Do EU's Ties To Russia Rule Out Any Serious Sanctions?
Sober Look | May 12, 2014 02:25AM ET
Many were outraged recently when the trade data showed Russian exports actually rising in the face of the so-called "sanctions".
Bloomberg: - The world’s largest energy producer shipped 2 percent more gas to Europe in the first three months of 2014 than it did in the same period last year, government data show.
But the reality on the ground is that the EU has no appetite for any real sanctions against Russia. Here are some reasons:
1. It's well known that in the post-Soviet era, the EU had developed an unprecedented dependence on Russian energy.
Given the vulnerability of the Eurozone's economy, there is zero appetite for an energy disruption at this point.
see post ), the Russian authorities have enormous control over the nation's corporations.French banks are particularly exposed.
4. There are also historical reason that some EU nations, particularly Germany, do not want to rock the boat with Russia. see article from the FT ). Without the EU leadership, there is very little that Western nations can realistically do about this situation.
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Written By: Sober Look
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