Merkel to Ukraine: Here’s Your Hat. What’s Your Hurry?

To compound Merkel’s obsequiousness to Putin, and her pushing Ukraine into his embrace, she broadly hinted that Ukraine should join Putin’s pet project, The Eurasian Union. Since Putin has made it clear that membership in the Eurasian Union and the Real EU are mutually exclusive, this is tantamount to turning Europe’s back on Ukraine and leaving it to Putin’s tender mercies.

Merkel’s remarks make it clear that her primary motive for abandoning Ukraine to Putin is to keep good relations with Russia, and to avoid riling Vlad:

“And if Ukraine says we are going to the Eurasian Union now, the European Union would never make a big conflict out of it, but would insist on a voluntary decision,” Merkel added.

“I want to find a way, as many others do, which does not damage Russia. We [Germany] want to have good trade relations with Russia as well. We want reasonable relations with Russia. We are depending on one another and there are so many other conflicts in the world where we should work together, so I hope we can make progress”

Nauseating. Like my grandfather said about a hostess trying to hint to  a guest who had overstayed his welcome that he leave: “Here’s your hat, Bob. Why are you in such a hurry to leave?”

For his part, during the Eurasian Union summit in Minsk, Putin made it clear that Ukraine had to choose between one EU or the other, and if it chose wrong, Russia would punish it. This is the fate that Merkel is willing to consign Ukraine to, so that Siemens can continue to sell to Russia, and Adidas can provide all the track suits that the gopniks desire:

In his public comments, Mr. Putin highlighted the dangers he said Russia faces if Ukraine pursues closer ties to the West. Since the onset of the crisis, Mr. Putin has accused the West of meddling in Ukraine’s internal affairs and trying to spoil its relations with Moscow.

Mr. Putin said that a trade agreement between Kiev and Europe will flood the Ukrainian market with European goods, which may then find their way into Russia. “In this situation Russia cannot stand idle. And we will be prompted…to take retaliatory measures, to protect our market,” Mr. Putin said.

The interesting thing about this is just what it betrays about what Putin thinks about Russian competitiveness. Yes, Russia is so great. Russia is so strong. Russia is a beacon to the world. But it can’t produce things its own people and businesses want.

Note the phrase: “take retaliatory measures, to protect our market.” Remind me again: didn’t Russia join the WTO? Apparently Putin is unclear on the concept.

Further note whom Putin is protecting Russian markets against: Europe. Apparently Angela is unclear on some concepts too.

Putin and many (most?) other Russians inveigh about Russophobia. When he says things like that, it’s hard to think of a bigger Russophobe than Putin. He evidently does believe that Russians are inferior, and in need of protection.

About Craig Pirrong 228 Articles

Affiliation: University of Houston

Dr Pirrong is Professor of Finance, and Energy Markets Director for the Global Energy Management Institute at the Bauer College of Business of the University of Houston. He was previously Watson Family Professor of Commodity and Financial Risk Management at Oklahoma State University, and a faculty member at the University of Michigan, the University of Chicago, and Washington University.

Professor Pirrong's research focuses on the organization of financial exchanges, derivatives clearing, competition between exchanges, commodity markets, derivatives market manipulation, the relation between market fundamentals and commodity price dynamics, and the implications of this relation for the pricing of commodity derivatives. He has published 30 articles in professional publications, is the author of three books, and has consulted widely, primarily on commodity and market manipulation-related issues.

He holds a Ph.D. in business economics from the University of Chicago.

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