If the West Wants to Hurt Putin, Could Saudi Arabia Do Its Dirty Work?

THE GUARDIAN – ECONOMICS BLOG: Europe depends on Russian oil and gas exports, so an embargo may not be practical. But there is another way to apply pressure

Russia is vulnerable to sanctions. Economic weakness caused the collapse of the Soviet Union a quarter of a century ago and – the self-enrichment of the oligarchs apart – not much has changed since. Energy exports to the rest of the world pay for imports of machines and consumer goods. The population is ageing and there has been little industrial diversification. » | Posted by Larry Elliott | Wednesday, March 26, 2014

Sanctions: Potential Economic Damage

Russian president Vladimir Putin has signed a treaty making
Crimea part of Russia.

BBC: Russia, already teetering on the edge of recession, has a lot to lose from any economic sanctions imposed by Europe and the US - as does Europe, experts say.

The tense stand-off between Russia and the West over Crimea and Ukraine has led to sanctions being imposed on members of the Russian elite by the EU and the US.

US president Barack Obama has signed an order enabling economic sanctions against sectors of the Russian economy, and EU leaders are meeting in Brussels to consider their options.

"Russia can lose immensely out of this," says Paul Ivan, an analyst at Brussels-based think tank the European Policy Centre. "They are much more dependent on the European economy than we are on them."

Over half of Russia's budget comes from gas and oil it sends to the EU, making it vulnerable to any economic sanctions involving fossil fuel exports, Mr Ivan says.

By contrast, around 25% of European Union gas comes from Russia.

EU member states are linked to gas supplies flowing from countries such as Norway, making them less vulnerable to fluctuations in supply from Russia. » | Friday, March 21, 2014