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:

  • *S&P DOWNGRADES THREE UKRAINIAN BANKS TO 'CCC'; OUTLOOKS NEG

 

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

  • *UKRAINE'S KUBIV PLANS TO INVITE IMF MISSION, UNIAN SAYS

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...

  • MCCAIN, SENIOR U.S. REPUBLICAN SENATOR, SAYS U.S. MUST BE READY TO PROVIDE ADDITIONAL ASSISTANCE TO UKRAINE

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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Mon, 02/24/2014 - 13:08 | 4471339 Headbanger
Headbanger's picture

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

Mon, 02/24/2014 - 13:08 | 4471347 reload
reload's picture

unleash the economic hit men

Mon, 02/24/2014 - 13:10 | 4471351 PR Guy
PR Guy's picture

 

 

They got the bit about "gas prices about to take off" wrong. The gas is about to be turned off. By Russia.

 

Mon, 02/24/2014 - 13:10 | 4471357 DoChenRollingBearing
DoChenRollingBearing's picture

It's a good thing that the USA has lots of natural gas.  Some for export even.

(Peru has natural gas too)

Mon, 02/24/2014 - 13:25 | 4471408 Divided States ...
Divided States of America's picture

So I guess its time the US sticks their big noses again into other people's business.....for future benefits. US aint no big brother....they just a bully waiting to take advantage of others...Like that fucker Rahm Emanual said...never waste a crisis.

btw, Rahm's full name is Rahm Israel Emanual. Look at Barrack Hussein Obama, Ben Shalom Bernanke. looks like fuckers in power all have some religious meaning in their name. I dont think its a coincidence.

 

Mon, 02/24/2014 - 13:29 | 4471421 Manthong
Manthong's picture

Within two weeks Russia runs Kiev and restores the government.

It won't be pretty.

Anybody heard from Germany lately?

Where did Angela come from again?

Mon, 02/24/2014 - 13:34 | 4471460 Rubicon
Rubicon's picture

Cue Syrian crisis

Mon, 02/24/2014 - 15:24 | 4471892 NoDebt
NoDebt's picture

I never thought the bidding for Ukraine's debt would exceed the $19B WhatsApp purchase price.

Obviously, I "vastly underestimated the amount of political commitment that European countries have in making the Euro a success."  

Mon, 02/24/2014 - 16:14 | 4472082 TheFourthStooge-ing
TheFourthStooge-ing's picture

New Ukraine "government" surrenders to IMF.

Mon, 02/24/2014 - 16:33 | 4472143 new game
new game's picture

will need to underwrite a hell-of-a cache of arms for imeadiate delivery-the russians are coming.

imf -instant money fix(with strings attached)

oh, calling obozo, fish head and dried-on for exemplary statesmanship in diplomacy(smoke and mirrors) to help democracy have a chance.

redux...

 

Mon, 02/24/2014 - 13:34 | 4471462 optimator
optimator's picture

East Germany '53, Hungary '56, Czechoslovakia '68 -- just when they thought they won.  My fear is that B.O. will not look the other way in this case.

A really neutral Ukraine that lets Russia have the Crimean Penninsula?

Mon, 02/24/2014 - 15:05 | 4471521 Manthong
Manthong's picture

??  Like President Steve Urkel is going to do anything about it?

He is powerless in that area.

Maybe he should consider doing an Inchon on Shanghai instead..

That's where all the gold is now.

Mon, 02/24/2014 - 13:37 | 4471477 BKbroiler
BKbroiler's picture

Boris, where are you?

Mon, 02/24/2014 - 14:10 | 4471599 KickIce
KickIce's picture

Boris is in a vodka induced coma since Rusian hockey team lost.

Mon, 02/24/2014 - 14:20 | 4471618 rsnoble
rsnoble's picture

Boris is busy pounding Natasha's ass raw after an exquisite dinner of fried squirrel. 

Mon, 02/24/2014 - 13:57 | 4471553 KickIce
KickIce's picture

I'm sure Putin is absolutely pissed seeing that they pulled this off when his hands were tied with the Olympics.  McCains support probably ensures US support.

Mon, 02/24/2014 - 19:40 | 4472892 Not Too Important
Not Too Important's picture

Oh, yes, you could see it on his face at the Closing Ceremony last night.

I wouldn't want to be the one to piss him off. Not in the slightest.

Mon, 02/24/2014 - 13:26 | 4471424 max2205
max2205's picture

McStain should stick to domestic affairs or quit....he is done AZ will not relect this retard

Mon, 02/24/2014 - 14:41 | 4471684 machineh
machineh's picture

“Now more than ever, the Ukrainian people need the continued support of their friends."

With 'friends' like Johnny McShame, who needs enemies?

Deport this criminal alien back to Panama where he came from.

Mon, 02/24/2014 - 17:14 | 4472304 The Limerick King
The Limerick King's picture

 

 

A limerick for Johnny McStain

Who went through some Vietnam pain

This guy hates the poor

But loves a good war

This Neo-Con nut is insane!

Mon, 02/24/2014 - 13:27 | 4471426 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Luciferian Oligarchy ties.

Mon, 02/24/2014 - 14:09 | 4471596 Tim_
Tim_'s picture

Rahm Israel Emanuel, Ben Shalom Bernanke, Jacob Joseph "Jack" Lew, and Victoria Jane Nuland are all jews.

Mon, 02/24/2014 - 19:44 | 4472908 Not Too Important
Not Too Important's picture

So? There are a lot of white psychopaths looting the US, too. And a few blacks, and some Asians, and those Muslim Brotherhood appointees . . .p

I mean, really, the US assraping is a multicultural activity. Let's give credit where credit is due.

Mon, 02/24/2014 - 13:24 | 4471412 James_Cole
James_Cole's picture

The international motherfuckers are here to help.

Mon, 02/24/2014 - 13:29 | 4471433 Possible Impact
Possible Impact's picture
Snakes On a Plane- Samuel L. Jackson

http://www.youtube.com/watch?v=vLaX8UvVUQw

Mon, 02/24/2014 - 15:26 | 4471901 PhilofOz
PhilofOz's picture

Watched it on Foxtel pay tv last night. About as unbelievable as almost everything else that comes out of Hollywood these days.

Mon, 02/24/2014 - 13:38 | 4471434 Stoploss
Stoploss's picture

It's called a demand spike. ;)

 

Im going to guess no one really looked at the direction, or colors, of all those arrows..

See, the last time the EU tried this, i recall, it got REAL COLD over in the EU.

Mon, 02/24/2014 - 14:35 | 4471663 Groundhog Day
Groundhog Day's picture

What happens if The Ukrainians figure out they are mere pawns and go after the pipelines?  Then we could have some firewrks

Mon, 02/24/2014 - 16:30 | 4472127 Luckhasit
Luckhasit's picture

Unleash the Kraken!

Mon, 02/24/2014 - 13:18 | 4471386 stant
stant's picture

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

Mon, 02/24/2014 - 13:28 | 4471429 max2205
max2205's picture

When will the tanks roll in to preserve order?

Mon, 02/24/2014 - 13:32 | 4471439 HamRove
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.

Mon, 02/24/2014 - 13:30 | 4471441 williambanzai7
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Mon, 02/24/2014 - 15:53 | 4472007 LMAOLORI
LMAOLORI's picture

 

 

William

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

Tue, 02/25/2014 - 19:09 | 4477830 smacker
smacker's picture

She's on her way to the beach!

Mon, 02/24/2014 - 13:11 | 4471350 DoChenRollingBearing
DoChenRollingBearing's picture

Wrong place for my post, sorry.

 

Mon, 02/24/2014 - 13:10 | 4471354 Greenskeeper_Carl
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

Mon, 02/24/2014 - 13:52 | 4471537 LeisureSmith
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.

Mon, 02/24/2014 - 14:18 | 4471613 SDShack
SDShack's picture

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

Mon, 02/24/2014 - 19:45 | 4472915 Not Too Important
Not Too Important's picture

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

Mon, 02/24/2014 - 13:10 | 4471356 LawsofPhysics
LawsofPhysics's picture

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

/s

 

Mon, 02/24/2014 - 13:15 | 4471373 cora
cora's picture

IMF is doing wonders in Greece.

Mon, 02/24/2014 - 13:22 | 4471399 LawsofPhysics
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.

Mon, 02/24/2014 - 13:31 | 4471448 disabledvet
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."

Mon, 02/24/2014 - 13:38 | 4471483 LawsofPhysics
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"

Mon, 02/24/2014 - 14:43 | 4471688 Son of Loki
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.

Forward!

Mon, 02/24/2014 - 15:05 | 4471795 TheReplacement
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?

Mon, 02/24/2014 - 14:20 | 4471619 SDShack
SDShack's picture

Isn't MyRA Greek?

Mon, 02/24/2014 - 13:16 | 4471374 HyBrasilian
HyBrasilian's picture

Quel surprise! [Here come the beanie counters]

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