alexrpt
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of this site. This site does not give financial, investment or medical advice.
UPDATE BELOW via Zerohedge:
Ok, I said it on many occasions like here, and here, but the Ukraine Neo-Nazi government are just a bunch of clowns. I think they have a collective IQ of 60, which is exactly how many days until winter hits Ukraine and this puppet government goes up in smoke.
Which brings me to the latest announcement from bobble head Prime Minister Arseniy Yatsenyuk as reported by RT:
Ukraine ready to impose sanctions against any transit via its territory, including gas supplies to Europe, Prime Minister Arseniy Yatsenyuk said Friday. Kiev is expected to announce sanctions against Moscow today.
Kiev has also prepared a list of 172 Russian citizens to put under sanctions for “sponsoring terrorism, supporting the annexation of Crimea, and violating the territorial integrity of Ukraine,” Yatsenyuk said at a briefing on Friday.
Ukraine wants to “put a stop” to its gas dependence on Russia, its main source for energy to heat homes and buildings, but understands it will not be an “easy” process, Yatsenyuk told reporters.
The Prime Minister estimates Ukraine could stand to lose $7 billion as a result of imposing sectorial sanctions against Russia, its biggest trading partner after the European Union.
On Monday the Ukrainian government said it plans to mirror Western sanctions and target Russia’s financial, energy, and military sectors.
SPEECHLESS. So just to get this straight, Ukraine is going to stop Russian gas from passing its territory on its way to Europe. So Ukraine is cutting off Europe’s gas supply…i.e. Ukraine is considering imposing gas sanctions on the EU. You can’t make this stuff up.
Something tells me that EU officials will be real happy about this announcement. Then again at this point, if the US tells Brussels to swallow this nutty Ukraine initiative they just might agree. EU leadership has absolutely succumb to Washington’s WW3 game plan, even at the expense of their own citizen’s well being.
Yatsenyuk also stated that…
Ukraine has the right to impose 26 types of sanctions against Russia, including a freeze of assets; bans on activities and privatization of state property and the use of licenses as well as partial transit of resources.
Ukraine authorities are ready to revoke licenses from companies with Russian capital and stop their transactions.
Aside from cutting off gas transit via Ukraine, Yatsenyuk is also actively trying to stop trade with Russia, which accounts for roughly 30% of Ukraine’s GDP. Thats another great idea, because its so easy to make up 30% of one’s GDP…oh and also replace like 50% of your gas needs at a well below market price point (which was what they had with Russia).
Make no mistake, Russia will be absolutely fine without Ukraine goods and services…and as far as gas transit, all Putin now needs to do is sit back and see EU leaders squirm their way out of this embarrassing turn of events.
I do hope Yatsenyuk is getting compensated very well by BFF Victoria Nuland for single handedly destroying his country.
And speaking of Nuland, as Ukraine implodes, America can thank Victoria and her neo-con clan for unloading another failed state onto the US taxpayer, because after all, who do you think will have to bail out Ukraine for eternity as it tries to survive with no gas, and no Russian trade…yup you guessed it, AMERICA!
You break it, you bought it.
And we have this explanation of winners and losers via Zerohedge:
So in summary, Ukraine will destroy its economy, incurring $7 billion in costs, just to spite Gazprom and force Europe as leverage and to escalate the conflict, because without Russian gas Europe is powerless.
Who wins here? Clearly not the Ukraine people, who are looking at not only soaring inflation as Kiev will have no choice but to inflate away this $7 billion loss through “printing”, not to mention have a cold winter to look forward to. The answer: Burisma Holdings, where Joe Biden’s son is a director and which will promptly commence shale gas exploration as an “alternative” to Russian gas, over the objections of the local people – after all can’t let a crisis go to waste.
And who funds all of this? Why you dear US taxpayer, via IMF loans, which will be used to pay for young Master Biden’s Christmas bonus!
The only question is whether Europe will merely stand there and wait as 15% of its energy is suddenly cut off (hint: no).
Or Russia for that matter. However, it is here that that other wildcard comes in the play: the South Stream pipeline which bypasses Ukraine entirely, and enters Austria by way of Bulgaria, Serbia and Hungary.
However there is a big unknown: the Bulgarian government, which has been on the fence whether to support Russia, or Europe’s bureaucrats (if not corporations) who want South Stream halted for now as that would mean their entire “investment” in Ukraine has been for nothing. Although should Ukraine truly proceed with cutting off Russian gas transit, Europe will have no choice but to give its blessing to the South Stream. In the process Ukraine will shoot itself in the foot and commit leverage suicide.
Lots of moving pieces in the months ahead, and one can be certain that with John Kerry running the show on behalf of the US, things are about to get far worse than they are right now.
References:
http://rt.com/business/178988-russia-ukraine-gas-transit/
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of this site. This site does not give financial, investment or medical advice.