Ukraine, Russia: Steel and Politics

A Russian business group has purchased Industrial Union of Donbass (ISD), one of Ukraine's largest steel manufacturers. ISD is based in Ukraine and operates steel mills in Poland and Hungary, so the purchase gives Russia key assets and increased influence in three countries. The timing of the deal indicates that Ukrainian Prime Minister Yulia Timoshenko — who facilitated the deal — is looking to boost her presidential campaign. The Kremlin's backing of the deal indicates that Russia's influence in Ukraine is on the rise.