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"Panic Must Be Stopped" Ukraine Central Bank Head Says, Boosts Capital Controls

Tyler Durden's picture




 

Yesterday, when we observed the latest record plunge in the Ukraine currency...

... we predicted that the imploding, hyperinflating nation will "halt currency trading any minute." Again, because recall that this is precisely what Ukraine central bank head Gontareva did the day before, when the currency soared after all third party trades in the Hryvnia were blocked before the government stepped in and effectively shut down the market.

Well, Ukraine has so far not fully blocked all trading, yet, however hours ago Ukraine’s central bank did the next best thing when it announced it would "boost restrictions on capital operations as it fights to quell panic that has triggered deposit withdrawals and depleted foreign-exchange reserves, Governor Valeriya Gontareva said" cited by Bloomberg.

Among the actions implemented the central bank will strengthen limits on activities including paying dividends, and impose a regime of examinations on all import operations that exceed $50,000. The hryvnia rebounded from a record low as the only remaining player in the FX space remains the central bank, and at least today it was buying. A lot: "the hryvnia gained 25 percent to 27 per dollar by 11:56 a.m. in Kiev, rising from the lowest close on record Thursday. Changes in central bank regulation leading to a higher supply of foreign-currency on the market were helping the hryvnia’s appreciation, Stanislav Piletskyy, a Kiev-based treasurer at Citigroup Inc., said by e-mail."

The problem is that the ramp will certainly not continue once the latest buying spell is exhausted, now that all confidence in the Ukraine currency is now lost, and the central bank has effectively assured of an unhappy ending with statement such as “Panic must be stopped and we are doing that now,” Gontareva said. “For the time being, we are working not on canceling restrictions, but on new ones."

Needless to say, there is nothing that creates more panic than warning "panic must end or else..."

And as we noted in the "Endgame" article, Ukraine now faces an even bigger problem: running out of cash.

The central bank needs to strengthen bank owners’ responsibility as a prerequisite for the International Monetary Fund-led bailout, Gontareva said. The country can drop capital controls when hryvnia is “back to fundamentals,” she said, adding hryvnia should trade around 20 per dollar.

 

Depositors have withdrawn 17.2 billion hryvnia from banks this year, Gontareva said. Ukraine’s reserves stood at $6.4 billion as of Jan. 31, down from $20.4 billion at end-2013 before the country’s pro-Russian insurgency began.

 

Ukraine has lost two percentage points of its gross domestic product from the annexation of Crimea and 15 percentage points due to losing control over rebel-held areas in eastern Ukraine, she said.

Gontareva's punchline: "Ukraine has insufficient reserves, and huge capital outflow." Yes, we can see how that is a problem. And another problem: Ukraine made its bed and invited the west in it. It better hope that the west, and the IMF reciprocate, or else the entire nation will be completely insolvent as soon as 3 weeks from today at which point the country will run out of liquid reserves with which to fund imports and the economy grinds to a halt. All that will be needed then, is another coup to restore the balance that the US Department of State so eagerly destroyed a year ago with its sponsored military coup in Kiev.

The only sad aftermath: yet another failed nation.

 

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Fri, 02/27/2015 - 09:19 | 5834874 GetZeeGold
GetZeeGold's picture

 

 

Boosts Capital Controls

 

Mission Accomplished!

Fri, 02/27/2015 - 09:23 | 5834881 Haus-Targaryen
Haus-Targaryen's picture

With the currency in freefall, reserves are almost depleted, a massive civil war and gas being paid for 24 hours at a time, it can't be much longer now.

Fri, 02/27/2015 - 09:34 | 5834893 giovanni_f
giovanni_f's picture

Strategic food reserves looted as well during the lost civil war against the freedom fighters in donbass. Looks like the western taxpayer will have to feed through the poor Ukrainians who expected immediate prosperity and free cookies forever.

http://fortruss.blogspot.de/2015/02/normal-0-false-false-false-en-us-x-n...

Fri, 02/27/2015 - 09:37 | 5834909 Stackers
Stackers's picture

Don't or get to bring a towel

Fri, 02/27/2015 - 09:39 | 5834911 cifo
cifo's picture

Is this Yellen's cousin (in the picture)?

Fri, 02/27/2015 - 10:00 | 5834976 Manthong
Manthong's picture

Valeriya Gontareva.. I wonder if she kept any souvenirs when she secretly gave up Ukraine’s gold.

Fri, 02/27/2015 - 10:26 | 5835066 mendolover
mendolover's picture

Here is an interesting background story about a shitload of 'world heritage' gold that came out of Crimea and is now sitting in a museum in Holland 'for safe keeping' until this whole thing settles down, if that ever happens.

https://www.youtube.com/watch?v=E6TXsKF9QMk&index=10&list=PLFo85AKj-7T37...

Fri, 02/27/2015 - 12:46 | 5835702 Mountainview
Mountainview's picture

Panic is therefore fully justified.

Fri, 02/27/2015 - 16:23 | 5836499 mkkby
mkkby's picture

Yes, panic must be stopped while we take what's left of your money and call it capital controls.

Fri, 02/27/2015 - 10:29 | 5835077 e_goldstein
e_goldstein's picture

They tried to clone Janet, but it didn't turn out right.

Behold, Mini-Yellen.

Fri, 02/27/2015 - 10:19 | 5835040 Bendromeda Strain
Bendromeda Strain's picture

Giovanni - thank you for that website. Everyone should check it out. Does not feel like propaganda, unlike the ham handed bullshit sandwiches served up by western media.

Fri, 02/27/2015 - 11:22 | 5835230 giovanni_f
giovanni_f's picture

It was the only place where I could find reliable information about the second civil war, in particular about the Debaltsevo Cauldron which received almost no coverage in  the West and whose sheer existence keeps on being denied by the Kiev junta. 

Fri, 02/27/2015 - 10:10 | 5835006 Ghordius
Ghordius's picture

"reserves are almost depleted...". what is that word? reserves?

Fri, 02/27/2015 - 10:51 | 5835198 Greenspazm
Greenspazm's picture

don't get all etymological on a post like this!

Fri, 02/27/2015 - 10:01 | 5834979 junction
junction's picture

For Ukraine, currency control means restricting the supply of wheel barrows, needed to transport sacks of worthless currency to buy a few loaves of bread.

Fri, 02/27/2015 - 10:41 | 5835145 UselessEater
UselessEater's picture

How many currencies not pegged to the USD have been plunging? Wheel barrows are almost a redundant metaphor now - try withdrawing the equivalent of USD5K anywhere in the world. Its the only time 0s and 1s on a computer screen convert to signing paper forms with ID checks.

Fri, 02/27/2015 - 10:58 | 5835232 GoldSilverBitcoinBug
GoldSilverBitcoinBug's picture

Capital control doesn't work, the black rate will be the only one relevant.

Fri, 02/27/2015 - 11:04 | 5835270 Colonel Klink
Colonel Klink's picture

Yep boost capital controls, THAT'LL stop the panic.

Just remember, he who panics first gets their money!

Fri, 02/27/2015 - 09:22 | 5834880 Haus-Targaryen
Haus-Targaryen's picture

.

Fri, 02/27/2015 - 09:28 | 5834889 Abitdodgie
Abitdodgie's picture

t looks like America has done it's work in Ukraine , turned it into a shit hole like all the other country's it touches ,Obama's work is done here now on to Syria to start WW111 

Fri, 02/27/2015 - 09:35 | 5834898 Bangin7GramRocks
Bangin7GramRocks's picture

Just delivering Freedoms. You're welcome!

Fri, 02/27/2015 - 09:40 | 5834914 Stackers
Stackers's picture

Don't kid yourself. Ukraine was a shit hole long before the euro maidan riots and coup

Fri, 02/27/2015 - 12:26 | 5835601 Volkodav
Volkodav's picture

Looking at your photo, you ain't exactly no oil painting yourself......

 

Ukraine is beautiful.

They need split off the pollacks

and find their inner Russian

 

Fri, 02/27/2015 - 13:30 | 5835882 Stackers
Stackers's picture

I didn't mean the country or the people..... but people with bags over their head probably dont understand much.

what I meant was the country's political, economic and social fabric was in shit and tatters looooooooong before any of the currenct mess started.

You can find videos of them duking it out in parliament going back for years and years and years.

Corruption, graft and cronyism take on entirely new levels in Ukraine and always have. The social tensions between the different ethnic backgrounds go back 100's of years.

Fri, 02/27/2015 - 15:09 | 5836233 Volkodav
Volkodav's picture

Tyler gave me the bag.

 

You said Ukraine is shithole. Ukraine would be the territory and people.

I took the meaning in clear English.

I understand perfectly...

you mistaked "Ukraine is shithole"

more than a little bite to

those of us who have concern for family, friends there

 

Nothing else is new...School yourself on Ukraine before tell others...

"Ukraine A History" Orest Subtelny  Best book for English Readers. Author is of Ukraine heritage

 

 

 

 

 

Fri, 02/27/2015 - 09:50 | 5834937 NoVa
NoVa's picture

 "Remain calm. All is well! ALL IS WELL!" 

~ Kevin Bacon in Animal House

NoVa

Fri, 02/27/2015 - 09:22 | 5834882 GoldFinch42
GoldFinch42's picture

Still no comments on bitcoins...

Fri, 02/27/2015 - 09:23 | 5834884 GetZeeGold
GetZeeGold's picture

 

 

No time for fancy crap now.....just get some gold.

Fri, 02/27/2015 - 13:51 | 5835964 JuliaS
JuliaS's picture

Some say bitcoin is as good as gold. I know what else is as good as gold. Gold!

Fri, 02/27/2015 - 10:48 | 5835177 Exponere Mendaces
Exponere Mendaces's picture

No stories about Ukrainians using gold to buy food, either... but its okay, the ZH prepper press will have another story for you to read about while you clean your ammo boxes while sitting on your chemical toilet...

Fri, 02/27/2015 - 11:09 | 5835293 GoldSilverBitcoinBug
Fri, 02/27/2015 - 09:25 | 5834885 Jano
Jano's picture

This is, what Tel Aviv and Washington want. Chaos and instability.

 

And an empty country to occupy it and drain the resources.

Fri, 02/27/2015 - 09:35 | 5834903 Monetas
Monetas's picture

Bibi and Obama .... the "Odd Couple" .... Hebe and Muslim !

Fri, 02/27/2015 - 09:30 | 5834890 cnmcdee
cnmcdee's picture

 

Those of us who survive the coming WWIII will not have state governments to contend with any longer nor their price manipulations.  There will be no taxes, no central banks, no bankers, no stock market, no derivatives.  All that is needed for all of this to occur is to make public the recipe of the Thorium Plasma battery and centralized control will slowly evaporate faster than MGM's revenue at the hand of an army of 12 year old movie pirates.. 

Fri, 02/27/2015 - 10:20 | 5834916 LawsofPhysics
LawsofPhysics's picture

If only the majority had access to the necessary items and a safe waste disposal plan.  You are a complete idiot if you don't think there are hard limits on technology.

You are also forgeting the number one rule to maintaining power and control...

Knowledge is power

I think you know the rest.

Fri, 02/27/2015 - 15:05 | 5836214 Razor_Edge
Razor_Edge's picture

Knowledge is not power. Applied knowledge is power!

 

FIFY

Fri, 02/27/2015 - 09:53 | 5834950 SirBarksAlot
SirBarksAlot's picture

Do tell.

Fri, 02/27/2015 - 10:04 | 5834990 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Those of us who survive the coming WWIII will not have state governments to contend with any longer nor their price manipulations.  There will be no taxes, no central banks, no bankers, no stock market, no derivatives.  All that is needed for all of this to occur is...

...WW3.

Fixed it for you. The pollyanna cornucopianism is a non sequitur.

Fri, 02/27/2015 - 10:15 | 5835024 mickoo
mickoo's picture

"The pollyanna cornucopianism is a non sequitur."

Well i learned something today :)

The Pollyanna principle (also called Pollyannaism or positivity bias) is the tendency for people to remember pleasant items more accurately than unpleasant ones.[1] Research indicates that, at the subconscious level, the mind has a tendency to focus on the optimistic while, at the conscious level, it has a tendency to focus on the negative. This subconscious bias towards the positive is often described as the Pollyanna principle.

A cornucopian is a futurist who believes that continued progress and provision of material items for mankind can be met by similarly continued advances in technology. Fundamentally they believe that there is enough matter and energy on the Earth to provide for the ever-rising population of the world.

Non sequitur (Latin for "it does not follow"), in formal logic, is an argument in which its conclusion does not follow from its premises.[1] In a non sequitur, the conclusion could be either true or false, but the argument is fallacious because there is a disconnection between the premise and the conclusion. All invalid arguments are special cases of non sequitur. The term has special applicability in law, having a formal legal definition. Many types of known non sequitur argument forms have been classified into many types of logical fallacies.

 

Fri, 02/27/2015 - 10:30 | 5835084 Ghordius
Ghordius's picture

now you've done it. I was already thinking that ZH's commentary is down at gutter level, and you both bring back the... poetry

do WW3, and all your worries are... gone. including taxes and... death. oh, and... you, too

but remember, there is no profit in global, open war. hence the mercenaries, the proxy wars and the "unmarked green men", the assassinations and the maneuverings

Fri, 02/27/2015 - 10:55 | 5835219 LawsofPhysics
LawsofPhysics's picture

So, same as it ever then...  gee, what "insight"...  ...not.

Fri, 02/27/2015 - 09:30 | 5834891 Dungholio
Dungholio's picture

Can't obama just appoint himself president of the ukraine?  that might help...

Fri, 02/27/2015 - 09:31 | 5834894 CHX
CHX's picture

When CBs say "don't panic" is exactly when it's time to panic... or rather, it's already too late and "fait accomplit".

Fri, 02/27/2015 - 12:10 | 5835553 mendolover
mendolover's picture

Exactly!  The west will do everything wrong until they run out of shitty ideas.  Then they will do the right thing.  Who knows when that will be.

Fri, 02/27/2015 - 09:32 | 5834895 shovelhead
shovelhead's picture

Memo to Vicky:

More cookies please.

Fri, 02/27/2015 - 09:35 | 5834902 SillySalesmanQu...
SillySalesmanQuestion's picture

Valeriya looks a little like Janet's sister, no?

Fri, 02/27/2015 - 09:40 | 5834917 Greenspazm
Greenspazm's picture

They are both uglier than a hatful of assholes.

Fri, 02/27/2015 - 10:12 | 5835013 TheFourthStooge-ing
TheFourthStooge-ing's picture

I have <psaking>a high degree of confidence</psaking> that they are both specimens of an unusual variety of Yeti, the females of which appear to be drawn to ponzi-like operations and have an affinity for Three-card Monte.

Fri, 02/27/2015 - 10:17 | 5835029 mendolover
mendolover's picture

Funny I thought I saw this broad working the cash register at a car wash in Jackson Heights Queens.

Fri, 02/27/2015 - 10:51 | 5835196 Niall Of The Ni...
Niall Of The Nine Hostages's picture

She will be soon.

Fri, 02/27/2015 - 09:37 | 5834905 wednesdayfan
wednesdayfan's picture

"Im from the US government and I am here to help"  run run and dont stop running

Fri, 02/27/2015 - 09:37 | 5834910 LawsofPhysics
LawsofPhysics's picture

Are the "rebels" using Rubles yet?

Currency wars, then trade wars, then global shooting/killing wars...

 

same as it ever was.

Fri, 02/27/2015 - 09:39 | 5834915 Greenspazm
Greenspazm's picture

"Colonel Hunger and Hyperinflation the Saboteur"

prescient indeed:

http://vineyardsaker.blogspot.de/2014/06/translation-of-must-read-articl...

Fri, 02/27/2015 - 09:42 | 5834921 buzzsaw99
buzzsaw99's picture

when even the imf won't give you a loan, well, you're kind of, um, what's the word i'm looking for here?

Fri, 02/27/2015 - 09:50 | 5834939 cossack55
cossack55's picture

Greenshootish?

Shovelreadyish?

Fri, 02/27/2015 - 11:01 | 5835253 Blano
Blano's picture

Fucked?

Fri, 02/27/2015 - 09:47 | 5834932 Monetas
Monetas's picture

Currency name inflation .... no currency should have more than .... D O L L A R .... 6 letters in it's name .... Hryvnia should be shortened .... Hernia .... that works !  

Fri, 02/27/2015 - 09:55 | 5834955 Monetas
Monetas's picture

English kids are taught .... a "Q" is always followed by a "u" .... in the Slavic states .... an "H" is always followed by an "r" !

Fri, 02/27/2015 - 11:05 | 5835277 mendolover
mendolover's picture

Hey Monetas is that avitar the new official seal of the POTUS?

Fri, 02/27/2015 - 09:50 | 5834941 Fun Facts
Fun Facts's picture

Interesting that Valeriya Hontaryeva looks just like a younger version of Grandma Yellenstein.

Maybe all these central banksters come out of a mold.

Fri, 02/27/2015 - 09:57 | 5834965 Monetas
Monetas's picture

Well, Yeah ! .... all life began .... with moldy cheese .... don't they teach evolution anymore ?

Fri, 02/27/2015 - 09:55 | 5834958 SirBarksAlot
SirBarksAlot's picture

I feel so dirty when I read this.

And not in a good way.

Fri, 02/27/2015 - 09:56 | 5834961 JenkinsLane
JenkinsLane's picture

"Fuck Nuland!"

Fri, 02/27/2015 - 10:37 | 5835124 Ghordius
Ghordius's picture

no no no, you got it wrong. It's way more fashionable to say "Fuck the EU"

Fri, 02/27/2015 - 10:02 | 5834981 vegas
vegas's picture

Fucking idiots; in the history of the world, somebody tell me when "capital controls" have ever worked? And these are the "smartest people in the room"? WTF.

www.traderzoo.mobi

Fri, 02/27/2015 - 10:11 | 5835012 Monetas
Monetas's picture

They've worked pretty well .... in suppressing the PM's .... and in pumping the pimps at CNBC ?    

Fri, 02/27/2015 - 10:09 | 5835000 Catullus
Catullus's picture

STOP PANICKING NOW!!!!

Fri, 02/27/2015 - 10:11 | 5835009 falga
falga's picture

W

Fri, 02/27/2015 - 10:17 | 5835033 Monetas
Monetas's picture

"Soul .... is the brevity .... of wit !" .... Monedas

Fri, 02/27/2015 - 10:12 | 5835016 mendolover
mendolover's picture

It might be better for Ukraine if those green stripes on the charts were orange.  This video sheds a little light on Governor Gontareva - 

https://www.youtube.com/watch?v=GxukRFUfcr8

Fri, 02/27/2015 - 10:13 | 5835017 SnatchnGrab
SnatchnGrab's picture

Ukraine wanted membership in NATO at one time (ostensibly for defense), what they should've said was "We want membership in NATO so when Russia moves, US troops will be (ignorantly) deployed to help us fight. (Or do the Lion's share of the fighting. I've met Ukranian officers, good guys but ...).

 

By the by, this is a country that USED to have nukes. They gave them up years ago with assurances that if this very (military) situation occurred, the "west" would defend them. 

 

Nukes are like the recipe for ice. Never, EVER, give them up.

Fri, 02/27/2015 - 10:15 | 5835023 SnatchnGrab
SnatchnGrab's picture

Wanted to add: I  get Europe's reluctance to do anything militarily. Many of their "leaders" grew up in homes decimated by WWII. But there comes a point when you either fight or roll over on your belly. 

 

Maybe it's like a buddy of mine said, "The best of Europe died 100 years ago in the trenches of the Somme, Ypres and Verdun. The rest has been bred out of them."

 

Hey, you want plowshares (huge social nets), fine. Sooner or later - you pay the price.

Fri, 02/27/2015 - 10:36 | 5835115 Ghordius
Ghordius's picture

and getting caught between warring empires? been there, done that. for which specific province do you suggest we have to spill the blood of our young?

Fri, 02/27/2015 - 10:15 | 5835022 q99x2
q99x2's picture

They better  be careful carrying all that cash to buy some bread; they could give themselves a hryvnia.

Fri, 02/27/2015 - 10:18 | 5835036 Two dogs
Two dogs's picture

The show's not over till the fat lady sings. A choice of two here.

Fri, 02/27/2015 - 10:20 | 5835045 Armed Resistance
Armed Resistance's picture

"The beatings will continue until morale improves!"

Fri, 02/27/2015 - 11:56 | 5835496 Fun Facts
Fun Facts's picture

Herr Emanuel ZWO general is working on that in Chicago right now.

Fri, 02/27/2015 - 10:20 | 5835046 falga
falga's picture

Well, two options now!

1/vote urgently to accept all reforms that the IMF suggested and hopefully get some cash by Monday - Good luck on that since IMF will not meet until Mar 11 to discuss it

2/ Enact capital controls immediately and default on all loans which are worth zilch anyway

Then might as well declare martial law as the Ukraine govt will need the security. Such a sad denouement to a greedy leadership! Once again, it is the people that will suffer!

Fri, 02/27/2015 - 10:42 | 5835155 Two dogs
Two dogs's picture

Judging by past military performance, martial law might not be that easy for them. Only way I could see that working is if the entire population was conscripted.

Fri, 02/27/2015 - 10:26 | 5835067 ClowardPiven2016
ClowardPiven2016's picture

Someone help me out...did Putin cause this to happen or is it George Bush's fault?

Fri, 02/27/2015 - 10:39 | 5835135 tsuki
tsuki's picture

That's a hard call.

Fri, 02/27/2015 - 10:32 | 5835094 Gadfly
Gadfly's picture

Stop the U.S. from sending weapons to Ukraine. Sign the petition to the U.S. Senate and pass it on. From the Saker's website:

http://diy.rootsaction.org/petitions/no-weapons-to-ukraine

Fri, 02/27/2015 - 10:55 | 5835221 nakki
nakki's picture

That chart looks great to me. Bottom right to up and left.

Fri, 02/27/2015 - 11:22 | 5835350 are we there yet
are we there yet's picture

I have 65,000 ukranian hyrivna's fiat in the US that I can not get converted to dollars. My employee came back from Kyiv and said that the street money changers were completely out of dollars. That was 2 weeks ago. Her friends say it is worse now. For reference 2 years ago it was 8 hv per dollar now it is over 30 officially except banks are out. The black market of Kyiv street hustlers have dollars in stock at 60 hv / $.

Fri, 02/27/2015 - 12:10 | 5835550 Volkodav
Volkodav's picture

about right

yesterday was 45-50

big crackdown on traders

 

Fri, 02/27/2015 - 12:50 | 5835724 Mountainview
Mountainview's picture

Kiev should start to print Roubles.

Fri, 02/27/2015 - 11:34 | 5835413 are we there yet
are we there yet's picture

The Ukrainian hryvna is getting so worthless that it cannot even buy a US congressman, except Barney Frank maby.

Fri, 02/27/2015 - 11:43 | 5835451 The Count
The Count's picture

Will somebody explain exactly how an American supposedly just became the Ukraine finance minister in a hush hush swearing in blitz ceremony where she became a Ukraine citizen? And of course she is ex JPM or was it ex GS?

 

 

Fri, 02/27/2015 - 12:03 | 5835515 Two dogs
Two dogs's picture

She's STILL a US citizen, ex-Harvard, ex-US State Dept, ex US Embassy in Kiev and former fund manager. Here she is struggling to keep a straight face when the 2015 Ukie budget was approved at the end of December:  http://en.dyvys.in/photos/500/016/16618.jpg

She's only a joint Ukie citizen for up to two years - though it looks like a couple more months might be all she'll need.

Fri, 02/27/2015 - 12:10 | 5835544 Two dogs
Two dogs's picture

Robert Parry did a pretty thorough piece on her, here

Fri, 02/27/2015 - 12:05 | 5835535 Irishcyclist
Irishcyclist's picture

New Ukrainian national anthem

 

https://www.youtube.com/watch?v=Dv_Q-heLs40

Fri, 02/27/2015 - 12:39 | 5835673 SMC
SMC's picture

“Panic must be stopped”... only a matter of time before some US-NATO scumbag decides it should be stopped with lead.

Fri, 02/27/2015 - 12:53 | 5835735 Hannibal
Hannibal's picture

Ukraine Prepares for an Attack Against Russia 2-27-15
By: Eric Zuesse The post-coup leaders of Ukraine have routinely said that Ukraine should destroy Russia; and, now, starting on February 24th, they are placing into position the key prerequisite for doing so, which is the advanced Anti-Ballistic-Missile, or ABM, system, S-300, which is described as follows by wikipedia “The S-300 is regarded as one of the most potent anti-aircraft missile systems currently fielded.[3] Its radars have the ability to simultaneously track up to 100 targets while engaging up to 12/24/36 targets. The S-300 deployment time is five minutes.[3] The S-300 missiles are sealed rounds and require no maintenance over their lifetime. An evolved version of the S-300 system is the S-400 (NATO reporting name SA-21 Growler), which entered limited service in 2004.” http://fortruss.blogspot.com/2015/02/ukraine-prepares-for-attack-against...

Fri, 02/27/2015 - 13:33 | 5835879 Two dogs
Two dogs's picture

I don't think that Russia will feel particularly threatened by S-300s. The only thing that the Ukrainians have ever hit with an S-300 is Siberia Airlines Flight 1812 (a commercial flight) which was shot down by the Ukrainian military over the Black Sea on 4 October 2001.

Ukraine banned the testing of Buk, S-300 and similar missile systems for a period of 7 years following this incident. Ukraine’s acting Defense Minister Ihor Tenyukh described the combat readiness of the country’s armed forces as “unsatisfactory” in his 12 March 2014 report to the acting president. Tenyukh said recent exercises demonstrated a “dismal degree of preparedness among servicemen and lack of military specialists, equipment and weapons” in the Ground Forces, the Air Force and the Navy.

The country’s air defense troops had received little training because of the 2001 ban on missile launches imposed after the crash of a Russian Tu-154 passenger jet. The ban was lifted in 2008, but so far only 10 percent of Air Defense Forces servicemen “have mastered the required level of theory and practice,” the report said.

Fri, 02/27/2015 - 14:03 | 5836015 Two dogs
Two dogs's picture

Just a minor point: if you really wanted to defend Kiev against an attack from Russia would your natural first choice be to put S-300s in Odessa? Don't they have any maps?

Fri, 02/27/2015 - 12:56 | 5835749 SykeWar
SykeWar's picture

The beatings will continue until morale improves.  BTW, thanks for buying the stick.

Fri, 02/27/2015 - 12:57 | 5835751 Volkodav
Volkodav's picture

Fight Club:

Louna  Fight Club   Ukraine War:

https://www.youtube.com/watch?v=HcsgIjoTC-E

Live performance Russian:

https://www.youtube.com/watch?v=-sdPd7tdTh0

Live with English lyric:

https://www.youtube.com/watch?v=I1LMJ7xpDm4&spfreload=1

 

 

Fri, 02/27/2015 - 13:39 | 5835902 Volkodav
Volkodav's picture

Crimea fortunately avoided this.

Fri, 02/27/2015 - 13:52 | 5835970 Two dogs
Two dogs's picture

So far. US/NATO/MSM is still adamant that Crimea was "annexed by Putin".  Their view is that a vote/referendum is only ever valid if it produces the desired outcome.

Fri, 02/27/2015 - 13:50 | 5835957 Free_Spirit
Free_Spirit's picture

Last time it was the Bolsheviks who inflicted mass starvation on the Ukrainians, this time it'll be the US "Let them eat Apple Pie" Obama's.  

Fri, 02/27/2015 - 14:30 | 5836114 vincenze
vincenze's picture

So, each nice and beautiful building in the center of Kyiv will cost about $50,000.

Tell that to the Chinese who buy plain yellow boxes in California for $1,000,000.

Ukrainian billionaires with their own armies will buy everything.

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