Trade ties expose EU, US rift over Russia sanctions [View all]
As the US moves to impose sanctions on Russia over Crimea, the EU calls for more negotiations. The European Union and the United States have threatened Russia with punitive measures if Moscow does not reduce tensions in Ukraine. But some European countries are reluctant to impose sanctions due to close trade ties with Russia.
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As Russia's largest trading partner, the EU wields considerable economic clout with its eastern neighbor. In 2012 alone, the two traded nearly 400 billion euros worth of goods and services. And EU member states accounted for nearly 75 percent of the foreign direct investment stocks in Russia, according to figures published by the European Commission's Directorate-General for Trade.
But the economic relationship is one of mutual dependence. Approximately 33 percent of the EU's petroleum imports come from Russia, according to Eurostat. And key actors in the EU, such as the UK and Germany, have their own national economic interests at stake in the country.
"There can be sanctions that will actually bite," Ivan said. "One of the problems is that those would also bite the European economy."
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The EU also has a cumbersome decision-making process compared to the US. All 28 member states will have to unanimously agree on a sanctions package. With each of those countries having a different relationship with Russia, Ivan believes compromise will be inevitable.
http://www.dw.de/trade-ties-expose-eu-us-rift-over-russia-sanctions/a-17476069
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