russia is euro-asia power. china is working with russia to reconfigure raate the power politics. >> david, does this mean that russia's sort of conceding in certain ways that it's a junior partner? this is a country that's never been able to make, foipsz, consumer goods to satisfy the desiresr instance, consumer goods to satisfy the desir desires of its own people it's become a mine and an oil derrick for china. >> it's possible to over play this as a deal that has determined the future. i think it has the capability to do that, depending upon how it lays out. russia made some pretty serious concessions on the price side. at least that's what people think today based on the price of energy. >> may not be the case in years to come if this shale oil continues to reduce the world cost of energy. it might actually turn out to be a good deal from russia from that standpoint because the chinese, five years from now, may say we are paying too much. i would be cautious about predicting the cost of energy based upon thi

imperial russia. mighty palaces spread across the empire where the very, very few lived in unimaginable luxury. while their people worked and starved. didn't work out so well for paul, did it? >> not really. >> they choked the dude to death, right? >> actually, he was strangled with a piece of cord. >> the czars of previous centuries were certainly living the good life. money no object when it came to personal comfort or luxurious lodgings. and today's imperial powers seem not far behind. putin allegedly had a billion-dollar palace built for him. we couldn't license the actual smuggled photo, but our artist rendering looks like this. a putin spokesman dismissed all this, telling the "new york times" we have congress halls built for the kremlin but if you call all of them putin's palace, it is nothing but absurd. vodka. haven't tasted that before. so what would i be doing on my outing if i were a czar, looking for some kulaks to oppress? >> hunting. enjoying life. >> picking up some good speed here. >>

russia and we saw this not as a either or but a way bringing russia closer to nato and giving russia a seat at the table and they voice in all of this. so put together the framework which everybody participated and once this was in place then we could go forward with nato membership the it was all about not repeating the 20th century and even 19th century europe where the small countries had to limit their sovereignty and their foreign policy dependence because they were between two large countries. the geography determine your fate our history was bound to be repeated. for example, one of the reasons why nato came about was because somebody -- some of the earlier ideas of confederation in europe struck people as going back to the very loose legal nation's whole collective security of the 1930s where everybody is responsible for everybody else s security and, therefore, nobody is secure. central and eastern european countries there was a natural rebellion politically against that kind of idea of being in a glass or second class citizen zone. the point want to make is, before transpar

we're also further isolating russia and imposing significant costs on russia for the actions. united states has led the international community in isolating it diplomatically as my colleague have laid out. at the department of defense we have halt the all military engagements with russia, including bilateral exercises and meetings and port visits and planning conferences. . although we maintain channels for dialogue that deescalate -- senior levels of dialogue. while we have worked hard over the last two decades to build the cooperative defense relationship with russia, its actions to undermine stability in europe mean we cannot proceed with business as usual. chairman menendez, and members of the committee, russia's actions stand as an o front to the order that we have worked to build since the end of the cold war. the illegal ab annexation of crime ya and followed by blatant efforts signifies a para dime shift. to display the situation otherwise, it crisis is one of its choosing. these actions recommendation a wholesale rejection. i want to conclude by thanking the congress

the most gorgeous women are in russia. welcome to russia. na zdorovye. ♪ i'm trying to be kind of sober. united we stand. >> i prepared the special for you. russian tapas. specially for vodka drinking. with small pancakes like blinis then caviar. this looks like winter. salted cucumber with honey. this is baltic sprouts smoked one with beet root. and this is a muksun. this is a whitefish. whitefish frozen and you can eat it raw. >> thank you. i'm hitting the caviar and the blini. >> maybe some more vodka. >> thank you. >> your smile makes it feel like it's water. >> what do you think? what is the perception of mr. putin these days? after 14 years he's in power. >> my perception? you really want to hear it? >> i'm not sure, but let's see. >> a former midlevel manager in a large corporation, short, i think that's very important. short. who has found himself master of the universe. and like a lot of short people, if you piss them off bad things happen to you. he likes to take his shirt off a lot. >> let's be serious. i mean -- >> he strikes m

doing this for russia, but embracing russia. it was about giving russia a voice.f a say, a place, ready to go forward with nato membership. it was all about repeating those -- were small countries had to [indiscernible] the geography determined your faith or history. for example, one of the reasons nato came about was because some in yourarlier ideas struck the people in going back to the loose league of nations where everybody is used possible for everybody else's security and therefore no one is secure. there was a natural rebellion politically. make is thatant to [indiscernible] that has to be remembered. >> you have been observing all of this and you have talked with all of these people. how much thought was given to potential blowback from russia? point, wasbservation there a sincere desire or at least intention that if russia was involved in a certain way, it could he come part of the community or not? thes it has been indicated, are is a consistent record on the part of nato and beginning with the first visit of the secre

you know russia is putting pressure russia russia wants to spur resurrections to prevent and so on and so he's got to really say this but the problem really is that we need to see what will that use the wednesday thursday and friday of the americans the european union prior. to the new president will propose sure. hume well that they would be pushing him and saying look you have to be tough with russia you have to continue this rhetoric you have to accuse them of meddling in our in your affairs even the came to the right you know that's they're saying that the russian troops on the ground russian intelligence officers are still in the east on sale and sam said this this i think will determine whether this a new president will do it and how he will respond to events and what he will basically be about and i have a strange suspicion that the people in the state department and in the in brussels don't really went this tension to subside i think they actually went to station to continue and this is where the problem is because the president well let me be i said and then but i'm going to t

russia has a different perspective russia has always been a great power russia was a superpower in the soviet union was in the russia is as you point out in your in your interview at the russian perspective is that it has been ignored his interest has been ignored interests have been ignored and there were certain policy that the united states did not abandon in the aftermath of the cold war that when they do expansion and you know with nato expansion internet exploration and is it expansion i remember reading sarah books after after the collapse of the soviet union with a bit where we have we had given. assurances that nato would not expand would not come to russia's border borders and then we just went ahead and do it so from russia's perspective continued is very much alive so russia and china have to have always wanted to have a multiple to work now what's happening is in the in the aftermath of two eights economic meltdown they didn't make situation has has not has not been favoring you know the u.s. interest so in the aftermath of that mark that pulled out of the has become more

russia relations and russia relations with the rest of the word. time will tell. >> has putin found his limit here? he snatched away crimea, that seems not even in question anymore. and now there seems to be at least to some extent a retreat has he taken from this situation what he wanted from it and obviously his popularity has shot up through the roof. he won in his terms, has he not. >> first of all i don't think it is wise for anybody to try to get inside the head of president putin given what happened just in the last four months. let me take opposition to one thing you said about crimea, neither the united states nor ththe europeans for most of the civilized world have recognized what russia did in crimea. we still respect the full sovereignty and territorial integrity of ukraine and as part of the sanctions that we have imposed on russia we imposed harsh sanctions on those running crimea and on the economic relationship with crimea and that will continue. with regard to where putin goes from here as i said, i think we just don't know yet. it

russia china. big energy deal in history worth hundreds of billions of dollars cementing the historic relationship of the continent's giants. in the east of the country we get down to the front line to talk to the defense fight. at a road libyan general the country's lawmakers a militia group. detained twenty officials. from all of us here. welcome to the program. top headlines for this month. never before have relations between russia and china been a strong as they are today that's what president vladimir putin has declared the head of state is to travel to shanghai on choose day and a trip expected to yield some of the biggest trade deals of the century correspondents are in the region they report on how much both sides stand to gain. so here we are in the financial capital of china probably one of the capitals financial capitals of the world and we're actually looking for a summit which is kicking off on tuesday between central asian states and russia now one of the highlights of the summit as

if you think that 82% of russia's extra ref notions depend upon hydro car bons, russia is desperate to find another market. china is a natural answer. so, it is important but it has a strategic value as well. c value as well. >> professor, is it possible to overthink this? i mean, china needed something. russia has it, and it may be we are making a mistake in overreading this? >> i think it is much bigger than normal business deal. if it was business deal, it would not sign as a high-profile deal. there are a lot of questions about if he would reach the deal. why they reached that deal? both countries feel they have to reach this deal at this strategic moment. >> for russia, as mentioned earlier, they had not a lot of problems. on china's side, in fact, china, at this time, they need russia on their side because they have so many problems with the united states. the balance to asia pacific, japan, vietnam, philippines under territory y'all disputes in the east china sea and now, the indictment of officers. the chinese president thought the u.s. now is fighting a war with china. china h

she winks and pick ceremony designed to improve russia's international image. most records jailed seven people in a show trial for their role in the protests outside the court at least two hundred people well rested including human rights activists opposition leaders and two of the members of the feminist rushing record with the riots the idea this week the browns team members korea. i feel kinda and the distant or unique about it with several members that the us senate and house of representatives of the russia's human rights abusers can go make a school with both of the punitive damages against the tin united states. shade and business as usual with russia our sanctions can make a difference if they aren't meaningful and strong and significant. and my hope is that the presence of these young women. whose courage and strength should inspire we'll make a difference to the way that our government deals with russia. at least one hundred thousand people were going to treat an audit of moscow's red square for the thieves may take a right for claiming his invasion o

i think china and russia. russia. has an advantage in energy in china as are the largest energy marketing the wall it's already thirty percent more energy than the consumption then the united states looks like a school to become twice as big as the u.s. in about ten years our saw saw i think that it is a strong complementarity between the two economies and i think what what's going on now is is very very important step forward and in this relationship if if the managed care for a would have become very big and what about what do you think china stands to gain other than simple energy supplies i think of the obviously china hopes their russian economy would do well china is advantages in mass manufacturing of consumer goods especially cheaper consumer goods and russia is a large consumer market so if the russian economy does well and it's helped china to to the two economies together with energy and with with manufacturing i think it could help each other large the global economy is not doing very well it's two percent

you can't lay it on russia. without disregarding the internal tensions within a profoundly divided and country with years, decades of administration. >> a quick response before we go, andreas. >> well, ukraine is a plural society. it is not a monoethnic society. it is not deeply divided country. it has had, of course, always the separatists, but we have never seen anything like this particular kind of aggression and i do think that this is mainly coming from outside. we had, over the years in ukraine, again and again demonstrations and we had in 1990 the revolution in kiev. in 2004 the orange revolution, knew the euro maydan. this is domestic. what is happening in eastern ukraine and is now happening also in southern ukraine is clearly coming from outside. >> thank you all. that brinks us to the end of this ed -- brings us to the end of this edition of "inside story." thanks for being with us. in washington, i'm ray suarez. >> on "america tonight," the tipping point. more clashes and bloodshed in ukraine. the el

russia is the issue. the biggest headline is that they say the russian beer market slowing to slow then -- faster than they were expecting. gest are the second big brewer in ukraine. last year, more than one third of their operating profit from eastern europe. the issue is with the currency depreciation, with the wiki economic backdrop, with all of the turmoil and uncertainty because of the geopolitical situation in ukraine itself, that is what is weighing on them. this is a bet was made a long time ago. it's going poorly for carlsberg. >> they have struggled in the past with russia. it is not like this is something new and they are hitting russia. this was tax increases, already concerned pre-geopolitics about what the environment in russia would look like. how bad will it get? >> if we look at what happened before, there has been a decline for the last five years. carlsberg has stuck to russia. with the current situation, they are insisting on sticking with russia, which is something that carlsberg may

but despite all of its rhetoric, russia can't be, because russia is causing this instability. this express concern is cynical and disingenuous and meant only to distract us from the reality that is playing out before our eyes. today i want to focus on one main point. from the outset the government of ukraine has sought to resolve all issues peacefully. through dialogue both internally and with the russian federation. this policy of restraint continued even after russia sub subverted crimea, orchestrated an undemocratic separatist vote in crimea, invaded crimea and announced to the world it had annexed to crimea while lying about its intentions and even its presence in crimea every step of the way. as its country has been carved up, as foreign operatives have moved into its homeland, asthmases of -- as masses of troops have assembled along its border ukraine has continuously, day after day, shown remarkable, almost unimaginable restraint. it has done, -- it has done as this council has asked, it has implemented its international agreements, it has refrained from military respon

here in russia something i've noticed you can walk right up to the crime family picnic that. they're charging they're charging again at the police as we can see throwing rocks although. i think i would bet. you know you've got a. small budget to guess. that if you look you'll see to try and set up some kind of law. you can see. the ship because at the moment just going backwards and forwards and we've seen right as most of the place down there in a few minutes. the whole sky but if you look at it it's all black with good and tell you it was. peaceful day. which i guess we expected. you'd think a lifetime a lot of thoughts all get you ready to take us but it. will stop. the local it's a good. place in the ukrainian capital outsourcing antigovernment a riot has to abandon the barricades that says violence in central kiev rolls into its fourth day running and. is that for us right now i think saying looks like the front line has been shifting that bullshit like now but i didn't hear anyone want to. go to war just minutes ago police made another attempt of course to protest the s

russia. we invest as we have a success story in this country since twenty two years we have started from scratch and we have now such a fantastic forum as you can see we have investors from europe from the united states from south america from africa from asia they all here and why are we. being hostage taken hostage by. irresponsible i must say political decision making people. wonder you know they are my partners and there's an old anymore we work in our business which is. we're not sellers. we're investing a reversal to long term we very much believe in the future of russia you have tremendous human capital and your human capital is a huge assett you have huge resources and you're on the border of asia hence what is happening know is very logical russia exporting to join russia working closely with india this is just very logical and will continue to deepen and we look forward to that change. so very you have it as you heard there the exports and c.e.o.'s and spoken to don't seem to see ho

the most gorgeous women are in russia. welcome to russia. na zdorovye. ♪ i'm trying to be kind of sober. united we stand. >> i prepared the special for you. russian tapas. specially for vodka drinking. with small pancakes like blinis then caviar. this looks like winter. salted cucumber with honey. this is baltic sprouts smoked one with beet root. and this is a muksun. this is a whitefish. whitefish frozen and you can eat it raw. >> thank you. i'm hitting the caviar and the blini. >> maybe some more vodka. >> thank you. >> what do you think? what is the perception of mr. putin these days? after 14 years he's in power. >> my perception? you really want to hear it? >> i'm not sure, but let's see. >> a former midlevel manager in a large corporation, short, i think that's very important. short. who has found himself master of the universe. and like a lot of short people, if you piss them off bad things happen to you. he likes to take his shirt off a lot. >> let's be serious. i mean -- >> he strikes me as a businessman. >> he is. >> a businessma

the goal is not to punish russia. the goal is to give them an incentive to choose the better course and that is to resolve these issues diplomatically. i think we are united on that front. europe, within the eu, i'm sure there has to be extensive consultations. you got 28 countries and some are more vulnerable than others to potential russian retaliation and we have to take those into account. not every country will be in exactly the same place. been remarkable is the degree to which all countries agreed that russia has violated international law and violated territorial integrity and sovereignty of a country in europe and i think there is unanimity that there has to be consequences for that. how we structure the sectoral sanctions, the experts have been working on and we anticipate that if we have to use them, we can. our preference would be not to have to use them. i think chancellor merkel's leadership on this front. she has been extorting her league helpful not only -- she has been extra ordinarily helpful not onl

despite the rhetoric, russia can't be because russia is causing the instability. the express concern is cynical and disingenuous and meant only to distract us from the realities playing out before our eyes. i want to focus on one main point. from the outset, the government of the ukraine -- this policy restraint continued after russia subverted crimea, orchestrated and undemocratic separatist vote, invaded crimea and announced to the world it had annexed crimea. while lying about intentions and its presence in crimea every step of the way. as far as the operatives have moved to the homeland. >> day after day, it has shown remarkable almost unimaginable restraint. it has done is this council has asked. it has refrained from military responses to aggression even as they announced it. and yet, in return for the reasonableness, russia has to stabilize, threaten, and terrorize. the same scenario that played itself out as been repeating itself in parts of eastern ukraine. the same sudden appearance of unfamiliar men and new armaments. and the same denials of russian inv

it blames russia for that exclusively russia it wants to punish russia for everything that happened in ukraine and that doesn't seem to be a very conducive context for any sort of understanding well i better time to come when in fact there are issues that need to be examined first hand and need to be understood and certainly. this trip was planned long before ukraine there are areas in which the united states and russia actually have collaborated very closely which seem not to be discussed very much and some of that cooperation has been suspended because of the recent tensions some has and some hasn't p. five plus one the negotiations with iran the deal over syria in which the united states and russia relied heavily on one another so look it would be it would be foolish to argue that there are not significant tensions between moscow and washington but having said that there is no more and porton time to talk about these issues in the now when there are these difficulties and we are here because we want to hear from the russians what they think and we will take the message back i think

then are you investing in russia and china as well well russia is russia is one of the most hated stock markets in the world perhaps i can only to argentina which is hated more i have learned that when things like that happen it's usually pretty cheap russia has a convertible currency has very low debt has lots of resources and when the stocks get knocked down i started invest because i was very bearish on russia for for forty six years of my life i've only started becoming positive on russia in the last couple of years so i do think i see opportunities and therefore of investing so when did you first come to russia i first went to russia in one nine hundred sixty six and came away pessimistic and was pessimistic for the next forty six years knew it wouldn't work but now i see positive changes taking place and so i started investing in russia but what was that moment that actually changed your mind to remember no it was not anything specific it was a series of events i happened i went to vladivostok i saw what was happening and lot of. saw changes i went to moscow a couple of times i sa

that is true now for russia. all of the top ceos of the business community and industry have said if that is the case if you decide on that than we will abide by your decisions and the community knows this. although they have envisaged a different kind of relationship. if two years ago you had asked me whether we would discuss such issues today, i would have said that is not very probable. one needs predictability. and one needs certain framework conditions for investments. so, many in the business community -- i cannot talk obviously reliably on their behalf -- but many of them are aware that reliability and the basic acceptance of the european postwar order, namely territorial integrity, is a very important thing and the business community in doing business cannot completely neglect that. they will not be enthusiastically owed -- excepting that but they are open. there are possibilities there. let us work together with russia for the elections taking place in ukraine on may 25 so ukrainians are in a position to

the nato russia founding act where we set the nato nations would sit with russia together to talk about all of our major security concerns. that was an opportunity for russia to work alija lee with nato. instead, they used it as a place to argue and a place to complain rather than try to build together. i think there were many missed opportunities on russia's side to work collaboratively with us as we work with each other. i just regret that. i think we might have had a very different russia today is a resident who manned other leaders had taken advantage of them of the opportunities we had on the table. >> vladimir putin could be president for another decade. is there anything conceivably that will turn him back in another direction? or do you think there is much more xenophobia and services, highly conservative moralism that he's been creating as a state ideology will be relaxed with a media that is tightened up, censorship exerted, is there any conceivable notion in your mind that vladimir putin will go the other direction and liberalized afore he leaves office? otherwise, are we not

it's not up to them to join russia poured onto in russia. they can only vote for what they are responsible for for their territory for their voters of course they don't decide whether the jordan rushed or not they can request at some point in some form. so that's a little early to talk about you know. russia an accident or whatever. mr crean is heaven. ieee you know when i first read about that question. it was his report in the russian press my side and the quest awarding the question is relevant effectively i don't even really think they knew what that meant when they when they wrote the question to be honest on its interpretation on the ground. the man on the street. ahmed people were gathered. you know the people who are the most zealous about his cause to them is tantamount to essentially showing russia now it's true it is not ready to an ex this is not an exact parallel with the crimea scenario and on like randy out one key difference with this referendum is russia is not recognizing delete it in a sea of this referendum as we've seen

russia remembers our independence day when russia and india were very close. they were supplying equipment to us. all that has changed quite a bit now. india today really manufactures high-tech equipment. they don't have that exposure. one of my meetings yesterday, one of the russian gentlemen said, you know, it's really sad to see how you all have progressed and now you're turning around and offering us technology which we used to do to you 40, 50 years ago. so there is realization but it's not widespread. the larger companies know but it's the small and medium sector that don't know. the small and medium sector i believe of both countries is the backbone of the industry. so that's one of the reasons why we are here. >> that's globalization for you. let me finish by coming back to mr. mody and this landslide victory that he's enjoyed here. from the business community's perspective, what could he do very quickly for you to improve business conditions? >> when the same government was in power ten years ago, they initiated all the infrastructure. they built a qu

tobut russia will have invest. it needs to build a new pipeline to link china to carry gas from western siberia. it will invest $55 billion, and china $22 billion. >> well, for more on this deal, i am joined by a guest. thank you for coming in. now, let's talk about the timing of this deal. it could not come at a better moment. >> you are right. putin is a wonderful tactician, but maybe not so good of a businessman. probably less of a price than would be needed. for example, the average price of exports from russia to europe concerning gas is approximately dollars for 1000 cubic meters. whereas the deal that has been sealed today is probably more or less around 350 u.s. dollars for the same. >> so you agree with what we heard from the analyst there in that report, saying that international circumstances may have pushed russia's hand a bit in these negotiations? >> yes, it shows that russia was in desperate need of an ally, and second, it shows the financial loss of russia is counterbalanced by political benefits. c

russia's. interests have to be respected and that is something that is being argued for this side of they're going to. use is going to arguing that russia's interests have to be have to be recognized. russia is a great power russia is definitely good we can be going to it is a want to be good partner a lot of the superpower that is russia is a good power so you know all of these these these collision of interests that right nowell is creating a situation an uncertain situation in which the dumb as you know this is their your writing is the main leads in the military realm but you know we are going to exploit that we are exploiting that in the asia pacific and we're not going to give that up until we are we're doing that lead to africa in fighting terrorism so you know no dominant power is going to be our no grid power no uni polar in the unit. no dominant power is going to see our demise as a done deal well defined you to take this to take these keys and giggle that they're going to happen ok i

-russia i think timep, will tell. the president of russia said that you will risk that the whoevernd work with elected. it will be good for russian relations with the rest of the world. tell.ill >> he snatched away crimea. that seems not even in question anymore and there seems to some extent to be a retreat. his popularity has shot up through the roof. he has one on has terms, has he not? >> i don't think it's wise for anyone to get in the head of president putin the given what has happened just in the last four months. let me take issue with one thing you said there with regards to crimea. states nor most of the civilized world has recognized what russia did in crimea. we still respected. the tm territorial integrity of ukraine -- we still respect the territorial integrity. that will continue. with regard to where krugman goes from here, as i said, i think we just don't know yet. it will depend very much on whether he decides to reach out to president-elect poroshenko and whether he's interested in the escalating. w

what russia is looking for is a level of decentralization that is so extreme that it enables russia to buy proxy control ukrainian foreign policy by influencing specific regions of ukraine. they're willing to give fiscal power and lyrical power and leg which rights and cultural rights to various regions of ukraine. the russians want more. >> when you talk about decentralization that becomes destabilizing, as the russian goal, is that why he has taken himself out? he has tried to create a sense of plausible deniability. everybody understands that these separatist forces are backed by the russian government. we have interviewed that some of the separatists don't want to be associated with russia. they just don't trust kiev. what we make of that? >> there is a principal agent problem when you deal with proxy forces. there is the possibility to empower local forces and they have their own agenda. rush is powerful enough to rein in those agendas. is ae heart of the issue is redux in form of soviet union. doesn't it have a soviet characteristic to it? >> i'm skeptical of that. russia is an a

while russia and the u.s. are trading these veiled and not so veiled threats, violence is burst in ukraine. >> two helicopters shut down with ground to air missiles today. the president referred to those. you mentioned this fire at the plant in odessa. that's 31 dead people. more than that killed in the gunfire. it's looking more and more like an armed conflict and now you have the administration setting a new standard which is the continuation of this kind of disruption as we get closer to that election on may 25th, crucial elections and the outlook right now does not look good. every day, ukraine looks more and more like a country at war. here, residents cheered after two ukrainian helicopters are shot done, both pilots were killed. and here, pro-russian militants crash with ukrainian police. the new violence comes as ukrainian forces launch their most intensive efforts so far to push pro-russian militants from one eastern city from a slip from their control. but ethnic russians resisted, blocking ukrainian

. >> (chanting): russia! russia! >> narrator: watching as the former soviet country veers to the brink of civil war. it's provoked one of the biggest confrontations between russia and the united states since the cold war. >> jones: it was late february when i came to the capital, kiev, to independence square, where protesters were demanding the ouster of president viktor yanukovych. widely criticized as a corrupt leader, he had rejected a trade deal with the european union in favor of one with his close ally, russian president vladimir putin. one of the first people i met was dmytro holubnychy. the 16-year-old student told me what he'd experienced a few days before in the square still haunted him. >> (translated): i can't sleep. whenever i try to sleep, smoke appears before my eyes and the image of that man being killed. >> jones: dmytro told me how he'd come to the square to join the protestors. early on his first morning, fighting broke out with riot police. (police shouting commands) dmytro's father filmed what ha

with russia's ability to pay. but at the same time i will not put it past the germans to repeat their positions back 2008 and i was not too surprised that the signals are going to moscow but they will acquiesce to this and i just gave us two days ago a presentation to a bunch of america's military officers and which ones i clearly they are going to keep this in the crimea. well, it's not a bad deal. he didn't lose any people there. you took it, he bluffed and put some troops on the border and as i've pointed out before, it is a process. and if we don't include the sanctions, the sanctions by the u.s. alone without europe, let alone without china or japan or other principal russian trading partners, the u.s. visit by russian oil, russian oil is traded in global markets. russian gas goes to europe and then will increasingly be sold to china. so yes, if we could disrupt the banking payments in mess of the finances that we did, don't forget this is a country that survived the war to which they lost 5 million people. s

russia blames nato. nato blames russia. nick schifrin has more. nrz >> reporter: in the heart of occupied eastern ukraine, they mourn the death of a 21-year-old nurse shot at a check point. the west fears they are mourning the death of the 21st cent industry world order. >> this stops dead in the water the vision of a europe that is whole, undivided and secure. >> reporter: the interukrainian government calls this war. pro-russian supporters are capturing more government buildings. when government forces attempt to fight back, they largely failed. at stake the country that bridges west with east. >> if we don't stop this invasion there will be a europe that will be divided between a community of sovereign democracies, and an authoritarian regime. >> reporter: that was the cold war order when countries redrew board worse force. if russia grabs ukraine. >> you have russia unleashing a dynamic we thought ended 20 years ago. >> reporter: nato is threating the cold war balance according to russia. in 1990 it stopped at germany, in 1999 it added three m

against russia. we will take a look at how effective they are likely to be. that story and more when "bottom line" continues. ♪ >> european union foreign ministers have agreed to expand sanctions imposed on russia over its stance on the crisis in ukraine. lauren goodrich is a senior political analysis at a geopolitical intelligence firm and joins me now from austin, texas. good to see you again. >> thank you for having me. >> last time you and i spoke was back in march and you said at that time that sanctions against russia wouldn't be effective without the europeans being fully on board. has anything changed in the past two months? what nothing has changed. extensiveans levied sanctions on russia but it's a mere fraction of what the u.s. has done and even those sanctions are not effective against russia. the current sanctions levied today were an expansion to 13 russian and ukrainian individuals involved in the crimea annexation as well as two crimean-based companies expropriated ring the annexati

we have the russia nato meetings and that was done specifically to recognize that russia would i'm sure think that somehow this was a threat to them, their security and unique gove -- need not go back in history to far to get all that. i was not at the center of every decision but i was in the senate at the time on the foreign relations committee at the time, traveled a lot on this issue and i know our government at the time and our allies at the time did reach out to the russians to try to reassure them that this was about common interests, not about our differences. i think we have had in the last 20 years especially since the implosion of the soviet union we have had ups and downs in the russia-u.s. relationship in the nato-russia relationship that we have had periods of cooperation as well. we do a lot of things with the russians and we have differences. obvious to what has happened in the ukraine as i made clear at least in my opinion and my speech, that was not nato aggression that brought this action songs. and so we will continue to do what civilized nations must do, protect the