Friday, April 11, 2014

Ukraine: The Grind Forward

It seems whatever the hopes the pro Russian groups had in the east, they have been almost completely confined.  The People's Republic of Donetsk seems to be confined to a single building which is steadily fortifying and the locals are mostly steering clear.

Yatsenyuk has offered to devolve some powers from Kiev to the regions.  Its not full federalism, but partial.

Poroshenko seems to be the front runner for the Ukrainian Presidential election in may.  Next is Timoshenko.  My biggest concern about the Chocolate King is he is another oligarch and was endorsed by...Firtash.  oy.  This could be more of the same corruption.

There was another fist fight this week in the Rada.  oy.

NATO has released a series of images of the Russian units massed on the borders.  They are apparently done exercising - if they ever were - and ready for use.  The draftees, who are normally headed home this time of year, are not.  This is enormously worrying.  Not only are the current draftees staying, but knew ones are swelling the ranks.

The Russians offered financial aid to Ukraine in exchange for acknowledging Crimea as Russian.  If they take this, it out to be a purchase and a huge $ value.  Like say all of the back cost of Ukraine's gas bills and the same for the next ten years. Plus adding Kaliningrad Oblast to Ukraine in exchange.  ;)

The Russians warned Europe they might cut off gas to Ukraine because of the back bills and that would effect flows to Europe.  Europe in response offered Ukraine gas and the EU guarantees Ukraine's payments to its member states.

There are accusations of Russia keeping the newer jets and other military equipment Ukraine had in Crimea.  I have to admit I am surprised the Ukrainians are getting anything back. 

The US has increased the # of folks on the sanctions list.  These are both Russians and some Ukrainians and some Russian businesses.

There has been talk of supporting the hryvnia  by the US and other countries, so Ukraine has a chance to avoid some of the economic disasters associated with a rollercoasting currency.

The IMF has stated Ukraine's debt is sustainable.  A nontrivial concession by them.



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