“Dumb, Dumber, Deutschland:” following the US sanctions helps US, hurts Germany
As a citizen of the EU, are you feeling like you've been had?
The US wants to prevent the Baltic Sea pipeline Nord Stream 2, so Europe would buy less natural gas from Russia.
The EU had to impose sanctions against Russia anyway at Washington’s insistence.
At the same time, the US and EU have tightened their sanctions against Venezuela. The larger “context” of these processes can be understood only if one reads the following message on Bloomberg: “Amidst Venezuela sanctions, Russian oil sales to the US on steroids.” While the EU is to forgo Russian gas, Americans imported more oil from Russia in the first five months of this year than in 2016 and 2017 combined.
Meanwhile, US refineries are preparing for a tripling of Russian imports. As a citizen of the EU, are you feeling like you’ve been had?
By Jens Berger, in NachDenkSeiten.
Dumb, dumber, Deutschland – this is apparently the going view in the White House. When Germany and the United States jointly imposed sanctions on Russia, the burden of these sanctions was not evenly distributed. While European exports to Russia dropped by 10% and German exports by as much as 18% in the first year of sanctions, the US was even able to report an increase in trade volume of 6%.
Meanwhile, the US is one of Russia’s top ten trading partners and its sanctions against Venezuela are currently giving wings to bilateral trade between these two countries. The current trading volume is a good third higher than in the previous year.
Although Germany’s exports to Russia are now rising again slightly, they are still more than 25% below the levels prior to the imposition of sanctions. All in all, according to a study by the IfW, the US shouldered 0.6% of the decline in trade volume, while Germany’s economy had to cope with a staggering 40%.
Of course, the German government knew what she was getting into. If Germany proposed to the USA to sanction Mexico together, the imbalance would be comparable, except that the US would never engage in such stupidity.
Even more drastic is the imbalance in the sanctions against Iran. After the nuclear agreement of 2015 and the end of the sanctions, the trade volume between Iran and the EU almost tripled from 7.7 billion euros to 21 billion euros. The trade volume between Iran and the US amounts to 180 million euros – less than one percent (!) Of the Iranian-European value. Anyone who does not trade can also boldly announce a “complete withdrawal”, thereby extending their own sanctions to third countries.
Furthermore, German companies have to bow to US pressure and cease their dealings with Iran, even though Germany has not imposed any sanctions on Iran. Consequently, Germany also had to report a decline in its own trading volume due to the US sanctions. The fact that the expansion of sanctions by the USA to third countries like Germany contradicts just about any international law principle is another topic that is often ignored in this country.
So now Venezuela.
Unlike Russia and Iran, the US is indeed the most important trading partner for Venezuela along with China. However, the reverse is not true – the trade volume between the US and Venezuela, despite crude oil imports, is on par with foreign trade between the USA and the Philippines, Sweden or Austria. So the sanctions will not hurt the US economy anyway, and if the shortages in oil are compensated by Russia … all the better.
So then, the Germans are supposed to renounce their “Russian pipeline” while Uncle Sam imports Russian oil and turns the dumb German onto his own overpriced fracking gas. They even plan to subsidize the fracking gas from the US – from the “network users”, ie ultimately from the end customers who can not fight back and henceforth end up paying their “fracking levy” for the switch to the US as their gas supplier to the. And if on Sunday the Bavarian “Russian eater” Manfred Weber is elected and the perhaps as the next EU Commission chief, and the Baltic Sea pipeline Nord Stream 2 is even prevented, look at the stupid Germans really on the hook and can buy even more expensive fracking gas from the US. In the meantime they can change over to oil and the energy exported by LNG tankers to Europe.
If the federal government’s kowtowing to the US were not so obvious, one would have to ask at this point whether our government actually takes its citizens seriously at all.