Friday, March 14, 2014

Ukraine: The Referendum Cometh

There have been a number of developments.

The first is last minute talks between the West and Russia have failed. Russia is calling the West's bluff. Or what they think is a bluff at least.

In reply the West has stated they will respond more than negatively to the referendum or annexation. The next level of sanctions will cut in on Monday: including, supposedly, those against GAZPROM and ROSNEFT.

The US was asked for a lot of military aid. This has been turned down. For now. With the exception of food for the troops. This is being sent immediately. They'll get to suffer through American MREs.

One of the reasons why is the Ukrainian army is in a shambles. They don't even have money for fuel. One of the oligarchs is stepping up to provide that in Eastern Ukraine.

The US may not be exactly passive though. There are reports a Reaper drone - an armed unmanned aircraft - crashed or was spoofed in Crimea. *IF* a Reaper is there, you can bet there are other, more advanced drones running around.

Crimea had a pro Ukraine rally today in Simferopol. It was modest in size.

The big news outside of Crimea has been the clashes in Donetsk. Reports are of differing numbers of those who were killed. Some say as high as four. Others only one. The other interesting bit from it was that photographs of some of the Pro Russian protestors are cropping up and they were in Riga in 2009. This is similar to the Lugansk Flag pole guy (hint: he lives in Moscow).

The last news is Russia is massing troops on the east and northeast of Ukraine. We knew that already. The russians keep exercising them. The mailed fist is quite obvious.

On the positive side, the Canadians have offered $200 million (+/-) and the IMF has snapped into negotiating with Kiev to get a loan in place by March 21st.   The US has also now added an additional $600 million to the total.  This means brings the American total to $1.6 billion.  Between the US, Canadians, World Bank and Europeans we are now almost up to $21 billion.  Toss in whatever the IMF is going to do...and Ukraine seems to be on the path for the $30+ billion they say they need.

On the ineffective side, a draft UN resolution which is squarely on Ukraine's side and even goes as far as to call the referendum illegal is going to be rejected/vetoed by Russia.

The referendum cometh.  It will arrive soon and then all hell may break loose with the all but guaranteed outcome.

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