EU, Dependent on Russian Energy, Balks at Georgia War Sanctions

Sept. 2 (Bloomberg) — European Union leaders refused to impose sanctions on Russia over the invasion of Georgia, acknowledging their reliance on Russian oil and gas at a time of faltering economic growth.

EU leaders took the symbolic step yesterday of suspending talks over expanded trade ties with Russia, fearing that tougher measures would expose the energy-dependent bloc to Russian retaliation.

Russia is the 27-nation bloc’s main supplier of oil and gas and third-biggest trading partner, giving it leverage at a time when the European economy threatens to tip into recession. Europe’s determination to maintain business links also undercuts U.S. efforts to line up allies against the reassertive Russia.

Bloomberg