Ukraine Capital Control Crunch: Largest Bank Limits Cash Withdrawals To $100 Daily

Tyler Durden's picture

As we warned on Friday, the military escalation in Ukraine has had dire consequences for the financial state of the country, its banks, and ultimately its people. The central bank promised to rescue domestic banks so long as they agreed to its complete control and it appears the first consequences of that "we are here to help you" promise is coming true:


Privatbank is Ukraine's largest bank and while claiming this move is temporary (just like Cyprus' capital controls), the bank has also ceased new loans amid what it calls "geopolitical instability". In summary, you can't have your money back! Expect long angry lines at Ukrainian banks on Monday morning (and at the pace of collapse in the Hyrvnia, hyperinflation next).


Via WSJ,

Ukraine's largest commercial bank, Privatbank, announced temporary limits on cash withdrawals for its account holders and suspended writing new loans, saying in a statement the measures were intended to stop those undermining the political situation in the country. "A temporary limit on withdrawals is needed to stop the forces that are working to destabilize the situation [and] are using the cash for [their] sabotage," the bank said in a statement. The bank didn't clarify which political forces it was referring to.


The bank first announced withdrawal limits of 1,000 hryvnia ($103) a day at both automated teller machines and in over-the-counter transactions.




Privatbank's announcement was the first case in which a major Ukrainian bank has limited customers' immediate access to cash in the local currency since the military tensions erupted. Privatbank is the largest retail bank by number of clients in Ukraine, a country of approximately 45 million people.


Last week, the National Bank of Ukraine introduced a $1,500 daily limit on foreign-currency withdrawal.

But perhaps the most notable, somewhat hidden, comment from the bank was this:

Privatbank said it was suspending all its credit lines issued to both private and corporate customers, including credit cards. It said it would no longer accept debit cards from other banks in the Crimea.

In other words, we won't allow the people of Crimea (the region now in play with the Russians) to 'run' on our bank...

Privatbank said its measures were a "rational" response to the current situation and they were designed to help the bank serve its customers and protect the national currency.

We wonder what 'loophole' the uber-wealthy will find (as in Cyprus deposit shifts to the UK) to extract their deposits before the real capital controls collapse the currency.

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Millivanilli's picture

The shit storm is brewing.   


Here is the architect

Covert United States foreign regime change actions


2 During the Cold War
2.1 Communist states 1944–89
2.2 Syria 1949
2.3 Iran 1953
2.4 Guatemala 1954
2.5 Tibet 1955–70s
2.6 Indonesia 1958
2.7 Cuba 1959
2.8 Democratic Republic of the Congo 1960–65
2.9 Iraq 1960–63
2.10 Dominican Republic 1961
2.11 South Vietnam 1963
2.12 Brazil 1964
2.13 Ghana 1966
2.14 Chile 1970–73
2.15 Argentina 1976
2.16 Afghanistan 1979–89
2.17 Turkey 1980
2.18 Poland 1980–81
2.19 Nicaragua 1981–90
2.19.1 Destablization through CIA assets
2.19.2 Arming the Contras
2.20 Cambodia 1980–95
2.21 Angola 1980s
2.22 Philippines 1986
3 Since the end of the Cold War
3.1 Iraq 1992–96
3.2 Afghanistan 2001
3.3 Venezuela 2002
3.4 Iraq 2002–03
3.5 Haiti 2004
3.6 Gaza Strip 2006–present
3.7 Somalia 2006–07
3.8 Iran 2005–present
3.9 Libya 2011

PR Guy's picture

They have no gas left in the tank. Putin will economically cripple them as well as militarily

BaBaBouy's picture

Ya Gata LOVE All These Banks... Bitchez

Occident Mortal's picture

If history is anything to go by... Half a dozen Russians will simply fly to London and empty all the Ukrainian banks from there.

BaBaBouy's picture

GOLDMan Is Hovering........... Bitchez

knukles's picture

Betcha Nasty McMunger wishes he had all them hyr-nirvana's sewn into his undies round abouts

strannick's picture

What a bunch of banana republic. I'm glad our govt will never let that happen here

Cap Matifou's picture

You forgot the LOLs from the end of the sentence.

strannick's picture

With this gang lols would be redundant and insulting

klockwerks's picture

Looks like they come complete with brown skid marks to.

CrashisOptimistic's picture

The most important part of that chart you posted is to understand that Norway is in decline.

Jack Burton's picture

Today on CNN a former US ambassador to Ukraine said the EU should look to the USA for it's gas needs. We, apparently, are prepared to send natural gas to the EU. No, I'm not drunk, I heard it just 20 minutes ago on CNN.

SDShack's picture

the biggest problem was the coup plotters only had part of the seige mentality correct. The seige was easy to pull off in a single capital city... Kiev. But the real power (financial, economic, energy and military) in Ukraine is in the South and East, all influenced by Russia. The coup plotters are about to be on the recieving end of the next seige.

algol_dog's picture

Can anybody tell me what the Hell the difference is between what Russia is doing now (to protect their interests), and what the US has been doing all over the globe since 9/11 and beyond? Or, maybe it's considered different when drones do it instead of tanks ...?

Pheonyte's picture

The difference is they're not us.

Meat Hammer's picture

They don't have slow-motion eagles and military fly-overs at baseball games.

Jack Burton's picture

Great one as always Meat Hammer! The difference between the USA invasion of Iraq, and Russia's actions, not yet takes, are that we are we, and that makes all the difference.

Paul Craig Roberts said yesterday that the Neocons in Washington have lost their minds, they are provoking Russia in a crazy "end game" to put NATO missiles and tanks a short flight or drive from Moscow. According to Roberts, if Putin backs down, it will be seen as unconditional surrender to NATO. I too believe we are in an end game here. The west has gone as far as they can go, now we are down to the nuclear option.

akak's picture

Government of USA and/or its lackies doing it = "protecting vital national interests"

Governments of other nations doing it = "Evildoing"

Crash Overide's picture

"Can anybody tell me what the Hell the difference is between what Russia is doing now (to protect their interests), and what the US has been doing all over the globe since 9/11 and beyond?"


Look at the military budgets maybe.

RafterManFMJ's picture

The difference is simple; the Russians will win.

Crash Overide's picture

"Berezovsky Defects After Just One Day On The Post"

Says: Warship is have no gas to make move...

Buck Johnson's picture

It's winding down and Putin is laughing to the bank.

Renewable Life's picture

I hope all these people have silver or gold, otherwise it's bread lines and refugee camps for them!!!!

Good thing America doesn't have some bullshit toilet paper currency, not backed by anything real, but bluster and press conferences............oh wait!!!

johnQpublic's picture

you forget, our currency is fully backed by the full faith an presence of our military

knukles's picture

And John Kohn's bold comments

Renewable Life's picture

I stated that it was...."back by bluster and press conferences"!

Because you can't be serious about the current military doing anything but spying on and droning everything in sight!! There is no doubt we have a distinct technological advantage over the peoples of the third world, that we have been attacking and bombing into oblivion for the last 25 years!!

However, there is zero evidence that we can execute a real military strategy on the ground that accomplishes anything other then mass causilties and chaos, and results in withdrawal!! Not surrender, not victory, just withdrawal!!!

And you think, this is what backs your global currency??? What backs your USD is the simple fact, that the rest of the world has been either too lazy or scared to switch to something else, but believing it has something to do with Americas superior performance on the battlefields of the ME or because we drive our ships all over the planet, non stop, is well.......untraveled and uniformed to the reality of Americas place in the world ala 2014!!!!

For the record I think the individuals in the US military are exceptional people for the most part, including members of my own family and very close friends, but reality is reality, and I say the same thing to them as well!! And reality is this.......the next "era of history" on this planet has already begun, and it's going to be dominated and completely ruled by hard assets and natural resources, toilet paper currencies are over and will die a horrible death in this new era that is emerging!! The US Military, it's citizens, and it's politicians better realize this and that our USD is just another paper currency, that won't and can't be defended going forward!!!

Dollarmedes's picture

"... backed by the full faith an presence of our military"

But mostly the presence of our military...which is now being drastically cut.

I guess we're about to see what a currency backed by faith alone is worth.

skwid vacuous's picture

$100 seems plenty I'm sure the vodka and street whores are pretty cheap

CrashisOptimistic's picture

Silver and Gold would not get through the airport xrays.

What they have to have to be portable is bitcoins, and everyone reading this knows it.

DoChenRollingBearing's picture

Yes.  BTC would get through the x-rays if you flee.

Gold, platinum and silver are good if you stay.

Mine Is Bigger's picture

Yes.  And you can buy precious metals with bitcoins after you fleed (at least for now), just as you demonstrated (thank you!), DCRB!

sushi's picture

The NSA is able to observe thousands of citizens engaged in phone sex but was unable to see the Ukranian crisis coming? Clearly they are underfunded by several billions.

Smegley Wanxalot's picture

The NSA needs to learn to actually read Zero Hedge, and not just use it to track our IP addresses.

Maximilien Robespierre's picture

We can be sure they're doing both.



Crash Overide's picture

I am sure the NSA played a part in helping the State Department destabilize the Ukraine, they did however forget to tell Victoria Nuland not use her Obamaphone.

MeMongo's picture

Tangible assets for barter bitchez!

Smegley Wanxalot's picture

Well, I see the EU-supported junta running Ukraine now is doing exactly what the EU loves to do: freeze assets and steal everything. They are doing it fast this time because Putin is going to stop them in short order.

You happy now, Ukrainians?

TheFourthStooge-ing's picture

They don't need their money when they can breathe in the sweet air of freedom!

You happy now, Ukrainians?

How could they not be happy after the success of their glorious, peaceful, legitimate people's uprising?

Jack Burton's picture

Yes, the news is full of USA and EU freezing bank accounts of Russians. All they know to do is steal money. It is what they do.

icanhasbailout's picture

You did notice that the new Ukraine "PM" (and I'm not sure how legitimate that claim to power actually is) was a former exec at the Ukrainian central bank?

Thought Processor's picture



That's telling.  Same story everywhere.  Central bank bondage.







nmewn's picture

People still have bank accounts?

How quaint.

CPL's picture

Silver, gold, BtC.  Those are the options in that situation.

johnQpublic's picture

vindicating fonestar one revlution at a tme

DoChenRollingBearing's picture

Yes, both of you (CPL and jQp) have that right.

sessinpo's picture

I see very little action in bitcoin in the Ukraine. People in these countries are just happy to have food in times like this. Since they have no 2nd Amendment, throw out the idea of defending themselves. The few that have any PMs are lucky if they can keep them

Al Capowned's picture

Remember its not neccisarily the people in the country buying Bitcoin, its the people all around the world looking at Ukraine going shit this is probably going to happen here as well.

Same with Gold and Silver