Russia trumps US in Ukraine poker game

[unhappycamper]

http://blogs.rediff.com/mkbhadrakumar/2013/12/18/russia-trumps-us-in-ukraine-poker-game/

Russia trumps US in Ukraine poker game

Russia may have made its most significant foreign-policy gain in the entire post-cold war era when the Kremlin decisively moved in on Tuesday to offer a rescue package for the beleagured Ukrainian economy and may have taken a leap forward in leading that country into the Eurasian Union, which Moscow is planning as the umbrella organization bringing together the former Soviet republics.

This is undoubtedly one of President Vladimir Putin’s finest hours in the Kremlin. The point is, if Ukraine moves into the Western orbit, Russia falls back on its back foot in strategic terms; without Ukraine Eurasian Union remains grossly inadequate; with Ukraine the Eurasian Union all but restores the Soviet Union in politico-economic terms.

Unsurprisingly, the West is aghast, and the mood of the cold warriors can’t be uglier than this. Russia is beating the West at its own game of cheque book diplomacy. No need for Russian tanks to roll into the streets of Kiev as in 1956 in Budapest.

The European Union foreign ministers have unceremoniously come down from the high pedestal from where they preached to Ukraine on the virtues of human rights record and western liberal democracy and pleaded it is prepared to sign an Association at a special summit this very week if only President Yanukovich is willing. But it seems a case of too little too late.

[dipsydoodle]

1. Wouldn't have put it quite like that

but yesterday moves do create a predicament which would be difficult for the EU / west to match.

The $15 billion sort of matches the figure IMF were looking at but the IMF wanted Ukraine to substantially increase consumer gas prices in return. That's because Ukraine currently sells gas to consumers at below cost. The reduction in gas price offered cannot possibly be cross matched elsewhere. The new figure should allow the government to reduce prices to consumers even further but not necessarily to below cost providing the government with income to help repay loans as and when.

Its interesting that the opposition have offered no constructive alternatives to anything to date which would make economic sense.

[madrchsod]

2. that`s one of the most confusing articles i've read in a long time

i think the author should have had someone proofread his article.