The Ukraine: Why the turmoil?
I have been puzzled by all the turmoil in the Ukraine. Here is an article that explains the German point of view on it.
Seems the Ukrainian president chose to join a Russian-sponsored trade group rather than the EU. Both Russia and the EU tried to woo Ukraine into joining their trade group. Teaming up with Russia sounds crazy to me, but here is Der Spiegel's explanation:
The official reason for the agreement's failure is Yulia Tymoshenko, the opposition politician who has been in prison for the last two years. The EU had made her release a condition of the agreement. Yanukovych was unwilling to release his former rival, and last week the parliament in Kiev failed to approve a bill that would have secured her release.
But then there are the financial incentives. In the end, the Russian president seems to have promised his Ukrainian counterpart several billion euros in the form of subsidies, debt forgiveness and duty-free imports. The EU, for its part, had offered Ukraine loans worth €610 million ($827 million), which it had increased at the last moment, along with the vague prospect of a €1 billion loan from the International Monetary Fund (IMF). Yanukovych chose Putin's billions instead.
. . . .
In the case of Ukraine, it initially seemed as if the Europeans' rational arguments would prevail over Russia's threatening gestures. According to an internal EU analysis, joining the "Eurasian Union" -- a Russia-backed proposed political and economic union including Russia, Tajikistan, Kazahkstan, Belarus and others -- would severely limit Ukraine's sovereignty. Once such a union had been formed, Kiev would no longer be able to enter into any other free trade agreements without Moscow's approval. An alliance with Moscow would thus have the exclusive nature of a marriage. The EU's eastern partnership, in contrast, would still allow Ukraine to enter into other alliances.
. . . . (Lots more)
http://www.spiegel.de/international/europe/how-the-eu-lost-to-russia-in-negotiations-over-ukraine-trade-deal-a-935476-2.html
