As tensions between Russia and Ukraine intensify, European diplomats have discussed the possibility that broadening sanctions against Russia could create significant blowback for their domestic economies. Billions of dollars in foreign investment could be at risk if Russia chooses to retaliate against foreign sanctions. Some European diplomats have described this threat as the economic equivalent of the dangers of the Cold War decades ago.
Thoughts:
The European Union is forced to create economic barriers with Russia in an effort to lower its political tension with Ukraine. This article is illustrative of a shift of power, as MGO's are essentially causing a loss of sovereignty in numerous TNC's and countries that are economically linked to Russia. Further, an interesting aspect in all of this is that countries, such as the Czech Republic and Hungary have to be wary of sanctions against Russia because they depend on TNC's that provide a majority of the energy in their country. The interconnections between TNC's around Europe and Russia, seem to dwarf other countries in Europe because of their sheer economic power.
Esguerrraa.
ReplyDeleteInteresting article that you found, it follows up on mine. I think that this whole "Crimea Operation" by Putin is a masterpiece. Due to the control of Oil, he has the Ace in his hand here. What is the EU supposed to do? Start a full on conflict, potentially leading to war? They are trapped since they can't afford Russia to just shut down their Oil supply. Poor Ukraine, is like the victim in all of this, being bullied by the big Russia.
I agree with you here Sancho in some respects. The only problem is that many inside Ukraine sympathize with Russia. Since that is the case, it makes the dynamics of it all quite different. If there is a peaceful resolution to everything, what needs to happen here to solve this problem?
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