Greece Begins The Great Pivot Toward Russia

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Greece Begins The Great Pivot Toward Russia (ZeroHedge, Jan 27, 2015):

Ten days ago, before the smashing success of Greece’s anti-austerity party, Syriza, we noted that Russia gave Greece a modest proposal: turn your back on Europe, whom you despise so much anyway, and we will assist your farmers by lifting the food import ban.

And, sure enough, Greece’s new premier Tsipras did hint with his initial actions that Greece may indeed pivot quite aggressively away from Europe and toward Russia in general and the Eurasian Economic Union in particular (as a tangent recall “Russia’s “Startling” Proposal To Europe: Dump The US, Join The Eurasian Economic Union“).

Some recent examples of this dramatic shift in perspective were the following:

Today we got further evidence that Tsipras will substantially realign his country’s national interest away from the west and toward… the east.

First, as Reuters reported, today the new premier halted the “blue light special” liquidation of Greece to those highest bidders who have the closest access to various printing presses and stopped the privatization of Greece’s biggest port on Tuesday, “signaling he aims to stick to election pledges despite warning shots from the euro zone and financial markets.”

One of the first decisions announced by the new government was stopping the planned sale of a 67 percent stake in the Piraeus Port Authority, agreed under its international bailout deal for which China’s Cosco Group and four other suitors had been shortlisted.

“The Cosco deal will be reviewed to the benefit of the Greek people,” Thodoris Dritsas, the deputy minister in charge of the shipping portfolio, told Reuters.

Europe, for one, will be most displeased that Greece has decided to put its people first in the chain of priority over offshore bidders of Greek assets. Most displeased, especially since the liquidation sale of Greece is part of the Greek bailout agreement: an agreement which as the Troika has repeatedly stated, is not up for renegotiation.

Syriza had announced before the election it would halt the sale of state assets, a plank of the 240 billion-euro bailout agreement. Stakes in the port of Thessaloniki, the country’s second biggest, along with railway operator Trainose and rolling stock operator ROSCO are also slated to be sold.

And it wasn’t just this open act of defiance that marked the new government’s anti-European agenda:

In a separate step, the deputy minister in charge of administrative reform, George Katrougkalos said the government would reverse some layoffs of public sector workers, rolling back another key bailout measure. “It will be one of the first pieces of legislation that I will bring in as a minister,” he told Mega TV.

The Germans were not happy: A German central banker warned of dire problems should the new government call the country’s aid program into question, jeopardizing funding for the banks. “That would have fatal consequences for Greece’s financial system. Greek banks would then lose their access to central bank money,” Bundesbank board member Joachim Nagel told Handelsblatt newspaper.

Well, maybe…. Unless of course Greece finds a new, alternative source of funding, one that has nothing to do with the establishmentarian IMF, whose “bailouts” are merely a smokescreen to implement pro-western policies and to allow the rapid liquidation of any “bailed out” society.

An alternative such as the BRIC Bank for example. Recall that the “BRICS Announce $100 Billion Reserve To Bypass Fed, Developed World Central Banks.”

And yes, the BRIC are going through their own share of pain right now as a result of plunging crude prices, but remember: crude is only low as long as the US shale sector is still vibrant. Once this marginal producer of crude with a $80 cost-breakeven is out of the picture, watch as Saudi Arabia tightens the spigots and Crude surges to $100, $150 or more. The question is whether Saudi FX reserves can outlast the Fed’s ZIRP, which is the only reason – think idiots junk bond investors desperate for any ounce of yield – why the bulk of unprofitable and cash flow-bleeding US shale can still operate with WTI at $45.

Which naturally means that now Russia (and China) are set to become critical allies for Greece, which would immediately explain the logical pivot toward Moscow.

But wait, there’s more.

As Bloomberg further reports, “Foreign Minister Nikos Kotzias is due in Brussels on Thursday to discuss possible additional sanctions on Russia over the conflict in Ukraine. Before the cabinet even meets for the first time tomorrow, the Greek government said that it disagreed with an EU statement in which President Donald Tusk raised the prospect of “further restrictive measures” on Russia.

The punchline:

In recent months, Kotzias wrote on Twitter that sanctions against Russia weren’t in Greece’s interests. He said in a blog that a new foreign policy for Greece should be focused on stopping the ongoing transformation of the EU “into an idiosyncratic empire, under the rule of Germany.”

And when it comes to the natural adversary of any German imperial ambitions in recent history, Europe has been able to produce only one answer…

GReeCe 2015...

2 thoughts on “Greece Begins The Great Pivot Toward Russia

  1. The west has surrendered all power to greedy bankers. Russia is now the beacon of hope and light this country once represented. I hope they are smart enough to build on and keep it.
    Of course Greece is going with Russia. If the US could get some leaders who served the needs of the people instead of greedy guts, the US might do the same…..but it won’t happen in the near future. Instead, the US faces the collapse of the dollar which every day the EU is weakened, so is it’s economic strength.
    It is a sad thing when a nation looks to others to keep them going, but that is what has happened here in America. Since OPEC told us to go to hell last month, the US relies on the EU to keep the use of the dollar…………all other nations have dumped it. If the Euro starts crumbling, the dollar goes with it, regardless of the propaganda of the “strong dollar” being hawked on every US financial channel.
    The fewer who use the dollar, the weaker it becomes. If the Euro loses Greece, and they should because they sold out to the greedy gut bankers, they will lose others. Next will be Cyprus, Spain, Italy, Portugal, Belgium, Ireland, all the EU members suffering under greedy gut banker oppression. The austerity is over, and it is time to tell the banks to screw off……..and the more nations that follow, the more likely it will happen in other countries.
    Maybe even US citizens will grow a spine and kick back. All they have to do is take their money out of the system and sit on it. Passive power is always the best, especially when it is economic.

  2. OH, WHY, OH WHY, CAN’T WE HAVE LEADERS WHO SERVE OUR INTERESTS INSTEAD OF A GREEDY FEW????????
    THERE WAS A TIME…………too long ago now for most to remember it…….

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