Tag Archives: the ukraine crisis

the Ukraine crisis- a blessing in disguise for Australia ?

Russia is trying to annex parts or even the whole of Ukraine via instigated upheavels.In the eastern Ukraine and Crimea live a fairly high percentage of ethnic Russians and this minority was ultimately used by Russia to stir trouble.The reason : Vladimir Putin wants to reestablish the old Soviet Empire.The Krimea has already been successfully annexed by Russia, the rest will follow via a so-called “referendum ” which was neither representative of the real opinion of all the people nor fair or legal by any civilised standards .

The reason why Western Europe is slow to react is that it is largely dependant on gas delivered from Russia via an extensive pipeline network that runs mainly through the Ukraine. Any sanctions against Russia will lead to Russia turning off the gas supply to maybe a dozen east and west european countries.

the pipeline network runs from Ukraine into about a dozen European countries,as well as into seaport citys.It can be supplied from both ends, the western seaports or the east.
right now there are probably 10 countries looking for a reliable gas supplier. The gas unloading facilities in European ports are only running at 50% capacity in some places,so there is room for a lot more capacity.All the Baltic states are either ready or almost ready to receive shipments of gas via ships.

This is where Australia comes into the picture.We could quite easily guaranty 200 million Europeans resource security by supplying the gas and other resources they now get from Russia.We have enough tankers and other ships for the job and we can build some more.
It would allow Europe to stand up to a bully, Putin. Remember what happened last time when Hitler annexed the Sudetenland under the same pretext,it was a major factor for WWII.We don`t want to go down that path again.Placating a bully is a bad idea !!!

And for Australia it will be probably the best chance we ever had to get out of our resource dependency with China, another bully on the world scene.
Right now it is budget time and they are trying to fill the hole, the slugs created with their economical mismanagement.By turning to Europe and with that engaging with an endurable and reliable trading partner, we can certainly make ground by gaining a new market of 200 million people or more for our resources.

In return we should ask for a free trading zone to the benefit of all concerned.
You see,a free trading zone with Asia is counter productive, because their cost of production is lower than ours, so it will kill of any residual manufacturing here.Europe`s production costs are level with ours,so there is no problem.It would give us access to some high-tech technology and maybe we can entice some companies to produce here because of our easy access to cheap resources.Just keep the local greed factor under control and it may just work.

In the times we live in, wealth is created by industrial production of mainly consumer goods.This fact is well understood in Asia,but sadly not in Australia.Selling raw resources and agricultural produce is third world country stuff.An insight that should be gained here,before it is too late.
If we stay on our current course,we will wind up like another Tibet in about 10 years time.Do we really want that ???

So the Ukrainian crisis is a golden opportunity in disguise for Australia.
Let`s not hesitate, this chance may never come again.

I hope this gets a few people thinking seriously about where we are and where we want to go.

Have a nice day
the kookabarra