MOSCOW
President Vladimir Putin on Thursday lamented the latest round of U.S. sanctions against Russia, saying they will stalemate bilateral relations and hurt not only Russian but also American businesses.
Russia’s benchmark MICEX plummeted 2.6 percent at the opening Thursday upon news of the sanctions while Russia’s biggest oil company, Rosneft, was nearly 5 percent down.
Putin’s comments came hours after President Barack Obama announced broader sanctions against Russia, targeting two major energy firms, a pair of powerful financial institutions, eight weapons firms and four individuals. The increased U.S. economic pressure is designed to end the insurgency in eastern Ukraine that is widely believed to be backed by the Kremlin.
The U.S. penalties, however, stopped short of the most stringent actions the West has threatened, which would fully cut off key sectors of Russia’s oil-dependent economy. But officials said those steps were still on the table if Russia fails to abide by the West’s demands to stop its support for pro-Russia insurgents who have destabilized swaths of eastern Ukraine.
Pro-Russia insurgents have been fighting government troops in eastern Ukraine for four months now in a conflict that the U.N. says has killed over 400 and displaced tens of thousands. The conflict took off shortly after Russia annexed the mostly Russian-speaking Ukrainian peninsula of Crimea.
In televised comments Thursday, Putin said the sanctions are “driving into a corner” relations between the two countries as well as the interests of American companies and “the long-term national interests of the U.S. government and people.”
Putin warned Washington that the sanctions will backlash against American companies working in Russia.
The most noticeable companies on the list are Rosneft and Russia’s largest independent gas producer, Novatek. Both are now barred from getting long-term loans from U.S. entities.
Moscow-based investment bank Sberbank-CIB said in a note to investors that Russian companies cannot replace long-term loans from the U.S. immediately.
“While Asian and Middle Eastern money can step in to fill the gap, we expect that this will take time,” the note said, adding that borrowing will also cost more.
Rosneft has a multibillion-dollar deal with ExxonMobil, which among other things allowed Exxon to develop lucrative oil fields in Russia.
“We gave this American company the right to work on the shelf,” Putin said in Brazil, referring to Exxon’s potential exploration on the Russian Arctic shelf. “So, what, the United States does not want it to work there now?”
Putin made no mention of the additional sanctions levied Wednesday by the 28-nation European Union, which urged the European Investment Bank to sign no new financing agreements with Moscow and was suspending operations in Russia financed by the European Bank for Reconstruction and Development. European nations have much closer energy and other economic ties with Russia and have not imposed as tough sanctions as the United States.
Igor Sechin, Rosneft’s CEO and a close confidante of Putin, dismissed the sanctions as “unfounded, subjective and unlawful,” adding that his company “had no role in the events in Ukraine.”
Sechin said their lawyers have to yet to explore how hurtful the sanctions could be but added that the company has enough money in reserves to refrain from taking out new loans for a while.
Rosneft posted $2.5 billion in net profit in the first quarter of the year and about $3.5 billion in free cash flow.
“This is the wrong way,” Sechin said, referring to the sanctions, in comments carried by Interfax. “But I think God sees everything and will put things right.”
Russia and Ukraine are a single country temporarily separated by the machinations of the CIA. They should forget everything and re-unite with the help of other republics that were part of the same country, with no role for the EU or the UN. A body of representatives of the former republics including Russia and Ukraine should by consensus make all decisions which everyone has to abide by. The separate republics are the result of a voluntary dissolution of a utopian state because of its leaders’ willingness to experiment. By now it is clear that the republics should re-integrate.
Ukrainians should at least suspend their strife till after the destruction of the United States. Indian are going crazy that, in response to my reference to Modi fighting for a U.S. visa, the United States wants to “honor” Modi by having him address a joint session of U.S. Congress. They are silent about the honor given to the greatest Indian of all time:- ""India's greatest scientist and greatest living Indian publicly tortured in Harvard seminar, systematically and totally starved for up to 3 weeks at a time, made semi-starved and homeless and even blind for years, kept under 24-hour audio and video surveillance as well as surveillance of [and interference with] communications and electrical typewriter and computer use, document creation and photocopying, etc., by satellite for more than past 3 decades, systematically harassed and in poverty and neutralised and robbed of his work at the cost of hundreds of millions of dollars per year, robbed of crores in his money and property in India by C.I.A.-RAW, forced back into exile in the U.S., all with full cooperation and participation of India's RAW and India's C.I.A.-RAW-controlled prime ministers, politicians and media — to keep India poor, weak and enslaved" and how this means the nuclear destruction of New Delhi and then the coast-to-coast destruction of the U.S.; see my blog titled 'Nuclear Supremacy For India Over U.S.' which can be found by a Yahoo/Google search with the title; my biography can be found in Marquis' Who's Who in the World, 2014 and earlier editions." In the past few years I have had India's nuclear forces emplace India's nuclear warheads in Washington, New York and other U.S. cities, ready to be exploded. Simultaneously destroying Washington, New York and New Delhi (RAW headquarters, South Block and North Block) with a warning that additional U.S. cities will be similarly destroyed, with nuclear warheads already emplaced in them, if there is any retaliation or sign of retaliation, will immediately make India the supreme military and economic power in the world even before implementing my proposal about money which can make India’s economy grow 30% per year or more. IndiasLegitimateRulerSatishChandraDOTblogspotDOTcom Satish Chandra
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