Germany Key To Russia-Ukraine

Germany needs to take a leadership position in negotiating an economic solution to the rapidly escalating standoff on the Crimean peninsula, said Jim O’Neill, a former Goldman Sachs asset management chairman and expert on emerging economies.

Heavily dependent on Russian gas for energy, Germany has the closest trade relationship with Russia among Western leaders, O’Neill said Monday during an interview on CNBC’s “Squawk on the Street.” That gives it the most to lose if its allies decide to pursue economic sanctions against Russia, O’Neill said.

“Economic sanctions are really only going to work if the countries that get hurt the most themselves stick to them,” O’Neill said.

Fears over the global imbroglio caused by Russian troops seizing control of Ukraine’s Crimean peninsula last week sent stocks into a tailspin across global financial markets on Monday.

If Germany can not only sign on to an economic package designed to end the standoff, but also play a large role in its development, that would give O’Neill “a little more comfort” about geopolitical tensions, he said.


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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