US Sanctions Hurt Europe More Than America

US sanctions hurt Europe more than America (RT, July 18, 2014):

The Association of European Businesses (AEB), a Moscow-based business lobby, said that new US sanctions against Russia have a more severe effect on European than on American business.

The AEB says it “regrets” the US sanctions, and warns that they will stunt economic growth “not only in Russia”.

“These sanctions are more focused on the partners of European businesses than on the partners of American companies,” the group said in a statement on Thursday.

The US economy is much more isolated from Russia than Europe, which has much closer business ties with its neighbor. The AEB statement warned that sanctions will backfire and will hurt economic growth “not only in Russia, but also in Ukraine and in the EU.

The White House unveiled new sanctions against Russia targeting companies and institutions in the defense, energy and banking sectors of the Russian economy on Wednesday.

In its view, Russia hasn’t done enough to de-escalate the conflict in Ukraine.

Russian state-owned finance and energy companies Gazprombank, Vnesheconombank (VEB), Rosneft, and Novatek all came under sanctions. The US also extended sanctions to defense sector companies the Almaz-Antey Corporation and the Kalashnikov Group, made famous for its production of the AK-47.

The AEB says that these businesses “are reliable and long-term partners of many European companies.”

Russian President Vladimir Putin said that the new sanctions would push US-Russia diplomacy to a “dead end”, and warned of the sanctions’ boomerang effect.

2 thoughts on “US Sanctions Hurt Europe More Than America

  1. This is what worries me for the future of the American dollar. For several years, the greedy guts have used a “basket of currencies” to protect themselves. The US dollar, no longer the only medium of exchange, has been forced to be in this basket of currencies with the Euro, and other major currencies. Putin has now taken it to a higher level, he has gone anti-dollar……..and better than half the world has already signed on.
    With the equal of $100 billion in a pool of funds with China, India, Brazil, South Africa and Russia all making money available to any nation willing to break away from the west…….it will be 75% by the end of this year.
    Should members of the Euro decide a basket of currencies, including their own, is far more sensible than just the over-abused US dollar, the dollar will collapse.
    I give it a year at best…….the dollar will collapse, and US

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