Wednesday, March 5, 2014

The Ukraine.It's All About The Money

As the dust settles over the situation in Ukraine it is clear that the money comes into play in so many ways.Russia has had a free hand in selling its oil to western countries for years and has had pipelines through the Ukraine. Some countries in the European common market are very quiet. Germany for instance receives 40% of its oil from Russia. Other European countries buy Russian gas and oil in a stable market. They are not about to lose their supply just yet.

Russia has been transporting it's oil through the Ukraine for years and has had it's warm water fleet of warships in the Ukraine for years as well. It is not about to lose these bases. The Black sea has huge reserves of oil and natural gas which is basically untouched so far.The Ukraine is a relatively young free nation having been under the domination of Russia forever.They have not tapped these oil reserves up until this time.

It would appear that the revolt in the Ukraine was successful in ridding itself of a powerful leader with ties to Russia. With him gone and safely tucked away in Russia and the country now moving to the European Block fear is struck in the minds of Russian leadership.Had the new government leaders had more time to work out some agreements with Russia regarding its interests in the Ukraine all this posturing and military threats could have been avoided.

Time was not on the Ukraine's side and the Crimean area was left unprotected and now is in the hands of the Russian military and they are not going away anytime soon. Diplomacy and pressure on the economy of Russia will have an effect but idle threats will not move Moscow. Putin is a hard nosed player and we need leadership to solve this difficult and dangerous situation.

Russia will demand concessions and will probably get them to solve this matter and because the west has drawn a line in the sand there seems like no turning back. We showed our hand too soon and it leaves little to discuss. I believe we will back down on some issues and it will make us look weak. Morally there is no question as to who is right but this is not just a moral issue.

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