Russia Wields $160 Billion Stick in Crimea Sanctions Standoff

[Purveyor]

By Joe Carroll and Rebecca Penty Mar 14, 2014 6:07 PM ET

Vladimir Putin’s control over $160 billion in oil and natural gas exports may be his most potent weapon in Russia’s face-off with Europe and the U.S. over Ukraine.

As Crimea prepares to vote Sunday on whether to return to Russian control, the U.S. and its European allies have few levers to deter Putin’s Ukrainian venture. Threats of visa bans and asset freezes haven’t rattled the Kremlin thus far -- six hours of face-to-face talks between the top U.S. and Russian diplomats ended yesterday without a deal.

Russia, the world’s largest oil producer, exported $160 billion worth of crude, fuels and gas-based industrial feedstocks to Europe and the U.S. in 2012. While shutting the spigot on Russian energy exports would starve the Moscow government of essential flows of foreign cash, the price may be too high for European consumers and it may not alter Putin’s plans, said Jeff Sahadeo, director of Carleton University’s Institute of European, Russian and Eurasian Studies.

“In the short term, this would be very difficult to do and it’s not clear it would even affect Russian behavior,” Sahadeo said in a phone interview from Ottawa. If the West “puts down the card of energy sanctions, it becomes a question of who blinks first.”

German Chancellor Angela Merkel, leader of the EU’s biggest economy, said yesterday her nation is prepared to bear the economic pain that would accompany Russian retaliation to any sanctions.

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http://www.bloomberg.com/news/2014-03-14/russia-wields-160-billion-stick-in-crimea-sanctions-standoff.html

[Wellstone ruled]

1. Russia and Puttie are toast,

by this time next week you will see a major turn around. Putin and his Pals are in real financial do do. With Oil crashing a the Ruble tanking,I give them a week and they will be busted.

[AnalystInParadise]

5. Pass the dutchie

on the left hand side dude.......you are dreaming

[FarCenter]

7. UPDATE 8-Brent rises by more than $1 ahead of Crimea referendum

http://www.reuters.com/article/2014/03/14/markets-oil-idUSL3N0MB1FC20140314

[dipsydoodle]

2. Germany would blink first.

.

[bluestate10]

3. I doubt it. I can see Middle Eastern oil making a big comeback in Europe.

Merkel isn't prone to making statements that she doesn't back up.

[AnalystInParadise]

6. Since the middle east is currently almost tapped out

on production how are they going to do that?

http://www.eia.gov/forecasts/steo/report/global_oil.cfm

[joshcryer]

4. That is like three times less than the IMF bailout.

It's nothing and the ruble would be rendered worthless. You don't dishonor debt holdings.

The USA would only hope Putin was that stupid.