A federated Ukraine as proposed previously by Russia?

Yesterday's post contained a link to a TIME article:

White House senior adviser Dan Pfeiffer also says supporting the new Ukrainian government “in every way possible” is at the top of the Obama’s administration’s priority list.

But action on $1 billion in loan guarantees to Ukraine is on hold because Congress is on a break now.

1 Billion in loan guarantees on hold because Congress went on break? Yesterday I asked: Really? Are the thugs of Maidan being hung out to dry? Anyone?I think they are being hung out to dry. I also suspect the inevitable win in Crimea was the reason for this.1 billion dollars in loan guarantees to a country that looked to be on the verge of splitting apart in a very messy fashion. Sometimes bankers like stability. Sometimes bankers like war.  In the case of Ukraine they were looking for the whole enchilada and it wasn't happening.Crimeans cheering after referendum

Crimea applies to be part of Russian Federation after vote to leave Ukraine

Let's go back to February 22nd/2014, an article in DW-Would a federal Ukraine be viable    

Victor Yanukovych was still, just barely, at the helm in Ukraine?

Article 2 of the Ukrainian Constitution defines Ukraine as a unitary state. Its capital and center of power is Kyiv. The country, which regained its independence following the disintegration of the Soviet Union in 1991, is divided into 24 districts (oblasts) and the Autonomous Republic of Crimea.

So far, the president, the government and parliament have always had authority over nearly everything, from taxes to language policy. But now it seems that the continuing political upheaval in Ukraine is threatening to rip the country apart.

Today (22.02.2014) legislators and officials sympathetic to Yanukovych as well as some Russian lawmakers gathered in Kharkiv, a city in the Russian-speaking east of Ukraine. As pro-Western protesters outside shouted "Ukraine is not Russia!", the officials, from predominantly Russian-speaking areas, approved a resolution for regional leaders to take full responsibility for constitutional order in their territories.

There has been vocal support for Viktor Yanukovych's ruling Party of Regions in the east and south of the country - traditionally strongholds of the party - which could embolden the party to try to exploit the current political crisis in order to turn Ukraine into a federation.

Party of Regions warns of disintegration The idea is not new. In early February, the parliamentary newspaper Holos Ukrainy (Voice of Ukraine) printed a proposal by the Communist Party "regarding possible amendments to the Constitution." According to these amendments, Ukraine should become a federal state. The Communists are allies of the ruling Party of Regions and often vote together.

A few days before the proposal was published, a Party of Regions parliamentarian, Vadim Koleznichenko, spoke in favor of a "federalization of Ukraine," since the country was on the brink of civil war, as the online newspaper Ukrainska Pravda quoted him saying. He said that citizens in the east and south of Ukraine see the opposition protests in Kyiv as a "threat" to them. Federalization, he said, would help to prevent the country from falling apart. According to media reports, this would mean Ukraine could be divided into up to seven large states, each with its own parliament.

 Was this the reason for the sudden coup backed by the US and company?  The one that took place the very day this federation proposal was put forth publicly? Changes to the constitution that would change the country? I suspect the US and cohorts did not want a loose federation of mini states.But then.... the Crimean referendum was set to take place The US knew that referendum was going to guarantee a win for Russia.Suddenly everything changed?

Putin's friend wants Ukraine as federation   Moreover, Viktor Medvedchuk, a consultant to Andriy Klyuyev, the head of the presidential administration, has also spoke out in favor of the idea. "Federalization is the one and only medicine against the disintegration" of Ukraine, he wrote in his blog.

Opposition warns of Kremlin stratagem  There has already been heated debate about whether or not Ukraine should be a federation. In the early 1990s, the Crimean peninsula wanted to secede; and during the Orange Revolution in 2004, regions in the east and south of the country threatened to form their own republic.

The seeds of separation had long been sown in Ukraine.

But this time it could be serious. The ongoing protests in Kyiv, which at least superficially seem to be the work of western Ukrainians, have been widely rejected in the east. There, many people still feel connected with Russia. They often watch Russian television, which portrays the events in Kyiv as a "far-right coup d'etat."

Opposition leaders have not yet commented on the idea of a federal Ukraine - with the exception of former Member of Parliament Vyacheslav Kyrylenko. He has warned in a blog against federalizing the country. "This is just the first step," he said, adding that the second step would be to split off eastern Ukraine and destroy the independent state. His blog entry speculated that Russia was behind these plans.

Was Russia behind the plans to see Ukraine federated? It would seem entirely plausible.Now that we have reviewed the background- Let's see the news today, one day after the Crimean referendum.- Russia urges Ukrainian parliament to prepare federative constitutionPrepare a federative constitution? AND-  Russia ready to cooperate with partners in resolving crisis in Ukraine

 "As has been repeatedly explained by the Russian side, the current situation in Ukraine was not created by us but resulted from a deep crisis that gripped the Ukrainian state, polarized the Ukrainian society and aggravated the antagonistic differences between various parts of the country. Efforts by the international community should aim precisely at helping to overcome those differences," the statement says.

"With this in mind and taking into account requests from the United States and European countries, we have prepared and submitted to our main partners in the United States, Europe and other regions our proposals on how external assistance should be organized to promote the steps the Ukrainians themselves should take to end the crisis. For that purpose, we suggested creating a contact group on support to Ukraine, made up so as to suit all the Ukrainian political forces," the ministry said.Moscow is ready to cooperate with foreign partners to form a multilateral mechanism without delay for resolving the crisis in Ukraine, the Russian Foreign Ministry said in a statement on Monday.

Russia is talking as if the US and EU are in agreement with this federation proposalThough I am not noticing any real news on this via the western mainstream mediaJust the mention from yesterday of non approval for funds for Ukraine because Congress is on vacation.On vacation? Yup, there's a valid excuse.

UPDATE: regarding the completely unperturbed stock market- no surprise there

 What Crimean crisis? Dow ends up 1.1%