Who is more affected by sanctions: Europe or Russia?


May 19, 2015

By Cristian Barberi (Italy)

Among many tragedies that are affecting the European Union are the sanctions that are the latest brainchild of the “smart” Eurocrats. Since Putin annexed Crimea rounds of sanctions have been imposed on both sides hurting only small businesses, in full compliance with the corporate philosophy. 

The schizophrenic attitude that EU has been showing over the last 12 months is due to two conflicting dynamics: the will on behalf of the small businesses and European local politicians to lift the sanctions, and the Eurocrat’s urge to impose sanctions on Russia knowing that Putin will do the same. 

Someone might argue: what’s the point and the aim of all this “firing” of sanctions at each other? The consequences have been coldly calculated (at least on the European side) and not miscalculated as someone wants to convince us. A study by a non-partisan organization, the Peterson Institute for International Economics, in 2008 showed that in 200 cases of sanctions  only 34% of them were successful from the perspective of foreign policy. 

So what’s the point of hurting Putin, when what the EU is doing is tantamount to shooting itself in the foot? The Eurocrats know that they have only 34% chance to hurt Russia in a substantial way, so why have they decided to “fire the rounds” of sanctions anyway? The reason is very simple: to hurt small businesses and citizens  across the EU. This is their real aim. The EU since the early days of the introduction of the Euro has become increasingly a dictatorial financial entity in the hands of few technocrats manipulated by high-ranking banksters. They want widespread poverty and high taxation, they want a Soviet Union-like entity which crushes all individual needs and aspirations. There’s not only a political and economic design behind the EU, but above all – a “spiritual” one, the intention of which is to control European citizens. Even an important character like Federico Ghizzoni, chief executive of the Italian bank Unicredit (Italy’s biggest bank by assets with many branches in Eastern Europe and Russia) at the end of 2014 stated, that the sanctions caused Russia problems, but that caused Europe even bigger ones. 

We have to consider that the Spanish agricultural sector has been badly affected by the sanctions, not mentioning the damage afflicted to the food industry in Italy, France, Germany and Poland. As for the media, it almost totally ignores the extent of the damage in Europe by publishing dubious data about the real situation and downplaying in full Soviet-style the consequences.

The situation caused by the sanctions highlights the very essence of the European Union, just like the introduction of the Euro and the financial integration (not political) of the core countries – a financial dictatorship with the utmost disregard for the needs of European citizens. At the end of the day, they are using Putin (once more) only for the sake of their agenda, that is – to impoverish Europe and allow wealth to be transferred from citizens to the notorious 1% through banks by drying up the real economy and most of societies of money. In all this is the hypocrisy of financial institutions like the IMF, which expressed its concerns about the problems of the Russian economy, because it would affect the European economy for the obvious reason that many European banks have large operations in Russia, accounting for more than one third of the yearly profit; those banks are Italian, French, Hungarian and Austrian, and all have subsidiaries in Russia. 

As for small European countries such as Netherlands, Ireland and Luxemburg, they have 5% of their foreign investment in Russia, it’s no trifle. In the end we have the three Baltic States, “Russia’s sworn enemies”, that have been badly affected by sanctions since their exports to Russia range between 11% and 20% of their total export. 

To put it bluntly if you are looking for a hidden hand (not so hidden actually) that changes society, in Europe there’s quite a big one wreaking financial and social havoc; the only positive thing in Europe is that a police state hasn’t been established yet like in the US…. but who knows what lies in store for us Europeans?

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