Did IMF Just Win The War Of Ukraine Debt Annexation?

Tyler Durden's picture

The Russians had dangled their multi-billion euro carrot - then swiftly removed it pending further details of who is really running the show (demanding a crackdown on the extremists who are trying to establish power).

The Europeans have promised an even bigger carrot - predicated on, we presume, total abdication of sovereignty.

But now the Americans are jumping in - Treasury Secretary Jack Lew "urged" Ukraine's interim leader Yatsenyuk to start talks with the IMF as he and Lagarde agreed the fund would be the best foundation for advice and financing (if sought by a fully established Ukrainian government).


Just this morning, Ukraine explained it needed $35 billion over the next 2 years...


The Russians have made it clear they are not amused... (via Interfax)

Moscow on Monday urged the Ukrainians to bring back the situation in their country into "the legal framework" and "crack down on the extremists who are trying to get established in power."


"We earnestly call upon all those who are involved in the crisis in Ukraine to show the maximum sense of responsibility, to take action to prevent the further degradation of the situation, to bring it back into the legal framework, and to crack down on the extremists who are trying to get established in power," Russia's Foreign Ministry said in a statement posted on its website, www.mid.ru.


The ministry expressed "extreme anxiety" over current developments in Ukraine.



"In the last few days, the capital and some other cities in the country have been sites of armed clashes between young rioters and militants from ultra-right nationalist organizations and law enforcement units that were defending the security of civilians and national interests," it said.


"The militants have not been disarmed, refuse to leave the streets of the cities that they de facto control and to vacate administrative buildings, and continue acts of violence," the ministry said.


"The agreement of February 21 on the settlement of the crisis in Ukraine is not being complied with, though its signature was authenticated by the ministers of foreign affairs of Germany, Poland and France whereas the United States and the European Union, and other international structures have welcomed this document," the statement said.

The Europeans, we presume, are hiding behind the IMF/US

Treasury Secretary Jacob J. Lew told Ukrainian leader Arseniy Yatsenyuk that Ukraine has support for an international aid package centered on the International Monetary Fund and urged him to seek assistance, a Treasury  official said.


Lew and IMF Managing Director Christine Lagarde agreed that the fund would be the best foundation for advice and financing if sought by a fully established Ukrainian government, the official said in an e-mailed statement.


Lew and Lagarde spoke on the way back to Washington from a meeeting of the Group of 20 nations in Sydney.

and to apply a little more pressure:



But it seems we have an answer... (from the newly-installed Ukraine central bank chief)


Which means only one thing: Russia's locked out and gas prices are about to skyrocket...


And of course, now the US realizes it might have Russia on the ropes...


U.S. Senator John McCain (R-AZ) today released the following statement on developments in Ukraine:

I am proud and overjoyed for the people of Ukraine. Their struggle for democracy, justice, and a European future is far from over, and it has come at a heavy price. But thanks to the sacrifice of many Ukrainian patriots, there is now new hope for Ukraine again.

“During this challenging time, the Ukrainian people have been fortunate to have dedicated friends. I commend the tireless efforts of U.S. Ambassador Geoff Pyatt and Assistant Secretary of State Victoria Nuland. From Brussels to Berlin, Paris to Warsaw, Vilnius to Budapest, European leaders have also played an important role. I have spoken in recent days to Vitali Klitschko, Arseniy Yatsenyuk, and former Prime Minister Yulia Tymoshenko, all of whom were grateful for the international support that Ukraine has received.

Now more than ever, the Ukrainian people need the continued support of their friends. The country is on the brink of economic crisis, and a host of difficult challenges awaits the new government and the Rada. Urgent reforms are needed to address many of the country’s unsustainable monetary, fiscal, and energy policies. Additional actions are needed to crack down on corruption, bolster the rule of law, deepen democratic institutions, and prepare for early elections. The path of reform will be difficult, but if the new Ukrainian government is prepared to make these tough – and, at times, unpopular – decisions, it will need significant assistance from the IMF and the European Union. The United States must be ready to provide additional assistance as well.

The Ukrainian people will also need the unwavering support of their friends on behalf of their country’s sovereignty, national unity, and territorial integrity. It is deeply concerning that some in Ukraine and Russia seem to be calling these principles into question. None of us should forget that Russian President Vladimir Putin has publicly questioned whether Ukraine is an independent country and whether Crimea is Ukrainian territory. Recent media reports, based on newly uncovered documents, allege that Russian intelligence officials were advising Ukrainian security forces in planning violent crackdowns. Ukraine’s future is for the Ukrainian people to determine, and the free world must send the unequivocal message that Ukrainian territory is inviolable and indivisible.

While the road ahead is fraught with many challenges and dangers, the Ukrainian people have created a new opportunity to pursue their dream of a democratic, prosperous, and European future. The United States and all of Ukraine’s friends must stand with them.”

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Headbanger's picture

Which is exactly what the Big Oil & Nat Gas thugs want!

stant's picture

"sasha turn off the tank they are gona pay thier rent bill for them"

max2205's picture

When will the tanks roll in to preserve order?

HamRove's picture

Which is exactly what the Big Oil & Nat Gas thugs want!

No they want the tears of children from war torn countires.

They inject it like heroine and get off for a few hours until they need another fix.

LMAOLORI's picture




We need a picture of McShame so we can print it off site and throw darts at it.

smacker's picture

She's on her way to the beach!

DoChenRollingBearing's picture

Wrong place for my post, sorry.


Greenskeeper_Carl's picture

what a choice.... "Which organization gets to own our populace as debt serfs for the rest of their lives" what a wonderful world

LeisureSmith's picture

I wonder how long it will take Ukraine to have GMO crops growing in their fields. The cynic in me thinks the usual suspects are allready on site ready to be sown this spring...but that's just me.

SDShack's picture

Irrigated with Chernoybl water. Soon will have stories about how Ukranians love freedom so much, they are GLOWING.

Not Too Important's picture

Well, now that Carlsbad, NM is powdered with plutonium, we need another site . . .

LawsofPhysics's picture

Congrats, another set of debt slaves to add to your PIIGS portfolio...



cora's picture

IMF is doing wonders in Greece.

LawsofPhysics's picture

Yes, lots of young greeks catering to very wealthy Germans.  Congrats, the parents of those greek whores must be very proud...


In this case, given a very clear Russian divide, something tells me that this isn't over just yet.

disabledvet's picture

it's over.

"number three export is wheat.
to Russia."

The IMF won't have any trouble tripling that amount.
Japan couldn't be any happier...provided the ships can get through Suez Canal.

You can add a zero to the "average Ukranian's salary" right now.

I'm not sure i'd be worried if I were a Russian in Eastern Ukraine as i'm about to get a huge pay raise.

Next up: "Moscow."

LawsofPhysics's picture

"I'm not sure i'd be worried if I were a Russian in Eastern Ukraine as i'm about to get a huge pay raise." - Bullshit, let's see if they adopt the Euro first.  Otherwise, yes, 200% pay raise in fiat with 1000% less purchasing power. "winning"

Son of Loki's picture

The EU has been pigging out on very cheap gas prices for the past few years. Enuff free-loading. Realistically, the price needs to be about 500% moar.


TheReplacement's picture

What about the fact (posted on ZH a while back) about Greeks having more wealth per capita than Germans?  How about the fact that Germans are working and Greeks are unemployed?  Who is working for whom?

HyBrasilian's picture

Quel surprise! [Here come the beanie counters]

Greenskeeper_Carl's picture

for the low low price of your national sovereignty, you and your country can be indebted to us forever. whats not to like? check out those greeks, they are doing great. don't you want to be just like them in a few years? then sign right here...

then those riot will be back in a few years when the populace realizes how screwed they are, but thatll be years from now, several election cycles, and we only care about the here and now, so fuck it

TahoeBilly2012's picture

Not trully "free" until Miley Cyrus schedules a concert there...that's when you know you have arrived.

Kirk2NCC1701's picture

Now the UPIIGS Portfolio.

Am now waiting for TUPIIGS, since Turkey has gold and is the perfect alternate route for NatGas from the Gulf.  Which allows for NatGas to be priced in USDs also, thus completing the NWO world rule via the USD.

"When the NatGas + Oil flows from the ME to the EU via Turkey, it will cease to flow via Ukraine:  "Check Mate, Boris" is my prediction.

Wax on, wax off.  Pipe On, Pipe Off.

Tracerfan's picture

So the IMF will be paying Russia a lot of money for gas on behalf of a bankrupt Ukraine.  What a great use of taxpayer money.

Kirk2NCC1701's picture

"So the IMF will be paying Russia a lot of fiat currency for gas on behalf of a bankrupt Ukraine.  What a great use of increasing taxpayer debt" would be more accurate, and telling.

"Here, Russia, have some moar of our confetti currency -- it's nothing."

cro_maat's picture

As long as Russia can exchange the fiat for manipulated gold on the CRIMEX what's not to love? / s

Ban KKiller's picture

Just sign here. No problem...the fine print says you give up your country. But you do get massive debt in return. 

HamRove's picture

Oh yeah, for Keynesians massive debt IS the silver lining.

Soverignty is Sooo 2008.

Urban Redneck's picture

Fire up the printing press... As if there is any money left in the Ukranian banks, perhaps it wasn't such a bright idea for the CB to put out a press release late last week saying "Open for business!" http://www.bank.gov.ua/control/en/

The Ukrainian banking system consists of the central bank (the National Bank of Ukraine, abbreviated as NBU) and 175 commercial banks with Top-20 players accumulating 70% of total assets (USD 91 bn). Compared to other countries of Central and Eastern Europe, the share of state and international capital in the sector is relatively moderate. International banking groups account for 42% of total assets.

And keep in mind the NPL estimates were 35-40% before the shitstorm of the last couple months started.

Seasmoke's picture

How did I wind up on Putin's side ???.....I feel like someone made it so I'm rooting for The Dallas Cowboys. 

somecallmetimmah's picture

In Russia, gas has you.  Not other way around.

TPTB_r_TBTF's picture

Why did you feel a need to choose sides?

TheReplacement's picture

You would be better saying screw both "sides" and cheer for the Ukrainian people.  Oh well, as long as people can cheer for Putin or the "West" the Ukrainians can go screw themselves.

People being idiots and cheering for those about to die.  Same as it ever was.

nasdaq99's picture

Putin wins again.  The west shells out all the money & he raises gas prices.................


What idiots run our economy.

Kirk2NCC1701's picture

As long as the West pays in confetti paper (USD, EUR) that costs the MFers NOTHING to create, does Putin/Russia really "win"? 

Seems to me that they still deplete their resources for King Confetti.  Thus, it is not 'idiots' but evil geniuses who run our country.

TPTB_r_TBTF's picture

"Money"?  Are you sure the West is shelling out money?


Who are the idiots holding out their hands to receive the newly-printed fiat?

The Ukranians are the idiots holding out their hands to receive the newly-printed fiat!


If these Idiots choose EU fiat, then Putin loses...

silvermail's picture

- I'm suspecting, that now in Ukraine there will be full freedom.

- And I'm suspecting that the first full freedom in Ukraine - it will be freedom from all Ukraine gold reserves!

- I'm suspecting that, it is one of the main conditions under which the EU is ready to give Ukraine a little of freshly printed colored papers.

Hello EU, freedom and
"western values", but Goodbye our Gold reserves! LOL

Winston Churchill's picture

SoP on IMF loan covenants.

The most important one, they don't want paper prmises to repay.


somecallmetimmah's picture

"LOL"?  What is this "LOL" you speak of?

beavertails's picture

Russian Invasion by end of the week.  Not that USA is playing Chess, Putin will play RISK.

Son of Captain Nemo's picture

Not that USA is playing Chess...

You got that right pal.  It's not even playing checkers at this point!

max2205's picture

Put all the unemployed in the EU in uniform and send them to Ukraine. ...IMF 2% growth rate accomplished

SilverRhino's picture

Yup.   And Kremenchuk bridge across the Dneper is going to quickly become VERY valuable real estate.   

Son of Captain Nemo's picture

"Treasury Secretary Jack Lew "urged" Ukraine's interim leader Yatsenyuk to start talks with the IMF as he and Lagarde agreed the fund would be the best foundation for advice and financing (if sought by a fully established Ukrainian government)."...

Somebody please correct me if I'm wrong but have we ever had such an outspoken Treasury Secretary in our history in full view of the World with his candor sacrificing himself as an accessory to treason by his own Government?

Un-hinged and "Un-Fucking" believeable!

Village-idiot's picture

The new government of the Ukraine has to have debt so that they can be controlled.

Kirk2NCC1701's picture

Looks like Putin missed that particular class.  He should've pulled the same stunt, thus having both Leverage and Pretext.

Clearly the two sides are playing by different rules of Financial and PR Warfare.

TheReplacement's picture

Sorry, I couldn't hear you.  Could you repeat that?