EU does not impose sanctions, but suspends agreement on Strategic Pact

As was expected, the meeting of European leaders was a mix of calls for severe sanction against Russia, and calls for more moderate actions in view of the fact that Europe is really dependent on oil and gas supplies from this country.

As a result, no sanctions are envisaged, but EU has decided to condemn Russia for recognizing the independence of South Ossetia and Abkhazia. In addition, any discussions on the Strategic Pact between EU and Russia are postponed until full withdrawal of Russian troops from Georgia. You may find the text of the conclusions of the European Council Meeting here: http://news.bbc.co.uk/2/shared/bsp/hi/pdfs/01_09_08_eurussia_statement.pdf

Is Re-thinking Needed? Is Re-calculating worth it?

While US and almost all leading European governments are calling for harsh criticism and sanctions against Russia, Germany is the first to call for considerate approach, re-calculating possible economic implications of breaking normal trade and economic relations with Russia. Wise and objective, or tactful? You decide...and we all feel later...