Copying and distributing are prohibited without permission of the publisher

HOTTER ON METALS: Russian sanctions costly for all

July 24, 2014 - 06:19 GMT Location: New York

KEYWORDS: Russia , sanctions , EU , oil , gas , aluminium , UC Rusal , Norilsk Nickel , exports

Economic interdependence between Russia and the European Union means sanctions carry a price to both sides.

So far, the EU sanctions have focused on travel bans and asset freezes on members of president Vladimir Putin’s inner circle. The short term impact was market volatility but not harsh enough to be significant. With the US going further last week, adding individuals and significant companies to the off-limits list, the pressure has been on the EU to do the same. But politics is getting in the way. The rights and wrongs of the situation in eastern Ukraine aside, the economic vulnerabilities of some EU nations and their reliance on Russia for business and jobs has created tensions between member states and delayed the introduction of a package of further significant restrictive measures. France has contracts to deliver helicopter assault ships to Russia worth $1.3 billion, for instance, and is reluctant to let these lucrative agreements go. Business groups in Germany have meanwhile warned that 25,000 domestic jobs are...

All material subject to strictly enforced copyright laws. © Euromoney Institutional Investor PLC.

subscribe to this feed Comment & analysis

  • EXPERT VIEW: China remains amazing

    While world stock markets tremble, life continues pretty much as normal on the streets of Shanghai, Beijing and Shenzhen. No one is even particularly talking about a fear of recession.

  • IZA CONF: Six things we learned at the Inner Mongolia zinc conference

    Metal Bulletin was at the International Zinc Assn’s 2nd Zinc Smelting & Environment Conference in Chifeng, Inner Mongolia, last week. Below is a summary of the six things we learned there:

  • HOTTER ON METALS: Miners' productivity problem

    In their attempts to create value in the post-2008 downturn world, mining firms did everything they could to achieve efficiency at their physical assets. But the drive by mining companies for productivity has stalled.

Upcoming Events

MB Glossary

From Aluminium to Zinc...
Search this free glossary on metals