Ukraine Region Declares Independence Sending Dollar Bonds To Record Low; Russian Ruble Tumbles To 5 Year Low

Tyler Durden's picture

Update: the market has indeed noticed:


The events in the Ukraine continue to deteriorate. Moments ago Lawmakers in Ukraine’s Lviv region, declared independence after backers evicted appointed governor overnight. Lviv’s parliament formed executive committee with department heads in Governor Oleh Salo’s administration that will take over functions of regional government, Oksana Dmetryv, a spokeswoman for Speaker Petro Kolodiy, said today by phone from Lviv. Protesters also seized headquarters of security services in Lviv, a region of 2.5 million people bordering Poland. Elsewhere, there were reports of more military vehicles crossing through Kiev: if there are any more Molotov Cocktail video follow ups we will be sure to capture them.

Still, to expect president Yanukovich (or Putin) to just sit there and let the country be torn apart by secessionists is naive. As Reuters reportrs, Yanukovich accused pro-European opposition leaders on Wednesday of trying to seize power by force after at least 26 people died in the worst violence since the former Soviet republic gained independence. European Union leaders said they were urgently preparing targeted sanctions against those responsible for a crackdown on protesters who have been occupying central Kiev for almost three months since Yanukovich spurned a far-reaching trade deal with the EU and accepted a $15-billion Russian bailout.

Russian President Vladimir Putin's spokesman insisted the Kremlin was sticking to a policy of not intervening in Ukraine, although his point man has called for action to crush the protests. The Kremlin said Putin and Yanukovich spoke by telephone overnight, calling the events an attempted coup. Moscow announced the resumption of stalled aid to Kiev on Monday with a $2-million cash injection hours before the crackdown began.

So far, however, the implicit Russian backing of the Ukraine as is is not doing much as both the Ukraine Dollar short-bonds due June 2014 have fallen more than 2 points to a record low of 94.25 according to Tradeweb, while the Russian Ruble has just tumbled to its lowest levels against the dollar since 2009.

The market is finally starting to notice, and realize that nothing in the Ukraine is contained, and the consequences form a prolonged civil war would be dire for everyone involved. Which, as is the case in every proxy war, just happens to be everyone.

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buzzsaw99's picture

backers evicted or bankers evicted? same thing?

GetZeeGold's picture



So are we supporting the communists or the bankers.....or both?


I'm thinking maybe we should just back the hell out of there.

kliguy38's picture

"Back the hell out"......NO WAY...There's conflict to foment....and when there's conflict, there's MONEY.....and when there's money there's DEBT ...and DEBT is what the Bankers let's go HOT baby.....

HyBrasilian's picture

Just tell me when the Rothschilds central bank goes up...

ThirdWorldDude's picture

This just in: Arseniy Petrovych Yatsenyuk (better known as Yats from Nuland's intercepted phone conversation)...

"...graduated from the university in 1996, and later attended the Chernivtsi Trade-Economics Institute of the "Kyiv National Trade-Economics Institute" in 2001.[6]

From December 1992 to September 1997 he was the president of "Yurek Ltd." law firm, based in Chernivtsi.[6] From January 1998 until September 2001, Yatsenyuk worked in the Aval bank, based in Kiev.[6]

It is reported that Yatsenyuk graduated from the Kiev school of Dianetics and joined the Scientology organization in 1998, while working as a consultant for the credit department of Aval Bank. In the same year he signed a contract with the so-called "Sea Organization," the elite structure of the "Church of Scientology." Yatsenyuk is presently a high-ranking member of the sect and has a "level of auditing" called OT-6. His sister, Alina Petrovna Steele (aka Alina Jones), a citizen of the United States, is also connected with the Church of Scientology. Steele is active at the branch of the church in the city of Santa Barbara (USA, California) and she is at a lower level, OT-4, out of a total of 8..."

What's more important, however:

"From November 2003 to February 2005, Yatsenyuk served as the first vice-president of the head of the National Bank of Ukraine under Serhiy Tyhypko.[5] After Tyhypko left the National Bank, Arseniy Yatsenyuk was put in charge of the National Bank.[5]

After Vasyl Tsushko was appointed as the new Governor of Odessa Oblast, Tsushko asked Yatsenyuk to serve as his vice-governor, which he served from March 9 to September 2005.[5][6] From September 27, 2005 to August 4, 2006, he served as the Minister of Economy of Ukraine in the Yekhanurov Government.[5][7] Arseniy Yatsenyuk then headed talks about Ukrainian membership in the World Trade Organization. Yatsenyuk also heads the Ukraine-European Union commission..."

Proofreder's picture

So, this guy is a Total Nut Job

and he is pulling the strings, pressing the levers ... ?

We are so FBB.

Worthy of a Science Fiction plot.

Oh, wait, never mind.

BanksterSlayer's picture

Yup, "never waste a good crisis." I'm sure that Putin The Chessmaster knew exactly how things were going to roll in Ukraine, and he is patiently waiting for just the right moment to intervene.

duo's picture

"In bourgeois terms, it was a war between the Allies and Germany. In Bolshevik terms, it was a war between the Allied and German upper classes - and which of them won was of total indifference. My task was to organize defeat, so as to hasten the onset of revolution."

- From "Dr. Zhivago"

Arius's picture

it is one of my favorites scenes ... when he continues smt happy man dont volunteer to go to war (dissatisfied man do); and that the soldiers did not trust their crooked leaders and the one they trusted were some idealists.


back to Goering good summary that regular folks do not want war ...


yeah well, it is all for their own good; if we dont keep them occupied they might come after us kind of thing :)

i dont think that is the best way to rule, but i guess it has worked so far, and the young have no balls to change the way things are, or change a proven formula; it will change only because it has too ... probably in the future by a Spartakus.

i know this message passes a few steps and it could be read by the selected few .... well, it is not for the new ZH audience as Chindit13 nicely put it.

kralizec's picture

The best course of action is for both to stay out.  But I fear Putin will not be able to resist, and since he stated he is "sticking to their policy on non-intervention" he will therefor intervene and blame the West for the reason, just because their buffoonish actions make the accusation sound resonable.  Which will suck the West into it deeper and the people of Ukraine get to suffer more than they would have to if both sides just stayed the hell out.  The last line nails it - we all lose.

lordylord's picture

Half the people in the Ukraine want to be ruled by the EU. The other half wants to be ruled by Russia. Fuck both sides. They should want to rule themselves.

kralizec's picture

Indeed.  But the interventionists will win, and the people of Ukraine will lose.

RaceToTheBottom's picture

When they said dollar bond drops, I thought they meant US dollar.....

Not just yet....

glaucon was right's picture

The sound of the gongs of war can be heard now everywhere.


Happy 2014 to everyone!

eclectic syncretist's picture

Remember, when you open the bottle a small amount of the alcohol must be removed in order to stuff the rag in properly.  While some people prefer to spill it out on the ground in a kind of sacrificial ritual, most prefer to just drink it.

Stay thirsty, my friends.

Sudden Debt's picture

don't worry...

just buy Ukraine railroad bonds... can't lose.

disabledvet's picture

well...they do move in two directions.
Is there a publicly traded company you had in mind?

Millivanilli's picture

We, comrades, have been duped. The war was always with EURASAI instead of EUQAEDA.   


Slaps forehead.   Would someone start taking out the bankster vermin...

Remnant_Army's picture

“You will hear about wars. You will also hear people talking about future wars. Don’t be alarmed. Those things must happen. But the end still isn’t here. Nation will fight against nation. Kingdom will fight against kingdom. People will go hungry. There will be earthquakes in many places. All these are the beginning of birth pains."

DeadFred's picture

Krugman is counting on those earthquakes for GDP growth.

Time for Titus's picture

I am a "Bible is literal" kind of guy, and, Jack, you are completely misusing this verse. You embarrass those who responsibly use the bible.

drdolittle's picture

Which Bible? The original texts in Greek? The King James favorable King James version? Or, my own fav, the new international version? Which one is literally the exact words of God, unbent by the hand of man?

Did dinosaurs ever exist? They're not in the bible. Or, were they just not called dinosaurs? Maybe they were the talking serpent in the garden. Radiocarbon dating is all crap? The earth is a few thousand years old, despite all the competing evidence to suggest otherwise.

To each his own with regards to religion. A literal interpretation of the bible though? Not possible for a thinking person.

greatbeard's picture

> ask the author?

Sure, whom do you presume to be the author?

Free Wary's picture

The one who talks to me with a still small voice

nonclaim's picture

"Radiocarbon dating is all crap?"

Not all but some, since the discovery that half-life isn't exactly linear.

NoDebt's picture

I am not a bible-is-literal kind of guy but I still have to agree he did bang that one up pretty bad.

Buckaroo Banzai's picture

You may want to click the link before you start questioning motives.

hugovanderbubble's picture

Russia is next to suffer contagious effect, then Latvia, then Germany

Winston Churchill's picture

US Navy tours have trouble getting beyond the sandbar.

marginnayan's picture

Futures down just 6+ whole food points. Cartel not feeling the heat yet huh!

Dr. Venkman's picture

Down 6 can be considered a rout these days.

jovius's picture

Ukraine.  Not 'the Ukraine'.

We certainly are living in interesting times.

hugovanderbubble's picture

Ukraine will be splitted into 2 countries. Period WEST AND EAST

smacker's picture

"splut into two countries", not "splitted"

Murf_DaSurf's picture



Wow, many unemployed English Majors up early, I see ;->

satoshi411's picture

It's 6pm in Bangalore, and you can hire an english major for $1/day.

Anyone looking for a job?

cossack55's picture

I find English majors an incredible boor.  All "pips, polish and swagger sticks".  Still, for a buck a day I can use some yard work.  Do they ever take off their uniform?

DeadFred's picture

Why do NY City cabs have two sun visors if only the driver can sit in front?

-One is to display your cabbie license while the other is for your PhD in Comparative Literature

jovius's picture

Grammar.  It's the difference between knowing your shit, and knowing you're shit.

And more than just Americans now use the internet.  So no, it's not early here.

CultiVader's picture

Nothing wrong with English Lit. Perhaps a stereotype of its uselessness pervades Zh. To each their own i suppose but not everyone can be a STEM major. Books and the black market? Now that's fucking cool.

Tasty Sandwich's picture

It's funny because "splut" isn't a word either.

greatbeard's picture

Wouldn't splat be more appropriate?



BandGap's picture

I don't know what you base that on but I think you better look again. Ukraine is a big country (45 million people) and is strategic to Russia in a number of ways, most notably agriculture. This isn't as simple as that, and if it were, do you think Russia would like that message sent throughout the region.

I agree it would be the simplest with the least amount of bloodshed. Perhaps that's why there is little chance of this happening.

yrbmegr's picture

I understand 2/3 of the population is Ukrainian and 1/3 Russian, with a Russian president who is trying to increase ties with Russia while the Ukrainian majority want closer ties with Western Europe.  Sounds pretty intractable.