Skip to comments.$3 Billion for Ukraine to Go Straight to…Russia
Posted on 03/14/2014 4:18:40 PM PDT by lowbridge
As Western leaders prepare a bailout package for embattled Ukraine, they face a startling irony: Thanks to the almost bizarre structure of a bond deal between Ukraine and Russia, billions of those dollars are almost certain to go directly into the coffers of the Putin government.
As CNBC has reported, some aid money is bound to go into Russia as a result of energy trade and other economic factors. But the situation is actually much more acute than just that: An existing agreement between the two countries makes an immediate, direct transfer from Ukraine to Russia legally enforceable.
In December, Russian President Vladimir Putin agreed to lend Ukraine $15 billion. Few details were released at the time, except that Ukraine would issue bonds and Russia would buy them in installments through 2014.
(Excerpt) Read more at cnbc.com ...
They should just cut out the middle man and give the money directly to Putty.
The Russians get repaid their bailout tranche plus the interest on it.
Putin doesn’t give away money for free. If Ukraine is not on the hook for it, Western taxpayers certainly will be.
So much for those tough Obama sanctions.
Well, now that Obama has gotten through the election, he can be more flexable... as Putin beeaach!
Sanctions are mostly for the crowd at home anyway. Its not unusual for the state department to grant tens of thousands of waivers to connected companies and countries we owe money to.
It would be a lot cheaper than our current course.
Everyone needs to read Extortion. You will see our government works.
“Russia, with an economy that is already stagnating, and dogged by vicious bouts of capital flight, has$732 billion in foreign debt. Relatively little of it is sovereign debt, but nearly $700 billion is owed by banks and corporations most of them owned or controlled by the Kremlin.....
....Some of this debt matures this year and next year.
When it comes due, it will have to be rolled over, and some of the companies will need to borrow more, simply to stay afloat. Alas, the current sanction regime of visa bans for the elite, asset freezes, and trade restrictions could make that difficult. Then theres the threat, now more broadly but still unofficially bandied about, that Russian companies should simply default on this $700 billion in debt in retaliation for the sanctions.” -Wolf Richter
both Iraq and Libya had their gold reserves confiscated by the US:.........There are now reports coming from Ukraine that 'all' of the Ukrainian gold has been airlifted, at 2 AM Ukrainian time, out of the main airport, Boryspil Airport, in Kiev, and is being flown to New York the presumable destination being the New York Fed.
...... thats 33 tons of gold which is worth somewhere between $1.5 billion $2 billion. That would amount to a very nice down payment to the $5 billion that Assistant Secretary of State Victoria Nuland boasted that the United States has already spent in their efforts to destabilize Ukraine, and put in place their own unelected government.
The US installed a former banker in Ukraine.... who is very friendly to the West..... He is also a guy with central bank experience.... This would have been his first major decision to transport that gold out of Ukraine to the US.
So now CNBC is credible? I’m soooooooo confused.
There is nothing at all “bizarre” about this. The money will go to Russia because Ukraine owes Russia for all the money it borrowed from them. Russia has also just flat out given Ukraine billions since the breakup of the USSR, mostly in the form of below market rates on energy.
Remember, the deal Ukraine made with Russia that instigated the coup was worth $15 billion.
As I understand it some kind of international court in Great Britain set the whole deal up. As I understand it, the entire $15 billion must be paid back by the end of this year in American currency.
So Russia is being paid 3,000,000,000 dollars for invading?
How much can the USA get for invading Mexico?