Transnational Opposition to Russian Sanctions Wednesday, March 19, 2014 By James H. The Daily Bell in the report, As Predicted, Ukraine Crisis Used to Argue for a Centralized Europe, cites that “The billionaire financier told The Daily Beast that European governments should have seized on Russias land grab in Crimea to breathe new life into a union that is disintegrating and stumbling towards oblivion.” Further into the article,“It is interesting as well that Soros has a new book out on the very issues that he is now championing. Did Soros have some special, insider information that such a crisis was looming? This would certainly correspond to our suspicions about what we call directed history.This is the same clandestine manipulator who “backed the so called liberation thugs that engaged in street warfare as part of a western inspired scheme that used George Soros operative fronts as cover.” Such a paradox should not escape the transnational companies that bear the ultimate financial loss from a speculator who extracts ill-gotten gain from shorting the fortunes of such enterprises.Here lies the political push back from the corporatists that want to protect their economic business with Russia. The old cold war byword, attributed to preventing global annihilation, known as MAD is now a new confrontation of MAED – mutual assured economic destruction. Sanctions against Russia will blowback against the EU in ways that the technocrats in Brussels and the fools in Washington DC are unable to envision. The Washington Post states in the article, As talk of sanctions on Russia heats up, business groups draw cautionary line: “What we’ve been hearing from our members is a lot of concern that there are two ways America gets hurt in a game like this. One is by American sanctions, that put them out of business, and the other is by Russian retaliation, regardless of what we do,” said William Reinsch, president of the National Foreign Trade Council. In meetings with the administration and members of Congress, “we have not been shy about telling them . . . if it is not multilateral, it is not going to work,” he said. However, even this notion tragically lacks a sense of much needed economic consistency for any meaningful rebound in economic prosperity. The Wall Street Journal article, Ukraine Tensions Hit Global Companies, illustrates this concern with several examples. PepsiCo Inc., has billions of dollars at stake in Russia, its second-largest market by revenue after the U.S. Renault SA and other global automakers have invested heavily in Russia, a relative bright spot in an otherwise-dismal European car market.Russia is the largest market for French dairy group Danone SA, accounting for 11% of sales in 2013. Shares in Danish brewer Carlsberg AS, which generates more than a fifth of its sales in Russia, fell more than 5% Monday. Archer Daniels Midland Co., runs a crushing plant in Ukraine, alongside eight grain-handling facilities, making the country ADMs second-biggest base in Eastern Europe, after Romania. Germanys E.ON AG owns a fleet of Russian gas and coal-fired power plants across key industrial regions of Russia, and is one of Gazproms single largest customers. Italys Enel SpA controls Russian power company OGK5. Shares in both companies fell Monday. Exxon Mobil Corp, one of the biggest foreign investors in Russia, has raised its bet on the country in recent years. Now consider the Trade Picture between the EU and Russia. Russia is the third trading partner of the EU and the EU is the first trading partner of Russia. Trade between the two economies showed steep growth rates until mid-2008 when the trend was interrupted by the economic crisis and unilateral measures adopted by Russia, which had a negative impact on EU-Russia trade. Since 2010 mutual trade has resumed its growth reaching record levels in 2012. EU exports to Russia are dominated by machinery and transport equipment, chemicals, medicines and agricultural products. EU imports from Russia are dominated by raw materials, in particular, oil (crude and refined) and gas. For these products, as well as for other important raw materials, Russia has committed in the WTO to freeze or reduce its export duties. The EU is the most important investor in Russia. It is estimated that up to 75% of Foreign Direct Investment stocks in Russia come from EU Member States (including Cyprus). The economic stakes are very high and all factions will be major losers in a reciprocating sanction trade war. Transnational corporations reflect the following sentiment. We in the business community do not want to be caught in the crossfire, said Myron Brilliant, executive vice president of the US Chamber of Commerce. Corporatocracy opposition to a deliberate sacrifice strategy invented by geopolitical theorists may well be the best move for stopping this lame attempt to gain a questionable tactical or positional compensation in some other form. This chess game has no winner among nations. A loss of economic commerce only helps the vile Soros maneuvers that seek to destroy productive business.
Posted on: Thu, 20 Mar 2014 09:45:21 +0000
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