Sanctions and counter-sanctions

This Means War: US To Target Putin's Personal $40 Billion Stash

Zero Hedge,

20 April, 2014

While the White House has continually threatened further sanctions against Russia for non-de-escalation (even as it un-de-escalates itself), the specifics of the additional sanctions have been sparse. German CEO warnings over blowback from economic sanctions... the "nonsense" of replacing Russian gas with US gas... the Russian warnings of "interdependence" and "boomerangs"... all reduce the West's arsenal of financial sanctions. But, as The Times of London reports, perhaps the US has found a crucial pain point for Putin - a sanctions regime that would target Putin's personal wealth, which includes a reported $40 billion stashed in Swiss bank accounts.

As The Hill reports,

The White House on Friday refused to comment on reports that Russian President Vladimir Putin's personal wealth could be targeted if the West were to move ahead with additional sanctions over Ukraine.

"I'm not going to get into foreshadowing particular individuals or entities that the United States may target," national security adviser Susan Rice told reporters at the White House. "But let me just say we've been clear that there are additional individuals, officials, close associates of senior leadership, oligarchs and those entities that they are associated with that remain very much potential targets of additional sanctions."

...

The Times of London reported Friday that the U.S. was preparing a sanctions regime that would target Putin's personal wealth, which includes a reported $40 billion stashed in Swiss bank accounts.

Putin's actual holdings are a tightly held secret, and the extent of his holdings are difficult to estimate. But a threat of trying to freeze the Russian president's personal assets could have played a role in a deal brokered Thursday by foreign ministers from the U.S., Ukraine, Russia and European Union.

Perhaps it is worth remembering Putin's response from last week's Q&A...

Putin was asked why the US can do whatever it wants and no one punishes them, while attempts are being made to punish Russia.

“The US is certainly one of the world’s leaders. At some point it seemed that it was the only leader and a uni-polar system was in place. Today it appears that is not the case. Everything in the world is interdependent and once you try to punish someone, in the end you will cut off your nose to spite your face,” he said.

Though we are sure Obama and his team have considered all the intended and unintended consequences of any such actions.

Communists urge total boycott of US goods

RT,

20 April, 2014

Russian Communists are planning a mass campaign promoting a voluntary boycott of all American goods as proof that Russians cannot be intimidated by sanctions.

The head of the Communist Party’s legal department, Vladimir Solovyov said that his comrades intend to set an example in the campaign, at least in its first stages. He also promised that the politicians will find suitable replacements for all US products and share this information with anyone who wishes to join in.

“If our citizens stop buying their goods and our businessmen stop buying them, the Americans are going to lose our market. I would also not exclude that dollar circulation would stop, as there are replacements for it, like the euro,” Solovyov said in an interview with Izvestia daily. “It is really easy to find replacements for everything American with the market we currently have,” the top Communist functionary added.

Another top Communist, lower house MP Sergey Obukhov agreed with the idea, but said that a universal boycott might prove to be too complicated and suggested pinpoint action instead. It is important that specialists in statistics establish groups of goods the rejection of which by Russians would deal the heaviest blow to the US economy, the politician said.

Deputy chairman of the Communist Party’s Central Committee Valery Rashkin also supported the initiative, but said that the boycott should be strictly voluntary

“I myself hold that we should give priority to the goods that are produced in Russia. They are of high quality and they are cheap. But it is categorically unadvisable to ban everything else,” Rashkin told reporters.

According to the Office of the United States Trade Representative, American exports to Russia amounted to $10.7 billion in 2012. Russia’s exports to the US in 2012 was $29.3 billion.

Earlier this month, a group of Russian MPs headed by a representative of the populist nationalist party LDPR suggested Russian oil and gas producers and traders stop using the US dollar as this, in their opinion, was sharing profits with the USA, and making Russia vulnerable to western sanctions.

The idea was welcomed and promoted, by the head of the major state-owned VTB bank, among others.

LDPR also drafted a bill restricting US dollar circulation in Russia, but it was soon withdrawn for rewriting.