The one undeniable fact is that the Ukraine is broke. They needed to borrow money and had two offers, one from the EU and one from Russia. The EU offer was vague and came with a myriad of strings attached, including big reductions in what was paid to pensioners. The Russian offer was 15 billion, as long as they supported Russia. The president went with the Russian offer and received 3 billion immediately.

As soon as the Ukraine went with Russia instead of the EU there were protests in Kiev. It was also reported that literally bus loads of protest supporters came from EU countries to support these protestors. At that point the protests took on a violent turn.

You could say the EU took a cloaked action to get its way and the Russians took an overt way to get its way. Unfortunately the only real losers in this are the Ukrainian people.

In April the Ukrainian contract with Russia's petroleum companies ends and expect a large increase in costs to EU energy costs. It's not just heating energy but most of EU industry depends on relatively cheap energy costs now. The price is likely to double.

Much of the Ukraine industry is located in the East and in the Crimea. With the loss of this income the West is going to have an even bigger bill to support the Ukraine and there is a good chance that draconian cuts in benefits will be imposed on the Ukrainians.

It should also be pointed out that much of the London, German banking system has depended on a regular influx of Russian petro dollars to shore up their banking system and at this point Russian petro dollars may find their way East into the Asian banking system instead.

Overall this is chest beating match between the EU and Russia. Neither side is blameless but the US involvement should be minimal unless it just wants to join in the chest thumping. The EU pulled off a coup just like they did in Libya except they didn't think that Russia would react so overtly. Like Libya they are doing their best to draw the US into their folly.

edit: I just read this AM that one of the EU restrictions is reducing pensions by 50%.

Last edited by Sue Rarick; 03/07/14 03:25 PM.