia

EU is deeply divided on imposing more sanctions on Russia -- Global Post/Reuters
Ukraine: EU fails to agree on new Russia sanctions -- BBC
EU Moves to Sanction E. Ukraine Separatists -- VOA
EU to sanction Ukraine separatists, think about Russia -- Deutsche Welle
EU: no new sanctions on Russia -- UPI

The EU And The U.S. Are Preparing More Sanctions Against Russia Despite The Ceasefire

Ukraine Crisis: Ceasefire Holds But Russia Says It 'Will React' To Further EU Penalties -- The Independent

Further travel and economic sanctions on Russia were approved by the EU yesterday, however its Foreign Ministry warned this morning that it would "react" if they are imposed

A ceasefire between Ukraine and separatist rebels began last night and appears to still be in place, after a five-month bloody conflict left more than 2,000 dead.

The deal began at 6pm local time after being signed in Minsk, the capital of Belarus, by Kiev, Moscow and the Russia-backed separatists, as well as the Organisation for Security and Co-operation in Europe (OSCE).

As part of the agreement, all heavy weaponry is to be withdrawn, more than 1,000 prisoners released and humanitarian aid sent to the epicentre of the fighting in eastern Ukraine.

Read more ....

More News On Russian Reaction To More EU/U.S. Sanctions

Russia 'will react' to EU sanctions -- BBC
Ukraine crisis: Russia warns of reaction to fresh EU economic sanctions -- The Guardian
Moscow Promises Response to EU Sanctions Announced After Minsk Meeting on Ukraine -- RIA Novosti
Russia warns it will react if new EU sanctions imposed -- Irish Times

My Comment: To impose these sanctions now .... with a ceasefire trying to take hold in Ukraine .... this is not going to help the situation at all.

Russian Sanctions Are Now Getting Personal

Four Moscow McDonalds Shut By Russian Consumer Watchdog -- RT

Russia’s consumer watchdog has shut down four McDonald's restaurants in central Moscow – including the first-ever outlet in the country – over “administrative violations.” More of the company 430 Russian franchises are under investigation.

“Multiple violations of sanitary norms were detected in the sourcing of food and waste disposal in McDonald’s restaurants during inspections carried out between the 18th and 20th of August,” said an official statement from the watchdog, Rospotrebnadzor.

The company has said that it will study the allegations against its franchises, and “will do everything to ensure that the restaurants open as soon as possible.”

Read more ....

My Comment: When the first McDonalds opened in Moscow .... I had some of the best times with my mom and my aunt at this place (after the long lines disappeared). It became a tradition ... every Wednesday to have lunch at the place. And while I was familiar with the food from living in the West (the only thing that I like about McDonalds is the Canadian version of the sausage-egg McMuffin) .... I reveled in the joy that my mom and aunt had in going to the place. Sighhh ... the memories.

On a side note .... my cousins knew the Russian promoters for the first McDonalds in Moscow in 1990 .... and everyone was telling them that they were going to fail. Two days before the restaurant was to open .... the lines started to form (see above video).

Ukraine Preparing To Halt Russian Transit Gas Flows To Europe

The list of possible sanctions includes a “complete or partial ban on the transit of all resources,” Prime Minister Arseniy Yatsenyuk told reporters in Kiev today in response to a question about halting gas flows. Photographer: Vincent Mundy/Bloomberg

Ukraine Open To Halting Gas Flows In Russia Sanctions -- Bloomberg

Ukraine said it’s open to halting Russian gas supplies to Europe through the country as it plans sanctions on President Vladimir Putin’s government as part of its battle against pro-Russian separatists.

The list of possible sanctions includes a “complete or partial ban on the transit of all resources,” Prime Minister Arseniy Yatsenyuk told reporters in Kiev today in response to a question about halting gas flows. Measures may also include a ban on Russian planes overflying Ukraine, he said, while defense-industry cooperation will be reduced. A draft law, which requires parliamentary approval, also proposes restrictions on ships entering Ukrainian waters.

Read more ....

More News On Ukraine Preparing To Halt Russian Transit Gas Flows To Europe

Ukraine transit sanctions could hit 'all types of transit': PM -- Reuters
Ukraine may block all transit from Russia in sanctions row -PM -- RT
Ukraine crisis: Kiev ready to sanction Russia in fight to stop 'financing terrorism' -- The Independent
Ukraine govt to submit bill on 26 types of sanctions to Verkhovna Rada -- Interfax-Ukraine

My Comment: This is not going to go over well in the rest of Europe. My analysis .... this is a shakedown on Europe .... the government in Kiev is basically saying to the EU that they should pay  Ukraine's Russian gas bill .... and if they do .... they will let the Russians ship gas to Europe.

President Obama: Sanctions Are Working Against Russia

Obama: Russia Sanctions "Are Working As Intended" -- CBS News

U.S. and European sanctions on Russia "are working as intended," President Obama said Wednesday, because there has incredible strain on the country's economy.

The severe sanctions on key sectors of the Russian economy were announced last week in an attempt to pressure Russia to convince separatists in Ukraine to stop destabilizing the eastern part of the country. But Russia continues to amass troops on its border with Ukraine, and Defense Secretary Chuck Hagel warned Wednesday that there is a growing threat of an invasion.

Read more ....

More News On President Obama's Remarks That Sanctions Are Working Against Russia

Obama: Russian economy has ground to a halt -- Reuters
Sanctions putting enormous pressure on Russian economy: Obama -- The Hindu
Obama Believes Sanctions Against Russia Work -- RIA Novosti
US ready for more sanctions against Russia – Obama -- RT

My Comment: Sanctions are an inconvenience now .... but there is no doubt in my mind that if these sanctions continue .... it will start to harm the Russian economy. The below chart provides a timeline on the escalating levels of sanctions against Russia.

Russia Imposes Sanctions Against The West

Moscow Retaliates Against Western Sanctions With Bans on Agricultural Imports -- RIA Novosti

MOSCOW, August 6 (RIA Novosti) – Russian President Vladimir Putin signed a decree Wednesday banning imports of agricultural products from countries that imposed sanctions on Russia for one year, the Kremlin press service said.

The decree «prohibits or limits foreign trade operations to import to the Russian Federation certain types of agricultural products, originating from a country that decided to impose economic sanctions against Russian legal entities and/or individuals or those that joined these measures.»

The president tasked the government with compiling a detailed list of products that would be banned.

Read more ....

More News On Russia Imposing Sanctions Against The West

Putin bans agricultural imports from sanctioning countries for 1 year -- RT
Ukraine crisis: Putin orders retaliatory sanctions -- BBC
Putin orders agricultural import bans in sanction retaliation -- Reuters
Putin Retaliates Against Sanctions With Food Import Restrictions -- Bloomberg
Russian President Putin decrees retaliatory sanctions -- Deutsche Welle
Putin Limits Some Products From Countries That Sanctioned Russia -- WSJ
Putin orders import limits over sanctions -- AP

My Comment: These sanctions are minimal .... but some EU countries are now starting to get worried on where is all of this heading.

Russian President Putin Has Given The Order To Prepare Sanctions Against The West

Vladimir Putin visits Voronezh. © RIA Novosti. Alexei Druzhinin

Putin Orders Retaliation as Russia Seeks Aid for Ukraine -- Bloomberg

President Vladimir Putin ordered the government to prepare a response to U.S. and European sanctions as Russia said eastern Ukraine neared a “humanitarian catastrophe” and required immediate international assistance.

“Political instruments of pressure on the economy are unacceptable, they contradict all norms and rules,” Putin said today during a meeting with Alexey Gordeev, governor of the Voronezh region near Ukraine. Any retaliation “must be done extremely carefully to support producers and avoid harming consumers.”

Read more ....

More News On Russian President Putin Giving The Order To Prepare Sanctions Against The West

Putin Urges Government to Prepare Response to Western Sanctions -- RIA Novosti
Putin asks government to develop countermeasures to Western sanctions -- RT
Putin orders government to consider retaliation to western sanctions -- ITAR-TASS
Putin tells government to respond to Western sanctions -- Reuters
Vladimir Putin orders his government to draft response to Western sanctions -- AFP
Putin to chair high-level Russian talks in Crimea, defying West -- Euronews
Putin Readies Retaliatory Measures Against Sanctions -- The Wire
Putin says sanctions coming against West; new calls for Ukraine intervention, mission -- Washington Post

My Comment: I do not see what they can do that will have an impact. The natural gas will still be sold, and regular trade will continue. But what will have a massive impact will be this .... Moscow may force European airlines to fly around Russia (Reuters) .... but I have doubts that they will go this far.

Are Russia's Oligarchs Putting Pressure On Putin Because Of Sanctions?

Gennady Timchenko (RIA Novosti/Vladimir Fedorenko)

‘No Compromise’: Big Business Won’t Pressure Putin Over Sanctions -- RT

The big Russian businesses hurt by Western sanctions against Russia won’t even think about putting pressure on President Putin, because the interests of the state are at stake in the conflict, says a reputed presidential ‘inner circle’ figure.

“This is out of the question,” Gennady Timchenko, who is one of the few Russian businessmen personally targeted by the US-championed sanctions, told ITAR-TASS.

“In any situation Putin is guided by the interests of Russia. Period. There can be no compromise about it,” he said. “[Captains of industry] wouldn’t even thing about discussing it. Sanctions pose certain difficulties, but they are trivial next to the scale of the state’s goals.”

Timchenko is the owner of the private investment group Volga Group and former co-owner of oil trader Gunvor Group. He is estimated to worth between $12 billion and $16 billion.

Read more ....

My Comment: Unlike what the Western press is stating .... the oligarchs are not going to put pressure on Putin. They do not like sanctions, and they certainly do not like the impact that it may have on their personal lives .... but they are Russians first .... they live there and they are not going to oppose their President at this point in time. When this current crisis is over .... they will probably voice their unhappiness .... but definitely not now.

A Look At The Russian Oligarchs Are Now Being Targeted By Sanctions

EU Blacklists Russian Oligarchs to Pressure Putin -- Bloomberg

Assets of Russian oligarchs Arkady Rotenberg and Yury Kovalchuk were frozen by the European Union in its effort to pressure President Vladimir Putin to stop supporting rebels in eastern Ukraine.

Rotenberg, who helps control SMP Bank and InvestCapitalBank OAO, and Kovalchuk, the biggest shareholder in OAO Bank Rossiya, were among eight people that the EU added yesterday to its blacklist of individuals and organizations being punished for the Ukrainian unrest. Three entities -- Russian National Commercial Bank, weapons maker Almaz-Antey and airline Dobrolet -- also were added, according to the EU’s Official Journal.

Read more ....

More News On Russian Oligarchs Being targeted For Sanctions

EU Places Sanctions on Russian Oligarchs -- WSJ
Putin's inner circle hit by EU sanctions -- The Telegraph
Russian Oligarchs Rotenberg, Kovalchuk Are Blacklisted by EU -- Bloomberg
EU blacklists three Putin 'cronies' -- EU Observer
EU Sanctions Should Affect Russian Oligarchs - Vice-Chancellor of Germany -- RIA Novsoti
Russian Oligarchs Are Tired of Funding Putin’s Land Grab -- David Francis, Fiscal Times
Why Are These Russia Sanctions Different From All Other Russia Sanctions? -- Joshua Keating, Slate

My Comment: So some of these oligarchs cannot go to their private estates on the French Riviera to vacation this summer .... no big deal for these guys .... they will just go somewhere else. But there will be an impact on the general Russian economy as sanctions start to dry up credit markets. This is going to hurt Russian economic growth .... especially in the energy and financial sectors.

Moscow Fights Back After Sanctions

Russia's President Vladimir Putin (C) chairs a government meeting at the Novo-Ogaryovo state residence outside Moscow, July 30, 2014. Credit: REUTERS/Alexei Nikolskyi/RIA Novosti/Kremlin

Moscow Fights Back After Sanctions; Battle Rages Near Ukraine Crash Site -- Reuters

(Reuters) - Russia fought back on Wednesday over new U.S. and EU sanctions imposed over Ukraine, where fighting between Moscow-backed rebels and government troops has intensified since a Malaysian airliner was shot down.

The confrontation between Moscow and the West entered a new phase this week, with the United States and European Union taking by far the strongest international steps yet against Moscow over its support for Ukraine's rebels.

New EU and U.S. sanctions unveiled on Tuesday restrict sales of arms and equipment for the oil industry, while Russian state banks are barred from raising money in Western capital markets.

Read more ....

More News On Russian Reaction To Sanctions

Russia Defiant in Face of Expanded U.S. and EU Sanctions -- WSJ
Russia takes defiant stance in face of tough EU and US sanctions -- The Guardian
Russia’s central bank vows to support banks hit by new sanctions -- Washington Post
As Sanctions Pile Up, Russians’ Alarm Grows Over Putin’s Tactics -- New York Times
Europe, U.S. Significantly Expand Sanctions Against Russian Economy -- WSJ
Ukraine Welcomes Sanctions, While Russia Belittles Them -- New York Times
New sanctions for Russia—here's where they'll hurt -- CNBC
U.S., EU coordinate on Russia sanctions, but will they work? -- Tom Cohen, CNN

The U.S. And Russia Are Now Waging Economic Warfare

Kevin Lamarque/Reuters

Russia, U.S. Edge Toward Economic Warfare -- Rob Garver, The Fiscal Times

Russia and the West appear to be moving ever closer to full economic warfare as U.S. and EU leaders prepare new and harsher sanctions on the Russian economy and Russian lawmakers discuss legislation that would give authorities in Moscow the ability to eject companies from Russia if they are headquartered in “aggressor nations” – defined as countries that have imposed sanctions on Russia.

In the nearly two weeks since a Malaysia Airlines passenger jet was shot down over Ukraine by Russian-backed separatists, Moscow’s posture toward the neighboring country has become more, rather than less aggressive. U.S. intelligence reports that arms and materiel have continued to flow across the Russian border to separatist units, and that the Russian military has been firing artillery rounds over the border in support of separatist units.

Read more ....

My Comment: The EU is imposing sanctions ... albeit reluctantly. The U.S. has been very aggressive, and will use it's dominance on global banking/financial markets to restrict credit and monies to Russia. It will also punish those countries who do not go along with U.S. sanctions and restrictions. Russia will retaliate by making it difficult for western companies to do business in Russia. Russia will also work with BRIC nations to search for and to develop alternative ways to transfer funds that would undermine the U.S. dollar's position as the world's reserve currency. Russia's growing energy sector will probably limit it's business relations with Western energy companies. In short .... this is going to hurt everybody .... the question that needs to be asked is .... who will be hurt the worse.

EU And The US Impose A New Round Of Sanctions On Russia

Europe Unveils 'Tough' New Sanctions On Russia, Including Arms Embargo - But They WON'T Block French Deal To Sell Warships To Moscow -- Daily Mail

* Arms embargo will only apply to future contracts, meaning sale will go ahead
* But it will block 3billion euros worth of Russian arms sales to Europe a year
* Russian state-owned banks banned from issuing long-term debt in Europe
* Eight more Russians also face asset freezes and travel bans in Europe
* Fresh sanctions announced as John Kerry meets Ukraine's foreign minister
* Mr Kerry says Russia is 'leaving the international community with no choice'

Russia will face sweeping new sanctions in response to its alleged support of rebel militants in east Ukraine, European Union diplomats said today.

The 28-nation bloc has imposed an arms embargo, banking curbs and a ban on trade in sensitive and dual-use technologies to punish Russia for its actions in its neighbouring country.

Two diplomats told the Associated Press the measures were decided today at a meeting of EU ambassadors. A further eight Russians will also face asset freezes and travel bans.

Read more ....

More News On The EU And The US Imposing A New Round Of Sanctions On Russia

U.S., EU hit Russia with more sanctions as Ukraine fighting continues -- CNN
EU and U.S. announce new sanctions on Russia over Ukraine -- Reuters
U.S. Targets Russian Energy, Arms, Finance Sectors With New Sanctions -- Wall Street Journal
Ukraine conflict: US and EU widen sanctions on Russia -- BBC
Obama Announces The Most Punishing Sanctions Yet On Russia — Says They'll Have A 'Bigger Bite' -- Business Insider
U.S., Europe hit Russia with new sanctions -- USA Today
Obama joins EU in announcing expanded economic sanctions against Russia -- FOX News
US imposing new sanctions against Russia’s energy, financial, defense sectors - Obama -- ITAR-TASS
EU and US impose new round of sanctions on Russia over Ukraine -- RT
EU sectoral sanctions against Russia to take effect July 31 -- ITAR-TASS