In all fairness, America and Europe did break the country with their diabolically stupid “EU or nothing” strategy…so as the saying goes, “you break it, you buy it.”
Unfortunately, the poor people who will be stuck with the tab will not be Victoria Nuland, George Soros or José Manuel Barroso, but rather the citizens of the US and EU, who are simply struggling to get by in life.
The great irony is that all the money to be poured into Ukraine by the EU/IMF, in order to prop up their “frankenstein like” creation, will end up directly in Russia’s Gazprom bank account. The US/EU sanctions really do hurt.
And an even more ironic possibility, and being aware of the absolute corruption of Ukraine’s ruling Oligarchy…don’t be to surprised if the money to be provided to Ukraine goes missing, with no gas payment made. Remember, Ukraine has been given gas money before, and has ‘secretly’ used that money to fund ‘other’ initiatives, like bombing their very own citizens.
Zerohedge sums up the agreement nicely:
Good news for the cold-showering, snow-covered Ukrainians… Russia has reached an interim agreement to supply natural gas to Ukraine through March according to Bloomberg. Of course, this will be paid for by more IMF loans (thank you US Taxpayer), pushing Ukraine further into debt and more dependent upon the West.
*RUSSIA CONFIRMS GAS SUPPLY RESUMPTION TERMS AGREED WITH UKRAINE
*GAZPROM, NAFTOGAZ CEOS SIGN AMENDMENT TO CONTRACT
*RUSSIA, UKRAINE, EU AGREEMENT TO COVER DELIVERY THROUGH MARCH
*OETTINGER: RUSSIA TO CHARGE UKRAINE $385/KCM THROUGH MARCH
*UKRAINE READY TO IMMEDIATELY PAY $1.45B OF GAS DEBT: OETTINGER
*NAFTOGAZ TO PAY $1.6B AS 2ND GAS DEBT INSTALLMENT BY YEAR-END
Paid for by US taxpayers…
*UKRAINE TO USE EU, IMF AID TO PAY FOR RUSSIAN GAS: OETTINGER
And the best news is that this is just the beginning of loans, or grants, that US and EU taxpayers will begin forking over to Ukraines’ Oligarchs and neo-nazi’s.
…on Tuesday, Ukraine’s outgoing finance minister, Alexander Shlapak, admitted that its “unlikely” that Kiev will receive the second tranche of a $17 billion IMF loan this year. It means that Ukraine has received only €760 million from the EU in 2014. This is peanuts. Kiev’s budget deficit is forecast to be around €15 billion.
For context, Britain is currently fighting with the EU about €2.1 billion it owes and threatening to withhold it. London, for the record, hasn’t suggested sending it to Kiev either. With such infighting in the current union, Ukraine is at the back of the queue with its begging bowl. Brussels’ annual budget is €143 billion, meaning that despite all of the nice verbal support for Kiev this year, they’ve given around 0.5% to the embattled nation. If support for Ukraine is measured on Jerry Maguire’s “show me the money” metric, it would be charitable to describe it as “lousy.”
For Kiev to sustain support for its Western journey, it must deliver economic growth and raise living standards. Not in 5 or 10 years’ time, but now. The last time Ukraine had a “revolution” (remember, the Orange one) in 2004, all the same promises were made. Just a few years later, the “losers” of that revolt took power and that eventually led to the Maidan violence and subsequent civil war.
There is no doubt that the pro-Brussels movement is better organized this time (and better funded on the ground) but the hard work has only begun. Revolutions might be won with emotion but they are consolidated by cold, hard graft when everyone has sobered up. Ukraine’s “morning after” is long overdue and the hangover will be humongous.
If Brussels is serious, really serious about bringing Ukraine into its tent, it’s going to require billions of euro. Not in loans, but in grants. Does the EU have the will? Or the money? We will know soon. I wouldn’t be optimistic.
Some conservative estimates have the final tab to simply get Ukraine back to 3rd world country status pegged at way over $100 billion in grants and loans. The Hill’s broke the situation down in a recent post:
The IMF had calculated that Ukraine needed $35 billion in foreign aid in May, but revised that figure to $55 billion in September. As Dennis Lachtman of the American Enterprise Institute noted in a comment for The Hill, “if the repeated upscaling of the financing needs of the IMF-EU Greek bailout program is any precedent, one should not be surprised if the total official bailout cost for Ukraine came closer to $100 billion rather than the $55 billion that the IMF is now estimating.”
If we consider Ukraine to be in far worse condition than Greece was before it started receiving money from the IMF and EU, (eventually landing Greece some $370 billion in debt with a population of roughly 11 million and no civil wars to speak)…then you can see where the EU/CIA Ukraine fiasco, and its 45 million population, is heading towards.
US and EU taxpayers are going to be reaching very deep into their pockets, over many decades, t0 support a country that will never be a full, functioning member of the EU…And most certainly has no strategic or economic significance for a single American citizen, except maybe Hunter Biden.
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of The Duran.