Hencredible Casanova said:
Totally agree, Blunt. Putin's move is increasingly looking strange. "Drunk on Sochi" as Khrushchev's granddaughter said in that Nat Geo interview I shared.
His previous gains on the diplomatic front, Snowden, and others had done a lot for Russia's perception on the world stage - and even won many admirers in the West. Those were very intelligent decisions.
But using force to invade Crimea with no internationally justifiable pretext (Crimean lives weren't ever at risk and Crimea does belong to Ukraine regardless of what people there think) is a whole different ballgame.
He's really overplaying his hand at a time when he doesn't even need to (his power and influence was not at risk).
He would have been better off exerting Russian influence behind the scenes - which could have met his goals just as effectively - just as the US had doing for the pro-west Ukrainians.
You have no idea..
Putin has played this like a boss. In the end Obama will look impotent for using his toughest language and being ignored. Russia will get a historical region back, a $20B discount on the construction of South Stream, no need to pay Kiev for leasing and the long-term ability block its steel exports (currently half the country's exports).
The EU doesn't have the money to integrate another large country, and the job will be twice as difficult this time because of the dilapidated state of Ukraine's infrastructure. Much of the country's housing was intended to be temporary and is structurally unsound, therefore has to be rebuilt. Above all that, the EU has no experience or proof of its ability to implement reforms in any of the core former-Soviet states.
From a Ukrainian perspective, the misfits who were in power from 2004 to 2009 are back and making the same mistakes all over again. They desperately need cash and their only option is to comply with the IMF's demands, which means raising utility prices and cutting pensions and subsidies. The clock is also ticking for Ukraine to pay back its gas debts, because in two years South Stream will go live, giving Russia the ability to cut gas delivery for non-payment. If you think they can hold onto power given all of those caveats, then you are delusional. Much of Ukraine's population is living on the poverty line and simply cannot afford any austerity or reform. They blew their chance in 2004-2008 and will now have to wait for the next global bull market for cash to be available.
By the way, gas installations can't simply be switched overnight. For starters, the US is far away and shipping oil adds a lot of cost, making shale oil uncompetitive in Europe. Industry would have to re-tool and all of the residential gas heating and cooking installations would have to be converted to electric. That would take years, and in the meantime Russia has $500 billion in foreign exchange reserves on its books. Compare that with the Eurozone having $750 billion and Russia's position doesn't look that bad.