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IPFS News Link • European Union

Luongo: EU Sanctions On Russia Equal "Suicide By Cop"

•, by Tom Luongo

We know that the EU is very dependent on Russian energy and the existing sanctions have hampered EU-Russian trade for years now. Europe is incredibly vulnerable here to any form of supply/demand shocks as their financial system teeters on the edge of the abyss.

There is no solidarity between the US and the EU on these matters, as I've pointed out in post after post here. So, the question now is, if Europe is targeting Russian energy exports and the ability of EU banks to do business to buy Russian gas and other export commodities why would they pick this fight?

The answer must be that this is exactly what they wanted in the first place.

In the US we call this 'suicide by cop,' which is exactly how I framed it when asked by Sputnik for my thoughts on the subject this morning. I was asked on Monday before Putin's intervention in Ukraine, to answer the following questions. Events moved beyond them, obviously, but I publish them here anyway because they are still of some value. {current editorial comments in brackets}

According to recent research, US liquefied natural gas export capacity will be the world's largest by the end of 2022. Could it be that part of the whole game around Ukraine was about the US petroleum sector benefitting from the current standoff in Ukraine?

Of course. That is a sub-plot in this very complicated story.  There are many factors that went into this standoff over Ukraine, which Russia is now accelerating towards an end-game state {boy howdy was that an understatement 12 hours later}.  LNG exports from the US is certainly one of them, but I think the bigger issues concern the future of NATO, the security architecture of Europe and who controls it.

I see this as much as a fight between the US/UK and the EU over security as much as it is about the US's long-standing antipathy to Russian energy exports.  These issues are, of course, all intertwined.

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