Ukraine makes a big mistake by letting the EU define the sanctions. Instead, Ukraine should take the initiative and clearly voice what sanctions they expect from the EU, so that the international community can judge if the EU delivered or not. Ukraine needs a Crimean Occupation Tax (COT) on all Russian energy imported into the EU (and all other countries willing to participate). The essence on the Crimean Occupation Tax is this: The EU needs to reduce their dependency on Russian energy; A tax does it for smoking. It will do it for Russian energy; Ukraine needs to be funded as long as it is destabilized by Russia; A tax on Russian energy imports will do this; Because the EUs has a large size as a customer, it is very difficult for Russia to sell gas somewhere else; It will force them to lower their price to be competitive with suppliers that don’t suffer from this occupation tax. They cannot afford to lose the EU totally due to a lack of other available reliable customers; The price of Gazprom will become Gazprom price + Crimean occupation Tax = market price; Then Russia funds Ukraine instead of the EU; Checkmate
Posted on: Wed, 16 Jul 2014 12:05:07 +0000
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