Wednesday, March 4, 2015

US sanctions lead to the collapse of the dollar as the world reserve currency – Proceedings

US sanctions lead to the collapse of the dollar as the world reserve currency

Photo: REUTERS / Carlos Garcia Rawlins

US President Barack Obama on the night of March 4, said the extension of anti-Russian sanctions for another year. The press service on the White House website states that the decision is related to the Russian policy toward Ukraine, which “creates a unique and extraordinary threat to the national security and foreign policy of the United States».

– I prolong the state of emergency declared at the disposal of 13660 – quoted Obama’s presidential press service.

This regulation came into force on March 6, 2014 and valid until March 6, 2015. Extension of the regime of national emergency for another 12 months means that sanctions against Russia will last until March 6, 2016.

This decree gives the right to impose additional package of sanctions against Russia because of the Ukrainian crisis .

According to the United States has taken measures to block the assets of individuals and legal entities, “threaten the sovereignty and territorial integrity of Ukraine and undermine democratic processes on its territory.” In a later Sanctions Packages means restrictive measures concerning entire sectors – energy, financial and defense.

White House spokesman Josh Ernest also said that the US government is still considering the possibility of sending lethal weapons to help Kiev troops.

The move looks very strange when you consider the words of US Secretary of State John Kerry on March 2 after meeting with Sergei Lavrov. Then he stressed the significant success in the implementation of the Minsk Agreement and expressed the hope that the decisions taken in Minsk, will be fully implemented in the coming days.

This was pointed out in the Foreign Ministry. According to Foreign Ministry spokesman Alexander Lukashevich, “as soon as there are signs of a peaceful settlement of the acute crisis in Ukraine, in Washington, who had a hand in last year’s coup in Kiev again begin to rock the situation».

– Here and now, when it becomes a reality ceasefire agreed on February 12 in Minsk with the assistance of Russian President Vladimir Putin, the Obama administration has again rocked the air threats, announcing the extension of the previously imposed sanctions and its promising new. As against our country and against the DNI and LC – written in a comment on the site Lukashevich Russian Foreign Ministry. – What is this if not an attempt to destroy the timid shoots of trust between them and the Ukrainian authorities to undermine or even derail the peace process? Would like to see the US finally thinking about the consequences of their decisions and actions. Especially that no sanctions will not change the principled stand of Russia. It is time to understand Washington.

Chief Energy Specialist consulting firm Casey Reserch Marin Catus considers the decision of the White House to use anti-Russian sanctions mistake that leads to an escalation of the already tense relations of Russia and the United States . Especially that the restrictions harm the United States itself.

– While the effect of US sanctions can not be assessed in the short term, in the long-term projections anti-Russian measures – this is another step on the way to the final the collapse of the dollar as the world reserve currency – said Catus.

As for the impact on the Russian economy, in the opinion of Catus, even a cursory analysis shows that the Russian energy exports continue to grow, despite the imposed restrictions.

The first example is a coal exports to European countries most dependent on cheap fuel. According to experts, the German coal imports, a third of which comes from Russia, made in 2014, the highest since 2006, as importers took advantage of the collapse of the ruble and the fall in oil prices. Poland – the second largest consumer of Russian coal.

However, there is an alternative Russian coal – the fossil fuel from the United States. However, European importers are in no hurry to move to supply the American manufacturer, since there are several advantages: coal from Russia easier to obtain, it is cheaper and produces less sulfur compared to the American counterpart, and thus more suitable for environmental regulations.

Anti-Russian sanctions could bring trouble and on the US nuclear energy sector, if they are affected by the Russian nuclear industry. Thus, according to the US Nuclear Security Administration, more than 50% of the fuel used in US nuclear reactors, produced from Russian uranium.

In addition, according to the Financial Times columnist Henry Foy, countermeasures by Russia also affected the US companies that supply poultry to Russia, causing losses occur – about $ 300 million a year.

The report of the White House at the end of a video conference on March 3 heads of the US, France, Germany , Italy and the United Kingdom with the participation of European Commission President also means that the US and EU are ready for concerted action in relation to Russia in case of failure of the Minsk Agreement of 12 February.

«They reaffirmed their readiness to rapid and coordinated action to significantly increase the price for serious violations of the Minsk agreements or under the condition that Russian-backed militias will attempt to capture new territories “, – says the White House.

However, the statement about the possibility of the introduction of new anti-Russian EU measures or renewing after the US looks stretched those who pressure on Russia and its isolation profitable.

According to the Minister of Economic Development of Russia Alexei Ulyukayev on March 3 after talks with EU Trade Commissioner Cecilia Maelstrom, EU shares the position of the Russian Federation to mitigate the sanctions regime.

In addition, March 3 is the second EU country – Greece – has asked Russia to partially cancel instituted in response to European anti-Russian grocery embargo restrictions. This was asked Deputy Agricultural Development Greece Panayiotis Sguridis at a meeting with a representative of the Ministry of Agriculture Alexei Alekseenko. Previously, such a request made Hungary.

– Restrictive measures adopted by the EU’s Russia can not be productive and do not solve the problem of Ukraine. It should be understood sane people. On the contrary, sanctions create tension between the parties, bordering on hatred. Of course, there is a coalition of the EU wishing to adopt these measures, but in my head they keep thoughts about the restoration of peace in the south-eastern Ukraine, and pursue the goal to weaken Russia – said “Izvestiya” Greek MEP Sofia Sakorafa. – They are directed against the development of the agricultural industry in Greece. The embargo was ruining our people and has a negative effect on the Greek economy.

During his visit to Moscow on 1 March, the President of Cyprus Nikos Anastasiadis met with Russian President Vladimir Putin, the results of which said that the sanctions policy of harm to members of the EU, which are dependent on Russia, in particular, Nicosia, enter into relations with Moscow on military-technical cooperation and tourism.

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