Ukrainian Currency Plunges As Justice Minister Set To Call For "State Of Emergency"

Tyler Durden's picture

Following the rejection of President Yanukovych's offers of key positions to opposition leaders (because key demands were not met), unrest is now spreading further into the country's east, which is seen as Mr Yanukovych's support base (as we discussed here). As The BBC reports, at least a dozen attempts by protesters to seize government buildings were made with the Justice Ministry successfully over-run. Justice Minister Olena Lukash, an ally of Yanukovych and involved in the negotiations, has called for a "state of emergency" if protesters - who claim "the seizure of the Ministry of Justice is a symbolic act of the people of the uprising. Now, these authorities are stripped of justice," - do not leave. Furthermore, he said she would be "forced to turn to the Ukrainian president with a request to stop the negotiations unless the justice ministry building is vacated without delay." The Ukraine Hyrvnia has weakened markedly despite the central bank's intervention.

The UAH is now at its weakest since September 2009...


This is the biggest plunge in the UAH since August 2009...

Even though - Ukraine’s central bank was selling currency (dollars) today to commercial banks at 8.4 hryvnia per dollar, Interfax reported, citing bank dealers


Via The BBC,

Ukraine's justice minister has warned anti-government protesters occupying her ministry she will call for a state of emergency if they do not leave.


Olena Lukash told local media she would ask the National Security and Defence Council to introduce the measures.


The ministry became the latest government building to be occupied on Sunday, with protesters setting up bags of snow as barricades outside.


Unrest and occupations of municipal buildings are spreading across Ukraine.


Buildings have come under attack even in eastern areas, which have traditionally had closer ties with Russia and where President Viktor Yanukovych has enjoyed strong support.




"The seizure of the Ministry of Justice is a symbolic act of the people of the uprising. Now, these authorities are stripped of justice," one protester told reporters.


One of the organisers of the occupation, who gave his name as Oleg, told the Associated Press news agency: "We are not going to do any hooliganism, or have anyone hurt. We are peaceful people, we are for justice."


But Ms Lukash told Inter TV channel: "If the protesters do not leave the justice ministry building... I will ask the National Security and Defence Council of Ukraine to impose the state of emergency."


The minister is an ally of President Yanukovych and involved in the ongoing negotiations between the government and protest leaders.




She said she would be "forced to turn to the Ukrainian president with a request to stop the negotiations unless the justice ministry building is vacated without delay and the negotiators are given a chance to find a peaceful solution to the conflict".




The fresh unrest comes after opposition leader Arseniy Yatsenyuk rejected President Yanukovych's offer to appoint him prime minister, saying the key demands must be met.


Although the protest movement - the EuroMaidan - is largely peaceful, a hardcore of radicals have been fighting battles with police away from the main protest camp in Kiev's Maidan, or Independence Square.


The unrest is now spreading further into the country's east, which is seen as Mr Yanukovych's support base.

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So Close's picture

"Up" is good right?  :-)

Oh regional Indian's picture

Looks like a bunch of springs are being tightened up around the world.

Hey Tylers, how about a hot-spot map, I think it should be telling...


i-dog's picture

Those behind the curtain are just tidying up some loose ends.

Nothing to worry about. Enjoy your flight!

BandGap's picture

Hot spot map? We need a scorecard.

Ukraine, Venezuala Argentina,Turkey & ???

How many plates can they keep spinning in the air? I'm guessing the Ukraine and Turkey will soon be eating bowls of inflation shit, like the other two.


y3maxx's picture

Hot spot map...aka Circus Maximus

Eastern Ukraine will go to War with Western Ukraine.

Venezuala goes to War with Brazil

Argentina goes to War with Britain again(Falkland Islands)

Turkey needs to recapture all of Cyprus

Japan Wars with New Zealand

What have I missed?

eXMachina's picture

In New Zealand we have all of about 5 military helicopters and 1 or 2 frigates. The military couldn't go to war with the local farmers let alone another nation.

Son of Captain Nemo's picture

Yes George.

But for how long given all the other "pies" your fingers occupy? Chaos Inc. must be getting prohibitively expensive and QE isn't going to pay for all those guys and gals at Langley and Fort Meade that do the dirty deeds on your behalf forever?

Winning battles is one thing Georgie.  Winning the war has a whole different meaning!

XitSam's picture

It isn't Chaos, Inc., it is Totalatarianism, Inc. and chaos is one of their tools.  They want chaos so they can justify ratcheting up their control.

Totalatarianism, Inc. does not care about paying for things, once they are in control there will be unlimited slave labor. 

SDShack's picture

Yep, welcome to the New Feudal World Order, designed and brought to you by the sociopath powers that be.

VD's picture

when the Olympics are over Putin will personally clean this mess up. (what most may not know is that in the Ukraine on tv there is a regular broadcast stating that Putin is only waiting for the prez to ask for his help and he's in there backing him 100%.)


closing ceremonies x2.

eurogold's picture

I think the U.S. is supporting this whole opposition thing as retribution for Putin's Bitch slap (re; Snowden). Putin will get to it as soon as the Olymics are over.

Super Broccoli's picture

if you're planing holidays in ukraine, sure

thunderchief's picture

All this chaos is designed to make the USA and its dollar ponzi scheme look good.

The fed will taper in a few days, and are looking for another buyer of last resort.

The emerging markets, fund managers, CNBC idiots will be crying "Safe Haven", pouring trash cash into more toxic USD treasury trash cash..

One word for you all when this shit scheme settles into the pile of steaming toxic financial crap it truly is...


Tinky's picture

Look, let's be honest – from the moment they named their currency the "Hyrvnia", something like this was bound to happen.

Sudden Debt's picture

Bwww EEEEuuuuuRRrrrrOOoooo...


Oldballplayer's picture

It sounds like something that happens in your bowels when they are infected.

mayhem_korner's picture



+1  I'm guessing that the Ukrainian version of "Popular Baby Names" isn't a Times best seller, either.

Bearwagon's picture

Wait what the currency will do, when they hang this "justice"-minister high. And they will - this is not like the people would have much to lose.

ebworthen's picture

I was hoping for an exciting Monday but it looks like we're back to BTFD and "all is well" Town Cryers.

Cramer talking up Caterpillar, PM's smacked down, indexes showing green.

Infinite Ponzi.

Meanwhile, people in the Ukraine want to trade the "Hyrvnia" for the Euro.

Out of the frying pan - into the fire.

eurogold's picture

Yes ! They want to be another Spain, Italy, Greece really bad !

Quinvarius's picture

What it does vs the Ruble is what matters now.  No one is going to step in and stabilze them after they chose Russia.  In fact, the western bankers are probably planning more carnage.

BandGap's picture

Just to say "we told you so".

michael63636's picture

The Rothschilds own all the central banks, and control all countries in the world, except 3.

Each war or revolution produces profits for them.

Random's picture

Which are the 2 central banks not controlled by redshields besides the Vatican's?

Seasmoke's picture

They should just hang in there for the Summer of Recovery. 

SDShack's picture

That's Recovery Summer 6.0. Fixed it for you.

mayhem_korner's picture



So if the UAH an the ARS are both plummeting aginst the USD, what is the ARSUAH doing?  Inquiring minds want to know.

Metal Minded's picture

Yikes! Folks dying on the streets of Kiev over the choice between being a vassal slave state of either the Euro Union or the Russian Oligopoly. These poor folks are playing Russian Roulette with 5 rounds in the chambers.

Jreb's picture

Alex - I'll take "The frying pan or the fire?" for $500

That about sums it up. For most of us.

Would have given you more than one up arrow but...

Meanwhile - here in Canukistan our "dollar" has collapsed about 5% to 6% against the USD the past few weeks. And since almost everything we sell to each other in this country is originally bought and paid for in US $ this means some wonderful infaltion for the Canuklehead consumer is headed our way. Soon to be Argentina north.... I give you Canada.

Of course - a low dollar is good for exports right?????

Not feeling so bad about my gold holdings now....



kralizec's picture

Yup.  Getting away from both idiots and being truly independent is an idea that apparently cannot take root.  Sad but true.

123dobryden's picture

regardles how this end, it clearly shows, that armed resistance through riots is possible

Dewey Cheatum Howe's picture


It is all about the gas and EU energy security.

Ukraine remains the main transit route for Russian natural gas sold to Europe, which earns Ukraine about $3 billion a year in transit fees, making it the country’s most lucrative export service.[4] Following Russia's launch of the Nord Stream pipeline, which bypasses Ukraine, gas transit volumes have been steadily decreasing.[4] In 2004 more than 120 bcm of Russian gas was transported through Ukraine; this figure dropped to just 84 bcm in 2012.[4]

Russia–Ukraine gas disputes left many countries with a significant drop in their supplies when Russia cut off all natural gas supplies passing through Ukraine in 2009 and 2006



In January 2009, this disagreement resulted in supply disruptions in many European nations, with eighteen European countries reporting major drops in or complete cut-offs of their gas supplies transported through Ukraine from Russia.


Now any interesting aside about who was the prime minister in 2009 during that last dispute that had the power shut off to Europe. This current spat didn't just happen overnight in a vacum there is plenty of backstory I suggest people read the rest here not just the part about gas disputes.

It was the Princess Leia hairdo wearing opposition leader this time around, Yulia Tymoshenko.

The conditions leading to the 2009 gas dispute were created back in 2006, under the Viktor Yanukovych government, when Ukraine started buying Russian gas through an intermediary, Swiss-registered RosUkrEnergo. (Fifty percent of RosUkrEnergo shares were owned by the Russian “Gazprom”, with 45 percent and 5 percent owned by Ukrainian businessmen Dmytro Firtash and Ivan Fursin, respectively). Some sources indicate that notorious criminal boss Sergiy Shnaider (nick Semen Mogylevych, associated with Dmytro Firtash) also owned shares in the company.[182][183]

When Tymoshenko resumed her prime minister duties in 2007, she initiated direct relations between Ukraine and Russia with regard to gas trading. An October 2, 2008 Memorandum signed by Tymoshenko and Vladimir Putin stipulated liquidation of intermediaries in gas deals between the two countries and outlined detailed conditions for future gas contracts. The gas conflict of 2009 broke out because of two factors, the lack of a gas contract for 2009 and a $2.4 billion debt that Ukraine had yet to pay for gas received in 2008.[184] Prime Minister Tymoshenko stated that it was the “RosUkrEnergo” company that was responsible for the debt, rather than the state of Ukraine. She called for an end to corruption in the gas trade area and the establishment of direct contracts with the Russian Federation.[185]

“RosUkrEnergo”, with the aid of its ties to Yushchenko’s administration, managed to disrupt the signing of a gas contract scheduled for December 31, 2008. Oleksiy Miller, head of “Gazprom”, stated that trader “RosUkrEnergo” broke down talks between “Gazprom” and “Naftogaz Ukrainy”: “Yes indeed, in late December 2008, the prime ministers of Russia and Ukraine came to agreement, and our companies were ready to seal the deal for $235 per 1000 cubic meters of natural gas with the condition that all the export operations from Ukraine will be done bilaterally. RosUkrEnergo then suggested to buy gas at $285 price.” On December 31, 2008, president Viktor Yushchenko gave Oleg Dubyna, head of “Naftogaz Ukrainy”, a direct order to stop talks, not sign the agreement and recall the delegation from Moscow. The decision made by the president of Ukraine brought on the crisis.[186][187]

On January 14, 2009, prime minister Tymoshenko said, “The negotiations on $235 gas price and $1.7–1.8 transit price, that started on October 2 and successfully have been moving forward since, have been broken up because, unfortunately, Ukrainian politicians were trying to keep “RosUkrEnergo” in business as a shadow intermediary…The negotiations between the two prime ministers and later between 'Gazprom' and 'Naftogaz Ukrainy' were ruined by those Ukrainian political groups, who have gotten and are planning to get corrupt benefits from 'RosUkrEnergo'.” On January 17, 2009, president of Russia Dmitriy Medvedev said, “I think that our Ukrainian partners and us can trade gas without any intermediaries, especially without intermediaries with questionable reputation. The problem is that some participants of negotiations insisted on keeping the intermediary referring to the instructions from the top.”[188]

On January 1, 2009, at 10 AM, “Gazprom” completely stopped pumping gas to Ukraine.[189] On January 4, the Russian monopolist offered to sell Ukraine gas for $450 per 1000 cubic meter (minus a fee for gas transit through Ukraine), which was defined as a standard price for Eastern European countries. On January 8, 2009, the prime minister of Russia, Vladimir Putin, said that Ukraine would have to pay $470 for 1000 cubic meters of natural gas.

Between January 1 and 18, Central and Eastern European countries received significantly less gas. Ukrainian heat-and-power stations were working to utmost capacity. Due to sub-zero temperatures, the entire housing and public utilities sectors were on the verge of collapse. On January 14, the European Commission and the Czech presidency in the European Union demanded the immediate renewal of gas deliveries in full capacity lest the reputations of Russia and Ukraine as reliable EU partners be seriously damaged. On January 18, 2009, after five day-long talks, prime ministers Putin and Tymoshenko came to agreement on the renewal of gas delivery to Ukraine and other EU countries. The parties agreed upon the following: A return to direct contract deals between “Gazprom” and “Naftogaz Ukrainy”; the removal of non-transparent intermediaries; the introduction of formula-based pricing for Ukraine (which also works for other Eastern European countries); and a switch to a $2.7 transit fee, which is close to the average price in Europe. According to the new gas contract, in 2009 Ukraine paid an average price of $232.98 per 1000 cubic meters,[190] while other European consumers were paying above $500 per 1000 cubic meters.[191]


Reading all that it's critical thinking questions time. Put on your tinfoil hats first.

Who cut the deal in the above disputes with Royal Dutch Shell (non Russian gas company) for the Yuzivska fieldin January of 2013? Why would the Russians not want Royal Dutch Shell developing that field besides gas revenues (hint location, location, location)? Who is the bigger pain in the ass to Russian gas dominance in the region? Who increasingly looks like wolf in sheep's clothing playing the populist game? When you answer all that who does it point to being the real invisible hand behind all this in the Ukraine right now?

Cui bono?


Dewey Cheatum Howe's picture

The Russians can ultimately route around the Ukraine if needed, the Nord stream is more about routing directly to Western Europe than Eastern Europe without interference. Eastern Europe suffers but dominance is still maintained. Who gets to put an equivalent of an antenna on Russia's doorstep for the next 50 years concerning a gas field and which prime minister signed that agreement? Which side stands more to lose in the long term and not just to Eastern Europe revenue from consumption revenue in general? Give you a hint the Ukraine is the 13th largest consumer of gas in the world and 7th largest in Europe.

Cui Bono?


Dewey Cheatum Howe's picture

The other tell is how the US MSM state media mouthpieces especially CNN reports it if at all or other source like Reuters and the Associated Press.


123dobryden's picture

these pipelines only made the situation worse in ukraine as it is now a battlefield of foreign interests moreover money from these pipelines has become a battlefield of corruption...


believe it or not, ukrainian folks would be much better off without them

Dewey Cheatum Howe's picture

Problem is they are also a major gas consumer in Europe along with being a major transit route at the same time. Think railroads in the US in the 1800s where ever the lines ran towns and cities sprung up around the stations to take advantage of the transport of goods and services. Pipelines are the 21st century version of the 1800's railroad transportation system.


History doesn't repeat but sure as hell does rhyme.

TheGardener's picture

Roads, railroads, pipelines : just dispositives of power that ain`t being built with your benefit in mind, native.

Just like schools and hospitals and other correctional facilities.

michael63636's picture

Ukraine also has thegreatest amount of iron ore reserves of any country.

Abundant coal.

20 % of the worlds titanium supply

30 tons of gold in the central bank

60 tons of gold in the ground...

Some facts:


After Russia, the Ukrainian republic was the most important economic component of the former Soviet Union, producing about four times the output of the next-ranking republic. Its fertile black soil generated more than one-fourth of Soviet agricultural output, and its farms provided substantial quantities of meat, milk, grain, and vegetables to other republics. Likewise, its diversified heavy industry supplied the unique equipment (for example, large diameter pipes) and raw materials to industrial and mining sites (vertical drilling apparatus) in other regions of the former USSR. Shortly after independence in August 1991, the Ukrainian Government liberalized most prices and erected a legal framework for privatization, but widespread resistance to reform within the government and the legislature soon stalled reform efforts and led to some backtracking. Output by 1999 had fallen to less than 40% of the 1991 level. Ukraine's dependence on Russia for energy supplies and the lack of significant structural reform have made the Ukrainian economy vulnerable to external shocks. Ukraine depends on imports to meet about three-fourths of its annual oil and natural gas requirements and 100% of its nuclear fuel needs. After a two-week dispute that saw gas supplies cutoff to Europe, Ukraine agreed to 10-year gas supply and transit contracts with Russia in January 2009 that brought gas prices to "world" levels. The strict terms of the contracts have further hobbled Ukraine's cash-strapped state gas company, Naftohaz. Outside institutions - particularly the IMF - have encouraged Ukraine to quicken the pace and scope of reforms to foster economic growth. Ukrainian Government officials eliminated most tax and customs privileges in a March 2005 budget law, bringing more economic activity out of Ukraine's large shadow economy, but more improvements are needed, including fighting corruption, developing capital markets, and improving the legislative framework. Ukraine's economy was buoyant despite political turmoil between the prime minister and president until mid-2008. Real GDP growth exceeded 7% in 2006-07, fueled by high global prices for steel - Ukraine's top export - and by strong domestic consumption, spurred by rising pensions and wages. A drop in steel prices and Ukraine's exposure to the global financial crisis due to aggressive foreign borrowing lowered growth in 2008. Ukraine reached an agreement with the IMF for a $16.4 billion Stand-By Arrangement in November 2008 to deal with the economic crisis, but the program quickly stalled due to the Ukrainian Government's lack of progress in implementing reforms. The economy contracted nearly 15% in 2009, among the worst economic performances in the world. In April 2010, Ukraine negotiated a price discount on Russian gas imports in exchange for extending Russia's lease on its naval base in Crimea. In August 2010, Ukraine, under the YANUKOVYCH Administration, reached a new agreement with the IMF for a $15.1 billion Stand-By Agreement. Economic growth resumed in 2010 and 2011, buoyed by exports. After initial disbursements, the IMF program stalled in early 2011 due to the Ukrainian Government's lack of progress in implementing key gas sector reforms, namely gas tariff increases. Economic growth slowed in the second half of 2012 with Ukraine finishing the year in technical recession following two consecutive quarters of negative growth.

Dewey Cheatum Howe's picture

They also have a thriving manufacturing economy but this all takes energy to get it out of the ground, manufacture it, etc.

The last thing both sides want is the Ukraine becoming self sufficient and using their own resources to fuel that beast. It is in neither the EU or Russia's best interest because they can't leverage the prices of the goods when sold to them without controlling the energy to make them in the first place.

dcj98gst's picture

Not about EU, about corruption.

RaceToTheBottom's picture

Maybe they need an Olympics to pump up the economy?  Winter spoken for, maybe Summer?

Son of Captain Nemo's picture

Somebody just turned up the heat.  I think Russia's trying to tell George Soros and the NGO squad something?...

Dewey Cheatum Howe's picture

If the Russians are sending in troops then we find out what side Putin is really backing.

NoWayJose's picture

No Ukrainians protested against Stalin.  My how government response to protesters has changed.  The Ukrainian leaders can afford to be a little tougher, because they are in about the only place on the planet that Obama will not threaten to attack.  About the ONLY place in the world that you don't see mass protests in the streets against a dictator-like leader who represses his people's freedom in is Washington, DC.

Johnny Cocknballs's picture

An interesting document about USAID's project to influence Ukrainian media lives here - just a few years before the Orange Revolution of course... if you're interested more in American 'meddling' in Ukraine, it's worth a skim.  It's titled "


and under the scope of work section:

Purpose of Assessment

The purpose of this assessment is to provide recommendations for future USAID programming to assist the development of independent media in Ukraine.  The focus of the assessment will be to determine the principal obstacles that hinder the development of a truly independent press, to briefly evaluate the Mission's current media program activities, and to recommend future activities to develop and strengthen Ukraine's independent broadcast and print media.


They apparently didn't do a great job as there's a real split, but media in Ukraine seems pretty  fascinating - murdered journalists, intimidation, all sorts of fuckery...  possibly as a result of outside fuckery.