UKRAINE BREAKING….leaks from Kiev Government suggest imminent default after President signs controversial Debt Moratorium Law


Several East and Central European news agencies and two Slog sources are averring this afternoon CET that the Ukraine is about to default on its sovereign borrowings, and plead “odious debt” in relation to some of it….including all the monies it owes Russia. Ukraine’s President Poroshenko signed the debt moratorium law this afternoon.

Eight days ago, Vladimir Putin argued that the new Ukrainian law being passed would allow the country “to default on its debt without warning as of now” – depending on which internet translation you accept. The Russian leader may be about to be proved correct.

Russian banks are massively exposed to Ukraine sovereign debt – to the tune of roughly £18bn. The total debt stands at £28bn.

But interestingly, Ukraine is making noises to the effect that the IMF debt is not classed as odious. That seems to me a smart play, given that the IMF (and especially Lagarde) would do anything to avoid a write-off.

Given that the IMF is effectively a front for Washington/Wall Street – and for them, Russia is the Great Bogeyman – it is tempting yet again to see the long (and strong) arm of US interests behind this.

And/or, it could very easily be that Ukraine is leaking the imminence of default in order to strengthen its bargaining position. This too would make sense given the serious geopolitical ramifications of a Ukraine default.

It’s too early to make a judgement.

In these our strange times, nobody knows for sure. My hunch is that the IMF will accept a restructuring….and this alone will allow Ukraine to keep going.

But for how long? Sooner or later somebody somewhere is going to miscalculate the brinkmanship. It’s only a matter of time.

22 thoughts on “UKRAINE BREAKING….leaks from Kiev Government suggest imminent default after President signs controversial Debt Moratorium Law

  1. I also read that the reason the US became involved in the FIFA corruption scandal is that FIFA were about to kick Israel into touch…It’s a funny old world, ain’t it?


  2. The Ukraine default is just another chess piece by its US puppet masters to screw with Russia. I wonder how Ukraine will now pay for their gas supply from Russia. Ukraine now joins ,Iraq, Libya , Syria , Yemen as failed states thanks to the meddling of the US Empire of Chaos.
    They still seem to have money enough to pay for their US mercenaries from Blackwater and for weapons to continue their destruction of the population of the Donbass Republics.


  3. I doubt that. Much more likely that it’s another attempt to get at Putin through the 2018 World Cup. However, it is out of synch with very recent attempts to patch things up with Mr P and develop a modus vivendi over Ukraine so that they can help with Syria and the Middle East. But often in the US the right hand doesn’t know what the left hand in a different silo is doing.


  4. Agree this whole thing is being masterminded from Washington. N’oubliez pas that the Ukrainian Finance Minister is a US State Department official especially parachuted in to assure things are handled ‘properly’.


  5. Just sounds like desperation to me. The ‘debt restructuring’ hasn’t gone well and the ‘odious debt’ defence has been used in the past by several countries, but it’s a risky ploy and also hard to cherry pick this or that debt from a legal point of view. Not all European courts are intimidated by the US, as the denial of extradition of Firtash by the Austrian judge proved. Speaking of Austria, they are rather exposed to Ukraine and so, relatively, is little Hungary . . . hard to take a pop at Putin here without taking a few EU banks down as well. You can entertain conspiracy theories of course but it seems to me no-one wants to pick up the tab for this misadventure.


  6. Michael Hudson has summed it up. The oligarchs will head West with their booty and the Western Vulture funds will descend to scavenge the infrastructure for cents on the dollar.
    Goodbye Ukraine, how did that Maidan jump work out for you. They now have a failed state run by a bankrupt Nazi junta.


  7. If the Ukraine defaults on its debts to Russia, won’t the Russians immediately switch off the gas supply?


  8. The next moves will involve Greece and Russia. Russia helps Greece pay IMF debt, and supports Greece’s assertion that the debts to Germany and German banks are odious. Then China makes a move with Russia on Germany to help Germany see her true interests in the Eurasian-Eastasian future. Then Greek natural gas comes back into play.


  9. I believe an American company,whose directors are involved in arms manufacture,have invested millions in establishing a manufacturing plant to produce Graphine in Kiev , a product developed by Russian scientists at Manchester University. There’s a can of worms , given its potential.


  10. To Ukraine – almost certainly – and I wonder whether the EU will then lend Ukraine the money it will need to buy back gas from the EU that was previously exported from Russia!
    Cuttng gas to the rest of Europe? I don’t think so – it seems the Russian ploy is to let the US hoist itself on its own petard; thus will react to provocation but not seek to escalate. Vis a vis their reaction to the European sanctions, a tit for tat reply before negotiations continued.
    How far the Russian bear will tolerate being pushed, though? We will need their help to combat the US-created monster that is ISIS on top of continued access to their natural resources. May we live in interesting times indeed…


  11. Cascade of events. Next, Greece and Russia deal. Greece declares German banks’ and Bank of Greece loan to 3rd Reich odious. Russia reminds Germany what she stands to lose when the Eurasian-Eastasian railway bound for Beijing and points east leaves the station.
    Victoria Nuland and Robert Kagan develop a love for Wagner and lead the neocon chorus in “Flight of the Valkyrie” in their own Götterdämmerung production.


  12. If it was a negotiating ploy, it worked. According to Bloomberg, the creditors have come up with an improved, ‘olive branch’ offer. But still this does not include the 3bn Russian debt nor the Gazprom debt, which is being decided in the Stockholm court. Gazprom claim 29bn, Ukraine 16bn. Even if the court decides entirely in Ukraine’s favour, it still can’t pay. Longer term, I believe this will become the major issue – especially with the pipeline to Turkey. Gas transit accounted for around one fifth of Ukraine’s revenue – now it must be significantly more.


  13. Since the pipeline carrying gas to Europe passes through Ukraine will the latter not simply help themselves should Russia stop supplying them? Surely Russia would not want to alienate Western Europe by shutting down the line altogether?


  14. A few glaringly obvious facts,

    Before the ‘regime change’/colour/flag revolution, codename Maidan, america spent $5 billion destabilizing the elected government.

    This was done through a CIA front group called NED (National Endowment for Democracy). This is the standard method used by the CIA for political destabilsation as a prelude to ‘regime change’. USAID is the standard method of social/cultural destabilisation used by the CIA. The IMF is the standard front for economic destabilisation.

    During the ‘maidan protests’ members of the US State Department were on the ground (see v.Nuland) stiring up as much trouble as possible and publicly giving an air of legitimacy to the right-wing nazi organisations that the CIA was using to create the whole ‘incident’ (see; Operation Paperclip, Peter Goss, Operation Gladio).

    There were also CIA employed ‘wet teams’ (killers) on the ground (See: ‘maidan’ snipers), judiciously timed shots and killing enough people to creat a bigger incident.

    Now that the US has almost finished re-arming/re-training their proxy army, the mixed bag of mercinaries,football thugs and nazi’s, they are almost ready for the next phaze.



    The americans will order a full offensive against the Donbass trgion.

    A state of marshal law will be declared.

    The US/IMF will bail out Kiev or just let them burn.

    The usa’s most loyal poodle (stooge) will trot along behind its master like the good little whore that we now have become.

    Either option is good because the whole reason behind this obvious CIA operation was to damage Russia..


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