EU trying to force Serbia into Russia sanctions club, says senior MP
RT | November 20, 2014
The EU’s attempts to coerce Serbia into joining anti-Russian sanctions are nothing but blackmail, says the head of the State Duma Foreign Affairs Committee.
“Presently the European Union is trying to force Serbia, which is not an EU member, to join their sanctions program. They are practically blackmailing Serbia: either it joins the sanctions against Russia or [the bloc] won’t see it as a country with a chance of joining the EU,” MP Aleksey Pushkov (United Russia) told reporters at a Thursday press conference in Moscow.
“The problem for Serbia is that in any case it has no prospects for joining the EU anytime soon. Even if they join the anti-Russian sanctions now, they would simply succumb to blackmailers and no one would accept them in the EU in one year for doing this,” he added.
The comments came after the EU’s Enlargement Commissioner Johannes Hahn said that Serbia would have to join EU sanctions against Moscow if it wants to be part of the European Union.
“Serbia has taken a legislative commitment within the EU accession negotiations to bring its positions in line with those of the EU. Harmonization includes the tough issues as well, like the tough issue of sanctions against Russia. We are expecting of Serbia to hold on to these commitments,” RIA Novosti quoted Hahn as saying.
This was a radical change of position as just days earlier, after a meeting with Serbian Foreign Minister Ivica Dacic, Hahn assured the press that the EU was not asking Serbia to impose sanctions against Russia. Back then, the commissioner acknowledged that such decisions were a sovereign matter of the Serbian government and the sanctions and Serbian membership in the EU were in no way connected.
Serbian Ambassador to Moscow Slavenko Terzić told Interfax on Thursday that for the moment his country had no intention of joining the sanctions, but in future the question could be raised at the Serbia-EU talks. “It is possible that Serbia would gradually begin to coordinate its position on various international issues with the one of the EU, but today our country is not ready to join the anti-Russian sanctions for many reasons, including because of the fact that Serbia and Russia are strategic allies,” the diplomat noted.
Hungary to start South Stream construction in 2015 despite western pressure
RT | November 19, 2014
Hungary plans to break ground next year on its stretch of the South Stream pipeline to send natural gas from Russia to Europe. It is in defiance of EU and US calls to halt the project over frosty relations with Moscow.
One major reason Hungary has thrown its support into South Stream is the lack of a better option since the EU-backed Nabucco pipeline, which was supposed to deliver gas from Azerbaijan to Europe, failed.
“Nabucco will not be built and after nearly 10 years of hesitation, and especially in light of the Ukraine situation, we need to act. This is a necessity,” Hungarian Energy Minister Andras Aradszki told Reuters.
Earlier Hungarian Prime Minister Viktor Orban said that Washington is putting pressure on Budapest for cooperating with Russia over energy.
Gazprom’s $45 billion South Stream project will deliver about 64 billion cubic meters of gas to Europe, Russia’s biggest client, without unreliable passage through Ukraine.
Russia is Hungary’s biggest source of natural gas, and in 2013 the country bought 6 billion cubic meters. Hungary hopes the pipeline will be complete by 2017.
Ministers from Russia also confirmed construction will begin in 2015.

“Today the sides confirmed all their commitments signed under the South Stream project,” Russian Foreign Minister Sergey Lavrov said Wednesday after talks with his Hungarian counterpart Peter Szijjarto.
Hungary, along with Slovenia, Bulgaria, and Austria, still support the project despite EU attempts to stall it due to the political rift with Moscow, said Energy Minister Aradszki.
Proponents inside the EU argue the project is critical for EU energy security as it will provide a direct and reliable pipeline to Russia. Opponents argue that it is a step backwards for EU energy independence, as it deepens reliance on neighboring Russia.
On November 4, the Hungarian parliament approved the construction of the South Stream pipeline without European Union agreement.
The EU says South Stream will violate its Third Energy Package, which doesn’t allow one single company to both produce and transport oil and gas.
In September Hungary indefinitely halted gas shipments to Ukraine after securing a new deal with Russian gas major Gazprom, which the West saw as a move towards Russia’s orbit.
In 2013, Russia sold 162.7 billion cubic meters of gas to Europe and expects to sell at least 155 billion cubic meters this year.
READ MORE: Hungary under ‘great pressure’ from US over its energy deals with Russia
UK media hypes up RAF interception of Latvian plane
RT | October 30, 2014
Two Royal Air Force jets reportedly threatened to shoot down a Latvian cargo plane, rushing at supersonic speeds to intercept it, after the plane failed to respond to air traffic control over Kent in Southern England and sent authorities into panic mode.
“I am instructed by Her Majesty’s Government of the United Kingdom to warn you that, if you do not respond immediately to my orders, you will be shot down,” radioed one of the jets, according to an audio recording circulating in UK media.
The incident occurred at about 5pm local time after the Latvian Antonov An-26 aircraft failed to make contact with air traffic controllers.
British Typhoons were tasked with intercepting the cargo plane. “To fulfill their quick reaction role, they were cleared to travel at supersonic speed,” an RAF spokesperson said, adding that the speed explains the loud noise people heard in the air.
Many locals took to Twitter, describing how their houses shook after the loud bangs.
Communications with the civilian pilots were restored only after the jets intercepted the plane.
The Latvian plane was then escorted to London’s Stansted Airport at around 5:20 pm “All three people who were on board have been spoken to by police,” AP quoted Essex Police spokeswoman Emma Thomas as saying. “It was established that everything was in order and the reason for the short loss of communication was due to a change in airspace jurisdiction.”
Russian planes everywhere
The excitement surrounding the intercept – apparently based on post-9/11 terrorist attack fears – came amid a heightened terror alert in the UK at the time of the allied military campaign against the Islamic State.
Media reports mirrored the panic frenzy triggered by the incident, but in a peculiar way: first saying that the cargo plane was “Russian” and then switching to a “Russian-made” reference.
Both takes were wrong: the Antonov design bureau, the producer of An-26 planes, is a Ukrainian company founded in Soviet times, and the plane in question belonged to a Latvian-registered company, ironically called RAF-Avia.
However, the British media seemingly capitalized on the latest NATO reports of “unusual” increased activity of Russian military aircrafts over the Atlantic and the Black Sea.
NATO stated that it has intercepted four groups of Russian planes since Tuesday. “These sizeable Russian flights represent an unusual level of air activity over European airspace,” the alliance said.
Most media reports based on the NATO statement failed to mention that the Russian planes did not cross any borders and remained within international airspace in every mentioned case.
Four Tupolev Tu-95 strategic bombers were spotted participating in a military exercise over the Norwegian Sea early on Wednesday. “We see Russian aircraft near our airspace on a regular basis but what was unusual is that it was a large number of aircraft and pushed further south than we normally see,” Reuters quoted a Norwegian military spokesman as saying.
In another incident on Wednesday, two Tu-95s were being monitored by Turkish aircraft over the Black Sea.
US diplomat tells Hungary to back EU, criticizes PM Orban over Russia stance
RT | October 24, 2014
A US diplomat visiting Hungary has criticized its PM’s policies towards Russia and stated that he believes Budapest should back the EU in its policy of imposing sanctions on Russia.
On Friday, US Chargé d’Affaires André Goodfriend made the condemnations of Hungarian of Prime Minister Viktor Orban’s policies, particularly in regards to Hungary’s decision to grant Russia a contract to expand the Paks nuclear plant and over its support for the South Stream gas pipeline.
Meanwhile the US denied entry to six Hungarian public officials on Monday in the light of corruption allegations. According to Goodfried, their being banned was related to actions specific to each individual, however, rather than Hungarian politics on the whole.
Goodfried criticized Hungary for how it was veering away from the rule of law which was consolidated after its switch to democracy in 1989 and how it was not a good time to be debating the protection and autonomy of Hungarians in Ukraine.
Orban has been calling for the autonomy of some 200,000 Hungarians who currently reside within Ukrainian borders.
“Particularly with calls for autonomy among Hungarian ethnic nationals in Ukraine… this is not the time to have that discussion,” Goodfriend said.
Hungary should “stand firm with the EU, with EU sanctions” he added and should “understand the sensitivities on the ethnic nationalism question”.
The country has been critical of EU sanctions on Russia. Goodfriend stated that it was not the time for Hungary to “break with its EU partners to criticize so publicly the approach that the partners have taken”.
Hungary, however, is very much dependent on Russian gas supplies and says that the South Stream pipeline would actively aid its energy security.
Earlier in August Orban condemned the EU sanctions against Russia likening them to “shooting oneself in the foot.”
Russia is Hungary’s largest trade partner outside of the EU, with exports worth $3.4 billion in 2013.
Polish ex-foreign minister backtracks on scandalous claim that Putin offered to divide Ukraine
RT | October 21, 2014
Radoslaw Sikorski — the speaker of the Polish Parliament and that nation’s former foreign minister — was forced to apologize after claiming that he overheard Vladimir Putin in 2008 suggest that Ukraine should be divided between Russia and Poland.
A bombshell report published by Politico Magazine over the weekend called “Putin’s Coup” alleged that Sikorski heard that the Russian president told Donald Tusk, then the Polish prime minister, that Poland should “become participants in the divide of Ukraine” during a Polish delegation’s 2008 visit to Moscow.
“He wanted us to become participants in this partition of Ukraine… This was one of the first things that Putin said to my prime minister, Donald Tusk, when he visited Moscow,” Politico’s Ben Judah quoted Sikorski as saying following an interview that formed the basis of the Sunday article.
“He (Putin) went on to say Ukraine is an artificial country and that Lwow is a Polish city and why don’t we just sort it out together.”
“We made it very, very clear to them – we wanted nothing to do with this,” Sikorski went on.
On Monday, Polish Prime Minister Ewa Kopacz said that, if Putin did suggest as much, then that would be “scandalous.”
On Tuesday, however, Sikorski found himself in a scandalous situation himself and had to respond to multiple accusations that he made up the conversation between Putin and Tusk. The Russian president’s spokesman labeled the alleged remark as “utter nonsense,” and Putin’s press secretary, Dmitry Peskov, told Russia’s Gazeta.ru the report “looks like total tripe.”
Responding to a mounting backlash, Sikorski said over Twitter that the interview with Judah was “not authorized” and that “Some of the words have been over-interpreted.” However the Politico journalist was fast to remind Mr. Sikorski that in the US members of the press do not “authorize” interviews. Judah also said to the Polish broadcaster TVN24 that he was “not sure what Sikorski had in mind” when he said some of his comments had been “over-interpreted.”
On Tuesday, Sikorski was confronted at a press conference by Polish journalists, demanding clarifications regarding his remarks. However, the ex-foreign minister was vague about whether or not he made the remarks published by Politico. Before long Sikorski admitted that he never personally heard of Putin offering to divide Ukraine, then refused to go into more details or answer additional questions from the media.
This awkward press conference infuriated even Sikorski’s fellow party members, and Polish Prime Minister Ewa Kopacz publicly lashed at him.
“I will not tolerate this kind of behavior. I will not tolerate this kind of standards that Speaker Sikorski tried to present at today’s (news) conference,” Kopacz said, according to the Associated Press.
After that, Sikorski called in a second press conference, where he changed his position once again. He said Tusk and Putin never met during a bilateral meeting in Moscow in 2008 as he originally had suggested and the scandalous remarks were made later that year at a NATO summit in Bucharest. Additionally Sikorski apologized for putting both the former and current Polish PM in an “awkward position.”
“I apologize for the awkwardness, which took place this morning,” Poland’s TVN 24 quoted Sikorski as saying. “Especially as a former journalist, I never avoided contact with the media.”
However, Sikorski might be forced to change his version of history once again. According to the official NATO schedule of Putin’s meetings from the 2008 NATO summit in Bucharest, the Russian leader and his Polish counterpart didn’t hold any bilateral meetings in Romania either.
Lavrov: West’s ‘colonial-style’ sanctions on Russia have little to do with Ukraine
RT | October 19, 2014
Making Russia change its stance by way of sanctions is outdated thinking in an age when diversity of opinion is supposed to be appreciated, Foreign Minister Lavrov believes. He says Russia is already “doing more than anybody else” to help Ukraine.
Moscow can hardly be accused of non-facilitating the peace-process in Ukraine, as it is exerting all of the authority it can on the anti-government forces in eastern Ukraine to make sure they comply with the September Minsk peace agreements, Sergey Lavrov said in his Sunday interview to the Russian NTV channel. It’s the West, according to him, who could actually do more to resolve the Ukrainian crisis.
“Our Western partners… aren’t really using their influence on Kiev to persuade them that there’s no alternative to the agreements they’ve already reached with the self-defense,” the minister said.
The West is meanwhile ever ready to put additional pressure on Moscow in the form of sanctions, which in Lavrov’s point of view have little to do with the situation in Ukraine.
“You can essentially feel in their statements and actions the true goal of restrictions – to alter Russia, to change its position on key issues, the most fundamental for us, and make us accept the vision of the West. That is last-century, past-epoch, colonialist thinking.”
Whatever economic difficulties the sanctions entail, they are unlikely to divert Russia from its current stance, Lavrov believes.
Lavrov acknowledged current Russia-US relations are “difficult” and has accused Washington of only thinking of American interests when offering solutions to political problems. The Russian foreign minister would like to see more balance in proposals coming from the US.
“This is a common thing for the US – a consumerist approach to international relations. They believe that they have the right to punish the countries that act contrary to Washington’s vision, while demanding cooperation in other issues vital for the US and its allies.”
Balance on the international arena could have come from the EU, if it was more independent from Washington in its decision making, according to Lavrov.
“The EU with all of its current Washington leaning has the potential to act independently. This, however, remains almost totally unused. That’s sad, because the EU’s own voice could have added balance to international discussions and efforts to solve various problems.”
Friday’s talks between Russia and Ukraine in Milan which were mediated by the EU, proved “difficult and full of disagreements,” according to the Kremlin.
The German Chancellor Angela Merkel said “no breakthrough” was achieved.
One of the most essential issues the parties disagree on is gas supply. Kiev owes billions of dollars to Gazprom. There have been fears that the crisis-struck country won’t be able to pay, which could possibly lead to disruptions of gas supplies, including those to Europe via Ukraine.
The Milan negotiations have resulted in some progress on the issue – an agreement for winter supplies was reached, according to the Russian president. A new round of talks has been scheduled for October 21 and the EU will once again mediate the process.
Ukraine might meanwhile soon find itself forced to conduct similar negotiations with Poland. On Thursday, the country’s Deputy Prime Minister Janusz Pehochinsky expressed disappointment that Ukraine hasn’t yet paid for 100,000 tons of Polish coal.
Less than half of Britons, French, Germans support EU’s involvement in Ukraine – poll
RT | October 10, 2014
Only a minority of British, French and German citizens think that the EU should be involved in the settlement of the Ukrainian crisis, while most agreed that crimes against humanity should be investigated first, a new Rossiya Segodnya/ICM poll has found.
Less than a half – 46 percent – of respondents from the three member states support EU involvement in the ongoing crisis in Ukraine, said the ICM poll commissioned by Russia’s Rossiya Segodnya, the state news agency reported Thursday. Altogether, 44 percent of respondents said they support non-involvement.
A majority of Germans – 58 percent – are against EU participation in the crisis, while 35 percent of French citizens are against it. In the United Kingdom, 40 percent are against the idea.
A majority of the British respondents – 54 percent – backed their government’s participation, with 48 percent of French citizens and 36 percent of Germans supporting involvement.
The poll suggests that it is mainly young people between the ages of 18 and 34 that support their government’s participation in the Ukrainian conflict. In Britain, the idea appeals to 62 percent of young respondents, while in France and Germany to 55 percent.
Seniors are most aware of the tragic events and hostilities that took place in Ukraine, the poll shows. In the UK, almost all respondents over 65 are keeping up with events in Ukraine, while 85 percent of young people from 25-34 who participated in the poll were unaware of developments there. In France, the figures for the same age groups are 93 percent and 67 percent, respectively.
The poll also revealed that a larger number of men from all three countries support direct involvement, while women are in the minority.
Most of the respondents said that the “EU should play its role in the regulation of the situation in Ukraine” mainly by “supplying humanitarian aid and a peacekeeping mission,” Rossiya Segodnya reported. Seventy-six percent of those questioned in France, Germany and UK are in favor of the aid, while 51 percent support the peacekeeping mission.
A few respondents backed the idea of financial aid in the form of loans to the Kiev authorities, while only 13 percent back the idea of sending military supplies to Ukraine, with Britain the most enthusiastic.
The EU should be involved in conducting investigations into war crimes during the Ukrainian conflict, most of those polled said. Seventy-six percent of Britons, 68 percent of the France and 54 percent of Germans backed the EU getting involved.
Those who supported the idea said that their governments should primarily look into crimes against humanity, with the UK almost unanimous on the issue.
People were sensitive on the issue of the abduction and murder of journalists, which was rated the second most outrageous crime in the conflict. A total of 79 percent of respondents said that the Malaysia Airlines MH17 crash should be investigated.
The Ukrainian crisis began last year with the so-called Maidan protests in central Kiev, which was followed by a coup in February and a bloody war in eastern Ukraine from April onward. Since the military conflict began, more than 3,500 people have been killed and almost 8,200 injured, according to UN figures.
Finance, energy & defense sectors: EU and US set to impose new Russia sanctions
RT | September 11, 2014
Barack Obama says he is joining the EU initiative to impose a new round of sanctions on Russia. Both Washington and Brussels say the sanctions will target finance, energy and defense sectors – yet can be revoked if the situation in Ukraine improves.
The US is to provide details of their sanctions on Friday.
“We will deepen and broaden sanctions in Russia’s financial, energy, and defense sectors. These measures will increase Russia’s political isolation as well as the economic costs to Russia, especially in areas of importance to President [Vladimir] Putin and those close to him,” US President Barack Obama said in a statement on Thursday.
The US says that Russia has sent heavily armed forces to Ukraine. Obama added that the US may withdraw sanctions if Russia fulfills obligations under the Minsk agreement.
“We are watching closely developments since the announcement of the ceasefire and agreement in Minsk, but we have yet to see conclusive evidence that Russia has ceased its efforts to destabilize Ukraine,” Obama said. “If Russia fully implements its commitments, these sanctions can be rolled back.”
While details officially remain unknown, a Reuters source has alleged that the US intends to sanction Russia’s largest bank, Sberbank, and tighten restrictions on other Russian banks.
Previously, access to the US capital market was restricted for five Russian banks – VTB, Gazprombank, Bank of Moscow, Russian Agricultural Bank and Vnesheconombank (VEB). The Aug. 1 sanctions restricted Sberbank’s activity in the EU.
EU sanctions to take immediate effect on Friday
As for the European Union, the bloc will list their new limitations in the official journal Friday, which will mean they will come into effect immediately. Brussels will add 24 individuals to the list which blocks travel to the EU and asset freezes. Russian leaders and businessmen, as well as politicians in Crimea and the Donbass, will be added to the blacklist.
According to the official document, the EU will halt services Russia needs to extract oil and gas in the Arctic, deep sea, and shale extraction projects.
Three of Russia’s major energy companies and the country’s three largest defense entities will be restricted from raising long-term debt on European capital markets, Van Rompuy said.
Five major Russian state-owned banks will also be banned from any long-term (over 30-day) loans from EU companies.
Major Russian defense companies will be barred from debt refinancing, and the EU will also ban the export of any technology considered military “dual-use” to nine Russian companies.
Meanwhile, an EU source told RIA-Novosti news agency that the fresh European Union sanctions won’t affect the Russian gas sector.
“The energy sector affected by these sanctions is limited to the oil sector,” the source said.
On July 16, the US blacklisted several defense sector companies include Almaz-Antey Corporation, the Kalashnikov Concern and Instrument Design Bureau, as well as companies such as Izhmash, Basalt, and Uralvagonzavod.
If the EU follows the US lead on hitting Russian companies that also supply the Russian military, the above mentioned will be blocked from debt financing.
The European Commission has agreed to amend or suspend the sanctions in accordance with progress in Ukraine. A ceasefire was agreed by the Ukrainian government and rebels in the East on September 5.
“Thus, if the situation on the ground can be trusted, the European Commission and the EU Foreign Service will request to amend, suspend, or cancel sanctions, either in part or in full,” Van Rompuy said, as quoted by ITAR-ITASS.
Media sources suggest Gazprom Neft, Transneft, and Rosneft will all fall under Friday’s sanctions.
Gazprom Neft is the oil subsidiary of Russian gas giant Gazprom.
Transneft is Russia’s state-owned oil pipeline company that exports all of Rosneft’s crude oil, and exports 56 percent of Russia’s total crude exports.
Rosneft, Russia’s largest oil producer was put on the US sanctions list on July 16 and later added to the EU list on July 29. In July, Russia’s largest independent natural gas producer, Novatek was also added to the blacklist which bans the export of hi-tech oil equipment needed in Arctic, deep sea, and shale extraction projects to Russia.
Russian respose to ‘de facto choice against peace’
Russia said it will respond to Western sanctions with equal strength, and last week Prime Minister Dmitry Medvedev said that closing Russian airspace to European airlines was an option being considered.
President Putin’s spokesman, Dmitry Peskov, said that new EU sanctions make no sense, as they are being introduced when Russia is making vigorous efforts to stop the bloodshed in southeastern Ukraine.
“The EU doesn’t see, or prefers not to see, the real state of events in [Ukraine’s] Donbass and doesn’t want to know about the efforts aimed at settling the conflict,” Peskov said.
“We regret the EU’s decision to impose new sanctions. We repeatedly expressed our disagreement and incomprehension about the sanctions that were implemented earlier, which we considered and will consider illegal,” he added.
Russia’s Foreign Ministry said Thursday that the EU was apparently very much against any peaceful resolution of the crisis in Ukraine.
“By taking this step, the European Union has de facto made its choice against a peaceful resolution of the inter-Ukrainian crisis,” the ministry said in a statement.
US bans Europol from releasing its own documents to European officials
RT | September 9, 2014
The United States has instructed Europol, the European Union’s police agency, to withhold its own annual internal data-protection review from EU lawmakers because the report was written without the US Treasury Department’s permission.
Europol drafted the data-protection report “without prior written authorisation from the information owner (in this case the Treasury Department),” according to the US, violating “security protocols” that could “undermine the relationship of trust needed to share sensitive information between enforcement agencies.”
The report, drafted by Europol’s Joint Supervisory Body, outlines how data concerning EU citizens and residents is transferred to the US, according to the EUobserver. The document is mainly known to monitor implementation of the EU-US Terrorist Finance Tracking Program, or TFTP. Basically, the US Treasury Department is quite territorial about how the TFTP is adhering to European data protection compliance.
EU ombudsman Emily O’Reilly said Europol refused to allow her to see the report based on US demands. O’Reilly then confronted US ambassador to the EU Anthony Gardner in July. Gardner confirmed the order.
On Thursday, O’Reilly said she sent a letter to the European Parliament asking the body “to consider whether it is acceptable that an agreement with a foreign government should prevent the Ombudsman from doing her job.”
“If the US says ‘No disclosure’ then it won’t be disclosed, which is ridiculous because we are EU citizens, we vote, we pay taxes, we have EU laws, and we decide what happens on this continent. Nobody else,” Dutch MEP liberal Sophie In’t Veld told EUobserver. In’t Veld first requested the report in 2012.
In’t Veld said there is no top-secret information in the report that should be viewed as overly sensitive.
“There is no operational information, there is no intelligence, there is nothing in the document. So you really wonder why it is kept a secret,” she said.
The TFTP has received scrutiny in the last year after documents supplied by former US government contractor Edward Snowden showed mass spying by the US National Security Agency on citizens and officials across the world, including in the EU.
The Snowden leaks showed the NSA had gained a “back door” entrance into the SWIFT servers – SWIFT being a financial-record sharing program, which revealed the banking details of millions of European citizens, despite the fact that access to this financial data was limited by the TFTP.
If new EU sanctions hit energy sector, Russia may close airspace – Medvedev
RT | September 8, 2014
Prime Minister Dmitry Medvedev has warned Russia may shut its air corridors to Western airlines if the next round of European sanctions hit Russian energy companies.
“If there are sanctions related to the energy sector, or further restrictions on Russia’s financial sector, we will have to respond asymmetrically,” Medvedev said in an interview with the Vedomosti newspaper, published on Monday.
EU ministers will gather on Monday to discuss new sanctions against Russia and are rumored to be introduced on Tuesday. The prime minister promised a strong retaliation if the West slaps Russia with more sanctions.
“We could impose transport restrictions,” Medvedev said, adding, “We believe we have friendly relations with our partners, and foreign airlines of friendly countries are permitted to fly over Russia. However, we’ll have to respond to any restrictions imposed on us,” the prime minister said.
After sanctions hit Aeroflot’s low-cost subsidiary Dobrolet in late July, Medvedev discussed with ministers the possibility of limiting, of even completely blocking, European flights to Asia that overfly Russia.
“If Western carriers have to bypass our airspace, this could drive many struggling airlines into bankruptcy. This is not the way to go. We just hope our partners realize this at some point,” he told Vedomosti.
Flying over Russian airspace saves Western airlines headed to Asia at least 4 hours of flight time, which adds up to about $30,000 per flight.
Lufthansa said it could potentially lose more than €1 billion in three months if it does not use Russian airspace. Lufthansa, along with British Airways and Air France, are the largest EU airlines. US airlines currently don’t operate over Siberian airspace.
Many low-cost airlines have decided not to launch new routes to Russia, with the threat of sanctions possibly a factor. Last week Ryanair ditched plans to establish a Dublin-St. Petersburg route, and easyJet, another European-based airline, dropped its plans to develop a London-St. Petersburg service.
Medvedev didn’t specify whether the blocked airspace would also apply to cargo and delivery companies, such as UPS and FedEx.
EU sanctions, which will reportedly be introduced on Tuesday, will ban Russia’s three main oil companies- Rosneft, Gazprom Neft, and Transneft – from raising long-term (longer than 30 days) debt on European capital markets, according to the Wall Street Journal and the Financial Times.
Rosneft – Russia’s largest oil producer – was added to the US sanctions list on July 16 and was put on the EU list on July 29. Russia’s largest independent natural gas producer, Novatek, also was added to the blacklist in July, along with a ban on the export of hi-tech oil equipment needed in Arctic, deep sea, and shale extraction projects to Russia.
Gazprom Neft is the oil subsidiary of Russian gas giant Gazprom.
Transneft is Russia’s state-owned oil pipeline company that exports all of Rosneft’s crude oil, and 56 percent of Russia’s crude exports.
Sanctions likely won’t apply to privately-owned Russian oil groups such as Lukoil and Surgutneftegaz.
The EU will also reportedly follow America’s lead on banning the sale of weaponry from Russian companies that also supply the Russian military, the WSJ reported Sunday. On July 16, the US blacklisted several defense sector companies include Almaz-Antey Corporation, the Kalashnikov Concern and Instrument Design Bureau, as well as companies such as Izhmash, Basalt, and Uralvagonzavod.
“Sanctions are always a double-edged sword. Ultimately they end up backfiring and end up hurting those who are first to impose restrictions,” Medvedev said.
The EU has agreed on the new sanctions but said they could be delayed or even cancelled if Russia shows willingness to resolve the conflict in Ukraine.
On Friday Kiev introduced a ceasefire to calm fighting between the Ukrainian army and anti-government forces, but fighting and shelling continued in the country’s east.
Russia’s Gazprom to fall under new EU capital ban – sources
RT | September 6, 2014
Russia’s Gazprom Bank and oil producer Gazprom Neft will fall under new sanctions approved by the European Union on Friday, Reuters cited an EU diplomat as saying. The sanctions reportedly include a new ban on raising capital in the 28-nation bloc.
The sanctions were agreed against Russia for its alleged role in the Ukrainian crisis, the diplomatic source said.
According to The Financial Times, which managed to obtain a document outlining the sanctions, all Russian state-controlled companies with assets of more than one trillion rubles (US$27 billion) that receive more than half their revenue from “the sale or transportation of crude oil or petroleum products” will be hit by the ban.
In addition to Gazprom Neft, the oil subsidiary of Russian gas giant Gazprom, Russia’s largest oil group – Rosneft and Transneft pipeline company – would be potentially blacklisted. However, the sanctions will not apply to privately owned Russian oil groups such as Lukoil and Surgutneftegas, the Times said.
The sanctions will also include an expansion of the EU travel ban list against certain individuals, as well as asset freezes, credit restrictions against Russian companies, and export bans on dual use goods, the EU diplomat told the agency.
Chiefs of Russian companies will be added to the list, along with oligarchs and local authorities of Donbass and Crimea.
Moscow has already promised it will respond to the new round of sanctions if they are approved and imposed, according to a press release issued by the Russian Foreign Ministry on Saturday
“Instead of feverishly looking for ways of hitting harder the economies of its member-states and Russia, the EU would do better to start supporting the economic revival of the Donbass region and restoring normal life there,” the press release reads.
The EU’s implementation of the new sanctions was delayed until Monday, Itar-Tass quoted an EU source as saying. Although the sanctions are ready, “some touch up work will be completed during the weekend.”
European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso confirmed that the new sanctions will be revealed on Monday.
US President Barack Obama said on Friday that Washington and the European Union were prepared to impose sanctions against Russia if the crisis in Ukraine continues to escalate following the signing of a ceasefire agreement.
Obama said the ceasefire in eastern Ukraine – agreed upon only hours earlier – was a result of “both the sanctions that have already been applied and the threat of further sanctions, which are having a real impact on the Russian economy and have isolated Russia in a way we have not seen in a very long time.”
Kiev officials and representatives of the two self-proclaimed republics in southeastern Ukraine agreed to a ceasefire after the contact group met behind closed doors in Belarus.
READ MORE:
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EU admits Putin’s comment on ‘storming Kiev’ taken out of context
RT | September 5, 2014
The EU has admitted that Vladimir Putin’s words about “taking Kiev in two weeks” had been “made public out of context,” said a spokeswoman for the European Commission President in a written response to The Wall Street Journal.
José Manuel Barroso’s spokesperson Pia Ahrenkilde-Hansen said on Thursday the EU is going to address the issue “through diplomatic channels, not in the press.”
“I can only add that the president of the Commission informed his colleagues in the European Council in a restricted session of the conversations he had with President Putin. Unfortunately part of his intervention was made public out of context,” Ahrenkilde-Hansen wrote to the WSJ.
Last week Barroso gave a briefing on his phone conversation with President Vladimir Putin, describing the conversation as “very frank.” During the talk, the EU functionary alleged the Russian president had said that if necessary military occupation of the Ukrainian capital would take just a matter of weeks.
Italia’s La Repubblica was among the very first to overblow the scandal, saying that José Manuel Barroso had told European leaders who attended Saturday’s EU summit in Brussels that replying to Barroso’s accusations about regular Russian troop operating in Ukraine, President Putin had said that “If I wanted to, I could take Kiev in two weeks.”
An EU official has confirmed to the WSJ that Putin’s note about Russian forces being able to take Kiev within two weeks did take place during last week’s telephone call, but the context of the comment was not clear.
The unexpected divulgement by the top EU official immediately sparked a political scandal involving Russia’s high ranking officials and diplomats, who accused Barroso of both intentionally wrenching Russian leader’s remarks out of context as well as breaching diplomatic protocol.
According to Russia’s permanent representative to the EU, Vladimir Chizhov, Putin’s words were “clearly taken out of context.”
On Tuesday, September 2, Moscow threatened to reveal the full recording of the controversial phone call “to remove all misunderstandings” if European Commission President Jose Manual Barroso doesn’t object in the next two days, Chizhov said.
Russia’s presidential aide Yury Ushakov lashed at the EU Commission president’s behavior, stressing it is “incorrect and goes beyond the bounds of diplomatic practices.”
“If that was really done, it is not worthy of a serious political figure,” Ushakov added.
As the EU official acknowledged on Thursday, September 4, President Putin possibly made the comment to strengthen Russia’s position of not and never being involved militarily in Ukrainian crisis.
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