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On 2014-04-16, at 9:14 PM, Louis Proyect wrote: > > On 4/16/14 9:10 PM, Ken Hiebert wrote: >> I note two comments on the site challenging its authenticity. > > I saw that too. But I also saw Luke Harding's Guardian article that reported > on one of these Donetsk pro-Russian militants referring to the Jew Trotsky as > dividing the Slavs. Yes, there are Russian fascists and Ukrainian fascists and fascists in every society with varying, usually very small, degrees of influence. Here's where real power resides: EU sanctions push on Russia falters amid big business lobbying By Christian Oliver and James Fontanella-Khan in Brussels, George Parker in London and Stefan Wagstyl in Berlin Financial Times April 16, 2014 Europe’s resolve to impose tough sanctions on Moscow is cracking under corporate lobbying, as companies warn governments that any retaliation from the Kremlin could cost them dearly. Diplomats fear that talks in Geneva on Thursday between the US, Russia, Ukraine and the EU will prove fruitless in tackling the crisis over the occupation of local government buildings in eastern Ukraine by pro-Russian militants. If the talks fail, EU leaders are expected to meet next week to discuss broad economic sanctions against Moscow. But even before such a meeting, the fissures between countries are evident. “Are the member states united on this? No. Are they willing to die for Ukraine? I don’t think so,” a senior European official said, noting that sanctions would demand a consensus from the 28-member bloc. In Germany, the chemical group BASF has been among leading companies advocating caution. In Italy, the energy company Eni is arguing that Europe, which imports 30 per cent of its gas from Russia’s Gazprom, is no position to impose energy sanctions on Moscow. BP is at the forefront of a group of companies who have told British MPs and ministers they are at risk if EU governments decide over the next few days to impose economic sanctions on Russia. British officials have told the Financial Times that BP has warned ministers of possible repercussions if relations with Moscow deteriorate: BP has a 20 per cent stake in Rosneft, the state-controlled oil company. Both Britain and Cyprus are concerned about risks to their financial sectors. In the latter, Russian depositors play a critical role. Britain already appears to be considering weaker sanctions against Russia over its support for pro-Russian militia in eastern Ukraine than originally anticipated. Britain says it is looking for agreement on blocking Moscow joining the OECD, the Paris based group that aims to promote sustainable growth, and accelerating action in World Trade Organisation cases against Russia. Germany is guarded about what measures it favours. Sigmar Gabriel, the economy minister, said it was “in Russia’s hands to prevent a further escalation that would lead to economic sanctions”. Britain’s proposed measures fall well short of the action against Russia’s trade, banking and energy interests that the European Commission has been entrusted with considering. “Sanctions come with an implicit hierarchy starting with trade and escalating through finance and energy. Getting agreement on trade sanctions will be easier but that alone is unlikely to constrain [Russian president Vladimir] Putin’s behaviour,” said Mujtaba Rahman, head of European analysis at the Eurasia Group risk consultancy. The Obama administration has been preparing new sanctions on Russia which could be unveiled as early as Friday if the Geneva talks achieve little. According to congressional aides familiar with the discussions, the likely targets who will be added to the sanctions list include more businessmen close to Mr Putin and potentially another Russian bank or state-owned company. However, broader sectoral sanctions are not considered likely at this stage. However, US business groups have also lobbied the administration against introducing sanctions that might lead to retaliation against US interests. The US is also wary about getting too far ahead of the EU in its sanctions. European countries have resented the US’s hectoring tone on the need for sterner measures against Russia, when the EU’s trade relationship is almost a dozen times bigger than America’s. On one side of the European debate, the Baltic nations and Poland favour strong action against Moscow, while accepting that Russian retaliation could be painful. On the other, Italy and Germany are more reticent about sanctions, partly because of lobbying from their leading companies. Polish officials have accepted that a showdown with Russia could sever some gas supplies, often used for chemical and fertiliser plants but said they would have to endure those losses. The European Commission is preparing scenarios for possible sanction measures and EU foreign ministers noted that these were “almost finished”. But within the commission, officials are severely divided on the options. Karel De Gucht, the trade commissioner, is hawkish, while Antonio Tajani, the industry commissioner, argued that Europe cannot afford a clash. “We are not the US, we don’t have shale gas as they do, so any move to sanction them [Russia] would hurt our companies a lot,” he told the Financial Times. “At a time when Europe is getting back on its feet after the worst crisis in decades we need to be very careful and use our judgment before shutting down important investment and trade relations such as the ones we have with Russia.” Additional reporting by Kiran Stacey in London and Geoff Dyer in Washington ________________________________________________ Send list submissions to: Marxism@greenhouse.economics.utah.edu Set your options at: http://greenhouse.economics.utah.edu/mailman/options/marxism/archive%40mail-archive.com
