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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 - 15:04 | 4471784 Lost Word
Lost Word's picture

The Clintons are puppets, of course,

along with all the other politicians,

according the Deep State scenario.

Mon, 02/24/2014 - 13:59 | 4471549 Bastiat
Bastiat's picture

Russia has this situation gamed and planned to death for years, no doubt.    That doesn't guarantee success in the conflict but their response won't be haphazard and ad hoc.

Mon, 02/24/2014 - 13:58 | 4471555 Seize Mars
Seize Mars's picture

My god it makes me sick.
When this happens in America, and it will, remember that any solution that ends with promises of "new elections " and a "restoration of the constitution" along with an IMF deal means you're losing, so keep fighting.
Understand?

Mon, 02/24/2014 - 14:39 | 4471676 cro_maat
cro_maat's picture

"When this happens in America" we can have the IMF negotiations in the guillotine room.

Mon, 02/24/2014 - 15:08 | 4471812 Lost Word
Lost Word's picture

The old Constitution is ignored by the (NWO) Government,

but some (NWO) people would still like a new (NWO) Constitution,

just in case the people decide to fight for the old Constitution.

Mon, 02/24/2014 - 13:58 | 4471559 bankonzhongguo
bankonzhongguo's picture

It is pretty clear that while Putin was all worried about the snow in Sochi, the West had a fully implemented plan for Ukraine.

Welcome to the big leagues.

With Winter almost over, Russia shutting down gas to the EU will be a dead cat bounce.

Until you see Russian armor driving around the south and Belarus, I would say that Putin is Obama's bitch.

Who would of thought Putin a Power-Bottom.

Or Barry a Top.

This Ukraine "student" government will suck the IMF tite.

"The Ukraine is weak."

Mon, 02/24/2014 - 15:04 | 4471791 MeMongo
MeMongo's picture

"Who would've imagined barry soetero a top"?

 

ANSWER! Reggie Love

Mon, 02/24/2014 - 15:10 | 4471822 Lost Word
Lost Word's picture

I don't think the new Non-Russian natural gas pipelines will be completed in less than a year.

Wait till next winter.

Mon, 02/24/2014 - 14:02 | 4471561 tony wilson
tony wilson's picture

a good day for chevron and bp.

a smile on the soros killers face.

simply superb place to start the monsanto gm change.

chemtrailing will get heavy starting in a few weeks that ukraine  soil is just way to fresh and organic.

a good day for the child killers and lovers of lucifer and  saturn.

 

rothschild chatham house been working on this shit for years.

 

 

Mon, 02/24/2014 - 14:18 | 4471614 Son of Captain Nemo
Son of Captain Nemo's picture

"simply superb place to start the monsanto gm change."...

Monsanto was here!

Mon, 02/24/2014 - 14:25 | 4471568 JPMorgan
JPMorgan's picture

Well taking a loan from the IMF is like the kiss of death. They are better off sticking with Russia for a deal.

Recommended viewing: Confessions of an Economic Hitman

http://www.youtube.com/watch?v=aqIHKWd9rSc

BTW love the IMF madmax pic, who runs bartertown?

Mon, 02/24/2014 - 14:03 | 4471576 Blood Spattered...
Blood Spattered Banner's picture

Kind of reminds me of the central bank that was installed within 2 weeks in Libya after Qadaffi's demise.

These fuckers at the central banks skip the foreplay these days.  The ink hasn't had the chance to dry before a nation becomes debt prisoners.  Part of the problem is the Ukraine opposition is just as dumb as the rest of the world when it comes to finances. 

The bigger problem is that this has been the end-game the entire time.  Force Yanu out, coerce opposition group into "western-friendly" economic arrangement, pillage citizen wealth.  Controlling the pipelines is just a bonus at this point.

Mon, 02/24/2014 - 14:32 | 4471654 Bastiat
Bastiat's picture

You nailed it.  The Libya central bank thing was sinister and bold.  Where do you think Libya's gold is now?

Mon, 02/24/2014 - 14:09 | 4471597 fijisailor
fijisailor's picture

The Ukranian crisis is manipulated by the type of people who risk thermonuclear war for profit.  This is complete insanity.

Mon, 02/24/2014 - 14:19 | 4471615 Dollarmedes
Dollarmedes's picture

Putin will allow the IMF/Europeans/West to pay for the bailout, then rig the elections in May to install another puppet like Yanukovych.

Mon, 02/24/2014 - 14:38 | 4471672 Dollarmedes
Dollarmedes's picture

Think about it: there was an Orange revolution, and yet Yanukovych ended up in power anyway with the opposition leader in jail. Putin will decide who the next president is, so don't kid yourselves.

 

Putin also does not want to roll tanks into Ukraine...that is the last resort, and will happen only if the situation can't be manipulated to his advantage. Invasion not only costs him money, but it risks retaliation from the west and exposes him as a dictator. That increases his risk.

Putin also does not want to "shut off the gas." He may increase the prices somewhat, but there are two problems:

1) Spring is coming, so the point of maximum leverage is passing away.

2) If gas prices go up too much, it will incentivize the west to frack in Poland, Romania, et al. That would be a mortal blow to Gazprom.

Mon, 02/24/2014 - 15:20 | 4471867 Lost Word
Lost Word's picture

Putin didn't wish to increase natural gas prices for Ukraine, if it stayed allied with Russia,

since Russia was subsidizing Ukraine's economy,

but otherwise, if Ukraine goes west, everyone in Western Europe likely to pay more.

And if prices go up too much, more incentive for alternate sources, alternate pipelines, LNG by tanker ship, etc.

Mon, 02/24/2014 - 14:23 | 4471626 spellbound
spellbound's picture

McCain:"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."

Were Iraq, Libya, Syria as sovereign as Ukraine?...or not as much?

Mon, 02/24/2014 - 14:25 | 4471634 bitHedge
bitHedge's picture

Putin is no Khrushchev, no tanks will be rolling in anytime soon. He is former secret intelligence. I think he will hit the EU/USA in the kidneys. Something like:

1) pulling negotiations over Iran, and pushing the Israel lobby to humiliate the clown in chief. 

2) shutting nat gas supplies and re-routing to Asia

3) selling weapons to Turkey and inviting then into the Shanghai cooperation Union which they are an observer in

 

Just my thoughts, Putin studied ju jitsu. The art of letting the enemy strike first, and then use their weight and motion to bring then down hard

Mon, 02/24/2014 - 14:26 | 4471636 geno-econ
geno-econ's picture

Only six more weeks and the cash runs out and onset of rationing, reductions in pension payments, gov. layoffs, food shortages and fuel shortages for industry. Meanwhile promises of advice and unspecified financing via IMF with conditions that cannot be met by new " regional interim government ".
Russian offer for loans also conditional on " proper behavior ".
Sounds like a stalemate.
However, Russians have troops on the ground ready to be welcomed in Eastern region justified by protection of nationals and navel port agreements. Also, Eastern region has most of Ukraine industry which can still operate while the Western region would languish teetering on default and completely dependent on IMF which has already stated loans would only be extended to a unified Ukraine. In other words, any Western loans can only be paid back with a vibrant industry which is located in the East !
Advantage Russia !

Mon, 02/24/2014 - 14:29 | 4471641 rsnoble
rsnoble's picture

I'm getting 2 images in my head, one the pervert at the gradeschool with a bag of candy bars and the other the clown from "IT" when he's looking up at the street thru the sewer. 

Mon, 02/24/2014 - 14:33 | 4471656 Bastiat
Bastiat's picture

Perfectly appropriate.

Mon, 02/24/2014 - 14:37 | 4471666 22winmag
22winmag's picture

Extremists?

 

Extremism in the defense of liberty is no vice!

Mon, 02/24/2014 - 14:53 | 4471748 halfawake
halfawake's picture

"I commend the tireless efforts of U.S. Ambassador Geoff Pyatt and Assistant Secretary of State Victoria Nuland." Wait, Victoria "#f*cktheeu" Nuland, or a different one?

Mon, 02/24/2014 - 14:53 | 4471749 strannick
strannick's picture

I say Putin lets Ukraine take the IMF $, then lets the tank roll shortly after...

Mon, 02/24/2014 - 14:54 | 4471755 Invinciblehandaxe
Invinciblehandaxe's picture

FUCK nazi IMF

Mon, 02/24/2014 - 15:52 | 4472008 gdpetti
gdpetti's picture

McCain sounds like Cicero... history repeating itself, and time is running out for the entire NWO gameplan. It's always the actors waiting in the wings that the audience forgets about.

Mon, 02/24/2014 - 16:49 | 4472197 Flakmeister
Flakmeister's picture

McCain couldn't touch Cicero's jock strap if his life depended on it. Assuming thats what he wore under his toga...

Erudite people still read and quote Cicero 2000 years later, in 20 years John McCain will be a footnote in history...

Mon, 02/24/2014 - 19:46 | 4472921 Leraconteur
Leraconteur's picture

Debt slavery on the White Courtesy Phone...

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