Ambassador Bhadrakumar on US support for the Kiev regime:
Time is right for US to help Ukraine
There is delightful irony that the US state department has advised the Indian leadership of Prime Minister Narendra Modi that it is not the right time for “business as usual” with Russia.
The US spokesperson Marie Harf reportedly said at a briefing in Washington on Friday, “We’ve seen press reporting on India concluding business, nuclear and defence deals with Russia, but not confirmation of those agreements or specifics of what those agreements would entail. Our view remains that it’s not time for business as usual with Russia.”
Ironically, even as Harf spoke, reports appeared that Ukraine’s economy is nearing bankruptcy and an urgent need may arise for Kiev to begin negotiations to restructure its debts.
The irony is that it is Russia among the donor countries that has by far lent most money to salvage the Ukrainian economy in the last couple of years. The total Russian commitment of funds to Ukraine comes to around $32 billion.
Such is the crisis facing the US-backed Ukrainian government that European Union ministers are considering petitioning Russia to roll over its $3 billion loan to Ukraine last year, despite EU (and US) sanctions against Moscow.
Ukraine’s reserves have fallen below $10 billion, its lowest point in a decade according to the Wall Street Journal. Ukraine immediately needs an urgent bailout of $15 billion from international donors. The shortfall comes after the GDP contracted by close to 10 percent. The country is in deep trouble.
Where does Russia come in? At the end of last year, Russia bought $3 billion worth Ukrainian Treasury bonds with the proviso that the total volume of that country’s state-guaranteed debt should not exceed 60 percent of its annual GDP. If that ceiling is breached, Moscow can legally demand urgent repayments. Well, according to a debt sustainability analysis by the Bank of America Merrill Lynch, Ukraine’s baseline debt-to-GDP ratio is creeping toward 90 percent of the GDP.
Suffice it to say, it has to be “business as usual” for Europe with Russia. And the Obama administration, which is gratuitously advising the Modi government over India’s relations with Russia, will simply look away.
The alternative for Obama is to help Ukraine pay off its debts to Russia. Will he do that? No way. When it comes to money, Washington is very stingy. President Barack Obama has been extremely miserly in helping the Ukrainian regime that took over following the US-sponsored coup last February.
When the Ukraine president Petro Poroshenko went on a state visit to Washington in September, Obama spread the red carpet and the visitor even addressed a joint session of the US Congress. But at the end of the day, Poroshenko returned home with the pocket money of $53 million that Obama gave.
Actually, the US’ “support” for Ukraine is laughable and it speaks volumes about Obama’s style of diplomacy — lavish in stirring rhetoric. The actual help given by the Obama administration to Ukraine in money comes to $291 million. Yes, $291 million during the whole of this year since the ‘regime change’ in Ukraine in February following the US-sponsored overthrow of Viktor Yanukovich. Cheapskates?
Posted in Diplomacy.
Tagged with Narendra Modi, New Cold War, Ukraine's color revolution.
By M K Bhadrakumar – December 12, 2014