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Russian Pivot: Greece Will "Probably" Join BRICS Bank, Official Says
Greece has very little in the way of bargaining power with European creditors.
Outside of gimmicks like tapping its SDR reserves, Athens has no cash to make payments to the IMF in June and, perhaps more importantly, there's very little in the way of wiggle room when one looks at revenues versus spending (see below), meaning Greece will also struggle to pay public sector employees which, in combination with Greeks’ consternation about the safety of their deposits, could contribute to social unrest and put unwelcome political pressure on PM Alexis Tsipras and his Syriza party that swept to power just five months ago on a defiant (and apparently naive) anti-austerity platform.

The troika (and Germany) knows this of course and they are also acutely aware that Spain's Podemos and Portugal's Socialists are watching the Greek drama closely for the slightest indication of concessions from the IMF or from the EU. In other words, the standoff is now just as much about politics as it is about economics, and the 'institutions' do not want any Syriza sympathizers to be able to say that Greece made anyone blink by threatening an exit from the currency bloc.
What all of the above means is that for better or worse, Greece has essentially no leverage because for many European officials, trading austerity concessions for the right to maintain the idea of euro indissolubility is no longer a desirable outcome as it could embolden anti-austerity governments in larger, more influential countries.
All of that said, Greece still has one card to play: the so-called 'Russian pivot'. Over the course of negotiations between Syriza and the troika Moscow has, at various times, sought to take advantage of the hostilities between Athens and Brussels by making a series of overtures including the possibility of a €5 billion advance on Greece’s portion of the Turkish Stream natural gas pipeline and an invitation for the country to join the BRICS bank, a possibility Goldman’s Jim O’Neill wrote off as a politically-motivated “joke.”
But Vladimir Putin isn’t fond of joking (unless he’s participating in his yearly town hall meeting with the Russian people) and sure enough, less than two months ahead of this year’s BRICS Summit in Ulfa, it appears Greece may accept Moscow’s invite.
Enikos has more:
Greece is preparing and will probably submit a request to participate in the new development bank for BRICS countries and has secured Russia’s support on the issue, Productive Reconstruction, Environment and Energy Minister Panagiotis Lafazanis told ANA-MPA news agency on Friday evening.
“During my meeting with Russian Deputy Finance Minister Sergey Storchak, we secured the decisive Russian support to Greece’s request for participation in the new development bank of BRICS countries. The relevant request for Greece’s participation…will be symbolic and will be paid in installments, while right after operations begin, it will be able to accept financial support,” the minister said.
Lafazanis added that technical details were also discussed on how to submit the request so that it will be accepted after discussions within the Greek government conclude.
He also noted that he also discussed the credit facility that will be provided by Russian banks to the Greek company which will undertake the construction of the new gas pipeline which will cross Greece.
“Repayment of the Russian loan will be achieved by the profits made through the operation of the pipeline and this facility is not related to loans or economic assistance between states,” he said.
As mentioned above, this comes as Russia, Brazil, India, China, and South Africa are set to officially launch the BRICS bank and a related reserve pool when the group of emerging powers convenes on July 8-9 in Russia. It also comes as Moscow looks set to put plans for a Eurasian currency bloc into motion and as the Central Bank of Russia explores the possibility of establishing a BRICS-associated alternative to SWIFT.
Additionally, China's recent $50 billion commitment to Brazil underscores the degree to which BRICS nations are expanding their economic and political cooperation in the face of declining Western hegemony. The BRICS bank speaks to the idea that the world's most influential emerging markets now feel it necessary to support each other in the face of what they view as a half-hearted attempt on the part of the world's existing multilateral institutions to serve EM interests or even to give them representation that's comparable to their place in the world economy. Here's what we said on Friday:
Much like the China-led AIIB, the BRICS bank is in many ways a response to the failure of US-dominated multilateral institutions to meet the needs of modernity and offer representation that’s commensurate with the economic clout of its members.
Why would Russia want Greece to join the bank? The motivation is clearly geopolitical consdering that Greece is broke, and what's interesting about the statement from Lafazanis is that it appears to suggest that Greece's paid in capital would come in installments while Athens would immediately be eligible for a loan from the bank.
In short, Putin would like nothing better than to establish a symbolic relationship with the first country to break from the supposedly indissoluble currency bloc, especially given the situation in Ukraine. Meanwhile, Greece is out of leverage, especially now that recent regional and municipal elections in Spain have proven to Athens' EU creditors that the austerity (or, 'fauxterity' as we're fond of calling it) revolt is very real. We'll see what, if any, impact this latest Russian pivot trial balloon has on Greek debt deal negotiations.
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Now look at this.
Putin can convince the BRICS that to have Greece is an asset.
The EU thinks it is a basket case burden,
Cui bono?
What is the game here?
My game...
https://youtu.be/lk1TSBW_368
Putin backs Greece to cut the legs from under the EU, what a master stroke. The EU thought they had Greece cornered, oh this is going to be epic.
Au contraire. EU finally (better late than never) cutting Greece loose. Hello Mr. Putin please accept this gift from us in the form of a Greek horse...
The Trojan Horse would be sent to Brussels, not withdrawing from the EU or NATO would implicit conditions of financial assistance, withdrawal from the ECB/EMU... not so much.
It´s a bargain.
Let 40 Mio. WUkies be fed by EU, instead feed 10 Mio. Greeks.
And the Greeks have these lovely Mediterrenian islands. The WUkies are island-less as of last year.
As I said before, there will be no vacuum of money in Greece the day after default.
Germany to BRIGGCS next, only chance for Merkel to get her crimes forgiven.
Surprising ZH hasn´t announced Putin´s latest move: http://www.ibtimes.com/russia-bars-89-eu-politicians-entering-country-re...
No soup for you!
Are you this guitarist, ORI?
Yes Bob...
Interesting fusion that comes across as an experiment in grafting India and Sergio Leone soundtracks together.
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.jobs-review.com
My game.
https://www.youtube.com/watch?v=lxDQQDF6j0Y
Are you Roy Clark?!?!
I like that :-)
Mr Putin, with most humble respect: please form a new thing and leave 'Medican' cosa nostra in the dustola.
Signed a true American
BRIGS!
BRICGGS
Great place for some naval bases. Go Putin, fuck the Useless Snakes
We knew this one was coming: redefininggod.com/2015/02/globalist-agenda-watch-update-18-the-stage-is-set-for-greece-to-switch-over-to-the-brics-this-summer/
I totally support the desire of the BRICS to become Greece's new patron/sugar daddy.
But they need to invite Sarah Palin to the one-year anniversary celebration.
I thing she don't khow where is Greece?
How's that pivot to the east thingy working out for ya?
the old Sarah Palin is stupid schtick
so we bought the lie and elected Obozo
so who is stupid now?
I didn't call her stupid. I called the Russians stupid for thinking that the whole "Greek pivot to the east thingy" would work out for them.
I mean, come on. Here is the actual gist of the article above:
Greece: We want to join your development bank.
Russia et al: Do you have the capital to buy in to the project?
Greece: No, but how about if we make payments on it and, meanwhile, you can loan us money from the bank?
No one but a complete imbecile could possibly believe that this is to the benefit of Russia, China, or anyone except the current crop of people who have to pay to keep the present Greek welfare state alive.
But boy do the ZH slavophiliacs resent having it pointed out to them. They think it's actually some sort of ultra-smooth move to fuck the West.
"Hey, we're gonna steal your deadbeat relative out of your basement. That'll show you who's smart and who's not."
Yep, sure will.
Silly.....she can SEE Greece from her house in Alaska!
Tell me, what is Greece leaving the EMU and joining the BRICS more like:
1) When the Eagles traded Terrell Owens to the Cowboys.
OR
2) When KMart merged with Sears.
I don't know who the thug you mentioned in number one is, but I am assuming he is a "valuable" asset to a National Thugball League team. However, because of what we know about the finacial situation in ALL of the economies of the world... My bet is #2. But it should be more like Target sold its KMart affiliate to Sears.
Kabuki bitchez!
Actually K-Mart took over Sears-- proof positive that the world was going to turn upside down in short order.
Russia needs to have Greece default on all it's debts and obligations and join the BRICS.
Get Spain and Italy to join and you really screw the IMF and the US.
Don't worry, this is exactly what the globalists have planned, so it will happen as you say. This whole contrived East verus West drama is all about rejuvenating the UN/IMF brand. Once the "hero" BRICS force UN/IMF governance reform and once a Chinaman is Managing Director of the IMF, the public are expected to believe that things have changed and will embrace the New World Order. It's a clever tactic, no? redefininggod.com/2015/02/globalist-agenda-watch-2015-update-16-the-brics-and-the-un-governance-reform-scam/
We will know it is all good because neither the Chinese nor the Russians are prone to corruption like the leaders of the "west" are...
Kabuki.
Hah ha ha ha ha
Sometimes you'd think that some times some people around here think that to be the truth
Lots and lots of trolls or idiot savants
white people =) or are you putins personal vassal?
Move to a new tit when you empty one.
So they play is Russia will lend $10B as long as Greece defaults on the $360B it owes the west?
(and Russia will ask for a favor at a later time)
Fuck off Greece. Go suck on Putin's tit now you parasites and bleed him dry. Can't happen soon enough.
So you're upset that the East is winning and the West (read: USSA Criminal Corp) is losing? I'll play the worlds saddest song on the world's smallest violin for you.
Bankrupt socialist utopia of Greece. Thats the first prize for the "winning" East? More like a Trojan horse gift to Russia.
You are seriously calling Goldman Sachs socialist??
It was Goldman Sachs that got Greece bankrupt, but there has recently be a major change in Greek government. Catch up willya.
+1 Goldman are scum. Ted Cruz wife works for them but GS controls Congress.
I wonder if any Russians or possible Greeks posting here know how strong the Orthodox Church might play a role here.
Nothing will imrpove if the Greeks stay in the EU. At least they can probably increase trade with Russia, china and the east by joining the BRICs.
The Greek elites, govt union workers, govt pensioners, military and cops will not want to lose that Euros check though. The rest of the country can starve as long as the elites get theirs.
Why is it so hard for you to see that we agree wholeheartedly with you.
You want Russia to take over Greece.
We want Russia to take over Greece.
Aha, but you suspect it's a capitalist trick, don't you?
Even though it is your own idea.
nothing elegant about this stooge. lol
Does this mean a new Drachma backed by Chinese gold? Goodness me, what a surprise would that be.
Yeah right. They just can't wait to underwrite Tsipras' socialist utopia...
>>> Does this mean a new Drachma backed by Chinese gold?
No.
It means the Drachma will be freely exchangable for Yuan (or Rubles) but only as long a Greece pleases the BRICS. Greece steps out of line and exchangability becomes history.
A surprise indeed.
Mostly because the Chinese are evil and greedy, not stupid.
r u always this stupid or r your hemorrhoids acting up again?
If Putin wants to bail them out he can be my guest ... it will do him no good at all (and no, a naval base on the Meditarrean Sea wouldn't matter jack shit either).
Sure it would... the base that is. The sheep in Russia and America would have much bleating and much distraction would be accomplished.
Look over there! That is the cause of your suffering! "They" are coming to take the rest of your miserable life's accomplishments! HATE "them"!
Kabuki.
marco get a brain and then use it. read instructions on the box.
Russia already has a naval base in the Med. Cyprus.
What Russia really needs is a naval base in North America.
Wait till some idiot Greek tries to stiff a Russian debt colletor.
The Greeks are about to discover the cost of "paying the roof"
Alex, I'll take "Greek Natural Gas Pipelines" for $1,000(or $5 Billion)
I see the mutual interest. Greece is in a rut and needs liquidity. Russia is losing its grasp on the Mediterranean, given Assad's slide in Syria. Tartus was its last port on the sea.
Now this is comedy. Like asking your thrice-bankrupt deadbeat drowning-in-debt unemployable felon brother-in-law to be founding partner in your family's new (fake) business.
Peak denial has not arrived.
PS: Of course it's faux austerity, credit inflation is the only thing keeping this shitshow going. Live within our vastly reduced means and be thankful for it? Not until every other conceivable option has been exhausted.
I don't see how Russia goes away quietly. It seems that they don't want their sphere of influence to be curtailed. The missile defense systems in Poland, Ukraine, Georgia, and even the Scandinavian submarine incidents.
Not sure what the endgame is here. They ought to keep hoarding gold and wait for the day the West gives up on fiat currencies. Russia and China that is.
Maybe the others, but not Georgia.
Georgia is ripe for a coup d'etat.
What Scandinavian submarine incident? You mean an "incident" Swedes admitted they lied about? Swedes are Murican cocksuckers. Disgusting creatures. True Westerners. Only know how to lie, deceive, mislead, sell and whore themselves. Oh, and not to forget, very stupid too. Even that submarine lie clearly demostrates that point, doesn't it? Such childish propaganda they put there. You have to be stupid even to lie about something like that. Only morons would believe in that story.
In short: Swedes are libtards!
What is an English word for eradication of the pest, usually rodents like rats? Deratization? Deverminization? That is what that Scandinavia needs. Such liberal disease infected region that is... a breeding ground of liberal vermin!
De-russification, perhaps?
Is that you, Yats? Or just some Baltic moron?
Nope, just me.
Blazing my own trail and forever dissenting from the comfy communal conviviality of the hive mind.
Give my regards to the Queen once your shift is over.
Tarabel the Troll, The only trail you're blazing is that you've got your nose farther up the ass of the Russian-hating, fear-mongering neocons and Zionists than almost anyone else on this site.
If the gas comes via Greece ... then European gas consumers will be paying a premium that will keep alive the Greek' economy.
Alternatively, you can relocate your production to Greece, and have the benefit of cheaper fuel costs AND cheap labour.
+1. And they could turbo-charge the economy by putting in place a favorable tax regime along the ROW for the job creators.
As well as the services of the 40% of the population who work as bureaucrats to help make your business profitable.
Comrade Putin,
Please, plaease, please take Greece into the BRICS. Even better, make Greece another Russian province.
As soon as it happens, EU will be able to kick Greece out of the EU, close the border (meaning all the illegal immigranst will have to stay put or go to Russia) and then EU can put the bailout bill in front of Russia for repayment. And if they refuse - freeze Russian assets.
Doesn't mean he was born yesterday, does it?
As near as I can tell, the ZH member who has been around the longest and posts the most is the guy who is making 7k a month under various aliases.
Does this longevity make him smart?
It is equally possible that pigs will fly.
"meaning all the illegal immigranst will have to stay put or go to Russia"
If things progress (or rather regress) the way thay have been in the West, give it or take 20 years or less and Russia may have a serious immigration problem from the EU/EFTA (sans Germany, Switzerland and Austria). I mean not only economic immigration but also immigration of people who would want to preserve their Christian European heritage. The same may happen with Brazil having problem with mass immigration from the U.S. and Canada. Just saying...
There exists no means to expel an EU member. It would take a unanimous vote to change the rules to allow that. In effect the expelled member would have to give its consent to any expulsion or it isn't unanimous.
lol what a funny comment. your sense of geo-politics is amazing.
The 7th BRICS Summit will take place not in Ulfa but in the city of Ufa in Russian Federation. It looks like all the reports on the Summit are from the same writer as not only the ZH but even the Russia Insider article has the same spelling mistake.
Lol. Betrays the GRU pupeteers.
China Renminbi SDR Basket Inclusion: G7 Agree In Principle
TND Exclusive: Eric Dubin
On Friday, G7 finance ministers agreed that China's renminbi inclusion into the International Monetary Fund's SDR currency basket is desirable, but the technical requirements review must still precede renminbi inclusion. This isn't exactly news.
. . .
China continues to have an incentive to report updated gold holdings this summer so as to boost confidence in the renminbi. In addition, China may very well end the "managed float" between the renminbi and the US dollar in advance of the IMF SDR basket decision. That would surprise most analysts, but I think there are better than 50/50 odds that China will take this action because it would pretty much leap-frog them past most of the "technical requirements" discussion for renminbi inclusion into the SDR basket and their capital account and markets are stable enough to sustain the removal of the managed float regime.
Full story: http://thenewsdoctors.com/?p=466883
There will be quite a few years between "Agree In Principle" and "Agree".
Good news that one if it's true. But let Greece default first. God knowns how many hundreds of dollares in derivatives banksters have tied to Greece... Might lead to failure of some walking zombies banksters have been keeping alive thus far. One should certainly hope so.
The BRICS may not specifically require default. But they will require to control how the money is spent - Army, civil service payroll, hospitals and pensions. Not a kopek on debt repayment.
I want a brics bank card.
Generally Vladimir Putin isn’t fond of joking but sometimes he is:
Merkel Clearly Not Amused by Putin's Joke - If Eyes could Kill http://forum.prisonplanet.com/index.php?topic=256898.msg1491901#msg1491901
Another good one was Putin's female Labrador Retriver Koni sitting near Merkel. Merkel supposedly is afraid of dogs.
http://upload.wikimedia.org/wikipedia/commons/3/3e/Vladimir_Putin_21_Jan...
Merkel's dumb German aides should have told her that Koni was a female Lab and they are gentle dogs. Putin would take Koni to meetings all the time.
Clinton and Obola got dogs for photo ops and quickly dumped them. Clinton's dog Buddy got hit by a car as did another dog he had when he was governor of Arkanasa. He is a real piece of shit.
That dog's been eating too many table scraps.
Do the "dancing Mossads" speak Greek?
Liberty is a demand. Tyranny is submission.
Maybe Robbie Parker has been taking Greek lessons?
EU will NOT let Greece go. They would rather burn Greece down than let the Russians help them.
I think John Travolta should be president of Greece. Staying Alive, How Deep is your lurve etc.
Greece and next Turkey.They could join a peaceful EurAsian trade system with even a China strategy bringing in Iran to invest.Another direction.There's nothing that fascism hates more than world peace.We've seen what primitive type '80's cold war mentality has done to Libya,Iraq,Afghanistan,Ukraine.U.S. Foreign policy is in chaos.Duh,I want to be the world control cop.
Makes sense, since the Trojan Palladium moved from Constantinople to Moscow.
The same scam fiat with different parazites on top.
I think that Russia China aim to break up the EU . If BRICS bail out Greece and Greece defaults on her EU debt then EU must take a massive haircut. Then BRICS welcome Spain,Portugal,Italy with open arms = EU finished.
"Russian Pivot: Greece Will "Probably" Join BRICS Bank, Official Says"
When asked about that, Keith Moon responded, "That'll go down like a lead balloon."
Liberty is a demand. Tyranny is submission..
If you want to join to bank you need to bring assets. Greece does not have any financial assets so they need to bring geostrategical and geopolitical ones.
But the collateral must be in Gold ,
These Europeans only know how to swindle money for good.
Pirates only & all the while maintaining a clean image.
The Ex-Colonial world is waiting to hand over the belated retribution.
As always, an insightful analysis. All the sanctions imposed on Russia are backfiring. Greece's pivot will be the latest outcome:
This article is also posted at The News Scouter:
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Last Summer we thought that Putin was going to choke on Ukraine. This Summer it's Greece. The difference is, last Summer the EU fought to keep Putin from gobbling up Ukraine, this Summer the EU is shoving Greece down Russia's throat!