European Trade Relationship With Russia Makes Deeper Sanctions Unlikely

The EU and US could seek to isolate Russia by severing diplomatic links and military dialogue.

Another option might be to attempt to remove Russia from international bodies such as the World Trade Organisation, International Monetary Fund or World Bank.

Also, President Vladimir Putin has been very keen to bolster co-operation on investment, research and education.

Marginalising him on the international stage could be a blow to Moscow’s prestige, although it is unlikely to do much damage economically.

That said, the EU and US will not want to cut off dialogue with Russia.

That would certainly ratchet up the pressure on Moscow. Rhe EU is by far Russia’s biggest trading partner.

Imports to the EU from Russia are dominated by crude oil and gas. According to the Energy Information Administration, European countries import 84% of Russia’s oil exports, and about 76% of its natural gas.

Germany is the single biggest importer of Russian oil and gas, while the UK buys about 6% of Russia’s gas.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza