Friday, September 5, 2014

Why Russia Will Win A Resource War

Russia Can Hit Back With Resource War -- Gary Litman, Real Clear World

This week, heads of 28 nations gather in Newport, Wales, for a NATO Summit described by a former NATO military commander as “the most important since the fall of the Berlin Wall.” In the face of increasing Russian military action in Ukraine, NATO leaders will discuss what mix of tools, including new and stricter sanctions, would cause the Russian leadership to rethink its Ukraine policy.

Today’s headlines don’t tell the story, but in spite of the tumult in its eastern regions, Ukraine finds itself on the path of integrating itself into the so-called Deep and Comprehensive Free Trade Area with the EU - even as its government and private sector have to look ahead for ways to sustain commerce with its eastern neighbors.

Recent news stories highlight the impact of trade sanctions on the economies of Russia and Europe, and to a lesser extent the United States. What’s often overlooked is the potential exposure of Western economies to Russian counter-sanctions in the resource sector.

Read more ....

My Comment: Russia is a dominant player in the world's metal markets .... any disruption will mean higher prices for all products that require steel. This is also where many of Russia's oligarchs have made their fortunes .... not in oil .... but in the metals sector.

1 comment:

Unknown said...

Recycling is a national security matter.

This could help alleviate problems in sourcing copper and nickel.

Maybe not as much copper is needed now with fiber optics. So things may not be so dire as they seem.

As Jim Malone would say"What are you prepared to do"

Rethink the EPA? Mine the sea floor?