are among those targeted just to give you an idea of the scale of these companies gazprom bank is the country's third largest bank it finances some of russia's most prominent energy projects rosneft is a vital contributor to the state budget generating over one hundred billion dollars in revenue these two along with several other firms and are forbidden from borrowing money on u.s. markets for periods longer than ninety days and here is how the russian president reacted to the move. as far as sanctions are concerned they usually have a boomerang effect like i've said before and they will eventually lead russian u.s. relations to a dead end to damaging them severely i'm also positive that these measures harm america's long term strategic interests and the interests of its people. we earlier spoke to the editor of business new europe magazine benares he explained to us how the new sanctions could affect russia's economy they seem to be very targeted at a few companies and specifically this is a significant scaling up because these are financial sanctions until now it's been aimed

to the state budget generating more than one hundred billion dollars in revenue each year and gazprom bank is the country's third largest bank it finances some of russia's most prominent energy projects well these two along with several other firms are now forbidding from borrowing money on u.s. markets for periods along with the ninety days. in response russia's foreign ministry has accused the us of damaging relations between the two countries and moscow views the sanctions as blackmail and has warned of possible counter measures . as the story well these sanctions are illegal says the russian prime minister they are unacceptable blackmail and even revenge for u.s. failings in ukraine says the russian foreign ministry the russian president now touring latin america says that these latest string of sanctions may have a boomerang effect on the u.s. economy. without a doubt these sanctions are not only damaging russian american relations but also driving them to a dead end i'm convinced that they go against the american government and american people's own long term interests moscow says it

keep it contained to back off so that they don't lose any money so if you've got someone like gazprom bank saying that actually they're not going to change the way they operate then is the sanction really effective it's not effective in so much as it doesn't really do much economic damage but it is effective because psychologically you know all the all the sanctions have been posed who has very little economic damage directly but the psychological effect is enormous i mean the ruble has already tanked today the stock market is sort of by five percent you know there's billions and billions of dollars destroyed and the threat that more sanctions will come has created this environment of uncertainty which means companies can't raise money they can't invest you have massive capital flight what about brezhnev huge russian oil producer a lot of ties in europe and america will they be affected much by this this is the billion dollar multibillion dollar question because at the moment and last night in london trying to find finance money to pay off the deal at the same time they have an enormous in

s toughest sanctions against moscow, targeting companies like gazprom bank, the country's third-largestender with 45,000 businesses and 30 million people as clients. and the state owned bank, veb, which provided backing for this construction project. also affected our two large energy companies, rosneft and novatek. vladimir putin said the move would cause damage to u.s.-russian relations. washington has urged european union to follow suit. its previous sanctions had been criticized as too weak. largely consisting of travel bans. eu sanctions. ourouglas has joined us, international affairs analyst. important information out of ukraine. has just been shot down by russian military. that is according to kiev. what is the latest, what can you tell us, how dangerous could this be? >> we've been saying this four days. two countries, russia and ukraine, are in a state of war. one country, russia, is denying that there is anything going on. what happened, you have ukrainian officials basically saying that a rocket missile ukrainianet, a fighter jet, it was struck and shot down. the pilot was ab

to the state budget it generates more than one hundred billion dollars in revenue annually and gazprom bank is the country's third largest bank it finances some of russia's most prominent energy projects these two along with several other firms are now forbidden from borrowing money on u.s. markets for periods longer than ninety days here's how the russian president reacted to the move. as far as saying sions are concerned they usually have a boomerang effect like i've said before and they will eventually lead russian u.s. relations to a dead end damaging them severely i'm also positive that these measures harm america's long term strategic interests in the interests of its people. israel says a humanitarian to sweep gaza militants which was supposed to last for two hours has been brought to an abrupt told by hamas rocket fire just minutes after it began the signs and agreed to allow the red cross to get the dead and injured out of the worst hit area in eastern gaza i.d.f. bombarded the site overnight and more than forty civilians were killed locals say that are bodies strewn across the str

interestingly, on gas prom, it's gazprom bank, a lot of names is rose net oil companies. so, obviously, some huge entities here, but not gazprom, itself, gazprom, bank, being sanged. some interesting individuals here on this list as well. starting, they've got about five different individuals here worn sanctioned by name, starting with sergei basida, he's the commander the white house says of the fifth service of the ssb. >> that is the success or to the kgb. i have not seen the united states sanction a former kgb or fsb officer before. maybe it's been done. it is certainly a strong step diplomatically here. whether or not it has the practical effect you are talking about in terms of the economic operations of these countries, these companies in these countries, that remains to be seen. >> eamon javers, thanks, for that. it's a little noisy here. we are delivering alpha conference here in new york city. we will trade some of the highlights of this conference right after this break . the delivering alpha conference. we just heard article icahn and bill ackman. what's your

medium and long term activity the list includes a state owned oil company and largest oil producer gazprom bank the financial arm of gas prom the state controlled natural gas producer of arctic another russian natural gas producer and near shake on non-bank which is russia's economic development bank meanwhile russian president said he regretted the integrity of state paths that the u.s. had tros and in relations with russia. as far sanctions are concerned they usually have a boomerang effect like i've said before and they will eventually lead russian u.s. relations to a dead end damaging them severely i'm also positive that these measures harm america's long term strategic interests and the interests of its people. president obama said the u.s. has tailored the sanctions in a way so as not to hurt u.s. companies washington wanted tougher sanctions it wanted to target entire sections of the russian economy but without europe going along such sanctions would put u.s. companies that a disadvantage because many of the services and acknowledges that u.s. companies sell european companies haven't se

manufacturers russia's biggest oil producer that are sniffed as well as the country's third largest bank gazprom bank are perhaps foremost in that list or both contributed enormously to the state budget both directly and in directly the united states however found it was alone in the idea of championing more sanctions washington's zeal is not being matched in europe which is going ahead with much softer measures despite personal calls from barack obama brussels has decided only to suspend funding for future joint russian european projects that brings us moscow's reaction. to all these sanctions are illegal says the russian prime minister they are unacceptable blackmail and even a revenge for u.s. failings in ukraine says the russian foreign ministry the russian president now touring latin america says that these latest string of sanctions may have a boomerang effect on the u.s. economy. without a doubt these sanctions are not only damaging russian american relations but also driving them to a dead end i'm convinced that they go against the american governments and american peoples own long term inter

and gazprom bank from u.s. equity markets shares of rosneft declined as much as four point six percent in moscow wednesday while nova tech fell as much as nine percent late in trading on thursday markets were down crude and gold were up and the ten year was down eight point three basis points to two forty five. i've now this it situation is changing by the minute and artie's news team is keeping us up to date with all of the latest developments so stay tuned immediately after boom bust for the latest details i. want to enter subjects that we address here on the bus to understanding the effects of federal reserve policy and our two next guests today are looking at how monetary policy simply isn't generating healthy economic activity first up jim bruce the brains behind the documentary money for nothing inside the federal reserve says one of the biggest problems with quantitative easing is that it actually benefits the rich so i first asked him to tell me who benefits the most from quantitative easing and who ben

they are gazprom bank, which was the, started out as the major bank for gazprom, russia, one of russia's major energy producers. another bank called evb, and russia energy companies and novotel and rosneft. they are sanctions limited to access to u.s. capital markets for longer-term debt and equity for bank financing, for example of longer than 90 days but the administration sighs that these are going to be another tough round of sanctions, but it doesn't want to generate any spillover effects on global economy. so, for example the sanctions are not expected to affect property of these companies here or other types of transactions such as rosneft's partnership with exxon to do oil exploration in russia and also would not affect shorter-term financing which is critical to global oil financing, oil transactions, gerri. gerri: peter, i know we've been looking at this for a long type of the country already put in place some sanctions on russia, upping the ante tonight is expected in the press conference coming up. from what i understand, you tell me what your report something telling you, th

keep it contained to back off so that they don't lose any money so if you've got someone like gazprom bank saying that actually they're not going to change the way they operate that is the sanction really effect it's not effective in so much as it doesn't really do much economic damage but it is effective because psychologically you know all the all the sanctions have been those who has very little economic damage directly but the psychological effect is enormous i mean the ruble is already tanked today the stock market is sort of by five percent you know there's billions and billions of dollars destroyed and the threat that more sanctions will come has created this environment of uncertainty which means companies can raise money they can invest you have massive capital flight what about brezhnev huge russian oil producer a lot of ties in europe and america will they be affected much by this this is the billion dollar oil multibillion dollar question because at the moment in london trying to find finance money to pay off the deal at the same time they have an enormous investment projects i

that includes gazprom bank, nova tech, gunmaker kalashnikov, and the development bank.here are others on the canadian list as well. canada is effectively responding to the support and its handling of the malaysian air shootdown. eu officials formally agreeing to extend their sanctions target list. they will release the names officially tomorrow vladimir putin's top spy chiefs that could make the cut. it includes the head of russia's federal security service, the head of the foreign intelligence nervous, the chief of the russian security council, and others -- all of those potentially on the final eu list. notably, no major russian companies on the list but eu officials are did aiding even stronger steps and they include barring any europe he in futures of debts and arms embargoes, and and drilling equipment. the u.s. is pushing europe to adopt tougher sanctions and the administration is not ruling out the possibility of tougher u.s. sanctions as well. they big push is to get the europeans to show a united front and step up sanctions because that would have a eager impac

from -- gazprom bank the state development area defense companies.xture, novatek, biggest independent gas producer. they did not go after gazprom, which provides one third of our energy even here in the u k. we understand that this could hurt significantly if we start clamping down. >> this is a continuing, not sanctioning gazprom makes it easier for the europeans because they rely on gazprom but your -- perhaps more importantly it used card in the deck of sanctions for another day. if there is no de-escalation, president obama said there will be more. me about the european reaction. put the thing in context for me. you have lived and breathed russia. the european bank of redevelopment. this is the european financial reaction. the u.s. are going for closing markets.nd financial european reaction, how do you look at that? >> the european reaction is a little bit of a slap on the hand. not much more. funding and some agreed to expand their sanctions list. they are not telling us the names but they are working on that and will get back to us. the u.s. h

. >> jim schutto, two of the biggest banks, gazprom bank, that's the largest gas company in russia with largest gas reserves in the world, they came just to give you a measure of that, the current prime minister of rush a dmet ri medvedev used to be chairman of the board of gazprom and these companies all blocked from the u.s. financial system. that has major economic costs for these companies. the one weakness here is that europe is not onboard for these sanctions. that's something that the white house wanted. >> so the president will make the statement. there are questions to answer at this point and a lot of critics are saying. >> here he comes. here ate president. i want to discuss the important afrngzs taken today in support of ukraine. before i do, i want to take a few minutes to update on pressing challenges that i reviewed with secretary kerry this afternoon. >> first of all, i thanked secretary kerry and our outstanding civilian and military leaders in afghanistan for their success in helping to break the impasse over the presidential election there. thanks to their efforts and

>> well, for a state-owned bank, vtb and the gazprom bank and they did so. obviously, part of the business, the add part of the business with company of people and the sanctions. so the properties are very complicated and the word sanction was mentioned between 511 times and 81 times depending on which one. nevertheless, they achieved to enter quite a bond, 1 billion, 350 million of data for vtb. at the same time, one loan, as well, for large ou continue to issue the market and this market shares was for the western economy. >> i mean the u.s. basically with the control of the dollar funding market can turn this significantly higher from this level. do you think it makes a difference? do you think what we've done to this day, thursday, when we get the full details as far as the eu is concerned, does it makes a difference? >> today, more or less the investors are thinking if we be all right and we should be able to continue, it will be business as usual. i think from yesterday europe and from the states, it will not be the case and, therefore, it will have an

gazprom. the banking system is fairly leveraged.here's going to be a full-time liquidity crisis here in russia. ovanes, can i ask about the response from president putin? the decisions that the eu makes against access to capital markets will be the deciding factor in whether president clinton changes course on this? >> in the short term, yes. there's going to be some reaction, positive reaction, from mr. putin. i think the long-term, the problems are very far from solutions. in my view, in the short term,, they're going to react in a way as to limit the damage, but in the long term, they do not want nato and ukraine. they want to keep crimea. be a very long sort of standoff so there will be more trouble ahead. are saying the sanctions will force president putin to compromise. what sort of compromise are we talking about here? that's exactly the question. what sort of compromise can he follow? i think a quick solution might counting fore is lateral or multilateral andtions for the future there is going to be clarification for that, f

to act union lat rayly and secondly to target such blue chip names in the russian market like gazprom bankbeb, novatech. and clearly if this does turn out to be an attack and if it can be clinked to the operatist webs that is not yet fairley clear. to serve for tougher sanctions in europe and the u.s. already the sanctions announced this week, i think it's fairley significant that the ability of many western companies and investors to invest here and do business here. >> michelle, we've been talking about some of these tensions, what they mean. who stands to benefit? >> when it comes to international community? no. at this point, no. no one has taken credit for this, right? so this is not your classic terrorist act where somebody was proud to have done it. clearly, this was a mistake by whoever did this at some point or else they would have taken credit for it. >> we did briefly have igor slokov, one of the military commanders, the separatists in eastern ukraine who posted some things on social media at about the time the plane was shot sai it was an arsenal 26 and then those posts were ta

gazprom. the russian bank was left off the list, and, of course, i think most disappointingly, so far the frenchave continued with their sale of their warships to russia. that in my mind is a disappointment. >> that would also imply, though, that there is more room to grow if russia continues to act in a way that continues to be provocative enough that it inspires more of a crackdown. i mean looking at this in historical perspective, raising the issue of how the west dealt with the soviet union who when it was in a different economic place than we are now and we were in a different global economy than we are now, are there lessons in history that creates what hurt enough that russian policies wouldn't change? what they're doing in crew crane, their rhetoric is a lot better but their actions seem to be a lot worse. >> well, history doesn't tell us so much for a couple of reasons. one is the russian companies, especially the banks and energy sectors and others are more integrated in the world of economy today so the leverage is greater today than it was back in 1981 or '83 after the shoot-down o o

american sanctions against gazprom, it is a big bank and they can't use dollars. -- and they could use dollars. russia needs to borrow abroad and diversify its economy. build newt infrastructure, factories. it is going to make their financial system worse. it will have major effects. >> you have spent so many years in the white house on diplomacy. you know better than most people out there what it takes to bring the world on to your agenda. i thought this was interesting. cover whered this they scrutinized a thousand public records and found out who the president is calling. they found that this past month in july, he has made the most number of phone calls to world crimeanthen during the crisis. mostly, david cameron, angela merkel, no surprise. >> he is trying to urge them to toughen up their sanctions. american sanctions are the most important. after that, the u.k. capital markets are important. germany is the biggest trading , with theth russia exception of china. important for a whole range of things. if he can get the europeans to tighten up it puts more pressure on russia and sh

sniffed as well as the financial arm of energy giant gazprom are among those who made the list a slew of other entities are also hit from the iconic a. major bank the united states however found it was in the idea of championing more sanctions in fact washington's deal is not. matched in europe which is going ahead with much softer measures despite personal calls from barack obama brussels has decided to suspend funding for future joint russia european projects that's for moscow's reaction let's get some now and cross over to ours he's elected a chef joining us here live on the program good to see you alexi so what kind of reaction are we getting out of moscow so far well these sanctions are illegal as the russian prime minister they are unacceptable blackmail and even revenge for u.s. failings in ukraine says the russian foreign ministry the russian president now touring latin america says that these latest string of sanctions may have a boomerang effect on the u.s. economy. without a doubt these sanctions are not only damaging russian american relations but also driving them to a dead end i'm convinced that they go against the american govern

even though its bank was sanctioned, the energy operations of gazprom remain untouched.is criminal and him tolerable and should be -- and intolerable and should be treated accordingly. our phone lines are open. the numbers continue to be on the bottom of the screen. kathleen, chicago, good morning. just a couple of months ago -- and sometimes we can say things with our mouths that can cause tragedy -- caller: a couple of months ago on your had differentll people come on and saying how and me did theo meted the andm peace. i think the united states has emboldened putin. you know, we need to stop this mess. host: kathleen from chicago. "the denver post." will russian president putin second thoughts about the incursion he has given? as it turns out, they shot down that malaysian plane thursday with all 298 people on board. perhaps not. he has himself authorized operations over the last couple of years. fromis patricia joining us pennsylvania. good morning. i just find it a little bit uncanny that president obama is on the phone with hooton, and at the end of the conversatio

gazprom. those are close allies to russia's vladimir putin. >> we are blocking new financing of some of russia's most important banks and energy companies.these sanctions are significant, but they are also targeted. designed to have a maximum impact on russia, while limiting a spill over effect on american companies for those of our allies. >> putin

gazprom. those are close allies to russia's vladimir putin. >> we are blocking new financing of some of russia's most important banks and energy companies. these sanctions are significant, but they are also targeted. designed to have a maximum impact on russia, while limiting a spill over effect on american companies for those of our allies. >> putin quickly respond to go president obama's new round of sanctions, warning that measures would back fire and bring u.s. russian relation toes a dead end, causing serious damage. as for the russian market reactions, take a look. stocks in moscow were down sharply in early trading. you can see they're down by 4.3%. later in the show, senator bob corker will be joining us. he is a member of the foreign relations committee. he's been calling for tougher sanctions on russia. we'll have more of that coming up. right now, let's get over to andrew with more of today's corporate stories. >> good morning, becky. ge, former parent of this network, reportedly seeking buyers for appliance unit. it tried to do this back in 2008. it scrapped those plans, though, given the financial environment at the time. ge

banks. as a robust salt of sanctions the russian government has openly discussed diverting government funds. recently president putin stated that russia needs to look into re-capitalizing gazprom by the amount of a cost to build infrastructure in the far east. taken as a whole these measures indicate the russian government is focused on short-term crisis fighting in its actions are costing russia the investment needed to reverse downward economic trends. in addition to our measures to isolate the russian economy the united states government is working with the international community to spur ukrainian government returning the country's economy to solid footing. we are working with imf world bank and others to ensure ukraine as the subordinates over the coming months as outlined in greater detail in my written test money. by combining efforts to impose financial costs are threatening peace and security in ukraine with measures to encourage the economic recovery that government is working too good to be the development of a strong unified and prosperous ukraine. furthermore we are prepared to take additional strong measures to impose severe costs on russia in defense of ukraine

banks, the oil industry and restrictions on defense companies. it's seen as a serious move from the european countries, many of whom have had close economic relationships with russia. still the russian energy giant gazprome hook. president obama was asked yesterday if the international pressure ton kremlin represents a throwback to the '50s? >> is this a new cold war, sir? >> no. it's not a new cold war. what it is is a very specific issue related to russia's unwillingness to recognize ukraine can chart its own path. >> top administration official suggests the international community may wait for a while to let the impact of these sanctions set in which could be, as rattner pointed out, quite a while. joining us from washington, david cohen, undersecretary for terrorism and financial intelligence at the u.s. treasury department. thank you very much for being on the show. >> good morning. >> what is the impact of these sanctions, at least the nearest and clearest impact they will have? >> as you noted, the sanctions that were announced yesterday by the united states with the eu following suit address russia's access, the major russian bank access to capital, the capital they need to continue to operate.