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Sunday 22.10.2017 | Name days: Irīda, Īrisa
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Estonia’s Kallas evaluates why Russia is beyond the understanding of the West

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Former Estonia’s eurocommissioner Siim Kallas considers that the Kremlin will use every trick possible to divide the EU until sanctions are reviewed and questions the influence of current sanctions on Russian society and politics.

In an article published by the ERR, the politician writes that one factor which suggests sanctions do present serious problems for Russia is the credit crunch which is threatening many Russian companies, which is expected to be most severe by 2016.

In December 2014, the Russian corporate sector will have to repay 32 billion dollars, and any refinancing is likely to attract very high interest rates, but between now and the end of 2015, Russian banks and companies will have to repay no less than 134 billion, Kallas writes.

He evaluates that Russian budget is under pressure on both the revenue and cost sides. Moscow has sought to borrow via debt auctions, but nine successive auctions have failed.

«At the very least, we should prepare for limited debt defaults by the oil company Rosneft and the troubled Russian banks. There is also the real possibility of complete bank failures. All this points to a Russian economy in deep trouble,» Kallas writes arguing that Russian society resilient as for centuries accepted the loss of prosperity as part of the cost of imperial and military objectives.

This, he writes, is the fundamental difference between well-off Western consumers and the people of Russia.

«The fact is that most Russian citizens live still in Soviet conditions – the same miserable apartments, the same relative poverty, the same almost total isolation from outside world, which means that the society is always ready to suffer in support of higher political objectives – mostly involving aggression,» Kallas evaluates.

He writes that most probable date for the expiration of Western sanctions is August 2015, asking if anybody seriously believes that Russia will end its occupation of territory in Ukraine, Moldova or Georgia?

«For Russia, it remains vitally important to encourage divisions within the European Union before the question of economic sanctions returns. Moscow will use every trick in the book – propaganda, blackmail, even bribery. They will work through lobby groups; they will use fake diplomacy; they will make false peace proposals,» Kallas concludes.

Ref: 111.111.111.1923


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  1. Linda says:

    Well said Siim! The problem is that democratic states think that in the 21st century other large states are the same when these are clearly not and Russian propaganda is so plausible to many and western politicians prefer to bury their heads in the sand so long as they are not affected.

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