EU extends sanctions against Russia: end boycott further off?

The EU has agreed on an extension of the sanctions against Russia. Although the European ministers of Foreign Affairs still have to vote on the proposal, this means an end to the boycott seems to be getting further out of sight. Russia has repeatedly announced in the media that a decision on lifting the boycott is largely dependent on the European decision regarding the sanctions. Greek prime minister Tsipras is travelling to Moscow again this week. The country is facing bankruptcy now that the negotiations with the EU are completely stuck. The BRICS may be prepared to help the ailing country in case of a Grexit, however. India is signing a free trade agreement with the EEU this week.

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The European Union has agreed to extend the sanctions against Russia by six months. The sanctions were imposed last year, following Russian interference in the conflict in Ukraine and the annexation of Crimea. Early next week, the European ministers of Foreign Affairs still have to endorse the extensions. In theory, the sanctions could still be discarded. The pressure to sustain the sanctions came from several sides, including America. During the G7 summit held recently in Germany, president Obama, president Holland and chancellor Merkel were among those announcing their support of an extension of the sanctions.

Russia has recently been lobbying within Europe to stop the extension of the sanctions, but so far hasn't succeeded in convincing member states to vote against the sanctions. The lobby was mainly focused on Greece, Cyprus and Hungary. These countries were critical of the sanctions, but appear to agree with keeping the sanctions in force.

For the boycott of European products by Russia, this isn't a positive development. In August, Russia will decide whether the boycott will remain in force, and recently they've been making clear that the decision is largely dependent on the European decision regarding the sanctions.

In their turn, the Western countries have linked the progress of the sanctions to the implementation of the Minsk agreements. These agreements were reached a few months ago in the Belarusian capital of Minsk, and contain agreements on a ceasefire in East Ukraine and the retreat of heavy military equipment. So far, however, there's still fighting in East Ukraine, and there's no question of a ceasefire.

Greek prime minister to Russia again

The debt burden is hanging over Greece like the sword of Damocles. The negotiations with the EU and the IMF have been stuck for weeks now, with both parties digging in their heels. Europe demands reform, Greece refuses additional cuts and pension reforms. Before the end of the month, however, the country needs billions to pay off a debt, billions that the country doesn't have. That means the chance of a Grexit is back again, with this difference, that there's also talk within the EU now of a Grexit.

According to the president of the Greek Central Bank, the country is on the verge of an "uncontrollable crisis", and not only is a bankruptcy and a Greek exit from the eurozone looming, but an exit from the EU as well.

Greece appears to be looking east, where the BRICS Bank, the alternative for the World Bank and the IMF, established by the BRICS, is waiting for the Greeks with open arms. Greece has reportedly already received an invitation to join the bank. With that, Greece would gain access to capital for infrastructure projects. Prime minister Tsipras reports he seriously considers this option, and Russia is said to view rapprochement between the Bank and Greece positively.

An analyst in Moscow does not expect the Greek prime minister to be able to return home with a bailout, with a more probable option being a deal being struck, like an advance payment on gas supplies, or a comparable construction, he told British newspaper The Guardian.

India confirmed to Russian media that the country is signing a free trade agreement with the Eurasian Economic Union (EEU). The signing takes place this week during the International Economic Forum being held in St. Petersburg. The EEU comprises Russia, Belarus, Kazakhstan and Armenia. The purpose of the Union is to support the economic development of the member states, and guarantees free movement of goods, services, capital and labour. In addition to India, there are negotiations with Vietnam, Iran, Egypt and Israel about a trade agreement.

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