Monday, March 24, 2014

Won’t you love to get away by paying just the “cost”?


When Russia started its aggression in Crimea, US President Barack Obama issued a statement saying “There will be a cost associated with Russia’s action”. The statement seemed strange and we dismissed it as one off slip of tongue. Who says there will be costs! More commonly you would say, there will be repercussions, there will be consequence and so on….

But when it comes to American diplomacy, nothing is a slip of tongue, it is a well-rehearsed and carefully planned statement and no one deviates from that. So ever since, be it John Kerry, Jay Carney or Obama a recurring theme has been “costs”. No repercussions, no consequences, not even price; just Cost!

Let’s looks at some simple definitions – Cost is the actual value of a product nothing more nothing less. Price is Cost + Change.

What the Obama administration is posing to the world is that the US won’t sit quite while Russia goes all crazy on Ukraine. But to NOT piss off Russia and especially Vladimir Putin, the message is: there will be a “cost” (or a fair exchange – no penalty) nothing more for their actions. Since there are no free lunches, there will be a cost that Russia will have to pay since they have Crimea (the underline message to Russia is you are getting a discount – no price only cost)


Kerry had a phone conversation with Mr. Lavrov on Thursday in which he “reiterated the United States’ concern about the upcoming referendum and made clear there will be costs if Russia continues to take escalatory steps”

Carney:  We’re not going to rule out individuals or rule out actions, except to say that there will be costs imposed on Russia -- additional costs imposed on Russia if Russia does not change direction


“Europe and America are united in our support of the Ukrainian government and the Ukrainian people. We’re united in imposing a cost on Russia for its actions so far,” President Obama said.

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