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- Jeffrey C. Borneman

Ukraine, Poland And Lithuania Form NATO- Lite

Jeffrey C. Borneman | September 21, 2014

"The Noose Tightens Around Russia." - The question has been: How best to get NATO arms to Ukraine without sparking War between the US and Russia? The apparent answer is: Get two neighboring NATO states to form a separate military "unit" to include Ukraine and be run by NATO ...

"A spokesman for the Polish defence ministry said work to form the joint unit with Ukraine and Lithuania first began in 2007, adding that it would operate under the guidance of the UN, Nato and the EU," reports the BBC.

The truth of the statement that work on this "unit" began in 2007 is immaterial. What is crucial to investor understanding is the repercussions of further expansion of NATO (armament), a move clearly directed at Russia and how Russia is likely to respond in light of the economy-killing sanctions now in place. 

We also learned Friday that: "Nato defence chiefs agreed to set up regional centres in several Eastern European countries, during a meeting in Lithuania's capital Vilnius," reports Reurters. This is to ensure all NATO allies are properly coordinated

Lithuania's chief of defence Jonas Vytautas Zukas said the "command-and-control" centres would be launched in Lithuania, Latvia, Estonia, Poland and Romania."

Reuters also reports that a "Polish defence officials said the new joint unit could take part in peacekeeping operations, or form the basis of a NATO battle group if one was needed in the future."

Therein lies Ukraine's NATO acceptance; complete with arms, training and leadership yet not requiring any special acknowledgement, paperwork or approval. So far this year NATO was not only resurrected from obscurity but was expanded by acquiring two primary missions; NATO East to handle Russia, and NATO West to handle ISIS. Now we have a sub-NATO group we can cleverly call NATO-Lite ... Investors will fully appreciate this announcement's impact on DEMAND for Defense spending and the interdependent trickle-down effect on Energy supplies and Food Inflation. 

If you want to know more about how the MDEF™ Investing strategy is positioned in this, or other geopolitical possibilities, please contact us directly.

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