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The Ukraine crisis

By Michael Knox - posted Thursday, 24 February 2022


I think that Putin will put pressure on Scholz to attempt to preserve the peace by making Ukraine's progress into the EU a more extended process than will normally be the case. We have seen elsewhere how successful France has been in slowing Turkey's accession to the EU to a dead halt. I think that Germany may be convinced to do the same by Russia, perhaps in the belief by Germany that after a pause, circumstances will change again in the Ukraine's favour.

The extra time that Putin gains by slowing the entry of the Ukraine into the EU will be additional time that he might use to bring pressure on the Ukraine to enter again into a closer association with Russia.

As Ukraine's process in entering the EU slows to a halt, this of course endlessly pushes into the future a plausible entry that the Ukraine might have of entering NATO, even in future generations. Putin will have left a much stronger strategic position to his successor as ruler of Russia.

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Putin has now "recognised as independent" and occupied two eastern border provinces of Ukraine. This action will allow the West to show the depth of their resolve. We will soon know how strong that resolve is.

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Disclaimer

The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents ("Morgans") do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so. Those acting upon such information without advice do so entirely at their own risk.

This report was prepared as private communication to clients of Morgans and is not intended for public circulation, publication or for use by any third party. The contents of this report may not be reproduced in whole or in part without the prior written consent of Morgans. While this report is based on information from sources which Morgans believes are reliable, its accuracy and completeness cannot be guaranteed. Any opinions expressed reflect Morgans judgement at this date and are subject to change. Morgans is under no obligation to provide revised assessments in the event of changed circumstances. This report does not constitute an offer or invitation to purchase any securities and should not be relied upon in connection with any contract or commitment whatsoever.



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About the Author

Michael Knox is Chief Economist and Director of Strategy at Morgans.

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