Resounding successes of Putin’s foreign tours show futility of US’ anti-Russia sanctions policy and isolation rhetoric

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Published: 11.07.2014 18:00:00 | 18:15

Source: TRCW, Kremlin & Rosneft's data

Just after a few weeks of the triumphant China tour that yielded the world’s largest energy deal, a USD 400bn gas supply project, between Moscow and Beijing, Russian President Vladimir Putin is back again on transcontinental international business trips.

The 30-year gas deal was penned Putin and Chinese President Xi Jinping during the Shanghai Summit against a background of the largest joint naval exercise between the two region's formidable defense ministries. Chinese state-owned media Xinhua referred to the historic deal as "an important result of strengthening Sino-Russian relations as comprehensive energy partners", while, Global Times hinted at much broader motivations, saying the "deal showed that China and Russia fully understand each other's concerns."

Putin's Latam tour

This time, Putin's destinations include several countries in Latin America (Latam), a region traditionally seen as Washington’s “back courtyard” – to use a geopolitical term with origins dating back to the Cold War era.

The full-scale high-level grandiose receptions for Putin in Cuba, Nicaragua and Argentina and a similar one certainly expected in Brazil – the last venue in the trip, show that Russia is not facing isolation threats. As being propagandized by US and its staunch crossborder ally, Canada, which is being unnecessarily more hawkish on its anti-Russia stance than its geopolitical weight and relevance would dictate and less so by its trans-Atlantic European partners and Japan.  

Quite the contrary, Moscow – from Asia, Africa and Latam - is being seen as a geopolitical partner with fairer international diplomatic agenda on managing geopolitical issues and conflicts than those being pursued by the Anglo-Saxon bloc, led by Washington.

Nicaraguan President Daniel Ortega surmised for the rest global community seeking an alternative world order to the current unipolar, do-it-my-way-or-be-dammed doctrine, epitomized by the US and its global allies, which have turned themselves into “global police force.

“You are the ray (of light), a lightning in global politics,” Ortega told the Russian leader who was briefly in the country after the Nicaraguan leader specially requested him to make an unplanned stopover in his country.

Argentine President Cristina Fernandez de Kirchner denounced West’s so-called traditional “double standard” approach to global policies. “Our position is that countries don’t need to have double standards so that we can arrive at solutions that just, legal and based on international law. In this context, there are should not be different types of international law. There is only one international law," De Kirchner noted. Putin said Russia highly values Argentina's independent sovereign views on global issues, a rarity among several global leaders, a subtle reference to countries that blindly toe US line even on issues that run counter to their national interests.

Growing dissatisfaction with Washington's double standard policies

These statements from the Latam regional leaders – a reflection of rest of the global community’s growing dissatisfaction with Washington and its allies’ double standard policies from Middle East issues, Ukrainian crisis, etc., – mean that most countries do not like the current status quo.

Indeed, the rest of the global community is increasingly becoming fed up with the stances of Washington and its allies, who always think that their views and opinions on international geopolitical affairs should be respected with the same unquestionable belief and sanctity as those reserved for the Roman Catholic’s papal infallibility on religious teachings.

The vocally dissenting voices have transcended politics, spreading into business sectors. The most recent evidence is the t election of Igor Sechin, the president of Russian oil giant, Rosneft, blacklisted by the US as a member of so-called influential Russians shaping the Kremlin’s foreign policies, to the board of directors of the Italian tire producer Pirelli.

The feat became possible following Rosneft’s acquisition of a 50% stake in Camfin, an investment corporate entity that controls a 26.2% of Pirelli, from a consortium of leading Italian financial corporations, Unicredit, Intesa and Clessidra, according to the Russian energy giant’s official statement.

A similar EU’s anti-Russian sanction list does not include Sechin, a leeway that enabled Pirelli to admit the Russian business executive to its board and the Italian corporations to enter into a deal with a company under his management.

EU businesses defy US' anti-Russia sanctions

The US sanctions envisage very stiff penalties for companies or individuals engaging in any business or other activities with its blacklisted persons or corporate entities. Pirelli, Unicredit, Intesa and Clessidra are fully aware of the US position on this issue, yet have gone ahead with the deal in what will put them on a head-on collision with Washington.

These corporations have called the US bluff, and Rome is likely going to sit idle if Washington decides to penalize its leading corporations. Just as Paris has not stood aside in the BNP Paris tussle with the US on anti-Iranian sanction violation charges

This is the reality that the US needs to factor into its diplomatic stand-off with Russia or other countries. Many countries, mostly minute and less influential, such as Poland and Baltic states are likely to follow US even blindfolded, but other major economic powers, including even time-tested allies, such as Germany, Japan, Italy, France, etc., will not follow blindfolded.

They will need to weigh the political, economic and social costs of such alliances to their electorates before pledging their allegiances. To Obama and his administration, these allies will justifiably say in their collective defense, this is nothing political or personal, but just pure business. And they will be completely right.