Will Europe Unite Against Putin as Pressure Grows?

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July 21 (Bloomberg) -- Former Ambassador to Ukraine Steven Pifer and Greylock Capital Management Founder Hans Humes examine the pressure on Russia for the MH15 airplane crash from Europe and Ukraine continuing to reinforce troops to fight rebels. They speak with Trish Regan on “Street Smart.” (Source: Bloomberg)

I will start with you, ambassador, given the tragedy in eastern ukraine, is there a chance that vladimir putin might back off some of his ambitions in the region?

I think that is the big question.

I think the shoot down of the malaysian airliner has been a shock to the system and there has been a lot of outrage globally and in europe.

The question is whether that will turn into a policy in terms of an effort to push mr.

Putin not only to call for things like a cease-fire, but to do things in his control, such as cut the flow of weapons that are helping the separatist continue this fight.

When he saw this transpire, if in fact russia was the one supplying all of these arms to the separatists, he had to think to himself, what did we do?

This is a mistake of huge proportions.

But i cannot read this or prudence mind, -- i cannot read mr.

Putin's mind.

The question for him will be how much blowback there will be.

If you're can mobilize and make a strong response to this horrible tragedy, that may create an opportunity for mr.

Putin to change his course.

And if he does not see that kind of pushback, my guess is he's going to think it can be business as usual and he will continue keeping weapons flowing into eastern europe crane.

-- eastern ukraine.

Ambassador, what do you think ? what do you think will happen?

You've got to have unity with 28 foreign ministers.

There will be a lot of eyes looking at brussels tomorrow to see what comes out of that session.

And a lot of those eyes will be in moscow, to see what this means for european pressure on the kremlin.

What does europe stand to lose from an economic perspective?

From an energy perspective?

Why might they not be willing to exert some of that pressure when it comes to sanctions?

The economies of all the european countries are intertwined with russia much more than ours.

And certainly, we have been dependent -- they have been dependent on russia for the energy flow.

I think this is such a big tragedy, and i believe -- i agree with the ambassador that it is an unintended consequence of the russian mobilization in supplying arms.

It is definitely something they would not have anticipated.

But i think the u.s. did a good job of pushing the sanctions early and we are the ones at the forefront.

This is really a european decision now, and assigns i'm seeing is that the europeans will take a much harder line.

Ok, if the europeans take a harder line and the sanctions are enough that russia has to wake up and listen, what might the outcome be?

What is the economic cost to rush of having these things?

Access to capital.

We are just in the early days now, and what we saw on the ukrainian crisis when it first started, the fight was pretty hard in terms of large portfolios selling of russian assets.

What we are seeing now is smaller selling, but it is tainting the retail side.

And on the debt side, the sanction assets are backing up by 30, 40, 50 basis points now.

These companies love a much tougher time tapping the international markets.

If he keeps going, they will lose the ability to interact.

The real effect i've seen -- we are working on the restructuring of a bank in eastern europe.

The people managing these banks have to watch were they are going with this.

I understand.

There's a store that bloomberg news put out today that talks about how many billionaires in russia that are very concerned that russia is moving increasingly toward an isolationist position.

Might they also be able to put some pressure on but america and to try to negotiate more and to ease back on some of his -- on vladimir putin and to try to negotiate more entries back on some of his assistance of the separatist?

The sanctions could keep them from traveling to the west.

Over the last 10 years, mr.

Putin has built a system where he has control and has the final say.

The bigger impact is going to be external and a lot will depend on what the europeans say in the coming days.

I do want to share with you some news that is just crossing right now.

The un security council has a

This text has been automatically generated. It may not be 100% accurate.

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