William Katz:  Urgent Agenda

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RUSSIA AND GERMANY – AT 10:14 A.M. ET:  One of the complicating factors in confronting Russia over Ukraine is the strange role of Germany.  Germany is the strongest country in Western Europe, yet is linked closely with Russia economically.  It therefore frustrates efforts at a unified response to Russian aggression.  From London's Daily Mail:

As Europe’s leading power, a global economic titan, and a nation that has sought since 1945 to set an example of peace and democracy, Germany ought to be at the forefront of demands for sanctions to be imposed on Russia after its outrageous behaviour in Ukraine.

But it has signally failed to discharge its moral duty towards Europe. The main reason is self-interest because the German economy is massively dependent on Russia. Not only is Russia one of the main markets for its exports, but its industry and homes rely so heavily on the country’s gas and oil.

What’s more, Germany’s chancellor, Angela Merkel (who grew up in a Soviet-controlled area east of Berlin) and her Kremlin counterpart Vladimir Putin (who once worked for the KGB in Dresden) have a pretty strong relationship.

Hard economic facts graphically reveal the two countries’ interdependence.

Germany is Russia’s third biggest trading partner and accounts for 31 per cent of Russia’s imports from the EU. At least 6,100 German companies have capital investments in Russia, turning over 40 billion euros in 2012 and employing 270,000 people.

The main factor behind Germany’s reluctance to challenge Russian aggression, though, is the fact that 35 per cent of its natural gas and oil supplies come from Russia.

The effect of Germany’s failure to lead the EU and demand tough sanctions against Moscow means that a divided West is left to look on haplessly as the Russian tyrant remains free to continue unimpeded in his bullying of his neighbours.

Most chillingly, this means that Putin might also feel emboldened to start menacing other former Soviet states such as Lithuania, Latvia and Estonia which, like Ukraine, have considerable Russian minorities.Indeed, this is a truly inglorious moment for Mrs Merkel.

COMMENT:  When Mitt Romney said during the 2012 campaign that Russia was our greatest enemy, he was laughed at.  In fact, he was prescient.  Russia is rising.  It is led by an aggressive, strategically savvy leader, Vladimir Putin, who runs circles around the kind of the faculty lounges, Barack Obama.

Obama began his administration by canceling missile defense systems promised to Poland and the Czech Republic, thus demonstrating his contempt for those allies.  The chickens are now coming home to roost.  Putin acts with impunity, and the strongest nation in Western Europe hedges its bets, dependent on Russian cash and supplies.  Countries that border on Russia might well have to cozy up to the Kremlin, if only to stay alive.  They must feel very alone.

March 8,  2014