Sunday, September 7, 2014

Ukraine situation ( September 7 , 2014 ) Europe Goes "All In": Will Sanction Rosneft, Gazprom Neft And Transneft ......... Ceasefire still holding despite provocations probably from both Kiev forces and Novorussian forces ..... News and views of the day

Medvedev: Energy, Finance Sanctions Against Russia May Provoke 'Asymmetric Response'

Topic: Sanctions Against Russia

Russian Prime Minister Dmitry Medvedev said energy, finance sanctions against Russia may provoke 'asymmetric response'
00:38 08/09/2014
Tags: economysanctionsenergyRussia
Updated on 03:00 a.m. Moscow Time
MOSCOW, September 8 (RIA Novosti) - NewSanctions against Russia in energy or finance sectors could trigger an assymetric response from Moscow, such as closing its airspace, Russia’s Prime Minister Dmitry Medvedev told the Vedomosti newspaper in an interview released Monday.
“It is them [the West], who should be asked whether there will be new sanctions. But if there are sanctions, linked with energy, [or] further restrictions on our finance sector, we will have to respond asymmetrically. For instance, [with] restrictions in transport area. We act on the premise of friendly relations with our partners, and this is why the sky above Russia is open for flights. But if we are restricted, we will have to answer,” Medvedev added.
The prime minister argued that certain Western airlines could go bankrupt in case they are banned to use Russia’s airspace.
“But this is a bad option. I just would like our partners to realize it at a certain moment. Especially, [considering the fact] that the sanctions do not help to establish peace in Ukraine. They miss [beside the mark], and an absolute majority of the politicians understand it. There are just an inertness of thinking and, unfortunately, the will to use force in international affairs,” Medvedev stressed.
Earlier, a number of European politicians told RIA Novosti that Brussels would introduce a new wave of sectoral sanctions against Russia on Monday. Late July, the European Union and the United States imposed restrictions against Russia’s oil and banking sector over Moscow’s stance in the Ukrainian internal conflict. In response, Russia banned certain food products importation from the Western nations, which introduced anti-Russian sanctions.

Europe Goes "All In": Will Sanction Rosneft, Gazprom Neft And Transneft

Tyler Durden's picture

Until this moment, the main reason why everyone mostly dismissed Europe's sanctions against Russia is that despite all its pompous rhetoric, Europe consistently refused to hit Russia where it would hurt: its energy titans Gazprom, Rosneft And Transfneft. The reason is simple: by imposing sanctions on these core energy exporters, Europe would directly threaten the stability of its own energy imports (Russia accounts for up to 30% of German gas imports), and as winter approaches with every passing day, playing with the energy status quo would seem like economic suicide. This all appears to have changed last Friday, when as the FT reports from a leaked copy, Europe's latest sanctions round will boldly go where Europe has never dared to go before, and impose sanctions on the big three: Rosneft, Gazprom Neft and Transneft.

Leaked copy of Fri night sanctions deal confirms 3 energy cos to be hit by capital markets ban: Rosneft, Gazprom Neft, Transneft

This is what is known in game theory terms as a major defection round.
It also means that suddenly the stakes for Russia, and thus Europe, just got all too real, as Putin will now have no choice but to really ramp up the retaliatory escalation, which following the food ban can only mean one thing: a staggered reduction in gas flow to Europe.

It also means something else: recall that it was just ten days ago when we reported that Gazprom would begins accepting payment for oil in Ruble and Yuan.
If today's news is confirmed, Europe's dramatic shift in sanctions strategy means that Europe's embargo of both the US Dollar and the Euro will accelerate as Russia further intensifies its shift away from both the west and the petrodollar. The only and clear winner here: China, which will almost certainly step in to provide the funding Russia needs however on Beijing's terms in effect making the symbiotic link between Russia and China even stronger, forcing Moscow to rely almost exclusively on China for trade and funding relations, and suddenly give Xi Jinping all the trump cards.

What China's president will do, now that he has all the leverage in the world to call shots both to the West, the East, and of course,Africa, remains unknown, although those thousands of tons of gold imports that mysteriously enter the country and are never heard from again, may provide a hint.


CONFIRMED: Few Grad missiles hit Donetsk Airport. Gun-fire heard nonstop.

27 people and 53 have been wounded in the past three weeks in the town of Kirovskoye, population 31,000, located 50 km away from .

This morning we sent aid trucks to but shelling forced them to turn back at Staniza Luganska.

Itar Tass.....

864 Ukrainian troops killed since the beginning of the force operation in eastern Ukraine

 September 07, 16:38 UTC+4
As many as 3,215 have been wounded, spokesman for Ukraine’s National Security and Defence Council Vladimir Polevoi said
© AP Photo/Sergei Grits, File
KIEV, September 07 /ITAR-TASS/. As many as 864 Ukrainian servicemen have been killed and another 3,215 wounded since the beginning of the force operation in the Donetsk and Lugansk regions in southeastern Ukraine, spokesman for Ukraine’s National Security and Defence Council Vladimir Polevoi said on Sunday.
“Overall losses since the beginning of the operation have reached 864 servicemen. As many as 3,215 have been wounded,” he told a briefing.
The force operation in southeastern Ukraine began in mid-April.

Poroshenko adviser names countries that promised Kiev weapons

 September 07, 15:56 UTC+4
Agreements were reached at the NATO summit on Western military advisers and the delivery of modern weapons from the United States, France, Italy, Poland and Norway, Yuri Lutsenko said
© ITAR-TASS/Nikolai Lazarenko
MOSCOW, September 07 /ITAR-TASS/. At the NATO summit Kiev has reached an agreement on sending Western military advisers to Ukraine and on the delivery of modern weapons from five countries, Yuri Lutsenko, an adviser to Ukrainian President Pyotr Poroshenko and leader of the Pyotr Poroshenko Bloc party, said on Sunday.
“Agreements were reached at the NATO summit on Western military advisers and the delivery of modern weapons from the United States, France, Italy, Poland and Norway,” Lutsenko wrote on his Facebook page.
The Ukrainian president said last Friday on the results of the NATO summit in Wales that some countries were ready to supply weapons to Ukraine. Poroshenko declined then to specify the counties, offering Kiev these “newest types of weapons,” for confidentiality reasons.

Donetsk source: Ukrainian troops continue attacks

 September 06, 16:03 UTC+4
The high-ranking source said: “Kiev’s statements about a ceasefire were only statements. These are statements only on paper and in the air. In reality, it does not seem to be truth”
DONETSK, September 6 (Itar-Tass) - Ukrainian forces do not observe the ceasefire, continuing shelling Donetsk and positions of the Donetsk Republic’s militia near Mariupol, co-chairman of the People’s Front of Novorossia political movement Konstantin Dolgov told Itar-Tass on Saturday.
None of truce agreements concluded with Poroshenko has been observed. Ukrainian forces continue artillery strikes on Donetsk and its suburbs and do not stop firing in Mariupol, he said.
The Defence Ministry of the self-proclaimed Donetsk People’s Republic said on Saturday that Gorlovka was under mortar fire. A coalmine was shelled in Makeyevka at about midnight. Fire was opened on the town of Yasinovataya. Ukrainian troops also fired from armoured vehicle weapons at Donetsk airport.
“Now it is relatively calm in the city,” a defence ministry source said.
The high-ranking source said “Kiev’s statements about a ceasefire were only statements. These are statements only on paper and in the air. In reality, it does not seem to be truth,” he said.
The Donetsk and Lugansk republic’s forces observed the truce, he added.
On Friday, the Donetsk Republic’s Prime Minister Alexander Zakharchenko, after the meeting of the contact group in Minsk, ordered by telephone to stop fire, and the ceasefire is observed, the source said.
He also said that Ukrainian troops were seen redeploying in the Mariupol area.
Itar-Tass had no confirmation of the information from other sources.
An agreement on a truce between the conflict parties was reached in eastern Ukraine previously on June 20, but Ukrainian President Pyotr Poroshenko cancelled the truce on June 30, saying it was unilateral. During the period, Kiev troops repeatedly fired from artillery guns and mortars at residential areas in the Donetsk and Lugansk regions. They also used heavy weapons against militia forces.
Russian President Vladimir Putin on September 3 proposed a peace plan to settle the crisis in Ukraine. The plan called for stopping offenses by all forces in southeastern Ukraine, withdrawal of armed forces at a safe range from residential sites, international monitoring of ceasefire observance, no use of military aircraft against civilians, swap of all captives, opening humanitarian corridors and repair of the infrastructure.
An agreement on ceasefire and a settlement plan was reached during the meeting of the contact group in Minsk on September 5 with the participation of representatives from Kiev, southeastern Ukrainian regions, the OSCE and Russia.

RIA Novosti.....

Gunshots Heard in Donetsk Throughout Morning, Early Afternoon: City Council

Topic: Situation in the South-East of Ukraine

The residents of the eastern Ukrainian city of Donetsk report hearing gunshots throughout Sunday morning and early afternoon.
15:21 07/09/2014
Tags: military operationceasefirehostilitiesOSCEDonetskUkraine
DONETSK, September 7 (RIA Novosti) – The residents of the eastern Ukrainian city of Donetsk report hearing gunshots throughout Sunday morning and early afternoon, according to the Donetsk City Council.
“The first half of the day in Donetsk was turbulent. Residents say they regularly heard gunshots in almost all of the city’s neighborhoods,” a statement released by the Donetsk City Council Sunday says.
The situation in the city remains tense, however all of the city services are operational and public transport is running on a regular schedule, according to the City Council.
On Friday, during the meeting of the Contact Group on Ukraine in Minsk, representatives from Ukraine, Russia and the Organization for Security and Co-operation in Europe (OSCE) agreed to a ceasefire between Kiev and independence supporters that started at 15:00 GMT the same day.
Residents of southeastern Ukraine have been suffering as a result of clashes between independence supporters and government forces since mid-April, when Kiev launched a military operation in the region. Over 2,500 people have died and more than 6,000 have been wounded since the start of the offensive.

Rallies in Support of Mistral Ship Deliveries Held at French Shipyard

Topic: Russia's Purchase of French Mistral-Class Warship

French-built Mistral-class helicopter carrier at the Saint-Nazaire shipyard in France
15:44 07/09/2014
Tags: rallyMistralFrancois HollandeRussiaFrance
SAINT-NAZAIRE (France), September 7 (RIA Novosti) – Activists and union members are holding rallies at the Saint-Nazaire shipyard, calling for the delivery of the first French-builtMistral-class helicopter carrier to Russia, a RIA Novosti correspondent reported Sunday.
The union members work for the French DCNS ship-building company, which signed a contract on the delivery of two Mistral-class ships to Russia in June, 2011.
Demonstrations against the delivery of the vessels are also taking place at the Saint-Nazaire shipyard.
Under the $1.6 billion deal reached between France and Russia, two Mistral-class ships, the Vladivostok and the Sevastopol, are supposed to be delivered to Russia by 2015, to be later deployed by Russia’s Pacific Fleet.
The completion of the deal has been at risk since Western countries imposed sanctions against Russia over its alleged role in the escalation of the crisis in Ukraine.
According to French President Francois Hollande, a final decision on the implementation of the Mistral contract would be made in October.