What was once thought of as nothing more than a bluff to get the European Union (aka US vassal states) to cut Greece some sort of deal that would make the massive debt sustainable, has now turned into a very real possibility…the Greek pivot to Russia, BRICS, Eurasia…aka the future!
Everything Greece needs can be found in the BRICS structure.
Washington must be going ballistic.
Merkel must be shitting in her pants knowing that her US masters will be extremely upset with her job performance. Tsipras and Varoufakis remain exceptionally calm and cool for a country about to default and send the western financial system into complete chaos.
Vladimir Putin… making deals with sovereign nations / nations wishing to become sovereign (aka Greece).
Since then, the situation between Greece and its creditors has deteriorated meaningfully. Athens is now reportedly set to delay a June 30 IMF payment for six months and faces the imposition of capital controls over what could end up being a “Lehman Weekend.” With his back against the wall, and with Syriza party hardliners apparently no closer to backing concessions, Tsipras looks set to once again play the ‘Russian pivot” card because as Kathimerini reports, a “working meeting” between the Greek PM and Russian President Vladimir Putin is now scheduled for Friday in St. Petersburg:
Greek Prime Minister Alexis Tsipras is due to travel to Saint Petersburg on Friday to meet with Russian President Vladimir Putin, the state-run Athens-Macedonian News Agency (AMNA) quoted Kremlin spokesman Dmitry Peskov as saying on Tuesday.
“A working meeting has been scheduled with Alexis Tsipras on Friday, July 19, on the sidelines of the World Economic Forum,” Peskov was quoted as saying.
The Kremlin spokesman did not reveal what the two men would be talking about.
If we had to venture a guess, the two leaders will be talking about options for Russian aid in the event the relationship between Athens and Brussels continues to deteriorate in the coming weeks.
There are a number of possibilities, including a multibillion euro advance on Greece’s Turkish Stream revenue and the arrangement of a loan from the BRICS bank. Note that this is a perfect time for Greece to explore the BRICS option. As we’ve noted on serveral occasions, Russia has invited Greece to join and reports indicate Athens could be eligible for a loan immediately and would be allowed to tender its paid in capital in installments to ease the financial burden of joining. Further, Russia will host this year’s BRICS summit in Ulfa on July 8-9 where the $100 billion bank will officially be launched along with a $100 billion currency reserve, meaning Greece could serve as a kind of pilot project for the new fund.
All of the above serve to underscore Angela Merkel’s insistence on going to extra mile to keep Greece in the euro even in the face of staunch opposition both from lawmakers and from the German finance ministry. In short, the Chancellor fears the geopolitical ramifications of a Grexit could, in the long run, prove more detrimental than the economic consequences, especially considering the situation in Ukraine.