Friday, September 9, 2016

Here is why Russia will not invade Ukraine

Interfax Ukraine:

The existing model of economic development of Ukraine has run out of steam and requires urgent replacement, one of the founders of the Ukrainian Business Initiative Serhiy Taruta said at the 26th Economic Forum in Krynica.


According to some economists, the successful realization of the new economic growth model would require only around $250 billion of foreign direct investment (FDI) or some $16.5 billion a year.

"This figure for investment looks realistic. Ukraine must draft a strategy for which Europe would be ready to provide an investment resource. This must be an action plan acceptable for European administrations and business structures. We want Europeans to participate first in the examination of the strategy and then supervise its implementation," Taruta said.

It is estimated it will cost $250 billion to to help Ukraine develop. That is why Russia will never invade the country. When you invade a country you have to pay to rebuild it. Remember the US experience in Iraq. That cost us $2 trillion dollars and we ended up leaving. Russia is a very maligned country and is on everyone's shit list. It is on my buy list. based on the CAPE ratio it is the cheapest country in the world today. That is a contrarians dream and I am a contrarian. When Trump becomes President we will see relations get better with Russia and the sanctions will get lifted. The oil price will eventually move higher and Russia will be revalued higher. I own the Russia ETF (RSX).

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