Merkel Threatens Russia with Massive Sanctions. Russia and China Warn About Global Currency War
nsnbc : German Chancellor Angela Merkel warned Russia that it risks “massive sanctions and economic consequences”, unless it changes its position with regard to the Ukraine. Russia replies that it is ready for a show of reciprocity if the EU and the USA go ahead with economic measures against Russia. China warns that sanctions against Russia would have a global economic impact.
German Chancellor Angela Merkel, speaking on behalf of the her EU and Western Counterparts, said that Russia risks “massive political and economic consequences” if it does not change its position about the Ukraine. Russia maintains that the new government in Kiev came to power through an illegal, armed coup, that the government is illegal and the decision of the Crimea to hold a referendum on Sunday is consistent with a decision of the UN’s International Criminal Court about Kosovo. The Russian position was outlined in an analysis by Russian expert in international law and governance, Alexander Mezyaev. Merkel, however, stressed that Germany and its Western allies see the Russian position about the Ukraine as a threat, saying:
“We would not only see it, also as neighbors of Russia, as a threat. And it would not only change the European Union’s relationship with Russia. …No, this would also cause massive damage to Russia, economically and politically.”
Merkel made the statement while speaking in Germany’s Reichstag on Thursday. Merkel added, that EU members and other Western nations, if necessary, are prepared to freeze bank accounts and impose travel restrictions on people and firms that Brussels suspects of being involved in violating Ukraine’s territorial integrity. Merkel stressed that the territorial integrity of the Ukraine cannot be called into question and called the Crimean leader’s comparison of the Crimea with the situation in Kosovo “shameful”. Merkel said:
“And even if there had been other breaches of international law – Kosovo not being one of them – Russia’s actions in Ukraine are still a breach of international law”.
Although Merkel’s position is not unchallenged in Germany, nor in other EU, NATO and G7 countries, Western media appear to be running an unabated and thus far, unprecedented propaganda campaign that leads many opponents of the Western position and the Western-backing of the armed coup d’état warn that NATO is dangerously close to a war footing, and astoundingly, in cooperation with Neo-Nazi’s, Fascists and Ukrainians who are celebrating former SS troops in the Ukraine as heroes.
Merkel warned that sanctions could be approved as early as Monday, that is a day after Crimea will hold the referendum in which its citizens determine whether they want to remain part of the Ukraine in a “confederation” and under the provisions of the 1992 constitution that was abolished during the Western-sponsored and engineered ”Orange Revolution” in 2004, or if the Crimea shall ask Russia to become part of the Russian Federation. Meanwhile, the Paris based OECD announced that it has postponed all activities related to talks with Russia about its accession to the organization, stating that it instead will focus on strengthening relations to the Ukraine.
Russia ready to show reciprocity. With reciprocity being one of the basic social behavior of homo sapiens sapiens, Russia afforded its reciprocity by assuring that Russia is ready to retaliate with counter sanctions against the EU and the USA, should they go ahead with economic measures against Russia over the tensions about Crimea. The Russian Deputy Economic Development Minister, Aleksey Likhachev, said:
“We hope that there will only be targeted political sanctions, and not a broad package affecting economic trade. … Our sanctions will be, of course, similar”.
In January, Russia’s Minister of Economic Development, Aleksey Ulyukaev, warned that the world is headed for a global currency war. In an interview, following the latest Western threats of sanctions, Ulyukaev said in in interview with the Vesti 24 TV channel, that Russia, among others, would shield itself, from Western sanctions, by boosting trade in other currencies that the US dollar. Ulyukaev said:
“We need to increase trade volume conducted in national currencies. Why, in relation to China, India, Turkey and other countries, should we be negotiating in dollars? Why should we do that? We should sign deals in national currencies- this applies to energy, oil, gas, and everything else”.
Meanwhile, the Russian parliament (Duma), is drafting legislation that would allow Russia to freeze assets of Western companies and individuals in the event that sanctions are imposed, following the referendum in Crimea on 16 March. The author of the draft legislation, Andrey Klishas, told RIA Novosti that the bill would give “the president and government opportunities to defend our sovereignty from threats”.
After the recent statements and Merkel’s thinly veiled threat today, the Chinese Ambassador to Germany, Shi Mingde, warned that sanctions against Russia would have a global economic effect. Mingde said the geo-political tiff between Russia and the West could“spiral” into chaos.
Ch/L – nsnbc 13.03.2014