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Ukraine Introduces Capital Controls
A few days ago we showed how when Obama said there would be "costs" for Moscow in the Ukraine-Russian conflict, he got the recipient country of said costs woefully wrong, as confirmed by the economic data released by Ukraine which showed its Industrial Production crater at a pace on par with the Lehman collapse, confirming the Ukraine economy was on the verge of a spectacular implosion just in time for the harsh, Gazprom-free winter to finish off what little economic activity is left.
The resulting selloff in the Hryvnia and Ukraine bonds, was therefore, hardly surprising.
Which probably means the news reported by Bloomberg moments ago, which cites Ukraine's Unian news service, that the Ukraine central bank just instituted restrictions on Hryvnia use, i.e., capital controls, should also not come as a surprise, yet for all those expecting Russia to crater first under the weight of western sanctions, to see said cratering take place in western-backed (and IMF guaranteed) Ukraine is probably just a little unpleasant.
The details:
Central Bank forbids companies completing FX payments on import contracts if they don’t actually bring goods into Ukraine, Unian reports, citing Central Bank decree that comes into effect tomorrow.
- FX payments on imports also prohibited if customs registration of goods takes more than 180 days
- Foreign investors forbidden to receive investment return from selling Ukraine securities beyond stock exchange, except govt bonds
- Foreign investors forbidden to receive dividend return on Ukrainian shares not traded in stock exchanges
- Central bank also forbids FX transactions using individual FX licenses, except placing money by cos. on accounts in foreign banks
In other words, the money concentration into a select few government-approved (and controlled) asset classes has begun. For those who are unsure what happens next, please google "Cyprus and March 2013."
Source: Unian
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Nuland says fuck 'em.
None of this will save Ukraine, I'm afraid. This is pissing in the wind.
Elsewhere: Rush Limbaugh's one-man crusade to save the NFL
http://tinyurl.com/pen2x4m
Ukraine may point to a recession in Europe. Russia will suffer more from sanctions (and lower investment) than many believe. Europe itself is at great risk of recession for a variety of reasons.
But, the USA and the rest of the world is at risk of recession as well. Peru and China have symptoms of what happens at the beginnings of hard times...
"China and Peru Point to Recession?" *
http://goo.gl/NRc3dg
* The Tylers ignored my email of about a month ago respectfully asking them to delete my ZH account. For whatever reasons they did not. Will that change? We'll see, I asked them to... Until then, drop by my blog on occasion, smile...
Step 1) Admit I am powerless over my addiction to ZH.
Keep coming back.
Step Nine:
“Make direct amends to such people [whom I have harmed] wherever possible, except when to do so would injure them or others.”
Which is what I am doing on my trip (family first).
OK, just don't go to the 13th Step. Too many of those in the Halls.
PS. Time to do major surgery on your overheads in Peru, if you can DC.
Shit is getting real.
Bill W would be proud that people have been following his teachings, even if it is to satire other aspect of human life. I too am addicted to ZH. Lucky for me 99% of people I know don't know what ZH is...
Ukrainian President Poroshenko stated: "They hate us for our despair".
DCRB: "I'M BAAACK!"
Welcome back, dude. We missed you.
I am also glad to see you back.
Yea, right, China is at the begining of recession with a 7.5 annual GDP growth. So does Peru.
Actually it's pretty easy to get kicked off of ZH.. i would tell you how, but of course then I would get kicked.
Problem solved!
WINNING
tick, tick, tick.....
Any country that introduces capital controls = F-U-C-K-E-D
nice knowing ya, Banderastan, still happy to have rejected Russia and embraced NATO?
POP goes the weasels.
The Yatzenjammer Kids running the show in Kiev have already moved those IMF loans to their Cayman Island accounts. Now all that's left to do is cover their tracks with some clever new banking regulations.
Yep. BYe Bye crooked Kiev Crooks; nice try Nato Missile Installers.
I'm sure these are just temporary. \s
Just like income taxes....
Coming soon to a country near you:
"You can check out anytime you like, but you can never leave"
Silver For The People
The Bitcoin Channel
1. Manufacture a bunch of bullets;
2. Shoot a bunch of people;
3. Enjoy wealth effect of per capita GDP boost;
4. Go to step 1.
come on guys ukrainia still has poland and israel for support israel has plenty false flag ideas poland billions of freedom apples.
jewish apple cake and polish methane to keep kiev warm this winter.
And you've got countries like Canada actively putting "bank bail-in" legislation in place and looking to nationalize securities regulation, citing "IMF recommendation" as a reason. If you don't think that the regulators have their eyes on your brokerage account (in addition to the deposits in your federally related bank account), well then you can't see writing on the wall.
As far as I am concerned, if the IMF is recommending it, that is a reason to not do it.
This is so telegraphed, it's fucking sick.
I've tried telling people that, they don't listen. Most just dismiss it as 'never happen here'.
99% of Canucks suffer from frozen brains, otherwise known as Puck-Heads!
"Never happen here eh....our Banks are safe eh......take off you conspiracy hoser"
Ccanuck
See page 144 & 145 of Canada's economic action plan 2013.
http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf
Stack On
Sounds like the Ruling Class got all their money out, grab yer popcorn.
And so goes the bread basket of Europe.
Ukraine also has the world's highest population of Bitcoin ATMs...
http://www.coindesk.com/5000-terminals-across-ukraine-now-offer-bitcoin-...
Coincidence?
No, Ukrainians proved how smart they are.
IMF rescuses leading to capital controls - I'm noticing a pattern.
If only we could institute capital controls over here, cause DC is out of fucking control...
You Capital Controls ?
More costs to Russia:
http://rt.com/business/189756-russia-southafrica-nuclear-deal/
Good to know. Some may recall the S.A. first signed a nuclear agreement with Israel, and then stopped doing research a few years later (after their tech was sucked out). They even "got rid" of their nukes... translation: They sold them to Israel.
Good to know that they back in the Nuke game, if they're gonna be serious about this whole BRICS things and a monetary system that is parallel to the IMF and BIS. S.A. too will need a "Sampson Option", if it chooses to fight the Fed.
Need to clse several US 'black' bases first.
Yes, the US has bases there. I know an ex marine that was posted there.
Check Paks Hungary, NPP as well.
Check the Czech Dukovany Temelin Westinghouse versus RRussia as well, it was a cause of the coup détat in Czech rep last year replacing Government aqnd a call for the elections, which have been won by the opposition party.
Watch Russia pull a rabbit out of the hat and guarantee everything (no siezures) if they adopt the ruble/yuan and drop the dollar.
It's a fucking WONKA factory. Dr. Nuland is the CFO.
Whaddya mean "Capital Controls"? But their currency is doing SO much better than the 'depreciating' Ruble. /sarc
Not to worry. Ukraine has a 83ton gold certificate sitting in NY.
So I take it the Israeli oligarchs have completed their stripmining operation of the country.
I'm sure its just temporary... right?
Ukrainis choose "western democracy" (sounds like a moloply of the west) over economy. Screwed!
Bitcoin user not affected.
Bitcoin last price $404 at Coinbase.
Ukraine is a failed state and has always been. Mostly because Ukraine leaders, doesn't matter which side, plundered the state and their people. Only Russia could have controlled the plundering where US, EU and the IMF failed. Language and cultural issues somewhat to blame but unfortunately only Russia understands the reasons for the economic collapse of Ukraine. West still completely clueless. So what next? Without money or an Economic plan Ukraine last resort is to drag the west into a ruinous war. Russia will do everything to avoid it but I fear it will be difficult.
it was a usa puppet mission
good post
Ukraine has never been a sovereign nation.
"Ukraine A History" Orest Subtelny
This is best bool for English language on this subject.
Author is of Ukrainian heritage.
At least Rasmussen only has a week to go. Fogh of War Fucking Off.
That has to ratchet the tension with Russia down a notch or two, maybe Jens has a modicum of sense about him?
Barroso & Ashton also soon on the way out - can't go soon enough.
It's over!
Last I heard the Ukie currency was going down the toilet.
Gold reserves confiscated (where?)----check
Massive Defense bill coming,and treatment of wounded staff----check
IMF restructuring (signing up for Goldman Sachs type toxic derivatives
like all the small French and Italian towns which will be Chapt.11 in ten years)---check
Shortage of Natural Gas this winter and into the future---check
Once the economy tanks,then the political instability starts---check
Ukie Mothers of dead sons will soon be asking "why?" (Ans. "Bankers")----check
I will add a few more checks, and yes it is all going exactly to plan in Ukraine:
- identify country with underdeveloped resources and significant public assets - check
- create a desire for western goods and lifestyles through media - check
- create evil internal scapegoat keeping the population from their desired western goods and lifestyles - check
- sow discontent between pro and anti western groups that leads to armed conflict - check
- watch armed conflict lead to economic collapse and keep conflict building as necessary - check
- offer military/economic assistance with conditions that create openings for foreign ownership and foreign goods to flow into the country - check
- enjoy widespread bankruptcy of local industry, foreign purchase of state and private assets at deep discounts, labor reforms that beggar local populations - coming soon
It's an old playbook and the Ukrainians fell for it hook line and sinker. Western Ukraine will be stripped by the NATO predators and it remains to be seen if the east can stay out of it's clutches. But even if it does, it's infrastructure has been severely damaged, and it's unlikely that Russia will foot the bill to rebuild without getting it's own hunk of economic flesh in return. Putin already possesses the main prize which is undamaged (Crimea) and will likely try keep NATO engaged in Ukraine as long as possible to provide time for economic restructuring that precludes this playbook being more forcefully applied in Russia. Neither NATO or Russia can afford to rebuild Ukraine but both of them want to impose economic/political costs on the opposition. Witness Putin's reluctance to intervene directly and the paltry western aid offered to Ukraine that has largely taken the form of used Soviet-era equipment from former Warsaw Pact countries. In a larger sense it's a race to see if the asset stripping in countries like Ukraine can keep the western ponzi afloat before the debt bomb explodes, and the BRICS are frantically trying to firewall themselves off from the coming mayhem. In this sense the NATO sanctions actually help Putin by allowing him to speed up restructuring and blame the local pain and costs on NATO. Sad to say that the brave people of Luhansk and Donetsk are mere pawns in this insane game.