Russia is on the offensive. With lightning speed it signed the agreement while
demonstrations protesting the deal were at their height. The deal is most unattractive for Ukraine but Western democracies need to see it
is a threat to them too. It is
particularly significant for Canada with its undefended Arctic, and other
countries with access to northern waters.
The loan is a trojan horse.
The $15 billion “promised”
in the name of “brotherly love” are, in fact, catastrophic to Ukraine’s economy
To begin, it throws money at problems without addressing
structural faults—corruption, taxation, ineffective laws—as the EU association agreement means to do.
The billions are designed to prop up the political standing of Yanukovych by tempering the EuroMaidan’s rage against both his and
Russia’s regime. Lower energy costs and
some pension increases are bait.
Most of the loan, however, goes to pay off the existing energy debt to
Russia. The new loan interest will increase its overall debt to Russia even
more. Equally bad, the negotiated lower
energy price can be changed every three months.