Russian Retaliation #1: Russia Largest Bank Halts Foreign Currency Loans

Tyler Durden's picture

It didn't take long for Russia to launch the first retaliatory salvo against the unexpected JPMorgan "act of aggression." Moments ago Bloomberg just reported that Sberbank,  the largest bank in Russia and all of Eastern Europe, just halted the issuance of consumer loans in foreign currency. Bloomberg adds that "Sberbank, Russia’s biggest lender, holds 43.3% of nation’s consumer deposits, 32.7% of consumer loans and 32.1% of corporate loans."

Why is this important? Well, it is possible that the biggest Russian bank is running low on foreign reserves with which to issue non-ruble loans, which is rather unlikely for a bank which is defacto part of the Russian financial system. Still, it would be problematic if Russia is indeed telegraphing its commodity-export driven economy is suddenly low on Dollars and/or Europe's artificial, life-supported currency.

And then there is another possibility: as we explained yesterday, "what JPM may have just done is launch a preemptive strike which would have the equivalent culmination of a SWIFT blockade of Russia, the same way Iran was neutralized from the Petrodollar and was promptly forced to begin transacting in Rubles, Yuan and, of course, gold in exchange for goods and services either imported or exported." And this: "One wonders: is JPM truly that intent in preserving its "pristine" reputation of not transacting with "evil Russians", that it will gladly light the fuse that takes away Russia's choice whether or not to depart the petrodollar voluntarily, and makes it a compulsory outcome, which incidentally will merely accelerate the formalization of the Eurasian axis of China, Russia and India."

Judging by the first retaliation, which just showed what Russia thinks of the petrodollar regime by voluntarily isolating itself from it, this is certainly a growing possibility.

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Smuckers's picture

Putin on the blitz.

Headbanger's picture

So this is the long awaited Black Swan!?

Block each others transactions, can't pay your bills and risk explodes!

Vampyroteuthis infernalis's picture

This is what Putin wants, to reinstate a new version of the Soviet Union under his control. Stalin is jealously staring from the grave.

y3maxx's picture

...Economically, Things are getting so bad in the USSA, this JPM currency War tells just how desperate Washington and the Bankers are ready for a Military War...

kliguy38's picture

of course they do....why would anyone think that "this time its different"

SafelyGraze's picture

glad to have all that crypto-SDR in my digital BIS wallet

nice and secure

MillionDollarBoner_'s picture

Paging FoneyStar!

Will Mr FoneyStar please come to the front desk!

I see BitCoin is crashing on this news.

Any comment for your fans, Sir?;o)


FinalEvent's picture

<- My name?

<- Not my name

the not so mighty maximiza's picture

yeah thats it, they were trying start a big war since last year, the shit is falling apart DC needs distractions or the guilty will be exposed.

gookempucky's picture

Vamp -what a comedian--try looking 360 as the west is just throwing darts hoping to score one point--this will get worse as the western companies have the marching orders.

dogismycopilot's picture

peddle that bull shit some where else comrade of the USSA.

TheReplacement's picture

I think Putin genuinely dislikes communists.  He is more of a simple authoritarian.  Russian Empire like under the czars is more likely his goal.

Bananamerican's picture

Some cultures have that "strongman" DNA in them...Russia seems to be one of them. Having said that, Putin seems to be their Stonewall Jackson.
The right guy at the "wrong time" in their history.

You know what's weird? I find myself rooting for the bastard. (IS he a Christian?)
Our own, Satanic, banker infested, neo-totalitarian, fascist oligopoly makes me sick.

intotheblack's picture

Me too, dude. Globalists target Putin and we're all Russians now, yo. Not a reliable friend but you do what you can with what you have, righty-right?

Golden Rule's picture

All Putin has to do is release the Lenin/Stalin records from 1917-1950's.  If people knew the truth of what really happened during that time frame, ie who supported the mass killing of Russian's, financially and otherwise there would be blood in the streets. 

Think also of all the records seized during the invasion at end of WWII in Poland and Eastern Germany.  The tribe would be destroyed.


topshelfstuff's picture

BRICS Are Making Their Own Development Bank, But It's Not Going To Be Simple

February 25 2014

"""one of the benefits of the new association will be greater clout in a changing global economy run by institutions such as the World Bank and IMF that, some argue, disproportionately serve the economically developed nations that created them."""

BRICS Nations Plan New Bank to Bypass World Bank, IMF


“The deepest rationale for the BRICS is almost certainly the creation of new Bretton Woods-type institutions that are inclined toward the developing world,”




another example of an item of major importance, an item behind much of the recent and increasing Push by the West for Any kind of War, disturbance, distraction ... its more than just the BRIC Nations, its All the BRICets <<< the BRICets represent over 100 Nations ready and willing to join in. This would take a lot to write about in order to explain, but one thing I can tell you, and I firmly believe ... opposite of another misdirection we've been fed, it's a STRONG Currency that will prove to be the smart and Power move ... think about all the BRICets Hard Pegging to China's Yuan, simultaneously, along with China Strengthening the Yuan to let's use 2 to $1/US.

And how that Strengthens Both the Countries and The People [ Purchasing Power and the ability to Buy Any Commodity at a huge Discount, resulting in Commodity Prices going way up in USD terms ]

a link showing CNY vs global currencies, looks like Ven. already made the move

Venezuelan Bolivar = 1.013104

WVHillbilly's picture

Why are we in this basket?  And why is it getting so hot?

LawsofPhysics's picture

"Full faith and credit" bitchez...


In other words, no faith=no more credit motherfucker...

Ignatius's picture

Was it over when the Russians bombed Pearl Harbor?

LawsofPhysics's picture

Indeed, there's a hell of a lot of tangible resources in the Russian federation, now if there only a few other countries on that continent that felt the same way...

ssp2s's picture

If only the US had the ability to suppress the price of gold.  THAT would really hurt em.

ReactionToClosedMinds's picture

no, wrong, India bombed Pearl Harbor to warn Pakistan

Carl Spackler's picture

Was it over when Russian algos front ran the squid and skimmed from Joe Sixpack?


TheReplacement's picture

The Russians didn't bomb Pearl.  They bombed Gettysburg.  Jeez.

manofthenorth's picture

It was the Germans that bombed Pearl Harbor you "more-on" ! ;)

Mine Is Bigger's picture

Isn't it possible the bank stopped lending in foreing currencies because it can no longer hedge against exchange risks?

SheepDog-One's picture

Someone call prezdent Jamie! We be runnin low on burrito toppings and french fries!

WillyGroper's picture

It's Freedom Fries, dontchaknow?

Bullwinkle Moose's picture

Do you feel the love?

NaiLib's picture

...And of course the mighty west think it will not hurt any of our business. Well I think lots of participants eventually will realise that the west cannot afford any kind of "financial war" with anyone. 

NaiLib's picture

and btw, ATH on equities markets just feels a little bit odd right now

fonzannoon's picture

Watch these in succession if you want a laugh. Especially non Americans. Sent to me by whiteshadowmovement
astoriajoe's picture

"Well I think lots of participants eventually will realise that the west cannot afford any kind of "financial war" with anyone. "

I would think they would all realize it already, which makes me wonder if they aren't just following a pre-written script.

SDShack's picture

I think the West knows something is about to drop, and TPTB are worried big time about it. Just look at the headlines the last 48 hours. HFT is bad is all over the place. That is an absolute sea change from the last 5+ years. JPM (which is under investigation) just cancels Russian Payment Transfers in a pre-emptive strike "alledgedly" tied to US sanctions, when US sanctions don't prescribe such actions at all. Now we have Russian retaliation. All this against a backdrop of first Syria meddling, then Ukraine meddling, plus a Russian-China-India nexus potentially against the US Petrodollar. Something tells me all this posturing is in reaction to something bigger yet to come that hasn't been revealed yet. Makes me wonder what Russia has via Snowden that is possibly driving all this. Whatever it is, it must be big enough to make TPTB seriously consider war as an option given all the recent moves. 

astoriajoe's picture

They don't need Snowden info, when they've got Gata info. I heard a Gata interview a week or so ago where the guy said that representatives from both China and Russia have been to gata conferences. Gata may be wrong and our actual situation may be closer to what Weir/Hudes say in terms of abundant gold supplies, but either way, I think it will make damn fine theater over the next year.

Truther's picture

FUCK JPM and crack that Dimon bitch wide open.

supersajin's picture

Welcome the age of the Currency Wars!!

Calculus99's picture

The ruskies should just put a bid of $50billion under Gold and take delivery. That would cause more than a few problems for the US/UK big banks.

SheepDog-One's picture

See that's what I don't get here, there are so many things that could so easily be done to start the FED's canoe rockin.....mess with gold price, or bonds, it would be so easy to do yet Russia decides to 'halt foreign currency loans'? Big deal.

ssp2s's picture

Oh, I think both sides know where the MAD line is.

ReactionToClosedMinds's picture

think you are on to something.

EEurope et al are genetically pre-disposed to math and chess (i.e., probabilities/outcomes, etc.)

are we starting to see some chess moves now?  If so, Team 44 with ValJar running the show is the least equipped regime in history to deal with this.  Maybe that is the calculation PootyPoot is scheming.  Hey, what would you do if the Winter Soldier is 'negotiating' with you and you know his real life dossier?


NoClueSneaker's picture

Moment for PBoC to junk sum 200-300 BN. in treasuries ....

Titus's picture

The Russians aren't stupid. They know that this would mean immediate war. No one wants to lose assets or an all out war, they want the little proxy conflict until war is unavoidable. The western banking and political system started the conflict, Putin has been working extremely hard to avoid giving them reason to start a war. 

In case you haven't kept up they're picking back up with the Syria proxy war now that Russia is occupied in Ukraine. 


MFLTucson's picture

I am glad to see that Putin has the balls to go after Dimon and the US Jewish led illegal, criminal and fraudulent banking sewer.  JP Morgan should have been dismantled by the US government after the LIBOR scandal but the US government is corrupt and all in bed with the banking sewage!

Infinite QE's picture

Well, when you had the khazar bolsheviks murder 100 million of your people, that leaves a distinct memory in those that love their country. The time of the khazar is coming to a close as more and more people awaken to the myth of the chosen people and see what they truly are. Demonic, satanic aliens.

buzzsaw99's picture

JPM is living in the past. They and the usa ptb will be hoisted by their own (clownbux) petard.

SheepDog-One's picture

I sure wish these hoistings would hurry up and commence already!

Confundido's picture

True, transparent monetary systems like the gold standard are the feature of liberty, individual rights friendly governments, leaders and institutions. Russia is not one of them. Even though the US is also not one of them. Therefore, any illusions that Russia will adopt anything beyond a fiat based monetary system is simply that: an illusion. Preventing non-ruble based credit can only harm the working Russian, because as with any other goods, the reduction of options, of competition in the supply, makes the productive process more expensive. It is irrelevant whether or not such higher cost will make Putin feel more independent. In any case, JP Morgan is completely unaffected by such action. But since the spirit of ZH is in favour of Russia, here's my two cents on how Russia could indeed affect JP Morgan and the petrodollar system: By establishing a new precious metals exchange, competing with Comex, but without any leverage, and forcing all miners within the Russian Federation to take the fix of such new exchange as legal metric for their contracts.

LawsofPhysics's picture

Something like this will happen, simply because there are increasingly more real innovators and creators out there that need to bring their products to the market and increasingly more of them recognize that none of the currencies on earth today are transparent or trustworthy.  The astonishing rise in the formation of Co-ops in the U.S.S.A. is simply more evidence of this.  The big sectors I see are in agriculture and healthcare.

sudzee's picture

EU would go dark if Putin asks gold for gas.