RUSSIA: CIRCUMVENTING US AND EU SANCTIONS?

Russia is a self-sufficient and self-reliant country at the moment.  Sanctions imposed on Russia by the US and the EU will not have permanent teeth.  The West seems to be suffering from a bad case of amnesia because the last time I researched the forex report, Russia had surpassed all EU G7 members with exception to Japan with its foreign exchange reserves in the bank.  This piece of information enables me to draw the conclusion that Russia is a well-managed economy both fiscally and monetarily.   Also, Russia consistently outperforms all G7 economies in the forex report except for Japan, and has been outperforming them for several years now.  For example, the two irritant nations in the G7 forum are the US and the UK and are not in the top 10 ranking of foreign exchange reserves reports.  Both the US and UK have not been in the top ten of the forex report for some time now.   However, these two economies’ foreign exchange reserves sit at only 280 billion jointly while Russia stands at 454 billion in foreign exchange reserves and ranked 5th by country ranking.

Recently, the EU cut off its nose to spite its face when it imposed the sanctions against Russia. The EU can ill-afford to place sanctions against Russia because Russia was a major buyer of EU fruits and vegetables before Russia got hit with EU sanctions.  Now, Russia has stopped buying EU agricultural products. German Chancellor Angela Merkel diplomatic posture was inept and weak because she behaved and treated Russia as if Germany was a member of the UN Security Council not Russia during the Crimea crisis.

In the 21st century, Russian trade, investment, and various economic spheres have almost tripled in Latin America.  In particular, Russian trade and investment have expanded in the following areas:

  • Energy sector
  • Mining
  • Infrastructure and telecommunications
  • Military technology
  • Oil prospecting and extraction
  • Power station hydroelectric construction
  • Space exploration
  • Nuclear energy for peaceful purposes

In the final analysis, the EU will be the big economic loser as it continues to follow Washington’s orders of placing continuous sanctions on Russia. Continental Europe will have to begin to realize that NATO was created by the UK, an Anglo country to keep Russia out, the US in as the fighting forces, and Germany down.  NATO serves no one’s interests except for two Anglo hegemony powers, the US and the UK.

The US and EU governments fail to realize that Russia is a sovereign and self-reliant economy.  The Russian economy is a major oil and gas exporter.  Russia also has natural resources such as gold, platinum, diamonds and other products in large supply.  The EU stands to lose in this round of tit-for-tat because the EU does not have natural resources nor a land-endowed continent whereas Russia possesses both.

Presently, Russia and China are negotiating an agreement to setup their own credit rating agency together as Russia particularly feels the three credit rating agencies, Standard and Poor(S&P), Moody, and Fitch have acted in a politically motivated manner after the imposition of sanctions placed on Russia took place.

One of the West’s premier club forums, G8 has broken up due to the diplomatic row between the West and Russia over the Ukrainian crisis as Russia made up the 8th member of the G8 forum.  The US and the EU have called for Russia to be even kicked out of the G20 forum.  But, two Anglo-speaking countries, Australia and Canada have defied the recommendation with comments that the G20 forum would become fragmented if Russia is kicked out of the G20 forum of developed and emerging economies.

EU countries from Poland to Czech Republic to Sweden project trepidation against Russia.  In reality, these countries should have no fear of Russia because Russia is far more preoccupied with Central Asian countries than Poland, Czech Republic, and Sweden collectively.

The sanctions against Russia will do more harm to the EU than to Russia or even the US for that matter.  The current sanctions against Russia are already having a negative economic effect on the euro currency.  German stocks such as Lufthansa are experiencing declines in its stock value and price.  Germany, the largest EU economy has more to lose than any EU country because it engages in more trade  and commerce with Russia than any other EU country.  In the future, German companies doing business with Russia stand to lose more than Russia since Russia recently inked a 30-year 1 trillion dollar oil and gas deal with China last May and further proves that Russia will be more economically viable and sustainable in the future.

 

 

 

 

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