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Will The First $3 Billion Of A Ukraine Bailout Immediately Go To Russia?

Tyler Durden's picture




 

Submitted by Pater Tenebrarum of Acting-Man blog,

This is really too funny. Apparently, the Ukraine owes $3 billion to Russia in bonds that have been issued under UK law. One of the stipulations of the bonds is that if the Ukraine's debt-to-GDP ratio should exceed 60%, the bonds will become immediately callable.

Once the Ukraine gets funding from the IMF,  this is of course going to happen right away – its debt-to-GDP ratio will then most definitely exceed 60%, so the first $3 billion of any aid the Ukraine receives in the form of loans will right away flow into Russia's coffers.

Of course there may be litigation first, but as Greek bondholders have found out, all those who held bonds issued under UK law were actually paid in full, while everybody else had to accept the 'PSI' and could basically go pound sand.

Of course it was all 'voluntary', but funny enough, the holders of Greek bonds issued under UK law didn't turn out to be as altruistic as all the other ones. At least we have not heard of any 'voluntary' contributions made by them. It seems rather doubtful that Mr. Putin will be eager to become a voluntary contributor to bailing out a government which he deems illegitimate. Instead he's going to take his money and run – or alternatively, make as-of-yet unspecified demands.

According to NBC:

As Western leaders prepare a bailout package for embattled Ukraine, they face a startling irony: Thanks to the almost bizarre structure of a bond deal between Ukraine and Russia, billions of those dollars are almost certain to go directly into the coffers of the Putin government.

 

As CNBC has reported, some aid money is bound to go into Russia as a result of energy trade and other economic factors. But the situation is actually much more acute than just that: An existing agreement between the two countries makes an immediate, direct transfer from Ukraine to Russia legally enforceable.

 

In December, Russian President Vladimir Putin agreed to lend Ukraine $15 billion. Few details were released at the time, except that Ukraine would issue bonds and Russia would buy them in installments through 2014.

 

The first and only installment occurred in late December, while then-Ukrainian President Viktor Yanukovych was still in charge in Kiev. The second installment was slated to happen in late February, but it never occurred, because the pro-Russian president had fled Ukraine and a new government was in place.

 

That first installment was $3 billion — in U.S. dollars, as dictated by the terms of the deal — issued on Dec. 24. It carries a lenient interest rate considering the shattered state of Ukraine's economy: a coupon of only 5 percent, payable semi-annually on June 20 and Dec. 20. It is short-term debt, maturing on Dec. 20, 2015.

 

Startlingly, the notes are governed by U.K. law and subject to the exclusive jurisdiction of British courts. And most crucially, there is an odd clause in the bonds that has a direct impact on European and American taxpayers, as CNBC learned through a review of the bond agreement:

 

Paragraph 3 (b) under Covenants:

 

(b) Debt Ratio So long as the Notes remain outstanding the Issuer shall ensure that the volume of the total state debt and state guaranteed debt should not at any time exceed an amount equal to 60 percent of the annual nominal gross domestic product of Ukraine.

 

The implications of that clause are that the minute the West or the International Monetary Fund extends a large loan to Ukraine, that country will almost certainly have a debt-to-GDP that exceeds 60 percent, immediately putting the Russian loan into default. That gives Russia the right to demand immediate repayment. And because the bonds are governed by British courts — which, presumably, neither Ukraine nor Russia can manipulate — it would be extremely difficult for Ukraine to avoid making the payment, using its new bailout money.

 

(emphasis added)

The American and European tax cows will no doubt be thrilled.

 


 

Putin-gimme

Gimme!!!   Putin unexpectedly sees his money reappear via IMF magic.

(Photo source unknown – The Web)

 


 

Putin-GIMMMEEE

If he doesn't get it right away, he will look like this.

 

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Fri, 03/14/2014 - 14:49 | 4549027 CrashisOptimistic
CrashisOptimistic's picture

Sorry, we've seen this movie before.  If a declared Greek default triggering swaps would take the system down, then the agency that does the declaration will be given their instructions.

If a debt/GDP ratio would cause some horrible event, then the agency that computes that ratio will be similarly given their instructions.

Fri, 03/14/2014 - 14:51 | 4549045 LawsofPhysics
LawsofPhysics's picture

Correct, let me be clear.  Nothing really changes until the supply lines break in earnest.

I remain long sharecropping, physical assests, and a dependable tribe.

Fri, 03/14/2014 - 15:05 | 4549112 Boris Alatovkrap
Boris Alatovkrap's picture

You are watch...! When USSA or IMFUBAR is provide emergency loan for Ukraine, Ukraine is not pay $3B owe to Russia, but is use for purchase weapon from USSA military industrial complex. You are shortly witness abandonment of law and principle, not by only Ukraine, but by is every Western Nation. More amazing, bond and investment market is not to even twitch muscle. You are mark words of Boris!

Fri, 03/14/2014 - 15:09 | 4549132 Missiondweller
Missiondweller's picture

I think allssues of law ended when Russia invaded a sovereign country who's borders they agreed to respect.

Fri, 03/14/2014 - 15:13 | 4549147 fonzannoon
fonzannoon's picture

Ukraine will use the 3bil to buy facebook on this dip.

Fri, 03/14/2014 - 15:35 | 4549261 asteroids
asteroids's picture

IF the Ukrane does default on its bonds to Russia. Russia will invade and take possesion of the capital the bonds were pledged against. All perfectly legal.

Fri, 03/14/2014 - 15:49 | 4549372 negative rates
negative rates's picture

I've heard of by the balls before, but wouldn't this have been better done by a simple hand shake?

Fri, 03/14/2014 - 16:23 | 4549534 eurogold
eurogold's picture

Ukraine did it to themselves, so yes the money goes to Russia.

Fri, 03/14/2014 - 16:58 | 4549704 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

The American and European tax cows will no doubt be thrilled.

Mooooooooooooooo!

Fri, 03/14/2014 - 23:32 | 4551011 WMM II
WMM II's picture

ukraine ceases to exist if crimea breaks off.

what is left may be labeled 'ukraine' on the maps, but it clearly is no longer the same entity it once was.

poof.

and there goes all old ukrainian debt.

it would be utter and complete nonsense for the 'laws of the u.k.' to claim reign over that.

as for the legality of invasion as a means of debt collection (putin invades ukra)... ummm let's see... probably a response an order of magnitude greater than that.

the world is done with these kinds of antics.

 

:)

 

Fri, 03/14/2014 - 15:14 | 4549153 Jack's Digestib...
Jack's Digestible Ideas's picture

Don't feed the trolls.

Fri, 03/14/2014 - 15:22 | 4549188 Toolshed
Toolshed's picture

"Don't feed the trolls."

.......or the .gov paid shills.

Fri, 03/14/2014 - 16:00 | 4549429 Lost My Shorts
Lost My Shorts's picture

Troll or not, the guy's got a point.  What would UK courts say about paying debts to someone who invaded you?  Could the debt be declared odious if incurred under the former baroquely corrupt pro-Russian president?  This story is more complicated than a Tennessee Williams play, and the tickets to watch are a damned lot more expensive.

Let's just skip it and watch bball, or paint dry, or anything else, pleeeeeeze.

Fri, 03/14/2014 - 20:24 | 4550422 silvermail
silvermail's picture

Again: The concept of "invasion" can not be used when requests for military assistance legitimate and democratically elected President, with the support of 80% of the population.

Fri, 03/14/2014 - 15:15 | 4549157 TheFourthStooge-ing
TheFourthStooge-ing's picture

Cellardweller still swallowing the MSM line. He probably believes in the "recovery" too.

Because Obama.

Fri, 03/14/2014 - 15:20 | 4549178 Uncle Remus
Uncle Remus's picture

Of course those laws don't apply to the US or Israel.

Fuck.

You.

Fri, 03/14/2014 - 15:21 | 4549181 Toolshed
Toolshed's picture

"I think all issues [sic] of law ended when Western powers broke their promise, to Russia, to not set up shop on Russia's doorstep."

FIFY

Fri, 03/14/2014 - 15:31 | 4549189 Chief KnocAHoma
Chief KnocAHoma's picture

Surely we will impose certain limitations on how the money can be spent. When I was in college and my parents sent me money they said it was for food, gas, schooling etc, not to be used for beer, weed, chicks...

Ok so that was a bad example, but you get my point.

Fri, 03/14/2014 - 20:40 | 4550475 silvermail
silvermail's picture

According to law, the credit - is the property of the borrower. Since credit, haved all three signs forming the concept of " ownership": Possession, Use and Disposal.
Instead obtained ownership funds from the Creditor,
debtor acquires monetary liabilities to the Creditor. That is, the debtor is obliged to return the money to the Lender , in the period and under the conditions defined by the Credit Agreement.
In such circumstances, the court will be forced to foreclose money from Ukraine to Russia's favor, regardless of the purpose and objectives of the loan received by Ukraine from any third parties, including the United States.

Fri, 03/14/2014 - 15:26 | 4549208 UpAndComing
UpAndComing's picture

This is what happens when you forget the /sarc

Fri, 03/14/2014 - 15:46 | 4549354 kchrisc
kchrisc's picture

"I think allssues of law ended when Russia invaded a sovereign country who's borders they agreed to respect."

"Law," and whatever, went out the window on 20 March, 2003 in a place called Iraq.

 

"Mission Accomplished": Still treasonously funny after all these years.

Fri, 03/14/2014 - 20:22 | 4550416 silvermail
silvermail's picture

The concept of "invasion" can not be used, when requests for military assistance legitimate and democratically elected President, with the support of 80% of the population.

Sat, 03/15/2014 - 08:21 | 4551532 BigJim
BigJim's picture

 I think allssues of law ended when Russia invaded a sovereign country who's [sic] borders they agreed to respect.

Technically speaking, they haven't invaded Ukraine yet. They have the right to station up to 25,000 troops in Crimea, and, as far as I know, they're still all in there.

 

Fri, 03/14/2014 - 17:52 | 4549919 LMAOLORI
LMAOLORI's picture

 

 

Some people are willing to spend us into the ground for this regime change. I don't really like to use the kind of filthy language that it takes to describe how I feel about them.

Sat, 03/15/2014 - 04:03 | 4551370 MeelionDollerBogus
MeelionDollerBogus's picture

Wait, how is Ukraine get any moneys if is UK court?

If UK court break bond and law, how is other bond stay above zero worldwide? Many bond rehypothecates in London.

Fri, 03/14/2014 - 15:42 | 4549316 mac768
mac768's picture

Sure, just wait until Russia shuts the GAS OFF Europe

Fri, 03/14/2014 - 15:20 | 4549154 y3maxx
y3maxx's picture

This will not end well friends. Pretty much every option the West utilizes to protect the US Dollar Reserve Fiat, we can note an increase in abandonment of Law.(Thanks Boris) With a point of no return closing in, a desperation False Flag occurs and WW#3 breaks out.

Fri, 03/14/2014 - 15:55 | 4549402 BlindMonkey
BlindMonkey's picture

I will gladly trade DC and NYC for Moscow under 2 conditions:  I want the Fabrage eggs out of Moscow and I want the shuttle Enterprise out of NYC and moved to Houston where it belongs first.

 

Everything in DC can stay...

Fri, 03/14/2014 - 15:27 | 4549212 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

If a debt/GDP ratio would cause some horrible event, then the agency that computes that ratio will be similarly given their instructions.

Bullish for all those "Friends of Angelo" like Moody's, S&P, Fitch, LPS, MERS, Linda Green, et al. Their math will always show debt to GDP of less than 60 percent.

Now everybody just keep quiet and don't mention Egan-Jones, dammit.

Fri, 03/14/2014 - 15:48 | 4549367 Panafrican Funk...
Panafrican Funktron Robot's picture

It will be interesting to see how this plays out.  Not paying the Russians seems like the worst case scenario here as far as systemic stability, but maybe systemic stability is no longer the goal?

Sat, 03/15/2014 - 04:01 | 4551368 MeelionDollerBogus
MeelionDollerBogus's picture

And that precedent will apply to all jurisdictions, all bonds, and the bond market worldwide will collapse. It's like deciding if the Russians launch nukes you detonate your own - without launching them.

SMRT.

Fri, 03/14/2014 - 14:50 | 4549030 crazzziecanuck
crazzziecanuck's picture

Hilarity ensues.

 

This assumes that the Western parties would actually honour the terms of the agreement.  But given how we break them whenever we see fit, it's unlikely.  After all, George H Bush promised Gorbachev that NATO wouldn't expand into Eastern Europe as the price to be paid for German Reunification.

Fri, 03/14/2014 - 15:20 | 4549168 Urban Redneck
Urban Redneck's picture

Rex Tillerson himself will get on the phone and tell Pillsbury dough-boy Cameron to pull the pedophile files on the entire British judiciary if need be.  

Russian bankers are just as sophisticated as NY bankers when it comes to making sure they get their "fair share"

If the US or UK does anything to try and circumvent or neuter the Washington Convention, then ALL the offshore assets the globalist oligarchy are open and fair game for seizure...

It's the TPTB equivilent of the "Nuclear Option."

Fri, 03/14/2014 - 15:25 | 4549203 CrashisOptimistic
CrashisOptimistic's picture

Given talk of sanctions and targetting these alleged "oligarchs", do you really think they haven't by now moved their money?

Fri, 03/14/2014 - 15:38 | 4549295 Chief KnocAHoma
Chief KnocAHoma's picture

I'm beginning to think that is part of the strategy. If money is moving economy good. If not economy bad.

It also leaves trails and defines loyalties. Kind of like hearding it all to one point to be eventually stolen en mass. 

One very wise man preaches Get Out Of The System.

Fri, 03/14/2014 - 15:58 | 4549418 Urban Redneck
Urban Redneck's picture

The "money" can be moved or printed, but tangible assets can't- like the tens of billions of infrastructure Exxon has in Russia and hundreds of billions in future oil to extract and sell as pass on as dividends to "shareholders" (both corporate and PSA), even if the major industrials and corporations repatriate their cash, they're dead in the water without their physical assets (except for the banks, and that would require QE an order of magnitude larger than what they've already done).  

Fri, 03/14/2014 - 20:59 | 4550540 silvermail
silvermail's picture

Dispute Resolution in ICSID is only possible if the consent of Russia. Since in the contract of credit, already directly was spelled jurisdiction - British.

Sat, 03/15/2014 - 13:35 | 4552180 Urban Redneck
Urban Redneck's picture

The current US threat is sanctions against Russian FDI in other countries, since Russia hasn't ratified the Washington Convention, they have a lot of latitude in terms of expropriation and foreign investors in Russia have very few avenues of recourse.  Moreover the Washington Convention is THE legal foundation of corporatist globalization, so undermining it opens the door to nations which have already ratified the Convention to engage in more strategic expropriation.  Also, the puppet masters pulling BHOs strings to push TTIP &TPP need the Washington Convention in place for the those pipe-dreams to be implementable.  Finally, as a matter of common practice UK governing law used in most contracts because it is the most sophisticated and established body of governing corporate law (when both parties have a civil law framework- generally another jurisdiction is chosen), which provides significant additional revenue and authority to TPTB in the City... 

Fri, 03/14/2014 - 15:22 | 4549184 Uncle Remus
Uncle Remus's picture

Jeebus man. I read "Hillary ensues". I got to Tango before it sunk in...

Fri, 03/14/2014 - 14:49 | 4549032 lolmao500
lolmao500's picture

Pentagon says no truth to Russian news reports that an American military drone has been brought down in Crimea. No such flights taking place

Well then, you know it happened. Apparently the drone was hacked and brought down intact by the Ruskies... The Pentagon must have nightmares about the drone they lost over Iran that got hacked... Seems your cunning plan of using drones to wage war might not go as planned...

Fri, 03/14/2014 - 14:50 | 4549040 McMolotov
McMolotov's picture

Don't believe anything until it's been officially denied.

Fri, 03/14/2014 - 14:51 | 4549046 crazzziecanuck
crazzziecanuck's picture

Didn't Iran bring one down, the Pentagon denied the loss, then Iran put it on primetime TV the same day?

Fri, 03/14/2014 - 14:53 | 4549055 CrashisOptimistic
CrashisOptimistic's picture

Credible report.  No reason to use drones.  They are inferior to satellite imagery, given just a few hours of no clouds.

Fri, 03/14/2014 - 15:02 | 4549098 pods
pods's picture

I will never forget the ZH post on the Iranians showing off the drone.

"We believe this is where it eats."

http://www.zerohedge.com/news/iran-releases-video-captured-us-drone

Fri, 03/14/2014 - 15:11 | 4549140 Missiondweller
Missiondweller's picture

No. It was a "Trojan Horse" to infect Iran computers with the Stuxnet virus.

Sat, 03/15/2014 - 09:02 | 4551553 BigJim
BigJim's picture

Mohammed: Hey, Achmed! Look! They left a USB drive in the drone's glove compartment!

Achmed: And... and... it's labelled... 'Cock-hungry cumsluts!'!!! Quick, plug it in!

Mohammed: But the only computers in Iran advanced enough to have a USB port are in Natanz!

Achmed: No worries! I know the security chief! You've met my sister; you just KNOW my brother-in-law will be wanting to look at this!

etc, etc...

Fri, 03/14/2014 - 15:43 | 4549324 Chief KnocAHoma
Chief KnocAHoma's picture

Yes and weren't two Iranians on MH370 and a muslem electrical engineer with flight simulator experience?

Fri, 03/14/2014 - 15:19 | 4549173 agent default
agent default's picture

Remember the U2 incident and Khrushchev's shoe?

Fri, 03/14/2014 - 15:37 | 4549283 McMolotov
McMolotov's picture

Bono always deserves to get kicked in the face.

Fri, 03/14/2014 - 16:58 | 4549701 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Bono always deserves to get kicked in the face.

"I cannot work with this singer."
--
Konrad "Conny" Plank, to Brian Eno

Fri, 03/14/2014 - 14:54 | 4549057 fooshorter
fooshorter's picture

<-- Rothchild 'Asset'

<-- Tax cow

 

I prefer to think of myself as a tax lemming..

Fri, 03/14/2014 - 14:54 | 4549060 pound the vix
pound the vix's picture

There are no US troops in Iraq!

Fri, 03/14/2014 - 14:56 | 4549064 NOTW777
NOTW777's picture

sounds like win win for russia

Fri, 03/14/2014 - 14:56 | 4549065 Itchy and Scratchy
Itchy and Scratchy's picture

$3b. Do not pass go! Go directly to Moscow!

Fri, 03/14/2014 - 17:17 | 4549790 Henry Chinaski
Henry Chinaski's picture

The fact that $Billions in economic aid to Ukraine = $Billions to Moscow was evident from the start of this. 

$Billions to Ukraine = $Billions to Moscow = $Billions to Banksters 

Putin = Obama = Bankster Tools.

WB7 got it right when he spawned Debt Brother.

Fri, 03/14/2014 - 14:57 | 4549071 q99x2
q99x2's picture

Great article. Liked it very much.

Haven't heard much out of Greece lately. Guess they are all dead by now. At least they didn't default.

Fri, 03/14/2014 - 14:58 | 4549073 pods
pods's picture

Business bad? Fuck you, pay me!  Oh you had a revolution? Fuck you, pay me. 

I always heard the Russians like western films.

pods

Fri, 03/14/2014 - 15:00 | 4549086 fonzannoon
fonzannoon's picture

we should give them 3 bil worth of hot pockets.

Fri, 03/14/2014 - 15:04 | 4549105 McMolotov
McMolotov's picture

"Hoooooot Pockettttts." [/Jim Gaffigan]

Fri, 03/14/2014 - 15:38 | 4549290 viahj
viahj's picture

is it time to bust the joint out?

Fri, 03/14/2014 - 14:58 | 4549076 ZeroPoint
ZeroPoint's picture

He looks like vampire. All he needs are the teeth.

Fri, 03/14/2014 - 14:58 | 4549077 Budd aka Sidewinder
Budd aka Sidewinder's picture

"Yeah, that's Vladimir....with a V"

Fri, 03/14/2014 - 15:00 | 4549085 UGrev
UGrev's picture

"No no no.. like this..  RAAAWR..  war face.. RAWWWR..., now you try.. "

Fri, 03/14/2014 - 15:36 | 4549280 ParkAveFlasher
ParkAveFlasher's picture

On the other side of the table?  A fuckin bear...that's right, Putin gives bear lessons to bears.

Fri, 03/14/2014 - 16:40 | 4549613 UGrev
UGrev's picture

Nicely done.. :)

Fri, 03/14/2014 - 15:38 | 4549289 Carl Popper
Carl Popper's picture

He just needs scissor hands now

Fri, 03/14/2014 - 15:51 | 4549381 kchrisc
kchrisc's picture

Meow?! MEOW?! MEOOOOWWW!

Fri, 03/14/2014 - 15:01 | 4549091 monad
monad's picture

Whats that, #2? Oh.

Gentlemen, I want 3 HUNDRED BILLION DOLLARS

Fri, 03/14/2014 - 15:02 | 4549095 moneybots
moneybots's picture

" The implications of that clause are that the minute the West or the International Monetary Fund extends a large loan to Ukraine, that country will almost certainly have a debt-to-GDP that exceeds 60 percent, immediately putting the Russian loan into default. That gives Russia the right to demand immediate repayment.

 

A good Hollywood accountant can do wonders, to create the appearance that debt to GDP will be below 60%.

Fri, 03/14/2014 - 21:04 | 4550558 silvermail
silvermail's picture

"A good Hollywood accountant can do wonders, to create the appearance that debt to GDP will be below 60%."

 

  But this is not Hollywood, this is Russia.
Fri, 03/14/2014 - 15:03 | 4549100 magpie
magpie's picture

Gestures and body language of politicians deserve an in depth study.

Take Obama who has two modes of operation, one where he is on his own with the teleprompter, using flowing, masonic derived "craft" gestures. In his mesmerized state by his handlers he appears to be drugged but has a better command of language.

Fri, 03/14/2014 - 15:03 | 4549103 RaceToTheBottom
RaceToTheBottom's picture

If I go to Moscow, do I get a personal tour of the Kremlin?

Its the least that Vlad can do since I am a tax payer who is paying back his loan....

Fri, 03/14/2014 - 15:06 | 4549116 UGrev
UGrev's picture

In Moscow.. Kremlin tour you..  happily .. 

Fri, 03/14/2014 - 15:05 | 4549113 hbal
hbal's picture

Callable or Puttable?  If it becomes callable, Ukrain can simply not call it. 

Fri, 03/14/2014 - 15:07 | 4549124 UGrev
UGrev's picture

Or is it "Puttinable" :) ok, sorry.. I'm on a bad joke friday role :D

Fri, 03/14/2014 - 16:00 | 4549426 KickIce
KickIce's picture

And since were dealing with currency we can call it a Kerry trade; if they get 3 billion then they also get Kerry.

Fri, 03/14/2014 - 15:06 | 4549121 Soul Glow
Soul Glow's picture

Russia is fleecing the West.  Dumping USTs, buying gold, and now they get the West's cash.  Amazing.

Fri, 03/14/2014 - 15:12 | 4549144 RaceToTheBottom
RaceToTheBottom's picture

Worked for France and they are supposedly allies

Fri, 03/14/2014 - 15:20 | 4549177 CrashisOptimistic
CrashisOptimistic's picture

You are 1/3 dead on right.

1) Gold doesn't matter.  It has no function in Russian society.

2) They will hold Treasuries.

3) BINGO, they get $260 BILLION from the west every year for oil.  Another multiple hundreds of billions for gas.  They are DRAINING the west.  They don't want a military confrontation.  They are winning without one.  They even have the French building them an aircraft carrier.  They will get a carrier and France will get some paper back that they paid for oil.  It's actually a carrier for oil deal.

Fri, 03/14/2014 - 15:27 | 4549220 Uncle Remus
Uncle Remus's picture

Excellent! Arms for oil DOES scale.

Fri, 03/14/2014 - 15:32 | 4549251 the tower
the tower's picture

Draining? LOL. Europe happily pays for gas, until they don't.

Fri, 03/14/2014 - 21:12 | 4550579 silvermail
silvermail's picture

"Gold doesn't matter.  It has no function in Russian society."

What function have Gold, in US society?

I mean, what reason if U.S., holds so much gold in the reserves? Why do not they want to exchange gold for paper FRN? Or the U.S. government does not trust the U.S. dollar?

Fri, 03/14/2014 - 15:52 | 4549384 negative rates
negative rates's picture

Never heard of a sucker before?

Fri, 03/14/2014 - 15:09 | 4549130 Son of Captain Nemo
Son of Captain Nemo's picture

Will the overheard comment(s) on mic between John breath Kerry, and the "closet cross-dresser” from South Carolina who tried to detonate a nuclear weapon in his own State last year as a false flag attempt  to start a war with Syria that failed, succeed this time in stealing more money from the American people to facilitate the "emergency collection" plate in supporting the illegitimate Zionist backed pro-Neo-Nazi party they funded to overthrow a legitimate government a month ago?....

Why didn’t Graham just ask for some of the GLD they already stole from the Ukraine and make it a bigger loan with interest to the Ukrainian people?...

My bad that Gold belongs to Jamie and Lloyd’s handlers….

 

http://freedomoutpost.com/2014/03/hot-mic-catches-lindsey-graham-offering-help-democrats-send-tax-payer-money-ukraine/

Fri, 03/14/2014 - 15:10 | 4549134 smacker
smacker's picture

Any monies given to Ukraine may not be classified as debt, eg if the money was given instead of loaned.

After all, our leaders quite like giving our money away and have been doing it for a very long time, notably since 2008.

Fri, 03/14/2014 - 21:21 | 4550603 silvermail
silvermail's picture

To date, the legal expertise Legitimate power in Kiev was not made. Any statements of the U.S. authorities and the EU - it is only verbal interventions on this topic.
That is, by far, the legitimacy of the so-called new government in Ukraine is at least debatable.
Charter any credit institution always has a partition, that prohibits issue any loans, if legitimate status of the borrower, is a controversial or doubt.

Sat, 03/15/2014 - 07:03 | 4551479 smacker
smacker's picture

Sure, but we now live in a western world where our leaders are blatantly making it up as they go along.

If the law/rules stand in their way, they simply ignore them and carry on regardless. Whilst making yet another speech to emphasize the importance of abiding by the Rule of Law.

Fri, 03/14/2014 - 15:34 | 4549139 29.5 hours
29.5 hours's picture

 

 

I agree with the main thrust of the article. The most dangerous vector of aggression and instability in the Ukraine situation will come from the U.S. and its lying MIC elite. Putin is no friend to humanity and peace but the situation is this: his position is so strong, all he has to do to win is sit tight.

He will probably do that--allowing Obama and the loudmouths of Congress to make every mistake their ignorance and arrogance can attain for them.

 

 

 

Fri, 03/14/2014 - 15:35 | 4549270 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

The most dangerous vector of aggression and instability in the Ukraine situation will come from the U.S. and its lying MIC elite. Putin is no friend to humanity and peace but the situation is this: his position is so strong, all he has to do to win is sit tight.

That's pretty much the conclusion Pepe Escobar reached a couple days ago. It makes the most sense, requires the least effort, and Putin comes out smelling like a rose.

To quote Lenin, what is to be done? A close reading of President Putin's moves would suggest an answer: nothing. As in just waiting, while outsourcing the immediate future of a spectacularly bankrupt Ukraine to the EU. The EU is impotent to rescue even the Club Med countries. Inevitably, sooner or later, threat of sanctions or not, it will come crawling back to Moscow seeking "concessions", so Russia may also foot the bill.

http://www.atimes.com/atimes/Central_Asia/CEN-01-120314.html

"And like a sinner before the gates of Heaven, I'll come crawling on back to you."
--
Meat Loaf

Fri, 03/14/2014 - 15:39 | 4549304 29.5 hours
29.5 hours's picture

Never heard of the guy. Thanks for the link.

 

 

Fri, 03/14/2014 - 15:39 | 4549301 Arrowshot
Arrowshot's picture

He won't sit tight. Vote in Crimea this weekend to return to Mother Russia and then Eastern Ukraine provinces "ask" for the same which he quite willing sends in troop with or without a reason. Barry goes spastic at that point because not a thing he can do except punish the USSA and say it was the Russian's fault.

Fri, 03/14/2014 - 15:12 | 4549146 the tower
the tower's picture

Russia is broke again, they are after our money. It's Sudetenland all over.

Fri, 03/14/2014 - 15:22 | 4549186 CrashisOptimistic
CrashisOptimistic's picture

haha, they export about 7 million barrels of the good stuff every single day.  Multiply that out at Brent.  It's $260 BILLION/year.  Drained from their enemies.  Add the nat gas money onto that.

Ya, they're after our money, and they use it to buy aircraft carriers.  It's an oil for carriers deal.

Fri, 03/14/2014 - 15:28 | 4549222 the tower
the tower's picture

That's ALL the have, they don't produce anything else. They cannot afford to lose Europe as customer, so in the end they will do what Europe wants OR they will end up in deep SHIT.

Europe can switch to nuclear, and prop up Iceland for their geothermal energy and spark a hydrogen revolution. Russia will be left emptyhanded.

Fri, 03/14/2014 - 15:36 | 4549278 UpAndComing
UpAndComing's picture

That's what they want you to think. They're taking all that money and investing it in projects like Skolkovo.

http://en.wikipedia.org/wiki/Skolkovo_innovation_center

Granted there's not enough of it and most of the other goods they produce are way sub par.

I did hear about some intersting start ups coming from Skolkovo though.

Putin is taking the money he's making and starting to build up research and development.

 

Fri, 03/14/2014 - 15:40 | 4549305 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Europe can switch to nuclear, and prop up Iceland for their geothermal energy and spark a hydrogen revolution. Russia will be left emptyhanded.

Another proof Ukrainian Junta Citizenism is all about submission. Only a consenting person who wants to believe the lie while knowing it is a lie can accept that drivel.

Made me laugh.

Sat, 03/15/2014 - 03:19 | 4551349 MeelionDollerBogus
MeelionDollerBogus's picture

This - http://flic.kr/p/m42Gkn - will laughing your oh ho ho off the blobbing!

Fri, 03/14/2014 - 16:41 | 4549614 Bioscale
Bioscale's picture

Man, you are not familiar with the reality - nuclear power stations in Central Europe are built by Russians, and there are plans for more of them.

Uranium post- and pre-production + long term storage are done in Russia.

Wake the fuck up.

Fri, 03/14/2014 - 15:42 | 4549315 Arrowshot
Arrowshot's picture

I really don't know if I would want to buy an aircraft carrier from France. They have one of their own but can't even remember the last time it was out.

Fri, 03/14/2014 - 15:13 | 4549151 Duc888
Duc888's picture

 

 

 

Why yes, give Ukraine more debt.  That will certainly fix a debt problem. 

Fri, 03/14/2014 - 15:16 | 4549163 Toolshed
Toolshed's picture

Personally, I would rather see Russia get my tax dollars than the villainous scum occupying Washington DC.

Fri, 03/14/2014 - 15:20 | 4549180 Tenshin Headache
Tenshin Headache's picture

plus $2 billion to Gazprom makes $5 billion.

Fri, 03/14/2014 - 15:25 | 4549191 Philalethian
Philalethian's picture

So then, the American people are going to pay their tax dollars to Russia as the babylonian US govt makes war on them also?

 

Fri, 03/14/2014 - 15:24 | 4549194 JJSF
Fri, 03/14/2014 - 15:41 | 4549309 monad
monad's picture

There are sufficient reasons to never pay any taxes ever again.

Fri, 03/14/2014 - 15:43 | 4549333 BullyBearish
BullyBearish's picture

And because it wasn't a military coup that displaced a democratically elected government in Egypt, the US is able to pour $billions into Egypt, some of which is in payback to said military for their "non-coup"

Fri, 03/14/2014 - 15:43 | 4549334 ...out of space
...out of space's picture

ukrain

176B gdp

35,98% dept-gdp

that mean that this hapend the ukrain must get  at list 42B loan

Fri, 03/14/2014 - 15:56 | 4549406 Iam Yue2
Iam Yue2's picture

Not so quickly;

"Ukraine’s debt payments over the next two years could easily eat up most of the pledged aid from the United States and the European Union. Russia holds one of the biggest claims coming due in 2015, for $3 billion in Ukrainian bonds it bought to throw a lifeline to President Viktor Yanukovych. Ukraine should not pay the $3 billion. The United Kingdom should make the bonds unenforceable under English law. It took similar measures in 2003 to protect Iraq and in 2010 to protect heavily indebted poor countries from creditor lawsuits."

http://blogs.piie.com/realtime/?p=4251

Fri, 03/14/2014 - 16:00 | 4549407 monad
monad's picture

tick

Fri, 03/14/2014 - 15:59 | 4549408 monad
monad's picture

tick

Fri, 03/14/2014 - 15:57 | 4549409 Iam Yue2
Iam Yue2's picture

Not so quickly;

"Ukraine’s debt payments over the next two years could easily eat up most of the pledged aid from the United States and the European Union. Russia holds one of the biggest claims coming due in 2015, for $3 billion in Ukrainian bonds it bought to throw a lifeline to President Viktor Yanukovych. Ukraine should not pay the $3 billion. The United Kingdom should make the bonds unenforceable under English law. It took similar measures in 2003 to protect Iraq and in 2010 to protect heavily indebted poor countries from creditor lawsuits."

http://blogs.piie.com/realtime/?p=4251

Fri, 03/14/2014 - 15:59 | 4549410 monad
monad's picture

tick

Fri, 03/14/2014 - 15:58 | 4549411 monad
monad's picture

tick

Fri, 03/14/2014 - 15:59 | 4549412 monad
monad's picture

tick

Fri, 03/14/2014 - 16:15 | 4549413 monad
monad's picture

This is great. Steal 33 billion in gold and then lend them back 3 billion in fiat, which they then have to pay to Russia. So Putin gets his cut plus Ukraine owes the cabal for Putin's cut.

Only a genocidal, pathological inbred mongol-hun mongrel descendant of Attila would bother to do anything this twisted.

Fri, 03/14/2014 - 16:19 | 4549506 monad
monad's picture

Next, the banksters will demand reparations on behalf of the Ugarits. With interest.

Fri, 03/14/2014 - 15:58 | 4549416 pan
pan's picture

Putin wins again.

Fri, 03/14/2014 - 16:23 | 4549533 WMM II
WMM II's picture

" Apparently, the Ukraine owes $3 billion to Russia in bonds that have been issued under UK law."

 

apparently, ukraine of old would not exist if crimea bolts. so, who do the bond holders go after? after all, if the country no longer exists, its a tad optimistic to expect someone else to pay.

 

:)

Fri, 03/14/2014 - 16:34 | 4549553 Perimetr
Perimetr's picture

maybe some stolen Ukrainian gold can be used as collateral

Fri, 03/14/2014 - 16:44 | 4549621 Radical Marijuana
Radical Marijuana's picture

American tax cows already pay for the Chinese military. They might as well pay for some of the Russian too ... (As long as they make sure to still pay for the Israelis' first.)

Explaining what is really happening in the Ukraine to Americans would be like trying to teach algebra to a herd of cows. Most of the population of North America are the people who have most been the victims of the most scientific brainwashing that money could buy. Psychology has been persistently applied to make sure that the vast majority of people were driven totally insane, so that they can no longer understand anything that matters, because they have been conditioned to not want to understand anything that matters.

That is what explains the way that we could have the international banksters be able to create a money system in which private banks get to make the public money supply out of nothing as debts, while the blatantly obvious fraudulence of that would not be noticed by the vast majority of people.

Everywhere one looks, the taxpaying cows are being milked dry, and set up to be slaughtered. They are paying for themselves to be herded and stampeded over a cliff. While NOT all of them are like that, there are more than enough. There is no practical political point to attempting to tell them that, since they do not want to know.

Fri, 03/14/2014 - 16:43 | 4549624 Clowns on Acid
Clowns on Acid's picture

Well Gazprom is certainly going to be strong cash flow wise.... maybe buy them for their 5.5 % dividend? And if the USd goes under, they'll pay in gold.

 

 

Fri, 03/14/2014 - 16:44 | 4549628 slightlyskeptical
slightlyskeptical's picture

I expect Putin will forgive the $3 billion if Crimea joins Russia.

Fri, 03/14/2014 - 17:10 | 4549660 Hongcha
Hongcha's picture

Right into my OGZPY bottom line.  Thanks Vlad and thanks USA.

Fri, 03/14/2014 - 18:06 | 4549966 Pressfiretostart
Pressfiretostart's picture

So basically we borrow $15 billion from China to give to Ukraine which goes straight to Russia.

 

I Don't Want to Live on this Planet Anymore

Fri, 03/14/2014 - 20:04 | 4550353 g'kar
g&#039;kar's picture

Almost seems like the DOTUS is trying to bribe Puttin'. I think the bid will have to be higher than that.

Fri, 03/14/2014 - 22:31 | 4550824 joego1
joego1's picture

I don't think China's going for it anymore. More like;

Janet prints $15 billion and gives to the Ukraine which then goes to Russia.

Sat, 03/15/2014 - 02:39 | 4551328 MeelionDollerBogus
MeelionDollerBogus's picture

Mafiawars Ukraine: Crimea River edition!

Sat, 03/15/2014 - 14:31 | 4552310 slackrabbit
slackrabbit's picture

Crouching putin hidden bailout

Mon, 03/24/2014 - 13:19 | 4586094 FatherAbraham
FatherAbraham's picture

t, the damages to Ukraine for the loss of the sunny seaport of Crimea = >$10 billion - the answer is effectively settle Ukranian debt to Russia (and others) by selling the Crimea to Russians.

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