I believe we might see a collapse of Ukrainian economy before Russia goes into Eastern Ukraine. this can start economic contagion in Europe and US
Posted on | April 12, 2014 | No Comments
What we saw, is that Ukraine was reselling Russian gas to Europe and making profit on it. Putin appeared on Russian TV and stated that according to existing contracts with Ukraine, Russia is entitled to get an advance payment for gas from Ukraine and demanded an advance payment. Ukraine stopped payments to Russia and sought help from Europe, from EU.
Well, Europe cannot help, it, itself is dependent on Russian gas. Additionally we see an unrest in Donbas, the most industrialized area of Ukraine, which includes coal mining, coke mills and steel making. We see large crowds, demonstrations, taking over of the police stations, government buildings in Donetsk, Dnepropetrovsk and Lugansk (Luhansk). Without Russian oil and Donbas, with a weak and unstable government, Ukrainian economy might crumble, which will make the population seek help from Russia and referendums similar to Crimean seeking secession from Ukraine and joining Russia. We are seeing other former Soviet republics on the verge of economic collapse. The question is: will it precipitate the global economic contagion? This is a real possibility.
Eastern Ukraine Police Station Seized By Pro-Russia Group
TIME | – 22 minutes ago |
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UKRAINE-RUSSIA-CRISIS-POLITICS-SLAVYANSK Armed pro-Russian activists guard a police station in the eastern Ukrainian city of Slavyansk after it was seized by a few dozen gunmen on April 12, 2014.
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