Putin Gasses the Euros

Russian "elected" leader Vladimir Putin looks harmless enough. He's got a geeky veneer about him but if you look closer you'll see that it is all a ruse. Underneath is the steely way of a former KGB agent turned leader. He's the kind of guy you'd pick a fight with to impress a gal and then he would in turn mop the floor with your head.

Which is why this whole issue around the natural gas feud with Ukraine is scary for the residents of Europe. See Europe get a significant amount of gas from Russia. 90% of which flows through a pipeline in Ukraine. Now that Vlad has cut off the pipeline due to a price dispute, the Euros may have to storm the local Ikea for various sensible designed wood products to burn during the dog days of winter.

Up until now Russia's reputation as an energy supplier was quite good. But that has all changed. First off, Putin clearly has a goal of consolidating power to the point where elections are shams and he is in effect the new Czar of all the Russias. This move with the pipeline only makes the trembling Euros even more uncomfortable (and cold) because this may only be the beginning. Will Putin seek to put Russia back in the Superpower category with the US (with China and India not far behind)? If so, Putin will continue to rule over the world's largest country with an iron fist. He will look to make more deals with "rogue states" (Russia is supplying Iran with all the necessary materials to get their nuclear weapons system online). Never mind the fact Russia sits on a vast amount of natural resources that could tip the global market in their favor.

Hawk's View: I have no illusions that Putin has crowned himself Czar and will continue to make his mark on the world stage. He's made it clear that Ukraine should pay higher prices (in line with what the Euros are charged) versus other former Soviet states, because of the advancement of their economy. That would be correct if that were truly the case. It's not. Putin is punishing the Ukraine people for last year's Orange Revolution when his pick to run the country was beaten out in an election. In the end, Putin will likely make a quick ending to this mess because he has made his point. The Russians are back and we want our seat at the table opposite the US.