Skip to comments.Merkel Warns Russia of Economic Consequences Over Ukraine
Posted on 03/28/2014 2:04:35 AM PDT by Berlin_Freeper
BERLINGerman Chancellor Angela Merkel on Thursday said Russia "can lose a lot" economically if it escalates tensions in Ukraine further and prompts Western allies to impose economic sanctions.
"It's not just about concrete sanctions. Russia also needs trade and movement, today we're all connected internationally" the chancellor said in a joint news conference with her Canadian counterpart.
Speaking in Berlin, Canadian Prime Minister Stephen Harper acknowledged the economic risks, particularly for Europe, in slapping further sanctions on Russia and said "we should proceed quite cautiously."
Mr. Harper added that the Russian economy is "quite fragile," and "when a major power is prepared to use military force to violate very fundamental concepts of its own borders and international law, the risks to the global economy are very significant in the long term."
(Excerpt) Read more at online.wsj.com ...
It certainly looked that way from the knowing, smiling glances that the Group of Sevens two longest serving leaders exchanged when I asked them about this on Thursday.
"This crisis in eastern Europe, casting its shadow over all of Europe, reminds us that Canada is one of the only countries with substantial oil reserves that is both an open economy governed by the rule of law and a stable liberal democracy," Baird said in Ottawa on Thursday. Latvia, Estonia and Lithuania are almost entirely dependent on Russian gas, Baird added.
"What does that do to their sovereignty? What kind of power does that give a regime to think its acceptable to rewrite the boundaries of the borders in the 21rst century?" Baird said. "So if anything, it underlines the importance of moving ahead responsibly on the export of not just our oil but natural gas. And its a reminder, its an important reminder, that not all opportunities are exclusively south of the border, or in the Asia-Pacific region, but also to our traditional allies in Europe."
Everyone needs to get off of Russian oil and gas so that Putin’s war machine grinds to a halt.
Word is that Putin challenged Merkel to take her shirt off and wrestle him. Winner must win two out of three matches.
I just don't know how serious some of these European countries are however. Look at the first sentence: ...said Russia "can lose a lot" economically if it escalates tensions in Ukraine further and prompts Western allies to impose economic sanctions.
If it escalates further. It's like they have accepted Crimeria is gone. All Russia would need to do is wait another couple of years and then pull another Georgia/Ukraine move, shear off territory, get some sanctions here and there, and then things go to normal.
Which means Europe has around 5 years to develop greater energy independence and develop a demonstrable defensive platform (that is believable). Otherwise this whole process will repeat itself unfortunately.