Fair Observer* on Ukraine's Financial Difficulties

Ukraine on Brink of Financial Collapse

Will Europe allow a bankrupt Ukraine to fall back under Russian domination?

Ukraine is lost either way.  It's become an expendable pawn in the new Cold War.  Sorry.

Ukraine is on the brink of financial collapse. The country is unable to meet interest payments. Its gross domestic product (GDP) fell by 6.8% in 2014 and is expected to fall by an even greater extent this year. Meanwhile, it has to defend itself against a neighbor that guaranteed its borders as recently as 1994.

That sucks.

Instead of stepping forward to help Ukraine financially, the European Union (EU) and the United States are both leaving the job to the International Monetary Fund (IMF).

I'm shocked.

The IMF is offering Ukraine $40 billion, whereas the EU says it can only manage $2 billion.

No !  Not the IMF !  Never !

The European Union has already extended 40 times as much credit to Greece as it has given to Ukraine, whose population is four times that of Greece. If this ratio reflects the EU’s real priority, it is unbalanced. GDP per head in Greece is about three times that of Ukraine.

Did I not mention already that the West doesn't give a shit about the people of Ukraine ?

Like Greece, Ukraine has a lot to do in order to create a functioning and efficient legal and administrative system, stamp out corruption and collect taxes fully and fairly. But Ukraine has to do this while recovering from the effects of a communist system that was imposed on it from outside since 1919, whereas Greece has been the democratic shaper of its own policies for many years.

Fuck you.

Of course, Greece is in the EU and the euro and Ukraine is not, but both countries are in Europe and aspire to a democratic European future.

Aspire away, do...for so long as the Union lasts anyways.

Furthermore Ukraine had it borders guaranteed in the Budapest Declaration of 1994 by EU countries, Russia and the US, in return for giving up nuclear weapons.

Ukraine trusted the West to come through on its promises ?  Bless.

Despite this, Ukraine was invaded and a portion of its territory was annexed in 2014 by Russia, because Kiev wanted to make a modest cooperation agreement with the EU.

That's what happened alright.

Notwithstanding this, the EU is now being stingy in helping Ukraine manage its financial crisis, while instead being fixated on the drama in Athens.

Urm, it was stingy, then.  No, 'stingy' doesn't do it justice.  They were willing to let Ukraine crash and burn rather than work with Yanukovych on any kind of open terms.  They willingly let Putin hold the country's economy hostage.

Ukrainians believe they have a European destiny and are prepared to die for it.

Are they really ?

The Russian leadership, on the other hand, believes that Ukraine, with its Russian-speaking minority, is in their sphere of influence. Moscow sees a link up of Ukraine with the European Union as a form of foreign interference in its own backyard.

Yup.  That's exactly right.  And they made that 100% clear from the beginning.

One would have to respond that this view is not in accordance with Russia’s guarantee to Ukraine in 1994, nor with international law.

Nuclear weapons trump international law every time.  Nations seek them for a reason.  The established powers want to maintain a monopoly on them for a reason.  Oh, and the Russians lied.

The entire post-World War II European security order rests on acceptance of international law. Similarly, any prospect of voluntary nuclear disarmament in the future depends on solemn obligations—like the 1994 Budapest Declaration—being honored.

Clearly, we're fucked.


*  No, I'd never heard of them before either.