We dealt with this before....
Posted on 08/05/2014 6:01:13 PM PDT by tcrlaf
The Russian prime minister, Dmitry Medvedev, has threatened to retaliate for the grounding of a subsidiary of Aeroflot, the national airline, because of EU sanctions, with one newspaper reporting that European flights to Asia over Siberia could be banned.
Such a move would enforce costly detours on airlines, including Lufthansa and IAG, owner of British Airways, as more fuel would be needed for extended routes.
Low-cost carrier Dobrolyot, operated by Aeroflot, suspended all flights last week after its airline leasing agreement was cancelled under European Union sanctions because it flies to Crimea, a region Russia annexed from Ukraine in March.
"We should discuss possible retaliation," Medvedev said at a meeting with the Russian transport minister and a deputy chief executive of Aeroflot.
The business daily Vedomosti reported that Russia may restrict or ban European airlines from flying over Siberia on Asian routes. It quoted unnamed sources as saying that the foreign and transport ministries were discussing the action, which would put European carriers at a disadvantage to Asian rivals, but would cost Russia money it collects in overflight fees.
(Excerpt) Read more at theguardian.com ...
For European airlines, this could crush their most profitable routes, add billions in costs, and give their Asian competitors an advantage lasting years. And it would be very visible to Europe's wealthiest and most politically active.
Besides the sanctions-canceled leases forcing Dobrolyot's closure, three other Russian Holiday carries are being forced to close for the same reason. Aerofolt losing $20-25 mil a month in over-flight fees if this goes through is just a drop in the bucket.
Between this, and rumors of closing or limiting access to the "Silk Road" to and from Asia, it seems Russia's counter-sanctions will be designed to put major pressure on US allies, and not us directly.
If Iran plays along with it (they just signed a $20 Billion dollar oil contract yesterday), this could really hurt. We'll see.
Europeans might want to avoid flying near Russia anyway unless they want to be murdered like the hundreds of innocent people on the Malaysian airliner slaughtered by Russian terrorists.
A boycott of tourist flights to Russia might hurt.
Or they’ll what - shoot them down?
Two thirds of Russia’s export revenue comes from oil and gas sold primarily to the EU. Europe has some leverage as well. If Russia wants to raise the stakes, they could be shooting themselves in the foot.
Looks like Russia has options too. LOL!
“Europe has some leverage as well.”
Until it gets cold....
Europe nearly ran out of gas this winter, with Russia pumping everything they could.
At one point this winter, the UK was down to just SIX DAYS of gas reserves.
Norway has said several times that they can’t up production, and the econazi’s in the UK won’t let them go for it, either.
Hey I’m curious how far do these trade retaliations go you think. I mean economic warfare never lead to a shooting war right? Well I no sanctions but escalatory trade, financial and business sanctions are supposed to last until the opponent cracks.
So who do you think will break before it becomes to costly?
So what???
Russia gets fly-over fees for every flight over their territory and this will hit Russia where it hurts them the most — in the pocketbook.
“So who do you think will break before it becomes to costly?”
Not sure...
We don’t have a lot of real leverage on Russia (Obama WILL NOT, under any circumstances, use Reagan’s “Cheap energy” strategy). and they don’t have much leverage on us.
The leverage, for both sides, is in Europe, with the smaller nations being the most vulnerable.
I think these are trial balloons, floated to gauge what the reactions will be.
As I said, the $10-20 million a month Aeroflot could lose by Euros not paying overflight fees is a drop in the buchet, in the big scheme of things. A pin-prick.
We dealt with this before....
“We dealt with this before.... “
Not under Obama...
we shouldn’t start tit for tat unless we have big tits
Ever try airlifting natural gas?
No but coal will do.
“No but coal will do.”
Well, no danger of THAT ever happening under this administration, is there.
“No but coal will do.”
They can’t burn it in their apartments and they’ve been TEARING DOWN their coal powerplants (along with nukes) to replace them plentiful Russian natural gas. Plus, do you REALLY think that the LEFT there will let them burn another kilogram of coal?
The Europeans are playing with fire...take away their gas and it’s back to the Middle Ages for them.
why would anyone go to russia now? it’s becoming more and more totalitarian/emperor-ish here everyday. no need.
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