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Thursday, December 5, 2013

Putin Battles Europe for Ex-Soviet States




Vladimir Putin’s dream of recreating the Soviet empire is being tested on the streets of Kiev. Hundreds of thousands of demonstrators facing off against riot police in the Ukrainian capital are protesting civil rights infringements and a government decision to back off signing free-trade accord with the European Union. The battle is really about whether Russian President Putin can extend his economic influence over its ex-Soviet neighbor, said Tim Ash, chief economist for emerging markets at Standard Bank (SBK) Group.


“For Putin, Ukraine is the Great Game with the EU -- and the big prize,” Ash said in a telephone interview. “Bringing it into the fold would recreate a big part of the Soviet Union inside his trade zone.” Putin, who described the 1991 collapse of the Soviet Union as the “greatest geopolitical catastrophe” of the 20th century, is using his country’s energy wealth to anchor Ukraine, Armenia, Kazakhstan and Belarus in a Russian-led bloc after two decades of advances by the West. Ukraine, the route for half of OAO Gazprom (GAZP)’s gas shipments to Europe, faces a choice: cheaper gas and continued access to its traditional customers, or stronger ties with the EU’s $18 trillion market.
http://www.bloomberg.com/news/2013-12-04/putin-battles-europe-for-former-soviet-states-amid-kiev-protests.html

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