Ukraine's Poroshenko "Optimistic" Over EU Deal, Putin Warns Of Consequences

Tyler Durden's picture

When two of the richest presidents in the world currently met this morning in Minsk, the tensions was palpable. As Poroshenko (net worth ~$1.3 bn) and Putin (~$440bn) prepared for talks, the threats, promises, and hopes were everywhere...


But Vladimir Putin - having reminded everyone that Russian capital represents 32% of the Ukraine banking system (threat or statement?) warned any EU association pact may force Russia to scrap trade preferences.


The handshake...


As AP reports,

The presidents of Russia and Ukraine sat down for talks Tuesday, meeting face-to-face for the first time since June on the fighting that has engulfed Ukraine's separatist east.


Russia's Vladimir Putin and Ukraine's Petro Poroshenko were joined by the presidents of Belarus and Kazakhstan and three senior officials from the European Union in the Belarusian capital of Minsk.


"The fate of my country and Europe is being decided here in Minsk today. The interests of Donbass (eastern Ukraine) have been and will be taken into account," Poroshenko said Tuesday as the talks began.

The hope...


As ITAR-TASS reports,

The Ukrainian economy’s transition to EU standards will cost it €165 billion over ten years while Russia may lose up to €100 billion ($2.7 billion) from its economy’s forced readjustment, President Vladimir Putin said on Tuesday.


“The refusal to use technical norms common in the CIS countries and adaptation to EU standards will cost Ukraine €165 billion within 10 years,” Putin said at a meeting of the leaders of the Customs Union member states and the Ukrainian president.


The economies of Russia, Belarus and Kazakhstan that form the Customs Union will also be affected, Putin said.


“In the most modest estimates, damage to the Russian economy alone may total 100 billion rubles. Entire sectors of our industry and agribusiness will be affected with all ensuing consequences for economic growth rates and employment,” Putin said.


“Losses will also be sustained by Belarus and Kazakhstan,” Putin said.


Russia will have to cancel preferences for Ukrainian imports as a measure to protect its market and introduce the standard trade regime in the conditions of Ukraine’s agreement on association with the EU, President Vladimir Putin said on Tuesday.


“In full compliance with the provisions of the CIS Free Trade Agreement and WTO norms we will have to cancel preferences for imports from Ukraine,” Putin said.


“I’d like to say that we are not going to discriminate against anybody, we won’t do this,” the Russian president said.


“We will just have to introduce the standard trade regime for Ukraine; the same that is applied also between Russia and the EU,” he added.

The threats...


*  *  *

Doesn't exactly sound de-escalation-y to us?

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
NoDebt's picture

"As Poroshenko (net worth ~$1.3 bn) and Putin (~$440bn)"

Putin is worth $440 billion dollars?  I assume that includes the net present value of all of Russia?

Vampyroteuthis infernalis's picture

Let's see if the Ukraine goes with the EU, Putin will pull the plug on his trade. If the Ukraine goes with Russia, the EU will do the same on its side. Ukraine is screwed.

kowalli's picture

Eu can't supply Ukraine with oil, gas or uranium for nucliar plants... Choice is very hard...

VATICANT's picture

If Putin's worth 440B then the Rothschilds must be in the high trillions

BorisTheBlade's picture

Gazilions including notional amount of all derivatives created.

vyeung's picture

Rothschild's are THE daddy in terms of rich of the rich! They are the La Ferrari and scumbags holding all the chips.

Chupacabra-322's picture

It's going to be dam cod in the Ukraine & EU this winter.

Chupacabra-322's picture

"If Putin's worth 440B then the Rothschilds must be in the high trillions."

$700 Trillion last time I checked. All of it Criminally stolen.

Ratscam's picture

What about the Vatican Inc ?

IronForge's picture

They're on borrowed time.

Againstthelie's picture

Have you ever seen even the slightest evidence of these claims - or even that Putin is enriching himself?

If USrael and it's NSA would have any evidences for it, you can bet that this would be spread 24/7!

It's a shame that ZH repeats this unfounded claims.

Anyway Putin has more than any money can buy: the respect and love of his nation and the world - who has respect for the Obamas, Clintons, Bushes and all the other Ziomuppets? The most corrupt criminals and their presstitutes are smearing the world's best political leader of our time.

Hannibal Barca's picture

Heah but Europe has the better brothels, got it?

MS7's picture

The choice would be easy if the Ukrainian leaders cared about Ukraine. But I assume that, like the EU leaders, they can be bribed or blackmailed into selling their country's sovereignty.

agent default's picture

No, the EU is screwed either way.  Nobody gives two fucks about the Ukes either way. Never did.

JohninMK's picture

Kiev seems to be doing a wonderful job of destroying its export business with Russia outside this possible agreement. Shelling is not a good way to update factories and optimise infrastructue.

Russia is already quietly pulling the plug on future trade by taking its manufacturing supply lines out of Ukraine.

Especially in their defence business sector. By the end of 2015, instead of 100% of helicopter engines made in Ukraine it will be as close to 0% as they can get it. Anything critical will leave, even if it causes problems in the short term.

There also seems to be lots of encouragement for Ukrainian businesses and skilled staff to move not just to Russia but also down the road to Crimea.

Latina Lover's picture

The Kiev Junta is a puppet controlled by the USSA.

If utterly destroying the Ukraine economy hurts Russia and serves USSA interests, it will be done.

ChiangMai's picture


Meanwhile, it appears the self-defense forces might soon control a seaport city (Mariupol) — the southerly extension to the Sea of Azov (northern extension of the Black Sea) shown on this map (in English) happened in the past few days:

Novorossiya Map of Hostilities – August 10-25, 2014

Zoom in for 20 explanatory notes keyed to the map.

Nine white areas are trapped Ukrainian forces; estimated numbers of these trapped forces, as of yesterday:

Rock Solid Politics ‏@BradCabana

SIT REP: By my count there are now 11 Pockets of #Ukraine troops trapped without resupply - approx 15-19,000 UKR troops trapped.#cdnpoli


X.inf.capt's picture

and a very simple question...

Why is the 98th russian airborne division (guards) on the ukrainian border, so far from their barracks???


Anarchy 99's picture

camping trip! (get over it)

messystateofaffairs's picture

very simple answer ..... to kick the junta's ass. We're not diplomats, we can be open about these things. The diplomatic answer, to protect the Russian border from conflict spilling over there.

messystateofaffairs's picture

You are most certainly welcome, have a nice day now, and may the peace and serenity of Jesus Christ be with you. (I learned this diplomacy while watching Putin) Here, you can watch him too.

X.inf.capt's picture

hes the most interesting man in the world...

it was good...

stacked's picture

Someone gotta help Hunter Biden dig gas, no?!

Jack Burton's picture

Is there something that denies the Russian Federation the right to station troops anywhere inside Russia that they want? As long as they stay inside Russia, then that question is simply another tantrum thrown by Kiev's supporters over be so badly beaten by rebels.

luftmensch's picture

Jack, are you are trans-sexual or is that just long hair?  I don't have a problem with that, I just heard that wasn't tolerated too well in Russia..stay safe bro/sis.

TheFourthStooge-ing's picture

Retarded ukie troll is retarded.


Russia does not have to explain why Russian soldiers are standing on a particular piece of Russian land. Here's a better question: Why are US soldiers so far away from their baracks in mainland USA? They're like all over the planet.

Jack Burton's picture

Thanks for the Map. Finally, I spent all day yesterday waiting for that map to get put up and show the recent results of the rebel offensive against Kiev's Army. Much more was accomplished than anyone could dare hope for. In classic Russian military style, now practised by the rebels, the rebels kept just enough troops to absord the months of Kiev attacks, while building a new force of rebels, arming and training them, and then when Kiev's offensive had ground down , to lauch a counter offensive aginst battle damaged and worn out Kiev Battalions. Well played by the rebels, this is the perfect practice of military science.

Kirk2NCC1701's picture

Yup, and if they can't win strategically, they will now seek victory tactically, by playing the Procedure game:  Ukraine calms down, joins the EU and then NATO.

Russia wil then have NATO forces encirccling them more and more.  It's the slow Boa coiling and tightening:  with each exhale, the coils tighten. There better be an 'asymmetric game changer'.  Winter?  We shall see.

Latina Lover's picture

Without Russian Nat Gas and Donbass coal, the Ukie economy will grind to a halt.  Some coal could be replaced via imports but  significant quantities of nat gas are only available from Russia.

ChiangMai's picture

7,000 Trapped Ukrainian Forces; IMF to Fund Ukraine Wars?

Mish's Global Economic Trend Analysis

25 August

Ukraine is bankrupt. It accepted an $18 Billion IMF Bailout in March, allegedly with strict conditions. Do those conditions allow war funding?...  

Ukraine's conflict with... [the self-defense forces of the Donetsk People's Republic and the Luhansk People's Republic]... is draining the economy by the day and hampering efforts to implement reforms as required by an IMF bailout programme, Prime Minister Arseny Yatseniuk said on Wednesday.

According to the terms of a $17 billion International Monetary Fund loan package, Ukraine must implement set reforms, but the country, which is virtually bankrupt and running wide external deficits, has had to divert substantial funds in its fight to contain the... [self-defense forces]...

Jack Burton's picture

Excellent Post! It is now known that IMF bailout loans is funding Kiev's war! But really, Kiev has no cash, so the only source of war funding is the IMF loans. These loans were designed to fund a reform of the Ukrainian economy and jump start economic growth. Now this is a pipe dream. Wait though, wait till January and Febuary. By then Kiev will be a cold dark shell of a city, unless America hands over billions in free money, which I think it will. Perhaps 20 billions in free money will be given by Washington DC, by then, they will have no choice or their client state of "Rump Kiev" will collapse.

JuliaS's picture

That is why Poroshenko is in a rush to dissolve parliament and call election as early as October, before it gets real cold.

Jack Burton's picture

Yes indeed! He sees it coming, after the last few days battle losses and economy in free fall, even the west Ukrainians who support the Radical Nationalist Movement will start to ask what they have gotten for Euro Madian. Nothing, lots of fascist symbolism and big patriotic talk of glory. But it all adds up to just shit, in the face of economic collaspe, no gas for winter and humiliation on the battle front. The Rebels recent news conference made clear that Federation is OFF the table, now it is INDEPENDENCE or nothing. And, they say they will battle Kiev to either total death comes to them or Donbass is independent from Kiev's USA government.

JuliaS's picture

The bad aftertase will last for years and with this much provoked polarization between pro-west Ukrainians and pro-Russians there cannot possibly be a single Ukraine. Even with people who might've invited EU into their backyards the same way kids accepted Obama's promises of hope and change, accepting defeat might be more hurtful than staying the course. And the IMF money already accepted - it all comes with strings attached. There is no walkign away from money already spent. What is Ukraine going to do about it when it's totally broke? Default? Well, IMF money is almost like a student loan in the US. You don't simply walk away from it. Doing Russia favors to come up with the cash? Highly unlikely.

We'll end up with Russian East, and a half-chewed west that nobody wants - not EU and not even Russia, not even NATO with their precious missile silos. Ukraine is a basket case. A Humpty Dumpty in a mess that one cannot possibly see being resolved in any meaningful sense.

Even if we are to contemplate Ukraine with Western help taking over all of the lost territories, including Crimea - that cannot be possibly accomplished without a genocie the scale of which will not be possible to sweep under the carpet. We're talking millions of inhabitants exterminated and displaced. Russia would have a full justification to go in and that would be the start of WW3.

Likewise Russia cannot, and actually has no reason to intude into any territory already not occupied by separatists. The land will roughly be split in proportion to how the populatino is currently represented.

Another thing the West worries about is that they Nazi's they've worked so hard to nurture over the last 20 years are being pushed away from the front lines and back into the EU, much like ISIS forces faces with Russia-reinforced Syria spilled into less fortified Iraq. What if those same Junta Nazis sneak into EU and start causing some real disturbance. Good luck trying to sell Ukraine-EU membership then.

Ukraine cannot be repaired. It can only be split into a stable pro-Russian industrial land and a barely-functioning agricultural East forever hooked on the IMF needle...

... it'll be WW3 the US so much desires. Then all bets are off and the map of Eurasia then looks like a work of Jackson Pollock. US wants that. It dreams of NATO and Russia wiping eachother out. A chaos in Eurasia observed from a safe distance, just like in WW2, until half way though the war, when the outcome is practically determined, it could stage a false flag and give itself an excuse to join the party and chew of some of that precious land. Maybe get a Bretton Woods 2.0 going. America would love that! It would also love to pretend we're still living in a world with no intercontinental ballistic missiles and nuclear submarines.

Those idiots in charge will be the end of us all. God, I envy George Carlin. He saw it all and picked the very best year to depart!

Victor999's picture

They won't need to join the EU to become a part of NATO.

Indeed, they won't even have to be a part of NATO to enjoy NATO benefits if the US Congress has its way:

kchrisc's picture

"The Kiev Junta is a puppet controlled by the USSA."

You forgot the Rothschild and Israeli hands stuck up the USSA's ass.

An American, not US subject.

Chupacabra-322's picture

Also forgot the Criminal IMF / World Bank / BIS.

kchrisc's picture

"Also forgot the Criminal IMF / World Bank / BIS."

All part of the Rothschild edifice.

An American, not US subject.

luftmensch's picture

You have to admire Putin's blogger brigades, all that cheap labor from Russia's busted economy comes in handy sometimes...

Renewable Life's picture

These look like like two dudes that could actually go for the "lets you and I box it out and save the young men" shtick!!!!

On another note, I chuckle at the "shoots" about Russian wealth and comparative analysis of how rich the west must be if Putin has xxx!!

Russia probably has 50-250 trillion in untapped energy wealth yet to extract at future inflated prices, tens of millions of fertile ag acres to develope, low national debt, small culturally intact population, low taxes, and is geo-politically in a superior location to deliver those resources from any other Country on Earth to an emerging Asia, Europe, and even North America!!!

The West has what again at this point???

All factors considered, I'd say Putin may be under reporting his wealth actually!!!

kowalli's picture

I think they include in 440 all  his friends... Actually Putin don't own anything....

RazvanM's picture

Who do you think owns the Oil reserves, Gas reserves and other resources in Russia? And the Russian Army to protect his ownership.

TungstenBars's picture

You're wasting your time, kiev nazi troll.

Your propaganda won't work here..however your delusions are very amusing to all of us! Please, tell us more about your psychosis enduced fantasies.

akrainer's picture

Ya, it's one thousand trillion dollars!