Friday, December 20, 2013

Russia trumps US in Ukraine poker game

Moscow decided it is vital to Russia’s interests that Ukraine remains a fraternal country at any cost
By M K Bhadrakumar
Russia may have made its most significant foreign-policy gain in the entire post-cold war era when the Kremlin decisively moved in on Tuesday to offer a rescue package for the beleagured Ukrainian economy and may have taken a leap forward in leading that country into the Eurasian Union, which Moscow is planning as the umbrella organization bringing together the former Soviet republics. 
This is undoubtedly one of President Vladimir Putin’s finest hours in the Kremlin. The point is, if Ukraine moves into the Western orbit, Russia falls back on its back foot in strategic terms; without Ukraine Eurasian Union remains grossly inadequate; with Ukraine the Eurasian Union all but restores the Soviet Union in politico-economic terms. 
Unsurprisingly, the West is aghast, and the mood of the cold warriors can’t be uglier than this. Russia is beating the West at its own game of cheque book diplomacy. No need for Russian tanks to roll into the streets of Kiev as in 1956 in Budapest. 
The European Union foreign ministers have unceremoniously come down from the high pedestal from where they preached to Ukraine on the virtues of human rights record and western liberal democracy and pleaded it is prepared to sign an Association at a special summit this very week if only President Yanukovich is willing. But it seems a case of too little too late. 
Washington too is left mumbling for words, not knowing what to say. All that the West is left with now are the protestors from western regions of Ukraine on the Kiev city square. Can the CIA push a color revolution through? This remains the only ray of hope. 
The poignancy lies in this that neither the US nor the EU has any money (or the political will to find the money) to help ease Ukraine’s staggering debt burden. Whereas, Russia is offering financial support of $15 billion and the slashing of the price of natural gas sold to Ukraine by one-third and adjusting the outstanding debt of $2 billion that Kiev owes to Gazprom for past transactions. 
Besides, trade agreements have been signed whereby Moscow has given duty concessions to Ukrainian exports to the Russian market. A summit of the Eurasian Union Council is due to be held later this month in Russia and it is worth watching how yesterday’s developments morph into the integration processes of the post-Soviet space under Moscow’s leadership. 
Equally, there is a ‘China angle’ to all this. Yanukovich paid a 4-day visit to Beijing and there is every sign that China has also offered to help Ukraine.  The Chinese report on Yanukovich’s meeting with President Xi Jinping brought out the flavor of a strategic relationship in the making, which would have major consequences for Eurasian politics. Interestingly, on his return journey from Beijing, Yanukovich had met Putin briefly in Sochi, presumably to fill him in on his talks with Xi and to make it clear he keeps Moscow on board.  
It is too early to say whether the pattern of Russia-China coordination that is evident over Middle Eastern issues could repeat elsewhere. Certainly, Russia’s developing ties with Vietnam helps China indirectly by keeping the Americans at bay and, on the other hand, China’s ties with Ukraine would help create space for the latter from having to depend excessively on the West, which is something that suits Moscow as well.

Read more at:
http://blogs.rediff.com/mkbhadrakumar/2013/12/18/russia-trumps-us-in-ukraine-poker-game/

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