Guest post: EU bail out Ukraine? If only it were that simple… | beyondbrics

Guest post: EU bail out Ukraine? If only it were that simple… | beyondbrics:

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By Timothy Ash of Standard Bank

For the casual/neutral observer of Ukraine, perhaps based in the EU, the story perhaps looks quite straightforward: the EU/IMF/west needs to pull its finger out and provide enough financing for Ukraine to offset the impact of potential economic sanctions from Russia.

Opinion polls show that a great majority of the Ukrainian people now favour EU integration – 57:14, according to one recent poll – as opposed to hooking back up with Russia in the CIS Customs/Eurasian Union. Ukrainians are braving the elements in street demonstrations in favour of signing with the EU. Surely this should be supported? After all, the sums needed by Ukraine ($15bn-$20bn), appear small change relative to the size and strategic energy importance of Ukraine, compared to the huge size of Euro-periphery bail-outs.

If only things were that simple."

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