Tag: Ukraine
Where do you find free cheese?
In what may be the biggest auction since Moscow and Washington vied for influence in various third world countries during the Cold War, Ukraine (pop: 45 million) is attracting some hefty bids. Russian President Vladimir Putin yesterday upped the ante: he plunked down $15 billion to buy potentially worthless Ukrainian government bonds and cut the price of Russian natural gas (by what I figure is one third). At the same time, he said he wasn’t insisting on Ukraine joining his Eurasian customs union. He figures the European Union won’t be willing to match that.
That does not mean “game over,” because the demonstrators are still in Maidan calling for President Yanukovich to sign an association agreement with the EU, one that Catherine Ashton is claiming will not hurt Russia’s interests in Ukraine. It would open Ukrainian markets and force its producers to adjust, which is why Yanukovich is asking for another 20 billion euros (per year!) from Brussels. I suppose he may still get some substantial fraction of that, provided he didn’t make the mistake of promising Putin he would not sign with the EU. The parliamentary opposition is threatening to block the Russian deal, prompting the choicist comment I’ve heard on the situation: Read more
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