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Ukraine "Crooks" Default On $3 Billion Bond To Putin
Back in August, Ukraine struck a restructuring agreement on some $18 billion in Eurobonds with a group of creditors headed by Franklin Templeton.
Under the terms of the deal, Kiev should save around $4 billion once everything is said and done. That was the good news. The bad news was that Ukraine still owed $3 billion to Vladimir Putin. Here’s what we said at the time:
“..owing Vladimir Putin $3 billion is not a situation one ever wants to find themselves in, but this particular case is exacerbated by the fact that Putin did not loan the money to Ukraine as we know it now, he loaned the money to a Ukraine that was governed by Russian-backed Viktor Yanukovych. Of course Yanukovych was run out of the country last year following a wave of protests (recall John McCain’s infamous speech at Maidan)."
Ukrainian finance minister Natalie Jaresko offered the same restructuring terms to Russia that it offered to Franklin Templeton and T. Rowe. In effect, Jaresko was attempting to tell Vladimir Putin that Ukraine would allow him to take a 20% upfront loss on the $3 billion he loaned to Yanukovych who was overthrown by the current Ukrainian government with whom Moscow is effectively at war.
As you might imagine, Putin was not at all interested. Last month, Moscow "generously" offered to accept $1 billion per year from now until 2018 (so, a "restructuring" at par). Kiev refused, noting that such a deal would violate the country's agreement with its other creditors.
Earlier this week, the IMF ruled that the debt to Russia was intergovernmental (as opposed to private). “In the case of the Eurobond, the Russian authorities have represented that this claim is official. The information available regarding the history of the claim supports this representation,” the Fund said, in a statement.
"The decision means that under new IMF rules Ukraine will now have to demonstrate 'good faith' in at least attempting to negotiate a restructuring of its debt with Russia if it wants to secure the next instalment of a $17bn IMF-led rescue programme," FT noted at the time. "But the 'good faith' bar is one that senior IMF officials do not believe Ukraine has yet met."
That ruling effectively set the stage for Ukraine to declare a default and that's precisely what happened just moments ago.
As Bloomberg reports, "Prime Minister Arseniy Yatsenyuk said Kiev is imposing a moratorium on the note due Dec. 20. Yatsenyuk announced the payment freeze at a government meeting in Kiev on Friday."The finance ministry warned Russia on Thursday evening that it could not make the payment (due by Sunday).
???? ??????????? ????????? ?? ??????? $3 ???? 75 ??? ?????????? ??????.
— Arseniy Yatsenyuk (@Yatsenyuk_AP) December 18, 2015
?????? ??????????, ?? ?? ?????? ?? ??????? ????????? ? ?????????? ????????.
— Arseniy Yatsenyuk (@Yatsenyuk_AP) December 18, 2015
"Considering that Russia has refused, despite our efforts, to sign an agreement on restructuring and to accept our proposals, the cabinet is imposing a moratorium on payment of the Russian debt worth $3 billion," Yatsenyuk said, adding that Kiev "is also imposing a moratorium on the $507 million debt payment to Russian banks of two Ukrainian companies Yuzhnoe and Ukravtodor. From today all payments are suspended till our government or a court makes a decision."
And it looks like a court will have to make "a decision" because Putin is probably going to sue. "Russia said as recently as last week it would take Ukraine to court if the payment was missed," Bloomberg notes.
Earlier this month, Putin ordered Finance Minister Anton Siluanov to file a lawsuit against Ukraine in the event Kiev defaults. “It is strange. If they are so confident in the country’s solvency for the next year, then they could somehow participate during the last four years to share the risks," Putin said, referencing Washington's unwillingness to back Ukraine's guarantees. "Fine. File the lawsuit," he concluded.
So, the stage is now set for what will surely be an amusing court battle between Russia and Ukraine which, you're reminded, are still essentially at war. In a preview of the kind of chuckle-inducing soundbites you're likely to hear in the months ahead, we close with the following quote from PM Dmitry Medvedev:
“I have a feeling that they will not pay us back because they are crooks.”
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I had a similar conversation the other day with three Russians at breakfast. They were great guys. More into peace, but I did try to make the point that a lot of people would apreciate it, the DC part that is.
Not the Library of Congress! Save the Smithsonian!
Argh.
Nuke DC? Who would do that? Not even as a poetic gesture.
Shop owners I know won't hire Ukranians, due to them stealing and when shop owner says something about they yell at them.
weird people
When I grew up, my best freind was Ukranian. His Dad was in charge of Catholic Church Bingo. He stoled the Bingo money after his dad calimed a false burglary, and a month later, left gis wife and took his mistress on a carribean cruise.
check this out..
https://www.youtube.com/watch?v=I9pos-2H7cw
as soon as Russia sues Ukraine for missed 3bln payment the Ukrain will sue Russia for occupying Crimea
You mean like zionists occupy Washington/Wall Street/Hollywood?
Funny how some people only like democracy when "their guy" wins... The Crimean vote/polls is/are a bit more democratic that the Supreme Court "intervention" in the 2000 recount of Florida.
Really? What a sweet fantasy world.
Ukrainian bond issued under UK laws. Court in UK the case to decide. Court to decide on political expedient basis is not possible and would UK financial laws undermine confidence globally. Risk to City of London and far exceeds $3 billions.
English Law court ruling in favour of Russia. Another fine chess move by the master.
Criimea seceded
get lost goat
Kosovo is the legal precedent. This could be kept in the courts for years. Hold your breath.
Ukranian government: "Thanks, God, that we are not the Islamic State"
But they are arming ISIS via Qatar, and acting as a safe haven for ISIS thugs and Turkish Gray Wolves (those shitheads who executed the Russian Su-24 pilot descending by parachute). They are also bombarding Donetsk and Lugansk contrary to the protocol agreed to at Minsk.
Ukraine may not have an ISIS-grade bullseye on their back, but it is pretty close.
nope...won't be cold. the gas taks are brimming with unpaid for deep-cooled gas.
Taking legal instruction from the Puppet Master no doubt.
"Fine. File the lawsuit." translates to "Fine. Turn off the gas."
Oh let me get this strait, Ukrane is the crook?
Did Putin pay the shareholders of yukos 50 billion like he was supose to?
Will he be compensating Ukraine for Bombing and killing them, and stealing part of their country.?
Like in StarWars, the force is strong in that one, but in this case, the Propaganda is strong in that one..
So here's the info for ukropskiy thinking about the dream American wonderwaffle...
Great description: wonderwaffle. I will try to use that in future!
Yeah, but the Yukos shareholders were crooks too. Don't you see the common theme? Putin -the great crimefighter, man of the people, man of Justice.
They better watch or they will find that you don't tug on supermans's -you don't spit into the wind -you don't pull the mask off the old Lone Ranger -and you don't mess around with Vlad.
"After two years outside of Russia, the Investigative Committee charged Khodorkovsky (Yukos) for the 1998 murder of Vladimir Petukhov — the mayor of oil town Neteyugansk, where Yukos was headquartered."
He was also accused of attempting to kill businessman Yevgeny Rybin in 1999. Mr Rybin survived the assassination attempt against him, but his bodyguard was killed."
http://www.telegraph.co.uk/news/worldnews/europe/ukraine/12046015/Putin-...
From different source:
"Mr. Khodorkovsky received long prison sentences in good legal reasons, and also suffered this punishment almost entirely in prison. The European Court of Human Rights did not find any political motives in Khodorkovsky's judgment. President Vladimir Putin used his legal rights to pardon Mr. Khodorkovsky because of the ethical reason: former oil baron has mother, who was ill and nestled in Germany. So Khodorkovsky flew immediately after the liberation to Germany to his mother. [1] [2] On Saturday morning 12/21/2013 Mikhail Khodorkovsky also met with his oldest son, Pavel, who flew from New York to Berlin. Khodorkovsky held a press conference in Berlin on 12/22/2014.
In the 80’s and early 90’s, many “vodka tourists” have possibly missed money to fake cognac. Finally that money went to Khodorkovsky’s account. Mr. Mikhail Khodorkovsky began to make money cunningly and ill as the assistant deputy minister in Komsomol Committee. Sometimes in the past I have written and spoken that the communist system was “already” corrupt, and it was in this case! Mr. Khodorkovsky was the head of Komsomol: they produced and sold computers, jeans and alcohol – including fake cognac - and received substantial profits. Total turnover of this business was 80 million rubles." "Mr. Khodorkovsky's criminal pre-trial investigation revealed that Mikhail Khodorkovsky created an organized criminal group, by which he fraudulently took possession from the different companies and sold them to intermediaries. In the Yukos case, the list of respondents included 30 people, most of whom were overseas and unreachable. “Oligarch’s autism” was very real and evil. He was guilty of gross fraud and misappropriation as the founder, instigator and donor of his criminal organization. Alexei Vladimirovich Pichugin (??????? ???????????? ???????) – Khodorkovsky’s and Yukos’ security chief – was one of the major player. Alexei Vladimirovich Pichugin was cited for 20 years for the murders. The Supreme Court restored in 2007 his sentence to the new law treatment and in August 6, 2007 the Moscow City Court sentenced Mr. Pichugin to life sentence about very serious crimes: murders and assassinations."
http://webcache.googleusercontent.com/search?q=cache:ASaAfjdi1FYJ:juhamo...
That so-called "judgement" of $50 bil was in a crooked court that had no jurisdiction over Russia. On the other hand, a court that DID have jurisdiction, the European Court of Human Rights, reviewed the Yukos / Kodorkovsky case twice and said the Russian government had a strong case and Kodorkovsky deserved to be in jail. The second time they awarded him 100,000 euros for his "trouble" and as far as I know, the Russian government paid that. But you may have overlooked the ECHR judgements?
There is no compensation due to Ukraine. They are blockheads who convinced their own people to rebel against them. If the Ukraine Rada had not been composed of idiots, they would still have Crimea and Russia would be content to keep paying rent for Sebastopol.
Just take all of Donbass and whatever other real estate is available from the dead beat Ukrops in the east. Foreclosure on unpaid for real estate is something the chosen racer banksters understand and do all the time.
Other crooks at work: Turkey and Israel are normalizing relations which were broken at the time of the Mavi Marmara incident. So Israel now feels it has a worthy partner in Turkey.
http://fortruss.blogspot.co.uk/2015/12/israel-and-turkey-reach-agreement...
What a hilarious Russian spin. They aren't paying you back because you invaded their country, fool. Yesthey are Russian troops, even without their uniforms on.
Go get a clue, dork. And put on a shirt while you're at it.
Youmutti troll changed his name to Yovatti:-)
Is that German or Yddish?
What a limited imagination, even for a government employee!
You are lucky your line manager did not notice that yet.
Wow, there sure are a lot of Russian shills on this site. Enjoy your gang state, fellas!
The US gov't is as crooked as they come but it is truly scary to see so many pro-Putin supporters ready to kneel before him and worship all he does. Putin is no hero and no savior for any but Russia yet Americans are choking down his shaft without gagging. In the end Putin will be remembered with the likes of Stalin, Hitler, and Mao for the sheer number of deaths he was responsible for. He is a ruthless tyrant and all the fools forget this this because they are blinded by their petty hatred of what America has become. We'll see how loud you all cheer when the world is at war and your families suffer.
Listen you stupid moron, only leaders who will be remembered together with Mao, Stalin or Hitler will be Obama, Bush and Netanyahu. So go back to your supervisor and tell him to go fuck himself. Their propaganda effort in this site is completely useless.
"...Putin will be remembered with the likes of Stalin, Hitler, and Mao for the sheer number of deaths he was responsible for."
US Has Killed More Than 20 Million People in 37 “Victim Nations” Since World War IINew World Order .... Donny, Puty and Bibi .... Old World Order .... Bamy, Erdy and Clity ---- Putin backs Trump .... barenakedislam.com 12/17/2015 ?
I don't know what kind of moron that you are but this is what most Russian people think of Vladimir Putin. He is a man that loves Russia and it's people. A man that will not bend and a man that stands up for the Orthodox Church,traditional families and ordinary people. He is a man that says what he feels and is not a spineless "politically correct" wimp like most American leaders. Vladimir Putin personally had a hand in the revival of the Orthodox Church and stands firm in protecting it across the vast Russian landscape. This in sharp contrast to current American leaders that rebuke anything Christian.
Putin is against the anglo led NWO and will not allow Russia to ever become a vassal state of the US. For all of these reasons the US Govt and its media falsely accuse and demonize Putin and continously lie to the American people about him. Russian people love him!
In the end whatever is left of the world will remember the American neocons. How THEY with NATO needlessly brought the world to World War III in a power hungry desire for world hegemony. If anyone will be remembered with Hitler, Stalin and Mao it will be Obama, Nuland, McCain, and Graham along with the spineless EU leadership.
Putin will be a man remembered by Russians and the Holy Church for his deep Orthodox Christian Faith, his strength, integrity, resolve and patience in dealing with the evil war mongering neocons that will start the nuclear holocaust that will be known as WW III.
(Hopefully, the next President of the U.S.) Donald Trump respects Vladimir Putin. Recently, according to the tweet below, he said: "Putin's complement is a great honor for me."
The $3 billion is not that much to a nation such as Russia. The lawsuit will likely go nowhere due to politics.
The most obvious result of the situation as a whole might seem to be Russia turning off the gas to Europe that flows through the Ukraine. Then the Ukraine can't poach it. However, the many innocent Ukrainians and Europeans would basically freeze in the dark. However...
Russia does not want to harm those innocent people since it hopes to win them over eventually. So they will likely just cut down on the amount of flow; just enough so they feel some pain. But...
Somehow, Russia will pipe gas into eastern Ukraine (e.g. Donbass). But then maybe the nutty nazis will blow up the eastern pipeline out of spite. And then maybe the eastern militias will blow up the western pipelines that supply Europe. Then Europe dies. That might possibly have certain economic repercussions.
They're not paying it back because it's now run by Jews.
I'm sure the Putin will be shaking in this boots once the Ukrainian cabinet gets it together. But that is going to take some time.
Here is a recent cabinet meeting video with english subs where some "frank" discussion takes place about corruption being investigated by the former Geogian President.
http://southfront.org/sensational-government-session-in-a-european-count...
it starts like this:
The cast:
Arsen Avakov, Minister of Internal Affairs of Ukraine (one Armenian, supported by the US)
Mikhail Saakashvili, Governor of Odessa Region of Ukraine, former President of Georgia, on the wanted list in Georgia now (one Georgian, appointed by the US) to make a dispute about Ukrainian wealth.
00:01 AVAKOV: Mikhail Grigorievich, I’m reacting to the things you’ve said
00:04 AVAKOV: I’ve written some of them here
00:05 AVAKOV: I paid close attention to your speech
00:07 AVAKOV: and summary regarding… that was happening on your Odessa…
00:12 AVAKOV: anti-corruption forum
00:13 AVAKOV: You are speaking softer now
00:15 AVAKOV: I don’t get it
00:16 AVAKOV: You said that the cabinet of ministers itself was heading the corruption
00:19 AVAKOV: You stated that without proofs, you stated that loud and clear
00:23 AVAKOV: explicitly
00:23 SAAKASHVILI: With lots of proofs
and ends like this:
3:01 AVAKOV: Piss off!
3:02 SAAKASHVILI: We are going to restore the country and you’ll be in a jail
3:04 AVAKOV: You’ve already driven your country to disaster!
3:06 AVAKOV: Get the hell out from my country!
3:07 POROSHENKO: Arsen Borisovich…
3:08 AVAKOV: Rascal!
3:10 SAAKASHVILI: From your country? I’m Ukrainian
3:12 AVAKOV: Right [sarcasm] SAAKASHVILI: For your information…
3:13 AVAKOV: I’m Ukrainian, I’m at home
3:14 SAAKASHVILI: No, you are a thief!
Georgian Eka Zguladze, a foreign member of the Ukrainian government who was hired to fight corruption in the country, caught at the airport trying to take $4 million out of the country:
How can you expect these savages to honor any obligations?
It was antics like this that persuaded the Crimeans to leave and the Novorussians to capture police stations with their armories. That, plus a few massacres here and there.
The usual nation wrecking ethnic crew, and they wonder why they have been booted out of 80+ countries over 2 millennia.
How The IMF Will Loot Ukraine
http://www.realjewnews.com/?p=908
http://www.realjewnews.com/?p=898
http://www.realjewnews.com/?p=970
Well, Putin could always threaten to run their future natural gas through Turkey...no, wait.
The truth is Putin didn't lend $3B to Ukraine but to their Russian puppet. There are risks getting involved in the government of other nations, and there ought to be additional costs for illegally providing Russian Rebels with weapons. The US knows this all too well. Vlad? Take your lumps and move on.
It doesn't work that way. The debt was to a country not to an individual, so it rolls on even with a new administration. Russia ended up paying back the old Soviet debts, too. Ukraine will have to pay eventually. This is not commercial debt like the Templeton fund stuff. IMF said it was sovereign debt. That can hang around forever.
Really? Were you there when Putin said "This isn't for Ukraine, Viktor, this is for you, our loyal puppet?"
What a wonderful way for a country to default on all it's debts. Just claim that all bonds and loans were received by previous and crooked administrations.
Then countries could have an 'understanding' between their parties that a current administration would always do something crooked, so that a subsequent administration could repudiate the country's debt by the "Dorothea Binz Principle."
Soon the US will do that to all its foreign and domestic bond holders who loaned all previous administrations back tothe biggest Crook of all, Ronald Reagan, who started the snowball rolling into the ginormous avalanche of global debt it is today.
I guess this says a lot. If Viktor was a puppet, then he was a legally elected puppet.
Not like the current neo-nazis brought to power amid US incited regime change riots
which brought about an unconstitutional and illegal coup in Ukraine in February 2014.
https://www.youtube.com/watch?feature=player_embedded&x-yt-ts=1422503916...
http://rt.com/news/nuland-phone-chat-ukraine-927/
Putin lended $3 billion to the Ukraine in the end of December 2013. The Ukraine had 42 tons of gold then.
In February, the new Ukrainian government sent a plane with Ukrainian gold to America. In November, the Ukraine had 0 tons of gold. Is it a mere coincidence?
http://www.zerohedge.com/news/2014-11-18/ukraine-admits-its-gold-gone
"Do not expect that once taking advantage of Russia's weakness, you will receive dividends forever.
Russia has always come for their money back, and when they come - do not rely on agreement by you, you are supposed to justify. They are not worth the paper it is written. Therefore with the Russianis to play fair, or do not play.
-Otto von Bismarck-
All taxation is theft, and all government debts are odious. So on a larger philosophical scale it's just one crook refusing to pay another crook it's slice of stolen labor. On the pragmatic end of things however, a small mafia has told a large mafia that it's not going to pay. The bigger mafia will remember, and eventually come to collect one way or another.
Ukraine's Finance Minister live on Bloomberg right now (audio)...
...she's an American. Yes, Ukraine's Finance Minister is American. But surely the US had nothing to do with Ukraine's instability... unthinkable. I'm sure it's all just a coincidence.
Gee, that's not suspicious or antagonistic at all! Ukraine suffers devastating 'civil war', and when the dust settles the purse strings are held by an American. No wonder Putin behaves as he does... the Dark State is stalking him/Russia, too.
Damn,,, you don't fuck with the Russian crime syndicates.
putin will crush the ukraine economy and obama or clinton will pay him $3bil just like they did with the gas debt....end of story.
No backing of your guarantee for a loan from a shark. So don't blame me but the shark. Any more clairity needed for discarded tissue (puppets and proxies). Great if the gas get shut off as EC is not ready for alternatives, we can then buy cheap assets with printed papers. BTW, dividends long overdue for the years financing NATO. Let's see who come after Greece (discarded by their own). Into 2016, we need to plan carefully for an exit (where our hands are clean) for today's proxy/puppet i.e. Turkey. Perhaps , stuff it to the Germans to do the job under the EC Club's Rules. The granaries (Fed) need to be replenished. Of course, this pesky Putin is far too smart not to see the game as he snipes at the fringes.
Not taliking here about the distribution of the spoils from the Empire for there is no concept of citizenry only club membership.
Ukraine is now euroPeon
Pirate , thief, murderer
as usual