Danger of Colossal Losses. Europe Plans Behind the Scenes to Make Separate Peace With Russia

Anti-Russian sanctions will be another delicate issue on the agenda at the Washington talks. Diplomatic sources report that Paris has offered Berlin, London and Rome to jointly demand that the US to soften its stance.

Anti-Russian sanctions will be another delicate issue on the agenda at the Washington talks. Diplomatic sources report that Paris has offered Berlin, London and Rome to jointly demand that the US to soften its stance. The largest European enterprises may be on the verge of closure.

Here's our analyst Tatyana Remezova.

 

- Tatyana, what made the Europeans finally voice their position?

- Ernest, joking aside. If some firms stop their work, they will not be able to resume it quickly. The decision must be taken urgently. If such alarmism is voiced by President Macron himself, then Europe is truly facing colossal losses. The absence of reliable supplies, broken production chains worry influential the German newspaper Der Spiegel as well. German metals producers urged politicians to reach an agreement as soon as possible, otherwise the industry will come to a halt. For example, Germany and France may be badly hurt by the US's sanctions against aluminum giant "RusAl".

The lack of aluminum will affect the German automobile and French aircraft industries. The price of aluminum oxide has already soared. Germany buys a third of its raw materials from Russia. Prices for aluminum itself have reached a 7-year high In early April, a ton cost less than $ 2,000, but now it's almost $ 3,000. Europeans are in a panic as almost half of Rusal exports go to Europe, while the instigator, the USA accounts for less than 20%.

Alexander Rahr: "Unlike America; Germany, France, and other European countries have had an excellent decades-long relationship with the Russian market. They won't be losing some small niche but rather a significant share, and contracts which they've had with Russian companies for many years."

The US Treasury seems to hear Europe, but sets controversial conditions. Sanctions against RusAl may be lifted if Oleg Deripaska resigns as its head. Sanctions are a double-edged sword.

- If Europe accounts for about 50% of RusAl's exports, how can the company make up for it? Is there any alternative to the West?

- There is one. Russian geographical location between the east and the west is an indisputable advantage. China wisely hasn't embroiled itself in the sanctions game. Trade between Beijing and Moscow grows by 20% annually. RusAl is already negotiating with the eastern neighbor. Even the foreign ministers touched upon the economy.

Sergey Lavrov: "Comprehensive partnership and strategic cooperation with China is a key priority of Russia's foreign policy. Bilateral cooperation is at an unprecedented level and encouragement of economic development will strengthen our states' international positions. China is by far in first place among Russia’s trading partners. We have a common understanding on the neccesity to improve the quality of our economic cooperation".

So, the direction is clear.

- Thanks. That was our analyst Tatyana Remezova.