Sanction and Transaction

On October 31st, according to New York Times, Russia restarted supplying gas to Ukraine by intermediation of EU. Although the deal is established, the conflict between Ukraine and Russia is not over. This agreement is people in Kiev and the latest economic problem. In addition to economic sanction against Russia, Russia is facing to lower oil prices. Russian economy heavily depends on income from natural resource, and the income was one of Putin’s prospects of victory.   Therefore their suspicion and hostile against each other are not end.

According to the article, the prime minister of Ukraine, Arseniy P. Yatsenyuk, said that he expected that the Russians would eventually cut off or reduce gas shipments after they got their money. On the other side, Russian officials said that Ukraine not only could not be trusted to pay for its gas without European backing, but, in fact, could be expected to steal from Russian supplies to Europe.

This article indicates that the relationship between Russia, Ukraine and the rest of countries in EU is very interdependent. In addition, the economic sanction against Russia is not perfect shape because of this deep relationship between them. However, the sanction against Russia is very effective to bargain because their economic transaction will not be end. No matter how much they hate each other, they cannot top their business. This is very important to bargain, and avoid wars.

 

http://nyti.ms/1qbyGd0

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8 thoughts on “Sanction and Transaction

  1. This is an interesting article. It provides a great example of how economic sanctions and intertwined regional economies interact. Do you think Russia will cut off the gas supplies even if the Ukrainians pay for it? Putin seems the type to do something like that, he does not seem to be the most reasonable leader with the many aggressive actions he has taken in Europe lately.

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  2. This article was interesting because it shows how interdependent countries are when it comes to their supplies. And what measures Russia is willing to take to stop the Ukraine from getting their gas supplies. I’m interested to see how things will play out?

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  3. do not really think that cutting off the gas line is appropriate actions for international leaders to do so, but also can not assume how Russia is going to act for it according to their characteristic. This article helps me to understand how sanction would work economically when it comes to transaction.

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  4. While I understand the economic impact of cutting off gas supplies to Ukraine, I struggle with understanding the point of doing so. Ukraine is increasing its ties to the EU and other European countries as it is, so why would Putin think it is strategic in the first place, given the numerous sanctions that have already been imposed on Russia? Is it just because Russia wants to prove a point to Ukraine? If that is the justification, it seems pretty weak and nonthreatening to me…

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  5. Because of the economic sanctions and the probability of lowering oil prices I don´t think it would be very economically strategic to cut the gas supply to Ukraine as long as they pay for it. As the article tell us Russia is very dependent on natural resources and I think the costs in economic losses will overthrow the possible “gains”, whatever that is… Seems like Putin just want to make a point and show that its not weak and dependent on Ukraine. Although it sort of is in a way at least from what I´ve understand. Anyways I don´t understand how it would be possible for Ukraine to steal gas from Russia?

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  6. Cutting off the gas supplies to Ukraine just seems to me that Russia is trying to show that they do not back down despite the economic sanctions against them. It’s interesting to see that Russia and Ukraine are very dependent to each other when it comes to economic transaction even during the conflicts.

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  7. Russia will not cut the gas off, like you said, the interdependence on one another is a major factor. The Situation is not over, but it seems to be at a phase where, who’s is going to make the first move and is it going to be positive? Will a hand be extended or shot be taken? Russia will most likely not make the first move, due to their stubbornness. We can only wait to see what happens.

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