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Friday, 04 August 2017

Periscope: US New Sanctions Highjack EU Economic Interests

The new resolution by the US House of Representatives to increase sanctions against Russia on the pretext of the intervention in the US presidential elections of 2016,  annexation of Crimea from Ukraine  and intervention in Syria is viewed by many observers as conflate to cove  the real intensions behind the decision that was agreed upon by the majority of democratic and republicans members of  the house. It would also sharply limit US president Tramp’s ability to lift sanctions against Russia. Tramp has previously said he needs diplomatic leeway with the Kremlin. 
These observers say that US oil and gas corporations are behind this resolution to reduce the flow of Russian gas to Europe which will enforce the European to buy American gas which is much more expensive. And that to muddy the water the resolution added Iran and North Korea.
But it seems that this time matters will not be easy as usual for the US to impose its hegemony on the world economic interests.
The first reactions came from the Europe Union President Jean-Claude said addressing the US president Donald Tramp that “America first does not mean that Europe will be the Last”.  Then added that the bloc would act within days if it does not receive reassurances on the potential impact of the new sanctions on European interests. The EU has previously coordinated with the US over sanctions in response to Russia’s annexation of Crimea but now it fears that the present resolution will harm its interest.
Also, the European Commission warned the US Congress that its proposed punitive measures against Russia would have what it called wide and in untended consequences. Brussels is especially concerned about the impact new US sanctions will have in the block’s efforts to diversify energy sources.  
Germany with a new investment plans of $ 10 billion in Russian gas in addition to older huge investments and dependency on Russian gas for both households and industrial use is not happy with this decision.
As a matter of fact Germany has already said it could retaliate if the United States move to sanctions firms involved with building new Baltic pipeline from Russia gas.
The coming days will see a lot of developments on this issue which if left to acierate can be the most dangerous threat to the US-European alliance and in particular Germany and France on one side and the US on the other.