Neither the US nor President Trump should not be the sole decider of global sanctions. If the EU wants to do business with Russia to secure natural gas, that is EU business.
Nonetheless, U.S. Warns German Companies of Possible Sanctions Over Russian Pipeline.
U.S. President Donald Trump has accused Germany of being a “captive” of Moscow because of its reliance on Russian energy and urged it to halt work on the $11 billion gas pipeline. U.S. Ambassador Richard Grenell addressed the issue in a letter sent to several companies, the U.S. Embassy said on Sunday.
Juergen Hardt, foreign policy spokesman for Merkel’s conservatives in parliament, was scathing in his criticism of the U.S. move.
“That the U.S. ambassador is now turning to German companies with direct threats is a new and unacceptable one-sided tightening of the tone in the transatlantic relationship,” Hardt said. “If the U.S. president thinks he has to publicly show he is getting tough on Russia in view of the many question marks regarding his relationship with Moscow, he should not thereby impair the relationship with his most important ally.”
“The letter reminds that any company operating in the Russian energy export pipeline sector is in danger under CAATSA of U.S. sanctions,” the embassy spokesman said, adding that other European states also opposed the planned pipeline.
CAATSA
CAATSA stands for Countering America’s Adversaries Through Sanctions Act.
Imagine Europe passing a CEATSA and directly threatening US businesses. That’s how arrogant and wrong this policy is.
A Bloomberg Nord Stream 2 Editorial gets it correct.
Reducing Europe’s dependence on Russian gas is in the U.S.’s interest. But penalties against the companies financing Nord Stream 2 would arouse public resentment in Germany and strengthen the project’s supporters.
The current political instability in Berlin might get worse. And the U.S. risks alienating Europeans who oppose the pipeline but object to Washington interfering in their energy policies.
Iran Sanctions
The US unwisely pulled out a a nuclear deal with Iran over the objections of the EU. European firms pulled out of deals over sanction threats.
In November, EU leaders discussed setting up a European ‘clearing house’ to bypass US sanctions.
A special clearing house designed to allow European companies that trade with Iran to bypass newly reimposed US sanctions will be set up in Europe within months, possibly in France or Germany.
Donald Trump pulled the US out of the deal earlier this year, breaking with Europe, and on Monday a full panoply of US sanctions came into force. The package included the threat to sanction companies or countries that buy Iranian oil, the lifeblood of its economy.
Bullies Never Stop
Bullies never stop their bullying.
The EU needs to immediately, if not sooner, complete its European Clearinghouse to bypass absurd sanctions on Iran and threats like these we see today.
Proper Response
I am OK with Trump expressing an opinion, but Trump, like all bullies, seriously needs a black eye for extremely arrogant bullying.
There is only one proper response from Merkel and there is no need to be polite about it: “Dear president Trump F off. This is our business. The EU does not get involved when you make a deal with Canada and you won’t tell us what bilateral deals to make either.”
A European clearing house for non-dollar transactions will be a smack in the face that Trump needs and deserves.
If Trump responded by pulling pulling troops from Germany or leaving NATO, I would praise that action by the President. We cannot afford to be the world’s policeman.
If Trump wants to do something for the US, instead of bullying German companies, he can bring all the troops home. That is our business. Nord Stream is European business.
Mike “Mish” Shedlock
Agreed Mish. Not our business over there
This Russian-German pipeline is less about economics and more about ensuring Germany and Russia don’t collude in conquering Europe.
“U.S. President Donald Trump has accused Germany of being a “captive” of Moscow”
The irony being that Trump has been accused since before Day One, of being a captive of Moscow, as a Putin Puppet. It has been a constant drum beat of propaganda. What effect is this having on Trump’s foreign policy, as he is attacked by those who attempted to prevent him from becoming President, through their abuse of power, meddling in our election? Since the election, their meddling hasn’t stopped, which has caused how much havoc?
U.S. has had sanctions against many countries. How many actually led to a war? If sanctions are an act of war, are punitive tariffs an act of war too? You are on slippery slope.
“But Mish will still howl that such tariffs is an act of war… LOL.”
Man the idiots are out in force tonight.
I like the idea of bringing troops home, but what would they do here?
Build a Fence….
“The Germans are free to do business with Russians and the U.S. is free to sanction the Germans. Everyone is free to do or not do whatever he/she wishes. So what is the problem?”
The problems are obvious.
It’s in violation of WTO rules
It’s in violation of existing trade treaties
Without widespread approval based on grounds, it’s an act of war.
It’s blatantly stupid
Other than that, no nothing wrong with it – sheeesh
If it is in violation of WTO rules, the Germans are free to bring it to the WTO. But how it this an act of war? Hyperbole much?
Why not make tariffs on EU goods proportional to Russian gas usage? Let them use Russian gas.
A major concern has always been German industrial might meeting Russian natural resources = super power threat to all the West.
Germany has played it well and will become a major enemy, just give it time. 3rd time lucky.
Unless German fertility rates explode pronto, Germany will be no more realistic an “enemy” than Japan will, of anyone other than their own drool napkins. Ditto Russia.
But Mish will still howl that such tariffs is an act of war… LOL.
“But Mish will still howl that such tariffs is an act of war… LOL.”
Man the idiots are out in force tonight.
“it’s an act of war” – SERIOUSLY??? It’s called negotiating in AMERICA’s best interests – specifically, LNG companies. We can do business with whom we choose, and so can Germany.
The EU establishment has fanned the fake flames of Trump colluding with Russia, and they want increased dependancy on russia. Germany has been benefiting from the flawed euro at the expense of the periphery, and has been threatening to punish Britain over BREXIT. I don’t even need to go into the bailout of German banks. It’s big boy politics and Germany has a very weak hand that needs to be called.
Trump offered LNG from the US… condensing, shipping, distributing. Sounds real expensive compared to pipeline distributed natural gas, doesn’t it?
Ask the Ukrainians, Poles, and Slovakians (and even Germans) when the Russian shut off the LNG pipelines in the middle of winter.
Nothing quite like freezing in the dark to make think you spending a little extra money up-front to guarantee that doesn’t happen again…
And nothing like a Russian pipeline alternative, to ensure the LNG shippers, as well as the Israelis and Greeks between East Med gas and Germany, keep their prices reasonable.
You want as many, maximally independent, suppliers as possible for a commodity as important as gas. Only idiots believe “Deals”, whether sold as “Art of” or not, matter to anyone who are not idiots themselves.
I’m not sure what’s funnier — Trump’s deep involvement in EU affairs to try and block any major business with the Russians, or our useful idiot opposition party shrieking that Trump is an agent of the Russians.
One thing is certain: politics make most True Believers into very stupid people.
When you run to a bully (USA) to get protection from another bully (Russia), don’t be surprised when the first bully asks for favors.
The only real long term solution is to be able to stand and fight on your own.
But not only can’t the EU fund their own defense, they can’t even get their young men to even join their minuscule armies in sufficient numbers.
In such a case, the proper response is to tell the EU to “shut the f*ck up” and pray that the bullies never figure out how to work together.
You presume the EU has young “men” who would fight Russians. Maybe some of the Eastern Europeans, but not the French or Germans. And forget those down south.
Please cite some examples of Russia’s ‘bullying’. Let’s say in the past 2 decades.
Off the top of my head…
Shooting down civilian planes, shutting off LNG in the middle of winter to their customers to make a political point, arming rebels in the Ukraine, sending in “little green men” (their Special Forces) the to Crimea and Ukraine, sending assassination teams in the UK, shutting down the power grid in Estonia and the Ukraine (cyber attack), arming the Taliban, extremely dangerous close “fly-bys” to NATO aircraft/planes in international waters/airspace, sending submarines into Swedish territorial waters…
And, if you believe the democrats, stealing the last US elections…
Note: You can easily name a list of American bullying too.
++++++
“Please cite some examples of Russia’s ‘bullying’. Let’s say in the past 2 decades.”
You sound just like MSNBC & CNN.
Wait, I thought Trump was supposed to be under Russian control?
“Mish you mention bullies like the EU isn’t one of them.”
Excuse me for pointing out that two wrongs don’t make a right.
Moreover, the EU is bullying the UK now, and I have mentioned that countless times.
It’s called one wrong and a consequence.
The Germans are free to do business with Russians and the U.S. is free to sanction the Germans. Everyone is free to do or not do whatever he/she wishes. So what is the problem?
You can do whatever so long as prepared to live with the consequences.
In anything even remotely resembling anything even remotely close to a free and civilized country, GERMANS are free to do business with RUSSIANS. And AMERICANS free to sanction GERMANS. If they so wish. Or not, if they don’t.
Some Americans being in a position to dictate who other Americans get to trade and associate with, at the point of a gun, is the problem. Get rid of that deficiency, which is the sole domain of totalitarian hellholes, and Trump and his pals can run around sanctioning whomever they fancy, for whichever harebrained reason gets them all hot and bothered.
Trump would just tweet:
“World tells me to go to hell – but they are the same thing and I’ve been doing everything to get the USA out of Global Hell. Sad!”
When is Merkel going to leave NATO?
The problem with entangling alliances George Washington cautioned us against is they are entangling.
And you will moan when as a response Trump sanctions Germany (consider Deutchbank and VW Diesel scandals might be a reason we should have done so).
The greater problem is the Swamp is the one poking Russia. Apparently we need to create more enemies.
Mish you mention bullies like the EU isn’t one of them.
Angela blows with the wind on most things, but she stupidly stuck with her immigration policy forever.
Bullies never stop. Neither do deadbeats, and Germany is one. Merkel’s implied messaging is clear to all but idiots: Dear Donald, we’re getting in bed with the bear by becoming dependent on Russia for gas, but I’m assuming we in Europe can continue to rely on you dumb American politicians to spend a few hundred billion extra in defense every year to protect us. Regards, Angela
So where does Germany and the rest of the EU get their energy from if not from Russia? Only idiots would rely on Trump for anything other than supplying a daily dose of idiot tweets.
Yep. The US isn’t going to build a transatlantic pipeline, and the Europeans need a source of heating and cooking fuel (as well as gas for power generation).
If Trump was politically smart (ha!), he would be tweaking the EU and asking why they need all that Russian gas if their Green Energy Revolution has been so successful.
You are obviously not aware of the Israeli-controlled gas field and US LNG.
The place to lead is from the front, and the time is now. Merkel is following. She’s following the greenies by pretending Germany can power a modern economy with windmills, all the time buying nuclear-generated power from Austria as she shuts down Germany’s nukes…again to please the greenies. Disgusting.
Germany has played it all very well, very manipulative.
Low euro but won’t bail out countries making the euro week.. Someone else defending the Fatherland. The whole EU under their thumb. Now cheap natural resources whilst spending money to support a state responsible for acts of terrorism on the soil of a US ally.
Wake-up Mish, it’s not a free market and others are out playing the US and UK.