Ukraine wins IMF lifeline as Russia faces growth slump

Comments (66)
BlueCannon wrote:

Russia’s economy is not worrisome. It is the world’s major supplier of natural resources such as gas, oil, timber, minerals etc. If they act like China restricting rare earth exports in violation of WTO rules, they may respond to further sanctions with an embargo that hurts the world more gravely.

Mar 27, 2014 6:17am EDT  --  Report as abuse
hginandon wrote:

Easier to just send the money directly to the Swiss bank accounts of the corrupt politicians and the oligarchs. There is no way to change the nature of the beast.

Mar 27, 2014 6:17am EDT  --  Report as abuse
pyanitsa wrote:

“… in return for tough economic reforms …” Easier said than done. We’ll see how that goes.

50 pct increase in heating costs. 50 pct decrease in pensions. Great formula for Next Winter.

Mar 27, 2014 7:12am EDT  --  Report as abuse
itsmysayokay wrote:

Looks good on Putin…the thief, let him cook in his own stew.

Mar 27, 2014 7:20am EDT  --  Report as abuse
Universalist wrote:

Hopefully Ukrainian products reach the European market ASAP and are preferred by Europeans in the short term to help in the establishment of a legitimate Ukrainian economy prior to IMF investment being syphoned off by non-patriotic thieves that call themselves Ukrainian whom have absolutely no understanding of investment that creates a legitimate functioning economy. And buying or renting more apartments in the west or wherever for future stolen girls turned prostitutes does not constitute legitimate economic investment.

Mar 27, 2014 7:49am EDT  --  Report as abuse
ftsmith wrote:

Russia is not the only one with oil and natural gas. The US is on the edge of being the largest producer of oil and natural gas. The EU can get all its natural gas and oil from the US, thereby pushing Russia economically corner while creating US jobs and tax revenue.

Mar 27, 2014 8:30am EDT  --  Report as abuse
5xb38e wrote:

That’s only the beginning of the looting by the banksters. Next these vampires will have a austerity plan that will cut social services, funds for education, layoff government workers, devalue the currency, thus raising the prices of imports which include Russian gas, thus electricity, and open Ukrainian assets to takeover by Western corporations.

Google Paul Craig Roberts.

Mar 27, 2014 8:32am EDT  --  Report as abuse
LE7608989 wrote:

They asked for defensive weapons so they can offer some resistance to the Russian invasion… and we gave them MREs…. what a joke and insult! Lets arm the heroic Ukrainian resistance and give them a chance to resist the Russian onslaught. Putin won’t stop until he rebuilds Peter The Great Russian empire. He honestly believes that is his mission. It is time for Kiev or hire Erik Prince (of Blackwater fame) and/or other similar teams to very quickly train special forces: the only way they can hope to stop the Russian impending advance over all of Ukraine, and beyond.

Mar 27, 2014 8:40am EDT  --  Report as abuse
LE7608989 wrote:

Russia NEEDS to sell their oil and gas, more than Europe needs to buy it. Without that income, the support of the cronies will disappear and Putin would fall. It is a two way street, but Europe can find alternatives for their energy, Russian can’t find clients outside of the reach of their pipelines (most of them running through Ukraine).

Mar 27, 2014 8:42am EDT  --  Report as abuse
Rich_F wrote:

>>”Ukraine is on the edge of economic and financial bankruptcy,” he said.

this will not change because the IMF is lending them money for 2 years i’ll just kick the can down the road. the reforms that will be mandated will crush the populace and you’ll see a similar playing out as in greece. the ukraine also doesn’t have any viable ways to “grow out” of their predicament. it should be plain to see that the far better deal for ukraine would’ve been from russia but instead their being used as a political pawn by the West and in the end will end up far more impoverished than going with the better deal. this’ll take some time to play out but we’ve seen this movie before.

Mar 27, 2014 9:04am EDT  --  Report as abuse
Rich_F wrote:

>>The US is on the edge of being the largest producer of oil and natural gas

sorry ftsmith you aren’t even close. the US just eclipsed producing 10% of global oil supply, hardly in the largest category. in addition the US is literally years away from developing enough natural gas to export at reasonable prices without raising prices domestically. oh and that assumes the environmentalists and everyone else who’s all for energy independence (as long as it’s not in my backyard) could be resolved.

Mar 27, 2014 9:09am EDT  --  Report as abuse
Macedonian wrote:

lets see how bad the western European Khazars will punish the Russian Khazars over Crimea the Khazar promised land. What a nice package for Ukraine loan in return for gas price hikes followed by inflation and on top of it woman for president that had the same hair style for the past 20 years

Mar 27, 2014 9:24am EDT  --  Report as abuse
Macedonian wrote:

lets see how bad the western European Khazars will punish the Russian Khazars over Crimea the Khazar promised land. What a nice package for Ukraine loan in return for gas price hikes followed by inflation and on top of it woman for president that had the same hair style for the past 20 years

Mar 27, 2014 9:24am EDT  --  Report as abuse
paintcan wrote:

No matter what – Ukraine pays more for energy? They either accept the crooks the the IMF wants or they get pressured by Putin’s crooks?

In a few mores years of isolation – the USA and NATO will stage a terrorist attack with Russian names and, while everyone is reeling from the disorientation, will invade, topple the “tyrant” and grab the oil and gas fields, cause all the Ukraine farmers to mortgage their assets to the hilt, and claim they boosted the areas GDP, all in the name of “freedom” with more domestic surveillance and arbitrary spying not even the KGB could afford.

Oh, and never forget, and they’ll leave Russia and it’s former territories in a state of chronic civil war so they can never again take control of their own domestic situation, which will “justify’ all that domestic surveillance.

This is the future ruled by Mafiosi in expensive suits. The Sopranos rule! They are not concerned with the future of the Russians or the Ukrainians. They have nothing but contempt for them actually.

Mar 27, 2014 9:39am EDT  --  Report as abuse
rgbviews wrote:

Congratulations Ukrainians. You just sold your country to the big multi-national corporations. You lost more than just the Crimea in accepting this deal.

Mar 27, 2014 10:11am EDT  --  Report as abuse
paintcan wrote:

@Macedonian – With a big IMF loan Her Excellency can get a new do every day of the week. The whole government can and probably will.

Having the same hair style for the last 20 years is the most responsible thing you can say about her or them. They are being urged to shop till they drop, especially if they buy outside their own country. What do you want, Scheherazade, or the Ukrainian equivalent? Is there a Ukrainian equivalent?

@Rich_F- With rising prices needed to produce gas, and the more difficult to extract oils, comes wind power right behind but even they are having problems with Nimby. Off course, up here, the people most eager to invoke NIMBY don’t like the sight of another human being within miles, either. It’s a pity. The towers are beautiful and none of those who hate wind power were ever able to say much when transmission lines were built years ago, and those never are. Those were mostly built before the days of zoning and planning boards and the utility didn’t listen to much back talk. Proper zoning and some planning has only been around in most NH towns for about 20 years. The big landowners may have stock in big oil and gas? We have granite and that isn’t the type of rock that traps natural gas, otherwise they would probably fall all over themselves for fracking income. Wind towers can’t offer incomes to every big landowner – usually only one in a town at a time, and next to NIMBY, “he’s getting something I didn’t” is the next most common mantra. But it’s New England and they never come right out and say that.

Mar 27, 2014 10:34am EDT  --  Report as abuse
sammwise wrote:

Looks like Soros got what he paid for.
Don’t think this is exactly what the Ukrainians that fought in Maiden died for.
Perhaps the Ukrainians need leadership that actually is Ukrainian.
Also, China doesn’t have a floating currency why does Ukraine need one?

Mar 27, 2014 10:43am EDT  --  Report as abuse
Jamesss wrote:

Ukrainians have no idea what is about to hit them. Never mind the twitter revolutionaries who will keep warm in their coffee shops whilst surfing the internet on their ipads, 25% of Ukraine lives in poverty.

Those naïve Western idealist snobs don’t know the true meaning of popular uprising.

No wonder Russia faces continued threats against destabilising the country. The US and EU are already looking for someone else to pin the blame on when there is chaos in the streets. Those millions of Ukrainians who would prefer a closer relationship with Russia over the EU will rise.

Mar 27, 2014 10:48am EDT  --  Report as abuse
one_some wrote:

The West needs to ask Saudi Arabia to drop oil prices.
Saudis did it when Soviets invaded Afganistan in 1979, which lead to the collapse of the Soviet Union.
www.theguardian.com/business/economics-blog/2014/mar/26/west-wants-hurt-putin-could-saudi-arabia-dirty-work

Mar 27, 2014 10:49am EDT  --  Report as abuse
one_some wrote:

the US and EU should freeze new loans by the West’s banks to Russian companies. This will not hurt the West’s economies.
But this would force the Russian government give loans to the Russian companies to save them afloat, while leaving Putin with less money for social spending – actual ‘buying’ Russian people’s love.
In some time Russians themselves will ‘ask’ Putin to go.

Mar 27, 2014 10:56am EDT  --  Report as abuse

Relying on the advice of the IMF is a fool’s errand – one only has to see who is giving the advice and what has happened in the past. Third world “experts” led by a French lawyer almost always call for tax increases and spending cuts which devastate the economy instead of requiring regulatory changes to end the existing crony capitalism by allowing new companies to be formed and the tax base to grow.

Greece and almost every south American country the IMF has “helped” are exhibit A.

Mar 27, 2014 11:05am EDT  --  Report as abuse
Zaichusha wrote:

It is really funny to look at these numbers of financial “help”. $27-billion during the period of two years. Ukraine needs about $160 billion to re-construct its economy. The price of gaz Ukriane pays to Russia will definitely increase after several delays in payments. Also, how the new “pro-Western government” will deal with 30% of Russian speaking population that leans if not to be part or Russia but for Ukraine to join Customs Union (Russia, Belarus, Kazakhstan and possibly Armenia). All the South and especially the East of the country are 80% dependent on the economic ties with Russia. The violence on the streets reached alarming degree. And, it is all due to the ex-Maindan protesters who turned into armed gangs. They say they are preparing for the new Maidan to overthrow the “pro-Western government”. All that just leads to more trouble in Ukraine and I don’t see a true solution offered by the West.

Mar 27, 2014 11:56am EDT  --  Report as abuse

I hope everyone who supported the CIA-managed “Euromaidan” will enjoy the new natural gas prices.

Mar 27, 2014 12:31pm EDT  --  Report as abuse
BostonJudy wrote:

I envision exports decreasing greatly because there are alternatives for fuel, a large fall-off in investors and higher interest rates,the Russian stock market losing ground daily, and eventually a huge loss of popularity for Mr.Putin. I could be wrong if Europe caves, and it well could. If that happens, as Crimea goes, so will the rest of the USSR spin-off countries be annexed, and then the world will be in trouble.

Mar 27, 2014 12:52pm EDT  --  Report as abuse
Nikos_Retsos wrote:

The IMF’s $ 18 billions to Ukraine is really a lifeline which would keep Ukraine from defaulting before the up-coning elections. Better yet, the IMF doesn’t require to make any restructuring, or initiate any anti-corruption legislation – as it has done with all other states since its inception. The money is a “spend as you wish” gift with no strings attached from the West, and it should help the current interim rulers elected on the hog. I won’t be surprised to see Ukraine go through Greece’s, Italy’s, and Portugal’s agonizing debt re-payment in the decade ahead. Nice IMF lifeline for the current darlings of the West in Kiev, but a burden for other Ukrainian leaders who will be left holding the bag later! NIkos Retsos, retired professor

Mar 27, 2014 12:55pm EDT  --  Report as abuse
xcanada2 wrote:

There is a Ukraine election coming up on May 25. But the IMF/EU/US are rushing through harsh new economic conditions on Ukraine’s 99%. Why doesn’t the West wait until democratic elections??? (A rhetorical question: West can’t be sure to get what they want.)

Basically, the West rejected Yanukovych’s Russia turn, engineered a putch, undemocratically set up their own government, and are now shoving through their economic program for subjugating an impoverished Ukraine.

For Ukraine on May 25: I’d advocate, re-elect a Russia-leaning government; reject the undemocratic Western-foisted “bail-out”; kick out the Western “democracy-promoting” organizations; subjugate your oligarchs to the rule of the 99%; work with Russia building up new trade with Russia and China; control the Western Ukraine neo-Nazis.

It is not too much to imagine that a chastened but smartened-up Yanukovych could make a come-back. This time with re-integration with Russia, and more attention and advise from Putin.

As compared to the Western plan: Greecify the people; impossibly try to make EU people buy Ukrainian products, rejecting their own; impossibly try to quickly integrate Eastern Ukraine industry with EU, when it is already integrated with Russia; suppress the dominant Eastern and Southern Russian-speakers. These are evidently fools’ errands, further evidence of a foolish, failing Western leadership. How ridiculous!

Mar 27, 2014 1:00pm EDT  --  Report as abuse

Russia is no economic powerhouse. When’s the last time you bought anything “MADE IN RUSSIA.” lol

Mar 27, 2014 1:23pm EDT  --  Report as abuse
daniel3125 wrote:

@LE7608989 wrote:

Why would a country that exports almost twice as much as it imports be more needy for business than countries that import far more than they export?

Mar 27, 2014 1:26pm EDT  --  Report as abuse

Get out of town fast. The highways will be total gridlock for hundreds
of miles. Take 3 months of food, water, a shotgun, cash and gold eagles because the electrical grids will have been destroyed as well as the transportation system for food delivery and pumps to deliver water. Only the military will have the means to help.

After the fallout dissipates, listen to your battery powered short wave radio to make sure it’s safe to go back into town. There might be a lot of desperate gangs. On the other hand there may be a lot of people trying to help each other. This scenario is very probable if Putin goes much further. And maybe Obama will take the advice of some stupid people on this forum and shut his mouth – until he announces WW3.

Mar 27, 2014 1:29pm EDT  --  Report as abuse
westernshame wrote:

xcanada2 wrote:

“There is a Ukraine election coming up on May 25. But the IMF/EU/US are rushing through harsh new economic conditions on Ukraine’s 99%. Why doesn’t the West wait until democratic elections???”

this has been my sticking point all along too. the urgency put behind getting the temporary interim government to make deals that will enslave the population for….. well eternity says all i need to know about how much the west cares about the people of Ukraine.

the ONLY thing this western backed interim government should be doing is preparing for elections. this is the only way the Ukrainian peoples true voice can be heard.

Mar 27, 2014 2:08pm EDT  --  Report as abuse

@Jamesss

>>”Those millions of Ukrainians who would prefer a closer relationship with Russia over the EU will rise. ”

Did you not see how this all started?

The entire revolt was predicated on the fact when Yanukovych decide he wanted a hand job from Russia instead of legitimate financial and economic support from…wait…the EU. Which was done by Russia to stop the Ukraine from forming closer ties to the EU, and NATO.

The entire revolt was predicated on this fact. Ukranians in general have already denounced Russia by kicking their puppet out of office.

Mar 27, 2014 2:28pm EDT  --  Report as abuse
UauS wrote:

Putin, Karimov, Nazarbayev, Lukashenko, Xi Jingping, Assad, Kim Jong-un… as the old saying going, “tell me who your friends are and I will tell you who you are”.

Mar 27, 2014 2:34pm EDT  --  Report as abuse
carlmartel wrote:

The IMF has begun austerity with a greater than 50% rise in consumer gas prices on May 1 and a 40% rise in commericial gas rates on July 1. Naftogaz has been running an $8 billion per year deficit, so they will raise consumer rates until 2018 to reach a level for operations and maintenance and to begin repayment of existing debts. The next elections are set for May 25 before the June 1 consumer gas bills go out, so expect the first riots to begin about June 8 after the bills reach Ukrainian consumers. The 40% commercial increases hit on July 1, so some business bankruptcies should start on August 8, and laid off workers will join the consumer riots. Most companies will make plans for changes and survive for a longer time, but they will face increasing problems as customers have less money to spend after paying higher gas bills. Kiev’s national currency, the hryvnia, will float and lose value, so governments, businesses, and people will have less buying power. Ukraine’s agriculture does not meet all EU standards, some of which are used to protect some national produce or meat, so Ukraine will not earn as much as some would like.

Putin’s plan had a $15 billion loan, lower gas prices, no austerity, and a new rail link to central Asia and China for Ukrainian grain to feed livestock and poultry and earn the money for repayment of the loan and debts. After the EU’s austerity riots in Greece, Spain, and other countries, the Russian offer was better. Russia had a 1.3% GDP growth rate in 2013 that beat the EU’s 0.3% GDP growth rate by 4 to 1. Russia has $500 billion in foreign currency reserves while EU debts exceed their GDPs. Russia’s SCO military ally, China, has $3.5 trillion in foreign currency reserves and a 2013 GDP growth rate of 7.7% that beat the US 1.9% GDP growth rate by 4 to 1.

The good news is that while the US and EU impose sanctions on Russia, the EU will buy Russian gas, and the US and EU will pay Kiev to buy Russian gas. At the same time, US allies in Asia, Japan and South Korea, will buy Russian oil and gas. Russia and Japan plan 20 mile pipelines from Sakhalin Island to Japan to deliver more oil and gas because Japan closed all nuclear reactors after the Fukushima nuclear disaster. The best news remains that the world’s biggest oil and gas station in Russian Siberia sits next door to the world’s biggest car market and industrial production facilities in China.

I see no way for the US and EU to revive the economic basket case of Ukraine and defeat Russia and China in a trade war.

Mar 27, 2014 2:58pm EDT  --  Report as abuse
Zaichusha wrote:

DrFrankNFurter wrote:
“The entire revolt was predicated on the fact when Yanukovych decide he wanted a hand job from Russia instead of legitimate financial and economic support from…wait…the EU.”
This is really funny to read. The whole “revolution” started when Yanukovich did not sign the preliminary economic agreement with the EU saying Ukraine needs more time to analyze it and not just dump its economy dependent on the cooperation with Russia.
What happens now is that the new so-called “government” signed political agreement with the EU but REFUSES to sign the same economic agreement that Yanukovich did not sigh! They say they need MORE TIME! Essencially they throw out Yanukivich for the fact he did not sign the deal and they now do not sing the deal either. The EU membership will leave hundreds of thousands and possibly millions of workers in the South, Center, and especially the East of the country out of work. These territories depend on cooperation/orders from Russian 80%. These people will not let that to happen and we will see many more Maidans in the nearest future.

Mar 27, 2014 3:02pm EDT  --  Report as abuse
Zaichusha wrote:

Just an example of what the new government does to its people. One retired lady in a recent video explained. She is getting 1,700 hryven a month (roughly $170). She pays 500 hryven for gas and electricity. The new government will increase that by 50% so the lady will pay 1,000 hryven. She is left with 700 (or $70) a month to live. BTW, Yanukovich did not want to bring that kind of a burden on the least protected people of his country. It seems like the new “democrats” are digging a grave for themselves.

Mar 27, 2014 3:07pm EDT  --  Report as abuse
DSTIEBS wrote:

Soon Obama will have made enough enemy’s that he won’t be able to barrow anymore money for the budget and their vacations.

Mar 27, 2014 3:22pm EDT  --  Report as abuse
xcanada2 wrote:

@DrFrankNFurter:
>>”Those millions of Ukrainians who would prefer a closer relationship with Russia over the EU will rise. ”
“Did you not see how this all started?”

As I understand the Maidan putch, there were demonstrations against Yanukovych’s turning to Russian financing. Lot’s of countries have demonstrations, and that does not overthrow the government. Ukraine had a democratically elected government and President.

The demonstrations were heavily influenced by the West. Six billion US dollars of “democracy training” had its effect. The demonstrations became very angry and violent, with many policemen firebombed.

A deal was brokered by EU with Yanukovych for early elections. Immediately the demonstration became more violent, snipers were ready around the Maidan to kill protesters and policemen alike, and the existing government was kicked out or intimidated to going along with a coup. Yanukovych fled for his life.

This was not democratic. Most of Ukraine had voted for Yanukovych, and they were not at the Maidan.

And, there is no indication that the sniper attacks that were instrumental in the putch are being investigated. Looking at who furthered their cause, it appears likely that the sniper killings of the 80 people on the Maidan is instigated by either the people now in the unelected Kiev government, or by the US/EU, or by both. (Nice country we live in.)

Mar 27, 2014 4:05pm EDT  --  Report as abuse
Zaichusha wrote:

I urge everyone just follow the events in Ukraine and Russia and see what happens to both. I bet Ukraine is awaiting another violent “revolution” and may be one more. Russia will re-orient its economic ties to China, India, Japan, Korea, Malaysia, Taiwan, Syria, Egypt, Libya, Cuba, Nikaragua, Brazil, Argentina, Chile and other countries and will be better of this way.

Mar 27, 2014 4:24pm EDT  --  Report as abuse
AlkalineState wrote:

World buys Ukraine a pizza and signs contract for an order of 5,000 babies. To replace the Russian babies we will not be adopting now :)

Mar 27, 2014 5:32pm EDT  --  Report as abuse
AnLaN wrote:

The west appears more and more to have been involved in destabilizing the Ukraine thereby threatening to take away Russia’s only critical naval warm water port. They had to know the risk, so why do it? What is the real reason behind all this? If they continue to push and push Putin in a corner then what? Some clear thinking is needed here or else we could easily find ourselves in a protracted crisis that could easily affect the world economy. Hopefully cooler heads will prevail and some constructive engagement will be effective. Rhetoric is just noise and we are seeing plenty of that now.

Mar 27, 2014 5:56pm EDT  --  Report as abuse
ivan_76 wrote:

Russia will repair the roads, buildings, infrastructure in Crimea. Increase pensions for old people. Russia will build a bridges for communication with other regions. All of that was not done for 23 years (while Crimea relate to Ukraine).
Crimenian’s residents are delighted that they are on the side of the huge debt and financial problems in Ukraine.
And after all of that US gov inpose saktion on Russia, like they monster. But who are they? world police? and how about Iraq, Livia. How many peoples died in those countries?

Mar 27, 2014 6:48pm EDT  --  Report as abuse
Whatsgoingon wrote:

@westernshame “..the ONLY thing this western backed interim government should be doing is preparing for elections. this is the only way the Ukrainian peoples true voice can be heard.”

Why would a “western backed” government want to have “Ukraine people’s true voice” heard? The $27B is their fund to buy the election, isn’t it?

Mar 27, 2014 7:19pm EDT  --  Report as abuse
AmRus wrote:

It would be interesting to know what is the interest rate for this IMF loan. I remember back it time that we in Russia had a fight with IMF to pay out the debt earlier that it was scheduled. And IMF did not allow to pay out debt earlier.

Mar 27, 2014 7:23pm EDT  --  Report as abuse
Salahuddiin wrote:

“Ukraine won a $27-billion international financial lifeline on Thursday”
“The European Bank for Reconstruction and Development could direct up to a billion euros a year into Ukraine over the next few years, while the EU could provide 850 million euros within three months.”

Now ask yourself why most of the 27 billion in loans are in USD and not in euro or yen? The short answer is: The main plan is to tie all economies of countries under the rule of the NWO with the american dollar, so when the US economy collapses the entire system (countries) collapses too. Zionists literately have mountains of gold in israel, but that’s something most people have a hard time believing. Lets just focus on informing the Ukrainian people what’s really happening behind the scenes in hopes they’ll wake up & do something before it’s too late. It’s still too early for them to see the entire scam yet.

Mar 27, 2014 7:53pm EDT  --  Report as abuse

Almost 100,000 Russian soldiers are stationed on the borders of Ukraine and in the direction of Kharkiv, Donetsk.
Russian troops are not in Crimea only, they are along all Ukrainian borders.
After its intervention in the Crimean peninsula, Russia is plotting to foment separatist sentiment elsewhere. People in Kiev fear a possible incursion in the country’s east.

Get more Facts from people on the spot here:
http://situ.it/facts/almost-100000-russian-soldiers-now-stationed-ukraine-borders

Mar 27, 2014 7:59pm EDT  --  Report as abuse
carlmartel wrote:

I’ve been examining the dates of the election and the likely dates that Ukrainians will receive their greatly increased gas and utility bills, and there appears to be a sneaky plan by the West to create political instability in Ukraine this summer. They vote on May 25 for new leaders, and their 50% higher gas bills arrive on June 8. On August 1, commercial gas rates rise 40%, bills arrive August 8, electricity rates (generated by gas) rise with customer bills arriving September 8. Small business prices will start rising with the arrival of commercial gas bills on August 8, so every Ukrainian will start to be hit with higher local consumer prices on August 8.

Since the elections come before the bills, they are stuck for 4 years with new leaders unless they riot, take over streets and squares, throw out their democratically and legally elected leaders, rule themselves as an unelected mob, and ask Putin for the Russian deal ($15 billion, lower gas prices, no austerity, and a rail link to China to sell grain for repayment). The West will complain of Russian aggression through unelected mobs that the West will describe as led or influenced by Russian agents. This will give the West an excuse to impose full sanctions and reset to the Cold War.

If the offers were put before Ukrainians as simple, economic matters in straight-forward manners in time for the election, the crises could be avoided. Unfortunately, the elections are scheduled to be held before Ukrainians can see the practical effects of the plans. Therefore, revolt, accepting Russia’s plan, western sanctions, and a tense military standoff appear to be the likely results. It would be wise to inform the Ukrainians before they vote.

Mar 27, 2014 8:17pm EDT  --  Report as abuse
boreal wrote:

So those poor Ukrainian slobs will have a taste of freedom and democracy soon enough as they will be hit with a 50% consumer gas price hike. On top of that a 40% commercial hike is just around the corner that surely will ripple through to the average Joe on the street. If they won’t have a riot and beg Russia to take them back, in good time Ukrainian homegrown products will be replaced by EU products killing off Ukrainian industries, and Ukraine will become a dumping ground for western EU goods and services burdened by IMF debts up to their ears.

Mar 27, 2014 9:15pm EDT  --  Report as abuse
puttypants wrote:

Ukrainian government should take all of their assets Yanakovich’s and everyother oligarh or politician involved and divide them amongst the people so they can pay for fuel and increase pensions. Pay oil from another country rather than Russia.

Mar 27, 2014 9:25pm EDT  --  Report as abuse
engineer99 wrote:

What can Russia do ?
Russia could use its US dollar reserves to buy and hoard strategic metals like aluminum, nickel, titanium, etc in the commodity futures market, causing prices to rise sharply. This will increase the costs of aircraft made outside Russia.
Big hedge funds and banks like JPMorgan Chase, etc in the USA are already doing that for many years without being prosecuted for anti-competitive practices until recently.
This is better than loaning the money to USA and watch the US dollar depreciates, and loses value.

Mar 27, 2014 9:35pm EDT  --  Report as abuse
puttypants wrote:

This must be all of Putin’s propaganda machine the “Nashi” people on this line. There’s no reason why Ukraine can’t still work with Russia and EU. Putin was the one who made the demand that it was either Russia or EU. That was a huge mistake on his park. And now we have all the paranoids on this site bad mouthing and trying to frighten Ukraine. My God will Russia ever stop with their negative propaganda towards Ukraine. Remember Putin and Russian regime helped place and keep the corrupt ukrainian politicians in power. Ukrainian government and business have got to stop enriching themselves at the expense of their country. That’s what this whole thing was about and those commenting on this site should know that.

Mar 27, 2014 9:44pm EDT  --  Report as abuse
manana wrote:

There’s $27B we’ll never get back.

Mar 27, 2014 9:44pm EDT  --  Report as abuse
Bonsai.Billy wrote:

“Ukraine wins Evil Inc. ass reaming as Russia faces western exploitation slump”

Mar 27, 2014 9:54pm EDT  --  Report as abuse
nickir wrote:

Loser…Russia…takes all? Only if you’re an ordinary Russian I suppose.

Mar 27, 2014 9:59pm EDT  --  Report as abuse
Bonsai.Billy wrote:

Ukraine is so lucky to be granted this opportunity to fall $27 billion further into debt. Poor Putin, Russia’s economy will never get to experience another western backed bubble now.

Mar 27, 2014 10:10pm EDT  --  Report as abuse
Bonsai.Billy wrote:

If only I could be paid $30 an hour with full benefits and a pension to censor public opinion.

Mar 27, 2014 10:12pm EDT  --  Report as abuse
RobertFrost wrote:

That is really nice of the EU!

We shall see soon a few more millionaires in the Ukraine, guided no doubt by the array of previous top officials headed by Ms.Tymoshenko, whom are told owns no less than six palaces, built no doubt through her enviable frugal life style, before she was convicted by an Ukrainian court…

May be the new Ukrainian crop would pass back some of the largess to the 25 million Europeans under the poverty level, swarming for a meal in the streets of London, Paris and Berlin!

Mar 27, 2014 10:26pm EDT  --  Report as abuse
xcanada2 wrote:

@puttypants:

Actually, it must have been the Harvard squad (Summers/Rubin et al), the same people who set up the oligarchs in Russia in the early 1990′s, who must have also set them up in Ukraine. Of course, oligarchs can be useful for various purposes: for example, local help with ripping off a country’s natural resources.

Putin has since controlled the Russian oligarchs to some extent, at least stopped them from politically taking over Russia.

Maybe Putin found the Ukrainian government oligarchs useful, just like we Americans find those in Saudi Arabia and Egypt so useful. Or, maybe Putin cares a little more about Ukrainian people more than we care about Saudi Arabians or Egyptians (seems likely he does), and is trying to similarly help Ukraine clean up its government. Seems like this would be in his interests more than it is for the West.

What do we care about Ukrainian people? Not a hoot I’d guess. What have we done to figure out who the shooters were at the Maidan? Nothing, and I’d wager that is because they served our interests. Yeh, we are exceptional, Obama even told us, so we don’t need to worry about other people in the world.

Mar 27, 2014 10:29pm EDT  --  Report as abuse
SKYDRIFTER wrote:

Now the swords are crossed, essentially leaving Putin feeling that he “owes” Obama, in particular, a proportionate response – given that Obama & the Gang started the Ukraine coup; and got caught at it.

Here’s the deal:

In 1994, Ukraine was added to the “Treaty on the Non-Proliferation of Nuclear Weapons, in the “Budapest Memorandum.” Ukraine gave up possession of any left-over Soviet nuclear weapons (third largest stockpile in the world); being given protection from nuclear attack, in return.

BUT, there were certain specific additional conditions -

The USA, Russia and Great Britain would:

1. Respect Ukrainian independence and sovereignty within its existing borders.

2. Refrain from using economic pressure on Ukraine in order to influence its politics.

3. Consult with one another if questions should arise, regarding these commitments.

However, Obama & Biden got caught by Russia, attempting to ‘revise’ the Ukraine government; chronicled by the ENTIRETY of the intercepted phone call between Assistant Secretary of State, Victoria Nuland and the U.S. Ambassador to Ukraine, Geoffrey Pyatt – infamous for Nuland’s “F… the EU” remark (and her official apology).

In that conversation, Nuland & Pyatt were discussing the US-preferred players – and those to be blocked – in the “new” Ukraine government. So much for the provisions of the “Budapest Memo.” And, so much for the U.S. respecting Ukraine’s sovereignty.

While the Budapest Memo did not “technically” rise to the level of a formal U.S. “treaty,” it was formally embraced by the United Nations – “constructively” becoming a treaty. Accordingly, the USA had/has no significant say about Ukraine’s “market” deals; or their government.

However, history is quite clear that Obama & the Gang are devotees to the “New World Order;” or “Globalists,” if one prefers – clearly to the exclusion of the U.S. Constitution, as required. Sadly, few Americans, in particular, pay appropriate attention to such obvious details.

At the time of the Nuland call, the last legitimately elected Ukraine government was intact – but not for long. Putin caught Obama interfering in Ukraine; asking him to back off – but Obama didn’t. “Protesting” is not on par with “consulting.”

Now, there are six particular options available for perception:

1. The “Budapest Memo” has the equivalence of a treaty – in which case the U.S. is culpable for violating it in the Ukraine “coup” planning; particularly for not “consulting” Great Britain and Russia.

2. While the EU was competing with Russia over the Ukraine market connections, Russia won out, in the Ukraine vote – of the last legitimately elected Ukraine government. Russia also extended generous loan guarantees to the Ukraine government; adding a 30% reduction in the price of Russian-supplied gas – to ensure the viability of Ukraine. While Russia was content to allow the Ukraine government to press onward; not so with Obama and the Gang. The EU market (economic pressure) would only come with the overthrow of the Ukraine government. (With the American economy tanked; Obama was revising the Ukraine economy???)

3. Russia isn’t particularly to blame in the “Ukraine Crisis,” given that Obama & the Gang “…. drew first blood” in their role in the “coup;” essentially nullifying the “Budapest Memorandum.”

4. The Ukraine/Crimea matter is now the province of the United Nations – and International Law – regularly violated by the USA; even in the “Ukraine Crisis.”

5. With the breakup of the former Yugoslavian (Balkan) states in the background, the “Crimean Decision” is moot; however inconvenient it may be to certain “Western” powers – and the “New World Order,” aka, “Globalists.”

6. “Might makes right.” Crimea is now a “subject” state of Russia, as Russia refers to such “countries.” And, who is going to do anything about it?

Ukraine is bankrupt; and this IMF loan isn’t enough to keep Ukraine viable for very long. Add that there is an increasing in-fighting amongst the “opposition” groups, who collapsed the Ukraine government. How long will it take to form a potentially successful Ukraine government; and hold elections? Come winter, will Russia sell gas to a “rogue government?” Ukraine won’t become a “Berlin Airlift.”

How long will the EU support a fight which Obama started? Obama is on the brink of starting “Cold War II.” A “Western” re-posturing to isolate Russia would be a massively expensive undertaking. Neither the USA or the European countries can afford such a fight. And, it would start with the collapse of the EU – now fighting to keep alive. Global “financial nerves” could precipitate the collapse of so many financial institutions; as to effect a crippling (and un-affordable) “Depression.”

So, in the immediate future –

Will the price of Russian gas & other raw materials to the EU increase – and the cost of transportation to the Space Station?

Will Putin comparably “sanction” the business assets of the EU countries; located/deposited in Russia?

Alternately, could the EU countries be “re-inspired” with a lower price for Russian gas and raw materials? The Russians could also “sweeten” business deals for EU countries.

Independently of Obama and the Gang, the EU countries and Russia enjoy a great economic potential. Among other ‘deals,’ England, Germany and France depend heavily on Russia for titanium; for such as jet engine & rocket parts. How much titanium do the EU countries have stockpiled – or alternately have available; at what price?

With the first IMF check delivery, no doubt Russia will be holding out their hand for first-draw payment of the Ukraine past-due gas bill; advising as to the consequences for the lack of timely payment.

As with the EU, the Ukraine price for Russian gas, raw materials and tangible goods is probably going to be increased. If Ukraine “needs” their previous Crimean port facilities, there is going to be the need to negotiate a “lease.” Will Ukraine Navy have to buy back their ships; now in “Crimean” hands; or, will those be “sold” to Russia? Can Ukraine compensate for the loss of their collective Crimean assets; physically or financially – including the loss of income from the Russian lease on the Sevastopol Navy base?

Ukraine is now faced with competing political groups; each with its own agendas – and passions. Will there be any major divisive street battles, between the major factions?

How much of a state of crisis now exists in the Ukraine military – relative to so many “traitors” who didn’t engage the Russians? Any ‘discarded’ Ukraine troops are so many skilled “rebels;” but who would they fight for?

In the near future, it’s assured that Putin will quickly build some bridges between the east Crimean coast and Russia; ensuring a transportation route for just Crimean agricultural products – with China as the final destination. Could Ukraine get offered a similar ‘deal,’ getting better prices than from the EU? (There may be an associated transportation Crimean/Russian “tariff,” but… )

Will the Ukraine segment of the Russian gas pipeline be re-routed through Crimea; or Belarus? Or, will Russia find it necessary to send in Russian troops to “protect” the pipeline from thieves and saboteurs?

How much longer will U.S. astronauts be able to get Russian visas?

Does Putin have control over the critically needed “NATO” airspace and land routes into & out of Afghanistan? Is the “withdrawal” of NATO troops from Afghanistan facing a Dunkirk style panic – “Calling all helicopters!”

How much more “assistance” is Putin capable of providing certain countries/groups in the Middle-East – to the disdain, nigh unto horror, of those such a Israel; and the usual US-preferred corporate benefactors?

In the background, Obama conned Putin into withholding Russia’s objection to a “limited” assistance to the Libyan “Arab Spring,” only for Obama to then de-limit the assistance; making a fool out of Putin – and a derelict nation out of Libya, to the benefit of U.S. and British oil interests.

What did the recent Libyan requested U.S. Navy SEAL takeover of the rogue oil tanker (in international waters) signify? Can anyone imagine a U.S. Navy SEAL team being utilized as third-party state-sponsored pirates? It happened, but what list of International Laws were violated? What should the U.N be saying about that operation?

In the background, the Obama administration left the U.S. ambassador & others to die in “Benghazi;” but the Libyan request for (oil) help was immediately answered? How much did that SEAL raid add to Obama’s image as a tyrant – versus statesman? But, Obama has presented himself as an untrustworthy tyrant. What does the EU make of Obama; in the proverbial “back rooms?”

Currently, the US-preferred Libyan government is unstable; with the (well armed and well manned) “rebels” now determined to overthrow that government. Will Putin back the Libyan “rebels” with intelligence and arms – as did Obama & the Gang, during the “Arab Spring?” How much ‘tyranny’ can Obama get away with? No doubt, Putin has a well-calibrated idea of Obama’s limits.

Then, there’s Putin’s support of Iran and Syria; with Iraq getting increasingly desperate for help in fighting back the “al Qaeda” elements. Obama is providing token assistance; will Putin help out – via Iran?

In this “Ukraine Crisis,” Obama and his pals have essentially given Putin a mandate. Aiding Ukraine is one thing; punishing Russia is another. However rough the interim may be on Russia; what are the odds that Putin will lose – just in the “Ukraine Crisis?”

Putin is just getting started; Obama is almost finished. Will the EU hitch their wagon to Obama’s falling star?

There’s still a lot of screaming & hollering to be done; with Putin currently being disturbingly quiet. What is ‘time’ to yet deliver?

Mar 27, 2014 10:40pm EDT  --  Report as abuse
ReutersBabar wrote:

If Yulia Tymoshenko wants “to fight lawlessness,” then perhaps she could start by returning the money she obtained through nefarious methods.

Mar 27, 2014 10:54pm EDT  --  Report as abuse
ReutersBabar wrote:

If Yulia Tymoshenko wants “to fight lawlessness,” then perhaps she could start by returning the money she obtained through nefarious methods.

Mar 27, 2014 10:54pm EDT  --  Report as abuse
SilverMfg wrote:

Those guys on the International Space Station using Russian space ships …. wow must be very uncomfortable up there.

Mar 27, 2014 11:02pm EDT  --  Report as abuse
2Borknot2B wrote:

It is like the IMF is begging Russia to take more of the Ukraine. L.

Mar 27, 2014 11:14pm EDT  --  Report as abuse
xcanada2 wrote:

@SKYDRIFTER: Thank you very much for you incredibly informed analysis!

I’m wondering how much it is going to cost the West, now that they have undertaken support of the Ukrainian economic basket case?

Ukraine looks like a bunch of extreme nationalists plus a classic tragedy of people trying to reach Nirvana, this the result of the Soviet tragedy. In my view, only the Russians, who are dealing with their Soviet disaster, can really understand or probably help the Ukrainians. The West are messing with they know not what (but with typical exceptionalist hubris and greed for conquests).

I am for what is best for my fellow people in Ukraine, and the sickly, immoral West is the last thing they need.

Mar 27, 2014 12:39am EDT  --  Report as abuse
xcanada2 wrote:

@2Borknot2B:
“It is like the IMF is begging Russia to take more of the Ukraine.”

Yes, if the US administration had half a brain, they’d be trying to stick Russia with what has been wrought by the idiotic neoCons such as McCain and Victoria Nuland and company.

Mar 27, 2014 12:44am EDT  --  Report as abuse

It is “very smart”.
On the one hand to loan money to unstable government, on the other hand to close the russian market, which is strongly tied with ukrainian economic.
It is interesting how would the Ukraine would repay the debts without russian market.
I am not sure that EU will open its market for cheap ukrainian agricultural production.
Ukrainian government sells the Ukraine into and absurd debt bondage.

Mar 28, 2014 4:38am EDT  --  Report as abuse
Californian16 wrote:

So china is going to play a constructive role in the russian aggression in Ukraine, huh ? If its anything like china’s history of “constructive” involvement, then forget it !!

Mar 28, 2014 10:52pm EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.