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    Russian Economy General News: #8

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    Austin

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    Re: Russian Economy General News: #8

    Post  Austin on Mon Jun 12, 2017 8:04 am

    Austin wrote:Hope CBR Reads this every time they buy US T-Bills !

    Senate looks to jab Russia

    A bipartisan deal to boost sanctions against Russia is taking shape despite the Trump administration’s mixed signals on engaging with Moscow


    http://www.politico.com/story/2017/06/11/senate-russia-sanctions-239365

    Look at the fanaticm in sanctioning Russia where Iran-Russia are now being made Equal Equal

    The make-or-break moment for the Senate’s Russia sanctions vote is likely to come Monday, when McConnell plans to formally move on to the Iran bill to which any Moscow punishment would be attached. Republicans aim to finish the Iran bill this week, although Schumer warned Wednesday that his caucus would have a "very difficult" time voting to pass Iran sanctions absent a workable Russia agreement.
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    miketheterrible

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    Re: Russian Economy General News: #8

    Post  miketheterrible on Mon Jun 12, 2017 8:08 am

    Let us take bets on how this will turn out!

    I am looking forward to it. At least the good part is that Russia has prepared itself thanks to their alternative to swift and constant push for self reliance and willing to trade in local currencies.

    This is fantastic! Finally, Russia will be given the full ability to start really shining in its capabilities without anything holding itself back due to US pressure! Because then the US will show all their hands and most in europe are not even interested in any of it anymore!

    Thank you retards in Senate. You will just make Russia even stronger in the end.

    Austin

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    Re: Russian Economy General News: #8

    Post  Austin on Mon Jun 12, 2017 8:15 am

    miketheterrible wrote:
    Austin wrote:Hope CBR Reads this every time they buy US T-Bills !

    Senate looks to jab Russia

    A bipartisan deal to boost sanctions against Russia is taking shape despite the Trump administration’s mixed signals on engaging with Moscow


    http://www.politico.com/story/2017/06/11/senate-russia-sanctions-239365

    And what are they exactly going to do?  They barred a nation like Iran entirely and it did nothing.  Add Russia to the list and now US creates a situation they no longer can control.  Essnetially, even if it was $200B in US T Bonds it is barely a dent at Russia.  Sorry to say, the US will end up hurting itself in the end and everyone will cry "why did we allow this to happen" when Russia really starts to push back at America.  What they don't realize is this playing nice from Russia is keeping their puppet in Ukraine alive and their bases in Syria alive.

    This is from sanctioned America:

    http://tass.com/economy/950950

    Yah like 50 % of Russian Forex is barely a dent.

    You still dont get it , Buying US T bills is like Rewarding US Government for Sanctioning Russia

    Would any country in the world buy T bills of the country that strongly sanctions you and urges and as Biden says Twist Arm of EU to do that ?

    Are CBR Nuts to even invest Money in T Bills , They should be selling it all instead of rewarding US when other options are in Table.

    Fcuk at the atleast they can just buy Euro Bonds the Trade between Russia and EU would justify EU cant freeze the T Bills without Russia invoking the proviabial clause of Closing the Tap !
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    miketheterrible

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    Re: Russian Economy General News: #8

    Post  miketheterrible on Mon Jun 12, 2017 8:28 am

    Lets see what the coming days happen. Forex is bullshit anyway. Fiat sitting outside of the country. Even if they lose it, oh well. They did before and look what happened? They can just call half a trillion in debt and say they can't pay it back and US will find it hard to explain why half a trillion is lost to their banks. And then not to mention how much resources and such US purchased from Russia like titanium is lost. Or sales and aftermarket of its goods in Russia. Or the fact that they won't be able to launch men into space.

    That is all worth losing 90B in paper with a dead guys face on it.

    Austin

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    Re: Russian Economy General News: #8

    Post  Austin on Mon Jun 12, 2017 8:36 am

    miketheterrible wrote:Lets see what the coming days happen. Forex is bullshit anyway. Fiat sitting outside of the country. Even if they lose it, oh well. They did before and look what happened? They can just call half a trillion in debt and say they can't pay it back and US will find it hard to explain why half a trillion is lost to their banks.  And then not to mention how much resources and such US purchased from Russia like titanium is lost. Or sales and aftermarket of its goods in Russia. Or the fact that they won't be able to launch men into space.

    That is all worth losing 90B in paper with a dead guys face on it.

    And why should they loose even 1 dime when they know that is going to happen sooner or later.

    That would show more bad on Russians then on the US.

    There is still time sell the T bills encash your money before its too late and some mad senator Jabs Putin and confescate the T Bills.
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    miketheterrible

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    Re: Russian Economy General News: #8

    Post  miketheterrible on Mon Jun 12, 2017 1:34 pm

    Who knows what the plan is. Maybe she has the trust so far and it will go out the window if she lets the money get taken away. At that point, she will get eaten alive by other politicians in Russia.

    I doubt the new round of sanctions are going to be anything than over hyped fluff. But lets see.
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    KomissarBojanchev

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    Re: Russian Economy General News: #8

    Post  KomissarBojanchev on Mon Jun 12, 2017 10:23 pm

    lhttp://www.fort-russ.com/2017/06/18-of-russian-government-budget-for.html
    1/8 of Russian government budget for procurement is siphoned annually

    The Gaidar Economic Policy Institute has conducted a study in which it was found out that the amount of violations in public procurement amount to 2 trillion rubles a year.

    The most common corruption scheme was favouring of tenders, the work of which could only be carried out by one company.

    It was found that more than 60% of purchases across the public sector were made with violations of rules.

    The federal budget leads with 32.9% of violations, followed closely by municipality councils (19.6%). Regional budgets are respectively in the third place with the figure at 8%.

    Losses from non-competitive conduct in public procurement, as noted by the authors of the study, make up at least 2 trillion rubles a year - one-eighth of all the money that the government spends using the tender process.

    The Gaidar Institute gives a number of recommendations to improve the situation on corruption. In particular, it proposes to establish a list of competitive methods of procurement, to develop model regulations on procurement and harmonize the conditions for advance payments.

    Also, the Institute considers it necessary to toughen the penalties for violations during the tender procedures.

    The Gaidar institute is a neoliberal POSm but do these findings have any merit?
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    AlfaT8

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    Re: Russian Economy General News: #8

    Post  AlfaT8 on Tue Jun 13, 2017 1:50 am

    KomissarBojanchev wrote:lhttp://www.fort-russ.com/2017/06/18-of-russian-government-budget-for.html
    1/8 of Russian government budget for procurement is siphoned annually

    The Gaidar Economic Policy Institute has conducted a study in which it was found out that the amount of violations in public procurement amount to 2 trillion rubles a year.

    The most common corruption scheme was favouring of tenders, the work of which could only be carried out by one company.

    It was found that more than 60% of purchases across the public sector were made with violations of rules.

    The federal budget leads with 32.9% of violations, followed closely by municipality councils (19.6%). Regional budgets are respectively in the third place with the figure at 8%.

    Losses from non-competitive conduct in public procurement, as noted by the authors of the study, make up at least 2 trillion rubles a year - one-eighth of all the money that the government spends using the tender process.

    The Gaidar Institute gives a number of recommendations to improve the situation on corruption. In particular, it proposes to establish a list of competitive methods of procurement, to develop model regulations on procurement and harmonize the conditions for advance payments.

    Also, the Institute considers it necessary to toughen the penalties for violations during the tender procedures.

    The Gaidar institute is a neoliberal POSm but do these findings have any merit?

    Well i think you answered your own question, and since the article you posted doesn't link to the actual study, we can't say much.
    Checked there website, and all there stuff is written in Russian so another barrier (for me anyway).

    IMO, after hearing doom and gloom for Russian economy for more than a decade now, i really can't take any of these "studies" seriously anymore.
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    kvs

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    Re: Russian Economy General News: #8

    Post  kvs on Tue Jun 13, 2017 2:28 am

    So 1 in 8 dollars of government procurement money is "corrupted away". That seems like a small fraction by western standards.
    I am quite sure that in Canada the government pays over 100% more for most of its contracts since the system defeated easily by
    collusion. That means over 4 in 8 dollars are "corrupted away".
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    miketheterrible

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    Re: Russian Economy General News: #8

    Post  miketheterrible on Tue Jun 13, 2017 4:12 am

    I imagine they are also accounting work being pushed by the federal government just to "create" work in order to get people working and making money. Common practice here with road construction. Most would view it as corruption while many call it a method of keeping people busy. That is what I am getting from the article.

    Of course with Russia moving to the direction of making tenders open and using electronic structures in order to make the tenders open, would probably save a lot of money due to these backroom contract deals. As much as Gaidar institute is full of shit most of the time, a broken clock is right twice a day.

    Austin

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    Re: Russian Economy General News: #8

    Post  Austin on Tue Jun 13, 2017 7:36 am

    Senate Strikes Deal on Russia Sanctions, Stripping Power From Trump

    WASHINGTON — The U.S. Senate has reached a bipartisan agreement on a new round of sanctions against Russia, a move that will likely force President Donald Trump to either sign or veto a measure that he has not said he supports.

    The sanctions are in response to a trio of Russian actions, including their interference in the 2016 election, engagement in Syria and invasion of Crimea.

    In a rebuke to the president, negotiators agreed that the additional sanctions on Russia would prohibit the president from being able to lift them without Congressional approval.

    In addition, the measure would codify existing sanctions and place new economic restrictions in an effort to economically harm specific individuals and Russia's economy.


    Sanctions would be placed on Russians who violate human rights, supply weapons to the Bashar al-Asad regime in Syria or who are involved in the Russian defense and intelligence industry. It also places additional sanctions on specific industries, including the country's mining, shipping and railway industry.

    “By codifying existing sanctions and requiring Congressional review of any decision to weaken or lift them, we are ensuring that the United States continues to punish President Putin for his reckless and destabilizing actions," Senate Minority Leader Chuck Schumer wrote in a statement. "These additional sanctions will also send a powerful and bipartisan statement to Russia and any other country who might try to interfere in our elections that they will be punished."


    The measure will be attached to a larger bill that would impose new sanctions on Iran, which the president has supported. If the amendment passes a procedural vote Wednesday morning, the Senate could vote it up or down on Thursday. It would then have to be approved by the House before it reaches the president's desk.

    Senate majority Leader Mitch McConnell announced last week that he supports adding the Russia sanctions to the measure and relevant senators in leadership and those in charge of the Banking and Foreign Relations Committee began working out an agreement on a measure.

    The White House has been silent on the proposal and administration officials have been unclear on what the official position is. Secretary of State Rex Tillerson said in April that the current Russian sanctions would “remain” until the country gives up control of the Crimean peninsula. But the administration has initiated a cozier relationship with Putin, even discussing returning its diplomatic compounds and easing sanctions on Russia's oil industry.

    Trump has indicated he is skeptical about additional sanctions and has been dismissive about the role of Russian interference in the U.S. elections. Last Friday, Trump called the investigations into the interference and possible ties to his campaign "an excuse by the Democrats who lost an election that some people think they shouldn’t have lost."

    "I think the president has conflated the legitimacy of his election with Russia’s involvement. Nobody’s saying — he won it fairly — that the Russians actually changed the outcome,” said Sen. Lindsey Graham, R-S.C. “[Putin] put the opposition leader in jail today. I think the president will sign the bill. I don’t want to speak for him but I think the case against Russia is overwhelming.”

    Some Republicans, including Sen. Bob Corker, R-Tenn., who is also the head of the Foreign Affairs Committee, have been skeptical of moving forward with Russian sanctions. Sen. Jeff Flake, R-Arizona, said last week that the Senate ought to give Trump “more time” before pushing sanctions.

    But many Republicans wanted to move ahead. And McConnell’s support advanced the process quickly.

    McConnell, who is deeply skeptical and critical of Russia, touted the measure last week before an agreement was reached before the Faith and Freedom Conference in Washington, D.C.

    “We’ll soon pass very important new sanctions on both Iran and on Russia,” McConnell said in his list of accomplishments.

    Democratic leaders said that they would support an Iranian sanctions bill only if tough sanctions against Russia were also included.

    “I think it’s a really good idea to do,” said Sen. Tim Kaine, D-Virginia, and Hillary Clinton’s running mate. “It would be a little odd to take up sanctions that we need to do against a nation that poses us some threat in the region but (not) sanctions on a nation that all of our intel community has decided direct attacked American elections.”

    Austin

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    Re: Russian Economy General News: #8

    Post  Austin on Tue Jun 13, 2017 7:41 am

    Now the new sanctions are added on Minerals , Railways , Shipbuilding etc and the old and new sanctions are codified into Law , it would be hard for any President much less Trump to repel any sanctions if it wants to , this has now become defacto Law of USA !
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    miketheterrible

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    Re: Russian Economy General News: #8

    Post  miketheterrible on Tue Jun 13, 2017 8:06 am

    So it turns out the sanctions are just a bunch of fluff.

    I wonder if they will place sanctions on Boeing since Boeing relies on Russian Titanium

    They can sanction Russia to infinity.  In the end, they are digging their own hole.  Russia is so massive, so much resources, so many people who are not only willing to bypass America, but are more than willing to work with them, in the end, means nothing.  Much like Iranian sanctions.

    All they have done was push Russia, China, Iran and others closer together.  And all they have done was show the world that they are childish, that they are sore losers.

    Laws are worth about as much as the paper they are written on.

    Austin

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    Re: Russian Economy General News: #8

    Post  Austin on Tue Jun 13, 2017 10:06 am

    I get the feeling Putin has pussy footed on counter sanction either due to fear of major retaliation or something else.

    He could have easily directed CBR to stop buying US T bills and told Duma to enact a law and he could have told Russian Airliners to slow down Boeing purchase , All he did was apply sanction on food items from EU and US and proclaimed victory.

    Now US Congress is applying more sanction in guise of Putin supporting Bashar who is the legitimate government of Syria and was invited by him to defend syria , next Congress would apply sanction for Russian being part of SCO and CSTO ! Things gets more ridiculous
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    GarryB

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    Re: Russian Economy General News: #8

    Post  GarryB on Tue Jun 13, 2017 11:33 am

    All he did was apply sanction on food items from EU and US and proclaimed victory.

    I would not underestimate him... those food sanctions were brilliant... they hurt the EU countries that hate Russia the most and created a situation where food makers in Russia could get investment and the chance to compete and produce food.

    Normally a country in the EU with nice weather and government support can easily undercut a Russian producer in price, but this threw those guys off the table...

    I look forward to seeing what Putin will do in response to this... Smile


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    Austin

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    Re: Russian Economy General News: #8

    Post  Austin on Tue Jun 13, 2017 12:19 pm

    GarryB wrote:
    All he did was apply sanction on food items from EU and US and proclaimed victory.

    I would not underestimate him... those food sanctions were brilliant... they hurt the EU countries that hate Russia the most and created a situation where food makers in Russia could get investment and the chance to compete and produce food.

    Normally a country in the EU with nice weather and government support can easily undercut a Russian producer in price, but this threw those guys off the table...

    I look forward to seeing what Putin will do in response to this...  Smile

    The food sanction was good but it was just a pinch for a punch
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    miketheterrible

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    Re: Russian Economy General News: #8

    Post  miketheterrible on Tue Jun 13, 2017 2:14 pm

    And what was Russia going to do? The food sanction was smart as they already knew alternatives and local development. The rest is miniscule because trade between US and Russia was small to begin with. Besides US buying certain tech and metals, they weren't a huge trade partner to begin with.

    You over estimate things. The Russia US T bonds are so small, it doesn't even matter. For over $400B in forex, not even 1/4 is in T bonds. So stop whining. You don't react before the event happens, you react to it afterwards. The US sanctions, unless you have been stupid and blind, has done fuck all to Russia. They are still growing positive this year. So what, you want them to stop buying T bonds and selling them metal? That's about worst they can do so in other wards, nothing.

    Austin, first concentrate on learning the politics part of all this. Because I think that is where your understanding is slim on. In the end, Russia got what it wanted and needed. The rest is icing.

    Austin

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    Re: Russian Economy General News: #8

    Post  Austin on Tue Jun 13, 2017 5:46 pm

    Mike I see you are putting across the Western pov which is fine but that does not help Russia.

    $100 billion in T bills is not a small money its a BIG amount with a capital B and Russia cannot afford to loose even $1 billion much less $100 billion to the whimsical US congress.

    Those people done deserve any dime from Russia nor should Russia bankroll the Bankrupt USA , let others on the world do that !
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    miketheterrible

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    Re: Russian Economy General News: #8

    Post  miketheterrible on Tue Jun 13, 2017 6:37 pm

    What makes you think they can't afford to lose it? Do you happen to know that US and plenty others don't have a reserve? Did you also know that it isn't 100B but 90B? As well, did you know Russia replenished huge amount of its forex in very short time? Did you know that is smaller than Russia's trade surplus? Did you know even the new sanctioned proposed doesn't have the forex in mind?

    Yeah, they don't deserve Russia's investments. But let the CBR do it. You and I both know that in the end, Putin would get rid of these kind of people if it was part of the sanctions and Russia loses it. And it would ultimately kill the lefts grasp in Russia's politics.

    $90B is chump change. Russia lost more than that in 1 year in black money and capital flight years ago.yi

    You are obviously not stupid but you say some stupid things. Can't afford this or that. Not only do you not have a right to even say that, you don't even know what you are talking about. Let me put some perspective and knowledge into you:

    Iran, whom is very small compared to Russia, with an economy a fraction of the size of Russia, lost $150B in USD forex being frozen by US. Did that cause Iran to collapse? No. But instead, it is now money that US owes to Iran that will always linger over their head. It could be used for good in Russia or in Iran, but every year Russia loses billions in either corruption and or something else. This forex isn't sanctioned and can be sold to purchase other goods like before (gold). The idea that you portray isn't even reality nor is it in practice. You want them to react first before the US. But what got Russia far ahead and doing well wasn't acting in haste or being spontaneous.

    The other side you are ignoring is Russia's debt to US and EU. Private debt nearly $1T USD and that is not small change. If Russia loses out on its money, they will return the favor by freezing the debt they owe, which could crash markets. You know your math, so you will know $600B is way more than $90B. Hence why Russia calls the US bluff. If they bar Russia from the financial prospects and open market, Russia will freeze its funds from exiting Russia to US and EU, which would mean that debt won't get paid off and banks lose out outside of Russia.

    Example is the assets that were frozen. US and EU now have to give back Russian assets that were frozen under Yukos case. And Russia has threatened to freeze EU and US assets because of it. They still are. And this creates a tit for tat.

    Austin

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    Re: Russian Economy General News: #8

    Post  Austin on Tue Jun 13, 2017 7:00 pm

    miketheterrible wrote:What makes you think they can't afford to lose it? Do you happen to know that US and plenty others don't have a reserve? Did you also know that it isn't 100B but 90B? As well, did you know Russia replenished huge amount of its forex in very short time? Did you know that is smaller than Russia's trade surplus?

    Thanks , That tells me every thing I need to know , EOD
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    miketheterrible

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    Re: Russian Economy General News: #8

    Post  miketheterrible on Tue Jun 13, 2017 7:09 pm

    Tell us why Russia can't afford it? You think it will cause a crash of some sort? Give us your knowledge because reality and history states you are wrong.
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    kvs

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    Re: Russian Economy General News: #8

    Post  kvs on Wed Jun 14, 2017 1:33 am

    Austin wrote:
    miketheterrible wrote:What makes you think they can't afford to lose it? Do you happen to know that US and plenty others don't have a reserve? Did you also know that it isn't 100B but 90B? As well, did you know Russia replenished huge amount of its forex in very short time? Did you know that is smaller than Russia's trade surplus?

    Thanks , That tells me every thing I need to know , EOD

    It's true that the USA and Canada have no reserves. Russia does not need them. At best these reserves are a tool to play the
    NATO dominated financial market game. But this mattered more for Russia in 2004 than it does today. In addition, the fraction of
    the global GDP held by NATO has been systematically shrinking relative to the global GDP. Russia's GDP has increased substantially
    since 2004. So there is no "can't afford" nonsense here.

    BTW, the reserves were supposed to be a way to prevent the ruble devaluing too much in forex exchange. But clearly the reserves
    did not prevent the massive drop in late 2014. So what is the value of these reserves? To have money to pay back foreign loans
    on behalf of private companies? WTF is the need for that? Russia's government debt is much smaller than its reserves and it is not
    backed by the reserves but by Russia's resources and GDP in general.

    Austin

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    Re: Russian Economy General News: #8

    Post  Austin on Wed Jun 14, 2017 7:54 am

    New Congress Sanctions https://www.gazeta.ru/business/2017/06/14/10720475.shtml#page1

    1 ) Puts Nord Stream-2 under sanction list
    2 ) The amendments imply a reduction loan period for an already under sanctions Russian banks from 90 days to 14, and Russian energy - up to 30 days.
    3 ) It is also prohibited to provide, export or re-export (directly or indirectly) of goods, services or technologies that contribute to the exploration and production in deep and the Arctic shelf and shale projects.


    Austin

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    Re: Russian Economy General News: #8

    Post  Austin on Wed Jun 14, 2017 7:56 am

    Now its good buy nord stream-2 , No EU company will put money on that program
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    miketheterrible

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    Re: Russian Economy General News: #8

    Post  miketheterrible on Wed Jun 14, 2017 8:47 am

    Its funny because EU is pissed off at US as of right now anyway and adding this to it will piss them off even further.  Russia can shrug its shoulder on this because it is the US attempt to force Europe to obtain gas from Russia via Ukraine.  Instead, Russia said it will limit its flow or stop it at Ukraine because of Ukraines actions.  So instead, it forces EU to purchase US gas but due to it being expensive, they will try to find other methods and at same time may tell the US to collectively screw itself.  Already they are doing so.

    BTW, the Austrian company involved in the Nord Stream 2 project is fully owned by Gazprom. So chances are, they will do the funding themselves and end up being built anyway.

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