Spanish economic recovery in danger as Europe considers Russia action

LAST UPDATED: 22 Jul, 2014 @ 18:16
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Spanish economic recovery in danger as Europe considers Russia action

THE recovery of Spain’s already fragile economy could be teetering on the brink as the EU decides whether to impose sanctions against Russia.

A crackdown on Russian investment and assets in Europe would badly hit Spain, which has seen a large influx of Russian capital over the last few years.

It comes after the UK government openly accused Russia of arming and supporting the Ukrainian rebels who shot down a Malaysia Airlines passenger jet last week, killing 295 people.

Britain is now pushing for EU sanctions to freeze the assets of Putin’s wealthy group of ‘cronies’ – many of whom have financial connections with the Costa del Sol – unless Putin cooperates with a Flight MH17 probe.

But Spain is joined by Italy, Finland and France in its reluctance to impose strong sanctions – in part because of strong economic ties with the country.

Dutch foreign minister, Frans Timmermans, however sided with the UK insisting that Europe would need to accept the economic consequences of imposing tougher sanctions on Russia, after last week’s tragedy.

“This is no longer a question of the economy and trade,” he said. “This is a question of security, and it’s a question of justice for those who lost their lives.”

There has been no confirmation as to exactly which ‘cronies’ would be targeted in a clampdown. But there have been rumours that it could include Chelsea owner Roman Abramovich, who has close links to the Putin regime, and is a regular visitor to the Costa del Sol.

The Olive Press revealed in May that six Russian oligarchs – possibly including Putin himself – are building a €19 million mansion inside the walls of one of the world’s most exclusive residential estate – Marbella’s own Zagaleta.

Putin is rumoured to have visited the area a number of times over the last few years.

Marbella town hall statistics revealed that there has been a significant increase in Russian expats and holidaymakers over the last year.

In that time, two Russian magazines and a radio station have opened, as well as various businesses entirely geared towards the Russian enclave.

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7 COMMENTS

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  1. Actually it would be Holland hit hard by such a measure. Guess who is Holland’s biggest export market? Probably nothing will happen as regards further sanctions is my bet (and yes I could be wrong).

  2. the EU kept pushing against old Russian spheres of interest
    The USA nearly caused WW3 when USSR did the same to them over Cuba
    The USA told their airlines not to overfly Ukraine
    but the EU did not perhaps for Political reasons
    to try to get Ukraine to move over to the EU camp

    Also massive sanctions against Russia could make the situation worse not better
    and if you think Putin is bad
    he is a pussy cat compared their leaders in the past and those the Russian system may throw up in the future

  3. tim,
    you would’nt want to meet him face to face, you would quickly learn that he’s no worm but almost certainly the fittest of all world leaders, a superb horsemen and able to use all current weapons available to the Russian army,Cameron/Junker, the mouth known as Obama, these truly are worms.

    When I listen to crap spouted by Washington the parallels with the old arrogant English Empire are identical – we are the most powerful so we can do what we want.

    Would any of this have happened if it was’nt for the toxic, evil influence of the CIA – who financed and fomented the unrest in Ukraine. Whether you like it or not, the corrupt ex-president was democratically elected, it was his undemocratic over throw that triggered the re-action of the Russian populated areas of eastern Ukraine.

    Never forget who financed and armed the Taliban, the Contras, who orchestrated the overthrow of a democratically elected president in Chile resulting in the torture and murder of 5000 men in Santiago football stadium. Who with MI6 organized the coup in Iran in 1959 and set up the vicious regime of the Shah – nice job they did there and the Iranian people are still paying the price today.

    Unbelievably the Ukraine now has a billionaire president who will open the country to widespread looting of it’s assets just as happened in all the former eastern block countries.

    What do you think would have happened if the Russians tried to set up ICBM sites in Canada or Mexico?

    Rob, the EU may not have issued a warning about over flying the Ukraine but BA/KLM/Lufthansa/SAS and many other airlines stopped over flying months ago. Malaysian Airlines did not because their operating costs were lower – profit before lives – the essence of Anglo/Saxon capitalism.

  4. Stuart Crawford – an excellent comment and so true. I doubt if many people understand that the billionaire President of the Ukraine is also an utterly contemptible worm.

  5. A most accurate analysis from Stuart. To me, Russia looks far less evil then the USA, especially given recent events like Iraq, Afghanistan, 9/11, and the NSA revelations etc. When UKIP’s Nigel Farage said that he “admired” Putin, I know exactly what he meant: as a political leader he runs rings around Obama and Cameron et al. Do I like the guy? No, of course not, but he does possess a political acumen that other world leaders can only dream about. When concrete proof of Putin’s involvement of MH17 is presented I will dislike him even more – but who honestly thinks that this proof will ever arrive, and how can it be absolute proof?

    It is reported that MH17 actually detoured to an even more dangerous part of southern Ukraine that day due to thunderstorms. Many flights had passed over the original air corridor for weeks without issue. Some other flights also recently passed over Syria. Airspace is a complex issue but in hindsight no planes should fly to any country that is at war, and the decision of some carriers not to fly to Israel is also total common sense. Hindsight can be such a terrible thing.

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