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Crimea To Abandon Hyrvnia, Switch To Russian Ruble On April 1st

Tyler Durden's picture


Crimean Deputy Prime Minister Rustam Temirgaliev has told RIANovosti that the region will abandon Ukraine's Hyrvnia:


This is not a total surprise as Reuters reported the Crimean Deputy PM stating "we are ready to introduce a ruble zone," a week ago.


For the last few years the UAH/RUB exchange rate has oscillated around 38 in an 'almost' peg anyway...


But this move would isolate Crimeans from the potentially large devaluation that capital flows would create should a default occur (which looks increasingly likely)


From Reuters last week:

The Ukrainian region of Crimea could adopt the Russian ruble as its currency and "nationalize" state property as part of plans to join the Russian Federation, a regional official was quoted as saying on Thursday.


Interfax news agency cited Rustam Temurgaliyev, Crimea's vice premier, as saying: "All Ukrainian state enterprises will be nationalized and become the property of the Crimean autonomy."


Hoping Moscow would let Crimea become part of Russia, he said: "We are ready to introduce the ruble zone."

Of course, this may lead to the emergence of an even more broad 'black market' for dollars or rubles in Ukraine as we are sure the Ukraine government would fight back with capital controls of some sort.

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Sun, 03/16/2014 - 13:35 | 4555286 Rising Sun
Rising Sun's picture

Well Yellen, instead of fucking around with the printer, here's a challenge.


Turn the ruble into shit.  Can you do it Yellen???  Get to work bitch!!!!

Sun, 03/16/2014 - 13:38 | 4555298 jaap
jaap's picture

and victoria nudelman will turn Ukraine into rubble...

Sun, 03/16/2014 - 13:44 | 4555332 EatYourCornTake...
EatYourCornTakeyourPill's picture

The ruble is already a piece of shit. I'm wondering if switching from one piece of shit currency to another will truly be beneficial. I'm sure that the deputy minister or whatever the fuck his name is will have his pockets lined with Rubles. Unfortunately for him, he may take a nap and wake up with them being 30% devalued when he wakes up. C'est la vie in the third mundo.

Sun, 03/16/2014 - 14:04 | 4555422 mvsjcl
mvsjcl's picture

Ruble or not, if I was Crimea I would demand my share of the Ukrainian gold holdings... What?! What do you mean, "We don't have it?" WHERE THE FUCK IS IT!!!

Sun, 03/16/2014 - 14:11 | 4555445 HarryWanqer
HarryWanqer's picture

JP Morgan will be holding that indefinitely now. Rest assured it's in safe hands.

Sun, 03/16/2014 - 15:34 | 4555725 knukles
knukles's picture

Sitting right on a little push cart in the 4th basement passageway between the Fed's and JP's vaults.
Why you ask, does it sit there?
Because, grasshopper, it makes it easier to count in the vault(s)

"Quantum Solutions to Classical Problems"









Sun, 03/16/2014 - 15:20 | 4555745 Chuck Knoblauch
Chuck Knoblauch's picture

They fucking stole it!

The US doesn't steal, it only reallocates. HAHAHAHAHA!

Sun, 03/16/2014 - 16:24 | 4555965 f16hoser
f16hoser's picture

All kidding aside; I wish the Crimean people the best of luck! You made the right choice.

Ukraine/Western Ukraine, on the other hand,  will get "Fucked" 20 ways to Sunday by the Western Banksters!!! Sucks to be you!!! Know this: "You Chose Poorly!"

Mon, 03/17/2014 - 08:53 | 4557938 N2OJoe
N2OJoe's picture

There was/is no good choice for the Ukraine.

To be enslaved by a Dictator or a bunch of faceless Bankers/Beurocrats, how much difference does it make?

Either way enjoy your chains and whatever you do, don't build any guillotines...

Mon, 03/17/2014 - 08:58 | 4557960 Anusocracy
Anusocracy's picture

If the Ruble were the reserve currency it would be as strong as the dollar.

Sun, 03/16/2014 - 13:44 | 4555325 ebworthen
ebworthen's picture

She needs to kill the Dollar first.

Sun, 03/16/2014 - 14:00 | 4555405 A Lunatic
A Lunatic's picture

She is doing her best to turn it into the rubble........

Sun, 03/16/2014 - 14:39 | 4555606 Kirk2NCC1701
Kirk2NCC1701's picture

This is called Debt-Repudiation Crimean style:

No MOAR Force-Fed Debt.  Get it... "Force Fed"?

Sun, 03/16/2014 - 13:36 | 4555288 DutchR
DutchR's picture



Sun, 03/16/2014 - 13:48 | 4555351 Yoki
Yoki's picture

yeah and FUCK THE EU

Sun, 03/16/2014 - 14:08 | 4555434 elegance
elegance's picture

Russian gulag  or EU.... We Eastern Europeans tried both. Sorry. EU, with all its faults, infinitelly better choice. And we actually TRIED both, not like some wankers writing from their parents basement. That includes Mr. Durden as well...

Sun, 03/16/2014 - 14:42 | 4555614 disabledvet
disabledvet's picture

they won't have to wait long for the hyperinflation.

And who has trained the bulk if not totality of the Ruissan Officer Corps?

This is NOT a Cold War...this is a HOT war...and it could kick off any day now.
And yes...American boys and girls will be on that front line.

Sun, 03/16/2014 - 15:06 | 4555704 angel_of_joy
angel_of_joy's picture

EU is just becoming a gulag. Talk to me about the "better choice" in 10 years.

But, the slave mentality you expose is troublesome indeed...

Sun, 03/16/2014 - 18:26 | 4556384 Pure Evil
Pure Evil's picture

I wonder if anyone from Greece would like to chime in from their basement?

What's that?

Lost your job, your home, your family, your basement and your self respect?

Well, look at this way, you made an infinitely better choice.

Ok, we still got time, anyone from Spain, Portugal, Italia, or Cyprus?

What's that, to busy dumpster diving looking for food after being bailed in?

Don't worry, be happy, you live in an infinitely better economic sphere called Euroland.

Does anyone know where we can buy tickets to ride those rides?

Mon, 03/17/2014 - 09:11 | 4557982 Ghordius
Ghordius's picture

let me guess: Pure Evil being on exactly the same page as... Dr. Krugman? Just as a reminder: those countries had a crash

this crash originated in the US, yet this is not that relevant since 1929's is remembered as having originated in europe

now, instead of getting back to their old currencies and "print/spend their way out of misery", they all choose to stay in the EUR and... economize

interestingly, the same set of policies that the Austrian School would advice. meanwhile, check again on "dumpster diving" and where it's a "sport"

Mon, 03/17/2014 - 09:03 | 4557969 Anusocracy
Anusocracy's picture

The gulag is in the past, same as the Soviet Union.

Not so with America's 21st century prison camps.

Fri, 03/21/2014 - 14:51 | 4577966 geno-econ
geno-econ's picture

Tough choice. Order vs. Chaos. Depends on your age, talent, capability, cultural outlook, aspirations in life, competitive spirit, national affinity, need for financial / job security vs. risk taking and possibly sex drive. Ukraine and Scotland will be test cases. However both US and Russia are converging towards each other with rise in Global Multinationals and Oligarchs influencing and changing ideology.
Actually we need better models and choices

Sun, 03/16/2014 - 13:53 | 4555375 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

April's Fools!!! Not!! They are serious.

Sun, 03/16/2014 - 13:36 | 4555290 krispkritter
krispkritter's picture

Crimeans, are you ready to RUBLE!!!!

Sun, 03/16/2014 - 13:36 | 4555291 HedgeAccordingly
HedgeAccordingly's picture

welp.... more good news .. http://hedge.ly/NdXYJP

Sun, 03/16/2014 - 13:38 | 4555295 ebworthen
ebworthen's picture

Greece should have never joined the EU and replaced the Drachma with the Euro; they are now paying the price.

Meanwhile, West Ukraine chomping at the bit to jump on the Brussels Bandit's glue factory wagon.

The only thing that makes sense is Russia moving troops into Crimea and tanks to the border.

Sun, 03/16/2014 - 15:13 | 4555734 Chuck Knoblauch
Chuck Knoblauch's picture

The Great Empire of Greece turned into a beggar state. The EU rapes your culture and laughs at your history.

What are you going to do about it?

Sun, 03/16/2014 - 18:29 | 4556397 Pure Evil
Pure Evil's picture

Well, so far it looks like they've been bending over and over and over and letting Merkel and Draghi ream them a new a$$hole every time.

Sun, 03/16/2014 - 13:37 | 4555296 magpie
magpie's picture

racist. antisemite scum.

Sun, 03/16/2014 - 13:52 | 4555376 Schmuck Raker
Schmuck Raker's picture

What? Where? Who? Tyler?

Make sense, man.

Sun, 03/16/2014 - 13:55 | 4555385 magpie
magpie's picture

The slavic untermensch fighting againt his betters. The frankfurter moneyprinters mensch. or are you a luftmensch,

Sun, 03/16/2014 - 14:45 | 4555631 disabledvet
disabledvet's picture

Full Retard at the Hedge.
The Truxton will be leaving port shortly.

Sun, 03/16/2014 - 14:31 | 4555548 Ifigenia
Ifigenia's picture

Have some pity for the palestinians, the last victims of holocaust.

Sun, 03/16/2014 - 15:01 | 4555682 q99x2
q99x2's picture

One of Victoria's grandfathers was Meyer Nudelman from a family of Jewish immigrants who came to New York City from the Russian Empire. Victoria Nuland  . --Wikipedia

Sun, 03/16/2014 - 21:42 | 4557027 stopthejunk1
stopthejunk1's picture

The word "antisemitism" is propaganda. The Palestinians are semites. Syrians are the original semites. There are semites in Africa.

Racism against Jews isn't any different, worse or special than racism against anyone else. They don't deserve their own special word for it.

Stop spreading the propaganda.

Sun, 03/16/2014 - 21:47 | 4557037 zionhead
zionhead's picture

Mossad is not Jewish

CIA is not christian


Anybody that say's or think's that ISRAEL is Jewish is nuts, its a ZIO-NAZI kleptocracy,

Anybody that says that  the USA is CHRISTIAN is nuts, its a ZIO-NAZI kleptocracy.


Yes, anti-semitism is just a PAVLOVIAN  'trigger-word' developed by ADL/JDL back in the 1920's by MSM to stifle debate.


Sun, 03/16/2014 - 13:43 | 4555320 TaperProof
TaperProof's picture

Red line #57 crossed

Sun, 03/16/2014 - 15:11 | 4555727 jerry_theking_lawler
jerry_theking_lawler's picture

wrong, the red line is the entire width of the country of Russia....so it is impossible to cross it...just cross into it. Change you can believe in.

Sun, 03/16/2014 - 18:32 | 4556408 Pure Evil
Pure Evil's picture

In Russia, line cross you!


Well anyway, that's what the Mexican illegals say.

Sun, 03/16/2014 - 14:04 | 4555423 insanelysane
insanelysane's picture

well that escalated quickly

Sun, 03/16/2014 - 14:33 | 4555564 Ifigenia
Ifigenia's picture

only USA and Russia could escalate to a nuclear conflict with israel blackop. around. Didnt you know some of them want to enter USA for some exercised? EU is just choirs boys and girls.

Sun, 03/16/2014 - 14:05 | 4555425 buzzsaw99
buzzsaw99's picture

russia should take their usd reserves and buy rubles. then, when the ruble is strong demand payment for oil in rubles. nothing sez ww3 like fucking with the bankstas.

Sun, 03/16/2014 - 15:52 | 4555866 earleflorida
earleflorida's picture

russia was in the end reluctant to give any leeway into its semiautonomous control of eastern central germany

the americans were not as some might think, running the show in germany-- large swathes of territory were quarantined off from american encroachment

that is why Stalin, Churchill, and Truman met in Potsdam, Germany because Stalin demanded it...

this explains how the Russian's were to get the bulk of Nazi scientist, and they did. the USA got its share but Russia really got moar than their share. remember the sputnik (10/4/57?) long before JFK's space race to the moon five years later in 1962!

lastly, Russia has a 1:1 nuclear warhead ratio with the USSA...

if one side says 'go ahead make my day', not even the oligarch can hide...

just a thought on a"MAD",mad mad world!?!


Sun, 03/16/2014 - 14:07 | 4555437 geno-econ
geno-econ's picture

Just imagine what the others in Eastern and to some degree Western Ukraine will be thinking. Do I hold on to the Hvernia that will lose value as the economy collapses, energy prices skyrocket, or Ukraine bonds default----or would I be better off siding with Russia with a stronger currency tied to commerce and jobs connected with Russia. Me thinks Putin has this figured out while Nuland is preaching democracy, freedom and hope which resonates with the young who do not understand the realities of geopolitics. Really interesting how this unfolds after referendum. Putin may sway most important areas of Ukraine without firing a shot.

Sun, 03/16/2014 - 14:16 | 4555466 saints51
saints51's picture

Sounds logical but we have EU,US and Israhell who may fire the first shot.

Sun, 03/16/2014 - 15:09 | 4555716 angel_of_joy
angel_of_joy's picture

The most important shot in every conflict is the LAST one...

Sun, 03/16/2014 - 14:18 | 4555485 swmnguy
swmnguy's picture

Just what I was thinking.  Ukraine's economy is, best case, going to be yoked to the IMF/World Bank/EU bankster extraction program.  Everyone of value will be liquidated and sent West.  Taxes will skyrocket and any benefits, and pay, will be slashed.  At best, Ukraine goes through a decade of being bled white.  The Hryvnia will show the strain. Or they'll ditch the Hryvnia and use the Euro, which is still worse for those in a depressed country (see Portugal, Greece, Italy, Spain).

If, on the other hand, they go to the Ruble, they know the Ruble will be "punished" by the Western economies.  But the stuff they want to buy, they want to buy from Russia.  Russia can maintain a false internal economy for as long as it takes Europe to remember they need some energy from somewhere.

I'd go for the Ruble ten times out of ten in their situation.  And I'd have a nice big garden, some hand tools, a full freezer, and a rough recollection of where exactly on the lake I so unfortunately tipped over my canoe that one fated day...

Sun, 03/16/2014 - 14:13 | 4555454 schatzi
schatzi's picture

The West won't let the Ukraine fail. It's as simple as that. No default coming. The same with the Euro. The currency is not working as intended, but I can't see it being dropped anytime soon. The factors influencng these largely economic issues are often emotional or irrational. The Euro is seen and sold as the "great peace project" etc. This will be an economic cold war with Russia. A previous cold war the Russians lost and will probably lose again. Russia may have the largest land-mass, immense resources and a massive army, but economically they really are very second rate. This poor rating is mainly derived from a very one sided commodity economy, terribly corrupt and kleptocratic and an ancient, failing infrastructure.

The Ruble has been cratering for a while and so has their stock exchange, as anybody invested in Russia (as I) will confirm. Crimea latching on to the Ruble won't save their arses. The Crimea hanging on to Russia will become economically isolated and stay backward. Tourism in Crimea will be isolated to the Russian market only. Exports will probably suffer sanctions. It's a lose/lose all around, but mostly for the Crimeans. God forbid we in the EU have another quasi bankrupt country to feed through, but it probably is heading that way. Ukraine will shift clearly towards the west, ex-satellites will distraust Russia even more and the political divide will clearly shift eastwards, with the exception of the Belarus puppet.

Sun, 03/16/2014 - 14:22 | 4555511 magpie
magpie's picture

It is being propped up as anti-dollar as it can be.

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