Tuesday, April 7, 2015

Could Greece Pivot To Russia And China?

by Raoul Ruparel


April 7, 2015

Greek Prime Minister Alexis Tsipras heads to Moscow tomorrow amongst significant noise around a potential Greek pivot towards Russia and China. But how realistic a proposition is this? The short answer is, not very. Most of the noise is precisely that, just noise. But it is worth exploring in more detail just why this is the case and what it means for the current negotiations around Greece’s position in the Eurozone and EU-Russia relations.

Russia cannot afford to support Greece

The usual narrative goes that, Greece is considering turning to Russia for financial support if it cannot reach a deal with the EU/IMF/ECB. However, in reality, this is not really an option on the table. The simple reason is that, with economic sanctions and a low oil price, Russia has its own economic problems and cannot afford to aid a country the size of Greece to the level that it requires.


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