Wednesday, March 5, 2014

Sorry, Ukraine

Russia's recent occupation of the Crimea (in southern Ukraine) is all over the news right now.  Vladimir Putin has sent Russian troops to blockade and occupy every corner of the Crimea, ostensibly because the new regime in Kiev cannot yet be recognized as the legitimate government of the Ukraine.

Russia has broken treaties by invading in this way.  It obviously wants the natural resources of the Crimea.  Many Crimeans are Russian speakers.  Russia has significant interests in the Crimea and in eastern Ukraine.  Putin is smelling unchallenged victory.

American politicians are hand-wringing.  The last time this happened (in Georgia and Ossetia), Putin permanently annexed two provinces.  The world's leaders are not excited about imposing sanctions on Russia, and a military response is unthinkable.

Obama's impotence is legendary, and traditional U.S. allies like Germany seem to have no desire to participate in any measures aimed at punishing Putin.  Why?

Well, over the last decade, Russia has built dozens of natural gas pipelines between its vast reserves in Russia and eager customers in Germany, Belgium and other European nations, supplying up to 50% of the fuel used by several countries.  You have to believe that German politicians received bribes to not impede the construction of these pipelines, so . . . . .

Sorry, Ukraine, your European neighbors won't be making any efforts any time soon to protect your national sovereignty.

The U.S. State Department is threatening sanctions and restrictions on Russia, so Putin is threatening to impose sanctions on U.S. interests in retaliation.  Putin even said Russia might stop using the dollar as its reserve currency in international trade.  Look out !!!  Money talks louder than bullets.  Sorry, Ukraine.

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