Category: Ukraine

From The Frontlines of the Sanctions War

UK Sun- SANCS A LOT Welcome to sanction-hit Russia, where prices are DOWN as Brits suffer from soaring inflation

After Russia invaded Ukraine in February, Boris Johnson vowed that Western sanctions would “hobble the Russian economy”.

In March, Liz Truss as Foreign Secretary announced 65 sanctions and fiercely declared: “Putin should be under no illusions. We are united with our allies and will keep tightening the screw on the Russian economy to help ensure he fails in Ukraine. There will be no let-up.”

But six months on, while we are paying the price for the invasion with a crippling cost-of-living crisis, locals in Moscow are upbeat.

Related

Net Zero

Financial Times- Russia switches off Europe’s main gas pipeline until sanctions are lifted

Russia’s gas supplies to Europe via the Nord Stream 1 pipeline will not resume in full until the “collective west” lifts sanctions against Moscow over its invasion of Ukraine, the Kremlin has said.

Dmitry Peskov, President Vladimir Putin’s spokesman, blamed EU, UK and Canadian sanctions for Russia’s failure to deliver gas through the key pipeline, which delivers gas to Germany from St Petersburg via the Baltic sea.

Then there’s OPEC…

ZeroHedge- Oil Surges After OPEC+ Agrees On 100Kb/d Production Cut

Something Very Strange is Happening with the Ukraine War

Diplomacy Watch: Did Boris Johnson help stop a peace deal in Ukraine?

Russia and Ukraine may have agreed on a tentative deal to end the war in April, according to a recent piece in Foreign Affairs.

“Russian and Ukrainian negotiators appeared to have tentatively agreed on the outlines of a negotiated interim settlement,” wrote Fiona Hill and Angela Stent. “Russia would withdraw to its position on February 23, when it controlled part of the Donbas region and all of Crimea, and in exchange, Ukraine would promise not to seek NATO membership and instead receive security guarantees from a number of countries.”

The news highlights the impact of former British Prime Minister Boris Johnson’s efforts to stop negotiations, as journalist Branko Marcetic noted on Twitter. The decision to scuttle the deal coincided with Johnson’s April visit to Kyiv, during which he reportedly urged Ukrainian President Volodymyr Zelensky to break off talks with Russia for two key reasons: Putin cannot be negotiated with, and the West isn’t ready for the war to end.

Good Luck With That

Financial Times- How would a G7 price cap on Russian oil would work?

On Friday, finance ministers from Canada, France, Germany, Italy, Japan, the UK and the US gave the go-ahead for such a scheme, declaring that it would “build on and amplify the reach of existing sanctions”.

The success of the proposals will hinge on the readiness of big importers of Russian oil, including India and China, to go along with the scheme. So far, neither country has indicated a willingness to participate. Russia has warned it would retaliate against any country that takes part by withholding shipments of oil.

SchadenFrozen

Behave yourselves in the comment section I’ll be checking in now and then to make sure things don’t get out of hand. Vigorous debate is fine, but let’s keep the insults and dehumanizing stuff down to a dull roar.

Global- Russia’s Gazprom extends Nord Stream 1 shutdown, citing faulty turbine

It said the turbine could not operate safely until the leak was repaired, and gave no timeframe for the resumption of gas supplies via the pipeline, which had been due to return to operation early on Saturday after a three-day maintenance break.

Addendum, from Kate: Francisco has my full backing. I’ve considered closing comments here recently due to the repeated abuse of this platform by a handful of people who use it as their private pissing match game board. Remember that everyone who posts and curates this blog is a VOLUNTEER. We all have real lives and real livelihoods to pursue. Don’t be a net drag on this blog. If you haven’t anything relevant and on topic to add, then keep your fingers off the keyboard.

Take That, Putin

Wien Energie, Austria’s largest energy supplier is “Not broke” (Google translate)

Austria was surprised when it was suddenly announced on Sunday morning that a crisis summit on energy prices was to take place in the Chancellery on the same day. […]

Wien Energie stated on Sunday evening that it was “not insolvent/bankrupt”, but because of the explosion in electricity prices across Europe, the “necessary security deposits had risen unexpectedly”. “Wien Energie & Wiener Stadtwerke are solid, economically healthy companies with excellent credit ratings.”

They just can’t raise the collateral.

The City of Vienna subsidiary had to deposit between 1.7 and 1.8 billion euros as security at the beginning of the week, according to media reports. “The city of Vienna is said to have helped out in the past few weeks with a guarantee worth billions, but is now reaching its limits,” writes the “Kronen Zeitung” in its online edition. Now it needs collateral from the federal government.

In response to the media reports, the FPÖ called for “immediate and complete clarification” of Wien Energie’s financial situation. “If it is actually true that the City of Vienna has already given money to the city-owned company in the past without informing the municipal council, then this will have far-reaching consequences,” said the Viennese FPÖ state party chairman Dominik Nepp in a broadcast on Sunday.

The Viennese VP quickly announced a press conference on the subject of “Financial scandal Wien Energie? Rescue of the company, investigation and political consequences”. Club chairman Markus Wölbitsch and finance spokesman Landtag President Manfred Juraczka were announced as participants of the media event at the ÖVP headquarters in Lichtenfelsgasse.

According to the Minister of Finance, other state energy suppliers are not currently in financial difficulties. “At the moment it’s just about Wien Energie,” said Brunner in “ZIB2”.

“At the moment”.

Not a Square to Spare

A sticky situation.

YLE News- Finnish firm warns of toilet paper shortage as energy costs wipe out production

Metsä Tissue has previously announced temporary production stoppages at its plants in Germany and Slovakia earlier this year, and the situation has deteriorated further since then.

The company sells its products under various brands — including Lambi and Serla — and has a total of nine paper mills in Europe.

Take That, Putin

Regina: Evraz steel workers feel uncertainty

Earlier this month, Evraz PLC announced it has plans to sell off its North American assets. With its largest shareholder a Russian billionaire, the company has been challenged by sanctions enacted due to the ongoing war in Ukraine.

“We’re bystanders in the conflict,” Day said.

“The members and the workforce should not be punished for things beyond our control.”

Still, with the future of the plant unknown, workers have experienced confusion and uncertainty, Day said.

“Everybody is worried about their future,” he said, but added that the situation is “out of our control.

”The task at hand, he said, is for workers to go to work and go home safe to their families.

“Worrying about what’s going to happen or who’s going to buy us, if they sell, it’s just going to add stress to an already dangerous job.”

Down The Primrose Path

Why Are We in Ukraine?

On March 24, a month after Russian tanks rolled across Ukraine’s borders, the Biden White House summoned America’s partners (as its allies are now called) to a civilizational crusade. The administration proclaimed its commitment to those affected by Russia’s recent invasion—“especially vulnerable populations such as women, children, lesbian, gay, bisexual, transgender and intersex (LGBTQI+) persons, and persons with disabilities.” At noon that same day, Secretary of State Antony Blinken tweeted about the “massive, unprecedented consequences” American sanctions were wreaking on Russia, and claimed Russia’s economic “collapse” was imminent.

Never has an official non-belligerent been more implicated in a war. Russia and its sympathizers assert that the U.S. attempt to turn Ukraine into an armed anti-Russian camp is what the war is about in the first place. Even those who dismiss this view will agree that the United States has made itself a central player in the conflict. It is pursuing a three-pronged strategy to defeat Russia through every means short of entering the war—which, of course, raises the risk that the United States will enter the war. One prong is the state-of-the-art weaponry it is supplying to Ukraine. Since June, thousands of computer-guided artillery rockets have been wreaking havoc behind Russian lines. A second prong is sanctions. With western European help, Washington has used its control of the choke points of the global marketplace to impoverish Russians, in hopes of punishing Russia. Finally, the U.S. seeks to rally the world’s peoples to a culture war against an enemy whose traditionalism, even if it does not constitute the whole of his evil, is at least a symbol of it.

It would be foolish to bet against the United States, a mighty global hegemon with a military budget 12 times Russia’s. Yet something is going badly off track. Russia’s military tenacity was to be expected—bloodying and defeating more technologically advanced armies has been a hallmark of Russian civilization for 600 years. But the economic sanctions, far from bringing about the collapse Blinken gloated over, have driven up the price of the energy Russia sells, strengthened the ruble, and threatened America’s western European allies with frostbite, shortages, and recession. The culture war has found few proponents outside of the West’s richest latte neighborhoods. Indeed, cultural self-defense may be part of the reason India, China, and other rising countries have conspicuously declined to cut economic ties with the Russians.

There have been signs for years that a new Iron Curtain was about to drop on the European continent. In 2008, the U.S. announced plans to bring certain non-Baltic republics of the former Soviet Union—notably Ukraine and Georgia—into NATO and the American sphere of influence. Should Ukraine prevail in this proxy war the U.S. will have succeeded, in a way. But it will have done so at an almost unspeakable price. It will have undermined the international economic architecture on which rests its control of global markets (and its ability to safely run government deficits). It will have carried out a shotgun wedding of Russia and China, forcing the most natural-resource-rich country on the planet into the arms of the West’s most dangerous adversary. Should Ukraine fail, the Ukraine policy of the Bush, Obama, Trump, and Biden administrations will be counted among the significant foreign policy blunders in American history.

Via Instapundit.

The Sanctions War

Financial Times- A winter energy reckoning looms for the west

This coming winter will bring a reckoning. Western governments must either invite economic misery on a scale that would test the fabric of democratic politics in any country, or face the fact that energy supply constrains the means by which Ukraine can be defended.

Associated Press- Russia’s war at 6 months: A global economy in growing danger

The U.N. Development Program said rising food and energy prices threw 71 million people worldwide into poverty in the first three months of the war. Countries in the Balkans and sub-Saharan Africa were hit hardest. Up to 181 million people in 41 countries could suffer a hunger crisis this year, the U.N. Food and Agriculture Organization has projected.

CNBC- Russia is China’s top oil supplier for a third month in July, customs data showed

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