Ukraine: PM urges Putin to step back from the 'edge of a precipice'
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The West has now promised to slap harsh sanctions down on Russia as it eyes up an invasion of Ukraine with its build-up of 100,00 troops at the Russia-Ukraine border. The US has demanded that part of the package of sanctions should involve scrapping Russia’s Nord Stream 2 pipeline (NS2). This is the gas project yet to come online that will see Russia send gas to Germany via the Baltic Sea, bypassing Poland and Ukraine on route.
But Dimitri Alperovitch, from Silverado Policy, has warned that this may not be the most effective measure as Russia may retaliate and block three key exports from the West.
He wrote on Twitter: “Sanctions on NS2 seem to be a certainty but they are not going to matter much to Putin in the event that Russia actually brings Ukraine into its sphere of influence with military force.
“The primary goal of NS2 for Russia was to bypass Ukrainian pipelines and not have to pay them transit fees or be subject to Ukrainian coercion.
“If Ukrainian pipelines come under Russian-friendly control, Russia is no longer going to need NS2.
“In fact, it is ironic that NS2’s symbolism to the West is so much higher than it is to Russia.”.
This comes after the US previously claimed that NS2 could be used as “leverage” against the Kremlin.
Instead, Mr Alperovitch has suggested Moscow has leverage over the West.
Russia provides the US with more oil than any other foreign supplier apart from Canada.
Back in May, US imports of crude and refined petroleum products from Russia surged by a staggering 23 percent, up 844,000 barrels a day from the previous month.
Now that Russia has become an important source for US fuel makers, sanction threats may be as Mr Alperovitch warned that the Kremlin will not take these “lying down”.
But oil is not the only export the US might have to worry about if Russia retaliates.
The US semiconductor industry imports 90 percent of neon supplies from Ukraine.
Semiconductors are used in a range of everyday technologies, from cars to mobile phones and washing machines.
Mr Alperovitch warned that 35 percent of palladium used in automotive sector, electronics and medicine also come from Russia.
Now, the White House has warned industry members to brace for shortages as fears Russia may block imports of this crucial technology soar.
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A US official from the White House’s National Security Council reportedly urged chip industry figures to search for alternative sources.
Russia has also shaken up aerospace industries in the West.
Companies are reportedly ramping up stocks of titanium as they scramble to shore up supply chains of the important metal commercial jet engines that is largely supplied by Russia.
And the industry is notedly worried.
While Boeing, which relies heavily on Russian titanium giant VSMPO-AVISMA, said it should be protected for a while, but warned that this would not last “forever”.
But these fears have not stopped Britain from sending Mr Putin a stark warning.
The UK passed legislation last week promising to toughen up sanctions slapped down on Russia.
It gives way for the strongest sanctions regime the UK has had against Russia.
Foreign Secretary Liz Truss said: “The UK is resolute in its support for Ukraine’s sovereignty and right to self-determination.
“We urge Russia to de-escalate and choose the path of diplomacy. If Russia persists with its aggression towards Ukraine the UK and its partners will not hesitate to act.”
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