U.S. strategy for Ukraine crisis: Money talks

President Barack Obama's strategy for the Ukraine crisis reflects his internationalist foreign policy while adhering to the age-old maxim that money talks.

He sent Secretary of State John Kerry to Kiev on Tuesday to forcefully condemn Russia for seizing effective military control of the Crimea region.

At the same time, Kerry announced $1 billion in loan guarantees to help insulate the Ukrainian economy from the effects of reduced energy subsidies from Russia.

It all is part of the still simmering breakup of the old Soviet Union more than two decades ago, with Russian President Vladimir Putin seeking to maintain Russia's influence and economic ties in a region being wooed by the European Union and Washington for increased trade and other links.

On Tuesday, both Obama and Kerry warned Putin of possible international sanctions and other steps to isolate Russia diplomatically and economically if he escalates the Ukraine crisis by sending in more troops.

The goal of such an approach would be to hit Putin where it hurts by weakening the ruble and Russia's economy while avoiding the possibility of igniting an already volatile crisis to a new level of confrontation and possible violence.

 

Isolation, not confrontation, is the goal

"It is diplomacy and respect for sovereignty, not unilateral force, that can best solve disputes like this in the 21st century," Kerry told reporters to wrap up his one-day stop in Ukraine's capital. "President Obama and I want to make it clear to Russia and to everybody in the world that we are not seeking confrontation."

However, he continued, "if Russia does not choose to de-escalate, if it is not willing to work directly with the government of Ukraine, as we hope they will be, then our partners will have absolutely no choice but to join us to continue to expand upon steps we have taken in recent days in order to isolate Russia politically, diplomatically and economically."  Kiev, Ukraine (CNN)

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