With all that is going on in Ukraine today, I’m often asked: ‘Where is the USA’? The US administration is more concerned with the Islamic State (IS) advance on Iraqi and Syria, and events in Ferguson Missouri. The US Ambassador to Ukraine, Geoffrey Pyatt, is very vocal about what is going on, and he is a big supporter of Ukraine. However, this is not the administration to take an extreme hawkish stance on the Ukraine crisis.
Ukraine’s next crisis will be a devastatingly economic one, as violent conflict destroys critical infrastructure in the east and brings key industry to a halt, furthering weakening the energy sector by crippling coal-based electricity production.
The Ukrainian military’s showdown with separatists in the industrial east has forced coal mines to severely cut production or close down entirely. This has led to an electricity crisis that can only be staunched by cutting domestic production along with exports to Europe, Crimea, and Belarus — or worse, getting more imports from Russia.