Saturday, August 02, 2014

Has Merkle Found A Way Out?

Latest: There are reports that Russia is massing amour and troops just the other side of the Ukrainian border. It is already obvious that Russian military personnel are in Ukraine aiding Ukrainian separatists. There is even speculation that the Buk mobile SAM unit which brought down MH17 was crewed by Russians. However, the official line of invasion has not been crossed yet. The head of Russian airborne units has previously stated operations will expand outside of the Russian Federation.  One website claims to show conclusively Russian Grad rockets fired from Russia (near Gukovo) into Ukraine [video].  The Pentagon is asking Congress for $19 million to train Ukraine national guard units.  Equipment valued at $7 million was sent to Ukraine in April and another $8 million including armored vehicles is being rushed to the civl war.  The Pentagon's senator, Carl Levin (D-MI), demanded the Current Occupant approve the request. He said the materiel request was "not provocative".

credit: Getty
31.07.14 With the standoff over Ukraine becoming increasingly acrimonious and the US resorting to blunt instruments of economic sanction to correct Russia's "uncivilized" behavior, German Prime Minister Merkle and President Putin are reported to be negotiating a secret deal to trade strategic Crimea, which Russia annexed and wants to keep, for energy security and financial aid to Ukraine. The deal may not be particularly palatable to hard-liners in the US, but it would end a repeat of the Cold War and the threat of nuclear confrontation between East and West. Only grandiose imperialists want that.  The UK's Independent reports from sources close to the negotiations that in return for withdrawal of Russian support for separatists, disputed eastern provinces would be allowed more devolved powers and Ukraine would have to agree not to join the western military alliance, NATO. Ukraine would get a long-term gas agreement with Russia's Gazprom just in time to avoid a deep freeze of its economy this winter. Russia would also grant an aid package to Ukraine in consideration of lost rents paid by Russia for its naval base at Sevastopol, and agree not to interfere in Kiev's desire to have closer trade ties to the EU. A deal with the Russians would be in the interest of the EU since Russia is its third largest trading partner. Sector sanctions insisted upon by the relatively insulated United States will hurt Germany and the City of London the most.

The Malaysian Airlines Flight 17 disaster interrupted negotiations, but Merkle's plan is still on the table and it is the only one in play according to insiders. If an acceptable conclusion to investigation of the crash can be achieved, negotiations could be resumed. At issue there is the identity of the forces which shot down the airliner, presumably by mistake. Central to the success of the negotiations is one of Ukraine's wealthiest businessmen, gas broker Dmitry Firtash. Firtash negotiated the first major gas deal between Russia and Ukraine, and he supported current Ukraine President Poroschenko in the recent election. Currently he is living in Vienna fighting extradition charges from the US. Firtash is acting as a confidential, high-level middleman in the discussions.