EU approves first-ever sanctions on Russian gas
EU approves first-ever sanctions on Russian gas
It’s a notable evolution in strategy for the EU, and came after Germany and Hungary held up a deal for weeks.
It’s a notable evolution in strategy for the EU, and came after Germany and Hungary held up a deal for weeks.
The EU will hit Russia with unprecedented sanctions against its lucrative gas sector, according to the Belgian EU presidency — a once-unthinkable step that could drain hundreds of millions from Moscow’s war chest.
The decision, which EU ambassadors reached Thursday morning, came after stiff opposition from Germany and Hungary stalled a deal for weeks — though over different parts of the package.
The penalties won’t hit the majority of Russia’s liquid natural gas (LNG) exports to the EU. Instead, they will ban EU ports from reselling Russian LNG after it arrives and block financing for Russia’s planned Arctic and Baltic LNG terminals.
Massive move. By finally hitting their gas, you put Russia in a bad position. You can't buy good weapons with oil only, you need cash.
In a little over 2 years the EU went from being primarily dependent on Russian gas to now slapping on sanctions.
I'll bet China is watching this.
The EU has now started identifying which resources rely on china that we can't live without and will also start divesting there. Russian gas crunch was a tough and expensive lesson.
This is the best summary I could come up with:
Since Vladimir Putin’s full-scale invasion of Ukraine in February 2022, the bloc has left Russian gas unsanctioned — even as it slapped strict bans on oil and coal exports.
But with evidence mounting that Western efforts to drain Moscow’s fossil fuel revenues are falling woefully short, pressure has been building to go after gas.
In the end, negotiators relented to Germany’s concerns, dropping a clause it feared would harm small businesses, pending a study of the potential effects, three EU diplomats said.
But it has continued to import and resell Russian LNG, which is shipped by tanker in supercooled liquid form — representing a major embarrassment for the bloc as it attempts to starve the Kremlin’s war chest.
Germany argued that smaller, export-oriented companies will simply give up on some business in Asia or the Middle East that isn’t even connected to Russia, fearful about potential sanctions violations.
Last week, an official from Annalena Baerbock’s foreign ministry, granted anonymity to speak candidly, said they feared Germany’s delays were hurting Berlin’s attempts to shed its pre-war reputation for pushing Russia-friendly economic policies.
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This will just help growing USA economy
Well maybe a bit. But it also does other things. Like sanction russia.
I dont care if the US gets richer if the reason is russia getting poorer. But you care. So, why do you imply its bad that US economy might grow a bit?
In essence, this situation leaves the USA as the sole gas supplier. In a capitalist market, I'd prefer to buy affordable gas from Russia. Frankly, people in the USA have no right to spew their greedy rhetoric at me, considering their involvement in numerous wars for oil. Just a few examples that came to my mind for the record:
- Iraq War (2003)
- Gulf War (1990-1991)
- Intervention in Libya (2011)
- Invasion of Afghanistan (2001)
- Iran-Iraq War support (1980-1988)
- Intervention in Syria (2014-present)
- Intervention in Venezuela (ongoing economic and political intervention)
- Vietnam War (1955-1975)
- Korean War (1950-1953)
- Bay of Pigs Invasion (1961)
- Invasion of Grenada (1983)
- Invasion of Panama (1989)
- Somalia Intervention (1992-1994)
- Kosovo War (1999)
- Intervention in Yemen (ongoing support and involvement)
- Intervention in Lebanon (1982-1984)
- Support to Israel in numerous conflicts (ongoing)
Simple, Russia leave Ukraine to the Ukrainians and all economics will trickle back.
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How's growing American economy worse than growing Russian economy?
This will sure stop the war
Maybe not everything is about stopping the war. Maybe some of it is about not allowing Russia to use their money to fight it.
Is that possible, do you think?