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Russia may restrict import of Western cars, clothes in new sanctions tit-for-tat

Discussion in 'Europe & Russia' started by sangos, Sep 12, 2014.

  1. sangos

    sangos Lt. Colonel SENIOR MEMBER

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    [​IMG]
    RIA Novosti/Andrey Zhelnov

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    EU, Economy, Food, Oil, Politics, Russia, Sanctions, Vehicles
    Imports of Western cars and clothes into Russia could be restricted as part of a second round of “retaliatory” measures prepared in response to the sanctions against Moscow, says presidential aide Andrey Belousov.

    There are many sellers of non-agricultural goods in the West who are heavily dependent on the Russian market, the official said.

    That is true of car imports, for example, first of all used ones, that is true of certain types of consumer goods, which we are able to produce ourselves. Not all of them, but certain types of clothes,” Belousov said at the Samara Economic Forum on Thursday.

    The Ministry of Economic Development has already prepared a list of goods the import of which could be restricted, the official said, adding that the retaliatory sanctions have to be such as not to harm but to support Russian producers and consumers.

    On Friday, the EU put into effect a new package of sanctions against Russia, with a wide range of arms producers, energy companies and banks targeted, including the manufacturer of the world-renowned Kalashnikov rifles and oil major Rosneft.

    READ MORE: EU publishes Russia sanctions list: Energy, defense industries targeted

    Impact on blacklisted industries?
    The EU has restricted Russian arms producers as well as major energy companies Rosneft, Transneft, and Gazprom Neft from raising long-term debt on European capital markets.

    That will have no serious impact on Russian arms exports, a senior official at the sanctioned state-owned high-tech corporation Rostec said Friday, according to Itar-Tass.

    Experts believe the measures are unlikely have a short-term effect on the sanctioned industries.

    “The capital market is well-developed and you can attract resources in different regions of the world,” RIA Novosti quoted Dmitry Baranov, a senior analyst at asset management company Finam Management, as saying.

    An hour after the publication of the new EU sanctions list, the market reaction was quite restrained, with shares of energy firms Rosneft, Transneft and LUKoil even showing a 0.3 percent growth. By the end of the trading session Transneft added 1.83 percent, Rosneft grew 1.39 percent and Gazprom Neft went up 1.8 percent.



    [​IMG]
    RIA Novosti/Aleksey Nikolskyi

    The EU has also halted services Russia needs to extract oil and gas in the Arctic, deep sea, and shale extraction projects.

    Restrictions on developing oil and gas extraction in the Arctic could for the next 10-15 years be compensated for by onland projects in Siberia, according to Ivan Kapitonov, of the Russian Academy of the National Economy and Public Administration.

    Besides, according to the document on sanctions, they will not affect “the execution of an obligation arising from a contract or a framework agreement concluded before 12 September 2014”. That means, for example, that the existing projects of Rosneft and ExxonMobil in the Arctic cannot be put on hold.

    READ MORE: ExxonMobil, Rosneft start joint Arctic drilling in defiance of sanctions

    However, in the long run, the sanctions could hurt the industry, believes Grigory Birg, an Investcafe analyst, who says Rosneft is the most vulnerable as it has a lot of joint projects with Western companies financing initial expenses of geological exploration.

    That’s why potentially limitations on access to capital markets and the necessary technologies are capable of primarily hitting Rosneft,” Birg told RIA Novosti.

    European recovery at risk
    It’s not only the Russian companies and analysts that are assessing the damage already done and possible future damage from the “sanctions war.” Both the Russian and European economies are going to suffer, according to Politics First's editor Marcus Papadopoulos.

    Europe is starting to show signs of coming out of the recession,” he told RT. “These sanctions, should Russia place them back, which Russia has every right to do, it’s tit for tat, could have an adverse effect on that recovery for Europe.

    The first round of “retaliatory” sanctions was introduced by Russia on August 7. Moscow banned the import of agricultural products from the European Union, the United States, Canada, Australia and Norway.

    A month later an internal EU document, obtained by Reuters, estimated that the food embargo could cost the European Union €5 billion ($6.6 billion) a year.



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    Reuters

    Germany, Poland and the Netherlands are the top three food suppliers hit hardest by the Russian sanctions. The EU promised compensations for the affected farmers, but the amount of submitted claims for aid appears to be several times higher than EU’s annual trade with Russia.

    The European Commission has been forced to suspend its aid.

    READ MORE: EC suspends aid to farmers hit by Russian food ban after claims exceed annual trade

    Businesses in Germany, the EU’s largest economy, have already felt the brunt of the tit-for-tat sanctions.

    The German Chambers of Commerce (DIHK) surveyed 300 companies doing business with Russia and a third of them reported their turnover declining by up to 50 percent, according to Reuters. Medium and small-sized businesses are said to be hit the hardest.

    Sanctions threaten to either kill our business or hamper our future development, because we can’t operate as usual. The software industry is particularly sensitive to the lack of trust they cause,” CEO of Dresden-based software developer Robotron, Ulf Heinemann, told RT.

    Last year Germany made €36 billion doing business with Russia. Around 6,200 companies were involved, 10 percent of German exporters. About 300,000 jobs in Germany depend on trade with Russia.

    The German economy shrank by 0.2 percent in the second quarter of 2014 after it demonstrated a 0.7 percent growth in the first three months of the year.

    The German Finance Ministry explained in a report that it was “likely to have been related to the effect of sanctions and negative effects on confidence due to the Ukraine crisis."

    Russia may restrict import of Western cars, clothes in new sanctions tit-for-tat — RT Business
     
    omya likes this.
  2. Paliwal Warrior

    Paliwal Warrior Lt. Colonel ELITE MEMBER

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    how iwll it help ?

    those western countries will start exporting to rusia from thier chinese plants
     
  3. Zeus_@21

    Zeus_@21 Major SENIOR MEMBER

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    Not possible dear. It will be a ban on particular western brands. So, anything with a seal of GE, Ferrari etc can't enter Russia. It's a plus for Chinese brands like Lenovo, Xiaomi... :p
     
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  4. jonas

    jonas Captain SENIOR MEMBER

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    The new filthy rich Russians, many of whom are either Vlads cronies, supporters, or have made their fortunes due to his backing won't be happy. They are now used to their Western luxury goods,food, clothing and lifestyle. This will cause some resentment amongst them, bit by bit chipping away, at his power base.

    Vlads vision of another Soviet Union has never left him, likwise once a member of the KGB with there nasty devious ways has stuck with him. He will in the end like other dictators and power hungry meglomaniacs, come crashing down.:devilwork:
     
  5. Zeus_@21

    Zeus_@21 Major SENIOR MEMBER

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    None of our concern! It's a west vs Rus economic battle. We are just enjoying the show. :D :D :devilwork:
     
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  6. jonas

    jonas Captain SENIOR MEMBER

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    I can understand that, we have been enjoying the long running soap opera 'Friends' Staring India, China and Pakistan. I doubt whether the 'Putin Show' will last as long.:evilgrin::devilwork:
     
  7. Paliwal Warrior

    Paliwal Warrior Lt. Colonel ELITE MEMBER

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    right now looks like it is the Eu that is at the receiveing end more than the russkies

    it is the EU that is showing cracks in the sanctions game
     
    omya likes this.
  8. jonas

    jonas Captain SENIOR MEMBER

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    I don
    I don't think so Russia is feeling the hurt alright, and will continue to do so. They are not as self reliant as you seem to think.

    '
    The war has felt distant to most Russians. State television has manipulated its narrative of the conflict to soothe viewers’ feelings of inadequacy and imperial nostalgia, while talking up Western plots and machinations. A poll by the Levada Centre found that 77% of those surveyed said America was the main initiator of Kiev’s operations in the east. The secret burials of Russian paratroopers killed in Ukraine, only to be disavowed by the Russian state, have proved uncomfortable. But compared with the short-lived season of protest three years ago, Russian society seems docile and unthreatening. Another Levada poll found only 8% willing to join protests if they started, against 21% in 2011.

    Yet Mr Putin’s adventurism and revanchism will create new dangers for his regime. A falling rouble and a Kremlin-imposed ban on food imports from America and Europe means that inflation could hit 8% next year. That may spur a level of social discontent which the war itself has not. Existing sanctions, and the prospect of more to come, are dragging down Russia’s already faltering economy. Morgan Stanley forecasts a recession in 2015. Rosneft, Russia’s biggest oil producer, has asked the government for $40 billion to refinance its debts. Global oil prices have dipped below $100 a barrel, whereas the Russian budget is calibrated to balance at a price between $110 and $117 a barrel. Plugging those holes will be costly: Mr Putin must make awkward choices over what interests to offend. His likely response to economic hardship will be to blame Russia’s enemies abroad for starting a new cold war.

    Part of an article in the Economist.

    Russia and Ukraine: A brief intermission | The Economist
     
  9. Paliwal Warrior

    Paliwal Warrior Lt. Colonel ELITE MEMBER

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    it is not about being self reliant

    EU is dependent on Russian GAs

    while russia has a alternative market - china

    regarding foods ?

    there wont be much shortage as EU supplies are already ebing replaced by china

    anyways the basic food items shortage may cause inflation - but with china stepping in to supply it wont be much

    The Economist

    well it is used as a propoganda and opinion shaping tool by the west too frequently

    even du
     
  10. Anish

    Anish Lt. Colonel ELITE MEMBER

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    All that I can say is that if Putin had the weapons and capabilities Obama has the world would be more orderly and such small conflicts would be easily suppressed.

    Surely no country would then support fanatic beheaders like IS aka Free Syrian Army aka Al-Qaeda.

    The Kyiv forces have committed grave human rights violations regarding Ukrainian citizens of Russian origin. The entire cause is the racist euromaidan movement which was very reminiscent of a nazi operation.

    The Geneva convention was violated to a severe extent by Kyiv.
     
  11. ajithharish

    ajithharish 2nd Lieutant FULL MEMBER

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    Anyone who stands upto US overriding of Oil resources becomes be-headers.. Putin has made unbeatable moves to throw out US from precious middle east oil, US can't do shit about it.

    US is just cross with the fact that it is no longer the World Super-power neither economically or militarily or technologically. It has been completely drained, future of the world lies in BRIC & European Countries like - Germany, France, Austria etc. etc.

    US & UK can say bye bye to their seat of World dominance this 2015-16
     
  12. Anish

    Anish Lt. Colonel ELITE MEMBER

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    I have always been a supporter of US military action ACROSS the globe in the past. From Vietnam to Korea to Kuwait to Afghanistan. Iraq was pointless just to settle scores with Saddam.

    But this time what they did in Syria just shocked me. Blatantly supporting Al-Qaeda and that US public has been tricked into believing propaganda that Al-Assad is bad and FSA rebels are good.

    I have no doubt that by 2016 when next US general elections come the presidential debate is going to be centred on Obama's comprehensive failure in Middle East.

    Putin and CCP leaders are going to be the next US/UK style powers although Russia and China don't enjoy any close military ties and no strategic ties.

    Putin needs to build partners and satellite states worldwide in collaboration with India and China to replace a nation which has deadly toys being handled by an incompetent idiot (read obama).

    God dammit if you have weapons at least have the brains to use them properly
     
  13. Zeus_@21

    Zeus_@21 Major SENIOR MEMBER

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    Play on!! And let the world watch you with both eyes open...... nacho b**n ch**o nacho...:p
     
  14. layman

    layman Aurignacian STAR MEMBER

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    WE have seen assumptions for long time now... Nothing is gonna change.
    To all, age of physical conflicts are long gone and age of economical conflicts have dawned at the start of the decade.
    Still none has the muscle to take on US nor can they do anything about it. All they can do is bickering.
     
  15. HMS Astute

    HMS Astute BANNED BANNED

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    Putin is not an average Russian and every average Russian is not Putin. I have been travelling across Europe since the middle of last month and have met many Russians on the way (especially in Budapest, Lopar, Zagreb, Sicily, and Rome) and they are just ordinary human beings that want to have fun and have a good time in their daily lives. Russians love Western European products, culture, tradition, lifestyles, and cities for sure. Banning high end products from EU won't bring any prosperity to Russia...
     

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