Wednesday, December 24, 2014

Why Writing Off Russia Would Be Unwise

Putin's jingoism suggests détente is impossible but let's wait a few months for things to cool. Photo: Kremlin Picture Office

Russia’s Crisis Is Also A Huge Opportunity -- Steen Jakobsen, Trading Floor

* Russia's failure to reform made crisis inevitable
* Ukraine détente imperative for Russian revival
* Writing off Russia would be unwise

Russia’s years of neglecting to invest and reform pointed to an inevitable crisis. In 2014, that crisis came on two fronts, first in the confrontation over Ukraine from early this year and the resulting sanctions, and then followed by the incredible collapse in oil prices over the last few months.

Russia and its citizens have been here before and know the drill. Everything looks terrible at the moment, but as the old saying goes, times of crisis are also times of maximum opportunity to chart a new course.

So the positive spin from all of this is that we could see a new start from Russia in 2015. But a vital precondition for that new start is a definitive solution to the Ukraine problem that firmly lays to rest the political and financial standoff with Europe and the US.

Read more ....

My Comment: I could not have said it any better. On a personal note ....I have lived long enough to see how much Russia has changed since the fall of the Soviet Union .... and while it has problems, it is in a far better place today than where it was 25 years ago. This crisis .... like all the other crisis in the past .... will come to an end because it is in everyone's interest that it must be solved. And Steen Jakobsen is right .... if timed right a revived Russia would bring enormous benefits to the world, for themselves, and especially for those who "did not write Russia off".

Hat Tip: Zero Hedge

1 comment:

Buick93 said...

Russia will survive, but will Putin? I think not... the money men who back him will get tired of losing access to their stolen funds, and they will grow tired of Putin's antics, especially if there is some sort of skirmish with NATO.