I’ve just finished my newest article for Taipan Insider, our exclusive newsletter to Taipan Publishing Group subscribers.

I was musing on a BBC News article talking about how some Europeans feel about the European Union, and its latest expansions. To be sure, there has been a lot of grumbling about propping up economically distressed Eastern European members, like Hungary and Poland.

And there has also been some upset about jobs and factories moving east to take advantage of lower wages and costs, and about immigrants to Western countries taking jobs from locals.

Quite reminiscent of what’s happening here in the States with Mexican workers, yes?

Well, this got me thinking why the European Union would want to include Eastern European countries in its membership in the first place… It had to be something other than spreading “inclusive democracy,” right?

Of course… In fact, on Thursday, the Czech Republic will hold an “Eastern Partnership” summit with six former Soviet states to discuss energy and trade ties. The Czech Republic currenty holds the presidency of the European Union, and the former Communist country may just be the right fit to entice closer ties with ex-Soviet states.

My Taipan Insider article goes into more depth about just what’s at stake here. Be sure to read it.

An area the size of Rhode Island with a population smaller than Pawtucket has caused Russia a whole lot of trouble.

South Ossetia, with only 1,500 square miles of territory and 70,000 “citizens”, claimed independence from Georgia on November 28, 1991. Russia officially recognized the territory’s independence on August 26, 2008, twenty days after Russian troops entered the region to defend South Ossetia’s population from Georgian forces.

Less than a week later, investors in Russia were headed for the hills… And they’re still running.

The EU, currently headed by French President Nicolas Sarkozy, is trying to make Russia comply with the ceasefire agreement and withdraw troops. According to a BBC news report, “Some European leaders have already warned there can be ‘no business as usual’ with Russia until the peace plan is fully implemented, and the European Union has suspended talks on a new partnership agreement with Moscow.”

That’s going to be a bit difficult when it comes to Russian energy supplies, however. Russian natural gas accounts for 40% of all EU imports.

And if conflict continues into winter, it truly could be a Cold War between Russia and the EU if the Bear turns off the spigot. That’s why the EU is rushing around the Caspian Sea and the Mediterranean like mad trying to scare up energy supplies and pipeline partners.

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