European Firms Seek to Minimize Russia Sanctions
By ALISON SMALE and DANNY HAKIM, NYT
APRIL 25, 2014
BERLIN — With the showdown over Ukraine escalating and President Obama warning Moscow of a tough new round of sanctions, Russia and its allies in the European private sector are conducting a separate campaign to ensure that they can maintain their deep and longstanding economic ties even if the Kremlin orders further military action.
European banks and businesses are far more exposed to the Russian economy than are their American counterparts. Trade between the European Union and Russia amounted to almost $370 billion in 2012, while United States trade with Russia was about $26 billion that year.
As a result, they have lobbied energetically to head off or at least dilute any sanctions, making it hard for American and European political leaders to come up with a package of measures with enough bite to influence Moscow’s behavior in Ukraine.
Since Russia’s annexation of Crimea, energy companies, exporters, big users of Russian natural gas and investors with stakes in Russia have counseled caution. “Neither in energy terms, nor politically, should we turn away from Russia,” said Rainer Seele, the chairman of Wintershall, a subsidiary of the large German-based chemical company BASF that is deeply entwined in Russia’s oil and natural gas trade.
(More here.)
APRIL 25, 2014
BERLIN — With the showdown over Ukraine escalating and President Obama warning Moscow of a tough new round of sanctions, Russia and its allies in the European private sector are conducting a separate campaign to ensure that they can maintain their deep and longstanding economic ties even if the Kremlin orders further military action.
European banks and businesses are far more exposed to the Russian economy than are their American counterparts. Trade between the European Union and Russia amounted to almost $370 billion in 2012, while United States trade with Russia was about $26 billion that year.
As a result, they have lobbied energetically to head off or at least dilute any sanctions, making it hard for American and European political leaders to come up with a package of measures with enough bite to influence Moscow’s behavior in Ukraine.
Since Russia’s annexation of Crimea, energy companies, exporters, big users of Russian natural gas and investors with stakes in Russia have counseled caution. “Neither in energy terms, nor politically, should we turn away from Russia,” said Rainer Seele, the chairman of Wintershall, a subsidiary of the large German-based chemical company BASF that is deeply entwined in Russia’s oil and natural gas trade.
(More here.)
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