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from MacroScope:

A question of energy

After two days in The Hague, Barack Obama moves on to Brussels for an EU/U.S. summit with Ukraine still casting the longest shadow.

Europe’s energy dependence on Russia is likely to top the agenda with the EU pressing for U.S. help in that regard while the standoff with Russia could give new impetus to talks over the world’s largest free trade deal.

Russia provides around one third of the EU's oil and gas and 40 percent of the gas is shipped through Ukraine. EU leaders dedicated part of a summit to the issue last week and German Chancellor Angela Merkel supported asking Obama to relax restrictions on exports of U.S. gas.

Last night, Britain’s David Cameron said energy independence and the adoption of technologies like shale gas fracking should shoot to the top of Europe's political agenda.

from MacroScope:

IMF verdict on Ukraine due

G7 leaders didn’t move the dial far last night, telling Russia it faced more damaging sanctions if it took any further action to destabilize Ukraine.
They will also shun Russia’s G8 summit in June and meet ”à sept” in Brussels, marking the first time since Moscow joined the group in 1998 that it will have been shut out of the annual summit.

There were some other interesting pointers. For one, the G7 agreed their energy ministers would work together to reduce dependence on Russian oil and gas. Could this lead to the United States exporting shale gas to Europe? A committee of U.S. lawmakers will hear testimony on Tuesday from those who favour loosening restrictions on gas exports.

from The Great Debate:

Nuclear terrorism prevention at a crossroads

The crisis in Ukraine underscores the prescience of the international efforts to eliminate all nuclear weapons and weapon-grade material there after the collapse of the Soviet Union. Their success lowered the danger of deadly nuclear assets falling into the wrong hands.

President Barack Obama and the more than 50 world leaders meeting at the Nuclear Security Summit in The Hague on Monday need to show the same vision. They must seek to eliminate the persistent weak links in the global nuclear security system that can make dangerous materials vulnerable to nuclear terrorists.

from Breakingviews:

Obama’s new sanctions aim to expose crony Putinism

By Kevin Allison
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

 

Barack Obama is hitting Vladimir Putin where it hurts – his inner circle. New U.S. sanctions against a Russian bank and a host of tycoons are ostensibly just an escalated response to the annexation of Crimea. But they also allege a link between the Kremlin boss and Gunvor, a secretive Swiss oil trader. Washington seems determined to reveal how Putin and his comrades have amassed immense personal wealth at public expense.

from The Great Debate:

Ukraine: U.S. hawks regain their voice

Russian President Vladimir Putin's aggression is having an unintended effect on U.S. politics. It is generating a backlash against America’s retreat from world leadership.

That retreat was itself a backlash against President George W. Bush's overextension of U.S. military power in Iraq and Afghanistan. Putin's actions spotlight the consequences of America's world wariness. Internationalists in both parties are expressing alarm about the shrinking U.S. role around the globe.

from MacroScope:

Obama twists, EU sticks

Washington has seriously upped the ante on Vladimir Putin by slapping sanctions on some of his most powerful allies.

Now on the U.S. blacklist are Kremlin banker Yuri Kovalchuk and his Bank Rossiya, major oil and commodities trader Gennady Timchenko and the brothers Arkady and Boris Rotenberg, linked to big contracts on gas pipelines and at the Sochi Olympics, as well as Putin's chief of staff and his deputy, the head of military intelligence and a railways chief. Most have deep ties with Putin and have grown rich during his time in power.

from The Great Debate:

Executive orders: Part of the framers’ grand plan

President Barack Obama has used his executive authority to stop deporting undocumented immigrants who had been brought to the United States as children. The administration has also announced that it will stop requesting mandatory minimum sentences for low-level, non-violent drug offenders.

Obama is now using executive orders and other unilateral exercises of executive power to advance his agenda rather than wait on Republicans in Congress.

from Global Investing:

And best central banking twitter of the year goes to…

Congratulations to Bank of Spain, which won the best central bank website of the year award given by Central Banking Publications, as the specialist news provider for central bankers hosted its inaugural central banking awards  last night in London. (The flagship Central Banker of the Year award was won by ECB's Draghi, no surprise there)

Central banks around the world are looking for ways to improve their communication strategies and the website is one area they are focusing on (Quantity is not everything, yet the Bank of Spain's website features 7,000 pages of information and 24,700 separate files).

from The Great Debate:

Cold War warmed over

Can we have a new Cold War without a communist threat?  Some important political players seem to think so.

One of them is Russian President Vladimir Putin. At his surreal press conference, Putin depicted the protest that overthrew the pro-Russian government in Ukraine as a plot by the West to undermine Russia. He even accused the United States of training the Kiev protesters: “I have a feeling that they sit somewhere in a lab in America . . . and conduct experiments, as if with rats, without understanding the consequences of what they are doing.”

from MacroScope:

Putin unmoved by carrots or sticks

Vladimir Putin said this morning Russia and the United States are still far apart over Ukraine. Moscow, he said, could not ignore “illegitimate decisions” imposed on the east and south of the country and calls for help by ethnic Russians there but the two powers should not sacrifice relations over it.

In an hour-long telephone call last night Barack Obama urged Putin to accept the terms of a potential diplomatic solution to the crisis whereby Moscow would keep its military bases in Crimea while respecting Ukraine’s sovereignty. But he also ordered sanctions – including travel bans and freezing of assets in the U.S. - on people responsible for Moscow’s intervention in Ukraine though Putin himself is not on the list.

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