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Threats don’t sway Putin, now U.S. tries pain

EU trade, energy relationships may hold key to sanctions' bite

AFP-JIJI

U.S. President Barack Obama’s threats of “costs” did not sway Vladimir Putin’s calculations on Crimea. Now he must see if the pain he plans to apply to Russia will be sufficiently acute to do any better.

The White House’s initial strategy of seeking to defuse the crisis, offering Russia an “offramp” and warning of consequences has run its unsuccessful course.

Putin’s swift absorption of Crimea and his fiery speech Tuesday, which seemed to put a full stop on the post-Cold War era, forced the Obama administration into a new phase.

The plan now is to hike up the economic cost to Moscow and punish its move into the Ukrainian region by deepening its isolation.

As Washington persists in dealing out punishment, it must try to keep the crisis from careening dangerously out of control — all while bolstering new allies in post-Soviet Europe and firming the West’s resolve.

In the longer term, the White House faces an uncomfortable self-examination to establish how it got here. Yet another U.S. look at how to handle President Putin is in order.

Meanwhile, the strategic implications of the worst East-West crisis since the Cold War threaten to consume much of the political bandwidth of Obama’s remaining second term.

Obama will head to Europe next week on a trip that is suddenly the most important by a U.S. president in many years.

He called Group of Seven leaders to meet him in The Hague and will try to lock in Russia’s isolation by convincing European states to build a sanctions regime with teeth.

“We can calibrate our response based on whether Russia chooses to escalate or to de-escalate the situation,” Obama said Monday.

Washington sanctioned 11 officials, including members of Putin’s inner circle, on Monday, drawing only sneers from Moscow.

But the White House promises more to come.

Its economic leverage over Moscow, however, is finite, despite a widening trade relationship that has seen U.S. firms such as Boeing and Exxon Mobil become players in the Russian market.

Europe, with its huge trade and energy relationships with Moscow, holds the key.

“The Europeans are in a better position to do damage to the Russian economy,” said Anton Fedyashin, a Russia expert at American University.

But will European leaders, for all their tough talk, follow through with measures that will also inflict a cost on their own fragile economies?

“I seriously doubt that most European countries are going to say, ‘Yes, we are ready to support that plan,’ ” Fedyashin said.

So far, Washington has targeted individuals and not the wider Russian economy. But it has hinted that politically powerful tycoons should beware.

Longer term, it must decide whether to attempt the kind of banking sanctions that humbled Iran’s economy.

Even if it does not, U.S. officials hope that keeping such a threat on the table could dampen Russian economic confidence and force Putin’s hand.

“I wouldn’t, if I were you, invest in Russian equities right now — unless you are going short,” said White House spokesman Jay Carney.

Russia’s incursion into Crimea and the fear of a move further into eastern Ukraine sent a Cold War chill through Europe.

It prompted U.S. Vice President Joe Biden to slip behind the old Iron Curtain with an unequivocal strategic message. “I want to make it unmistakingly clear to you and to all our allies in the region that our commitment to mutual self-defense under Article 5 of NATO remains ironclad,” Biden told Polish President Bronislaw Komorowski on Tuesday.

Obama will pick up the banner next week and Washington has already sent six extra F-15 fighters to step up NATO air patrols over the Baltic.

The Crimea crisis may also bring NATO, which has struggled to define a post-Cold War role, back to its geostrategic roots. Tough questions are pending about sinking European defense budgets and Obama’s own plans to trim Pentagon accounts.

The president’s political foes are calling on him to revive plans to station U.S. missile defense interceptors in Poland and the Czech Republic.

But a senior U.S. official effectively scotched the idea, saying missile defense “has never been about Russia.”

Obama has repeatedly asked Congress to pass $1 billion in loan guarantees for Ukraine.

But officials have been coy about reported Ukrainian requests for military aid to avoid provoking the Kremlin.

Obama will also urge allies next week to do more to help Ukraine navigate an economic crisis exacerbated by the loss of a huge loan from Russia.

The International Monetary Fund and the World Bank will be at the forefront — but the bill is not cheap: Ukraine needs €25 billion ($35 billion) over two years.

Even as he cranks up the heat on Putin, Obama will seek to cool military tensions between two powers that control 90 percent of the world’s nuclear arms.

A move into eastern Ukraine “would be as egregious as any step that I can think of,” Secretary of State John Kerry said in a clear warning to Moscow. Such a scenario would “require a response that is commensurate with the level of that challenge.”

But can anyone really know how seriously Putin now takes American threats?

  • KaiHarate

    Putin is putting back the old Soviet Union. His grandfather was a cook for Stalin/Lenin and he is old school Soviet Russian. He sees all those territories (including Ukraine) as part of Russia. He invade Georgia to make sure another break away region went with Russia just as he’s doing now. And you can expect him to advance into Ukraine a bit to create larger border region within Crimea to build a bridge to mainland Russia. Look for him to do this with other regions that border Russia. He wants to put back as much as the old Soviet Union as he can.