Russia and President Putin turning up the heat as they display absolutely no signs of backing down - check to Secretary of state John Kerry and President Obama

http://www.zerohedge.com/news/2014-02-27/ukraine-central-bank-promises-liquidity-local-banks-one-condition

Ukraine Central Bank Promises Liquidity To Local Banks, With One Condition

Submitted by Tyler Durden on 02/27/2014 12:39 -0500

While the "developed" world scrambles to find a way to provide Ukraine with a bailout in such a way that Russia doesn't turn off the gas, Ukraine is doing some scrambling of its own to assure the local banks, which have been plagued by both bank runs and a collapse in the currency to record lows over the past few days, that it will be there to provide funding on a business as usual basis. Itar-Tass reports that "Ukrainian banks will be provided with necessary liquid assets, including cash." But there is a condition: the funding will only come "if they will remain under open control of the National Bank of Ukraine, the newly-appointed NBU Chairman Stepan Kubiv is quoted as saying on the bank’s official website."

From Itar-Tass:

“Financial and payment systems, which are of vital importance, operate normally, as well as the open market operations do. The situation is under control. We are getting feedback from all of the country’s banks, regardless their size”, he said.

Kuvib stressed that the National Bank’s gold reserve includes high-liquidity assets. He mentioned such priorities of the Ukrainian banking system as the protection of clients’ interests, as well as the resumption of negotiations with external creditors, the International Monetary Fund in the first place, right after the country’s new government is formed and elaboration of a strict new plan for economic and financial reforms.

“We are very determined regarding the measures, which will be applied to those who break the mandatory requirements and are involved currency speculations. I am certain the National Bank's measures will calm the markets and the people and ease devaluation fears”, the bank’s chief said.

In other words, any and all banks that want to continue operating must pledge allegiance to the brand new central bank governor Kubiv, who previously did notwork for Goldman Sachs, but instead was one of the commendants for the EuroMaidan demonstrations. That is not say he has no banking experience at all: previously he used to be head of Kredbank. Who is Kredbank? As it turns out, it is the bank with the largest Polish investment in banking institution in Ukraine. Kredobank national network contains central branch and 130 outlets throughout Ukraine. Today, European investment is 99.6% in the share capital of Kredobank, Ukrainian capital is 0.4%.

At least it is clear where the Ukrainian central banker's allegiances lie, and under whose "open control" suddenly the entire Ukrainian banking sector has fallen under. And just like that, Europe knows everything these is to know about all assets held within the Ukrainian banking system by the local population.

http://www.zerohedge.com/news/2014-02-27/two-russian-warships-enter-black-sea-through-bosphorus-another-docks-cuba

Two Russian Warships Enter Black Sea Through Bosphorus; Another Docks In Cuba

Submitted by Tyler Durden on 02/27/2014 13:39 -0500

SPY
Ukraine

Russia may be awaiting a diplomatic resolution of the Ukraine crisis, but we wouldn't hold our breath especially with the deposed president Yanukovich set to conduct a press conference tomorrow from Russia's Rostov-on-Don at 5pm local time, where we hardly anticipate a scaling back of the escalation in what is sure to not be an abdication from power. Instead, Putin continues to prepare for the worst and is openly signalling to the West that if he has to fight to regain influence in the Ukraine, he will, as a top Kremlin politician warned last week. As such it was not surprising to read that two Russian warships, the Minsk and the Kaliningrad which last week were sent out on deployment around Syria, crossed back into the Black Sea, most likely in direction Sevastopol, as the build up of Russian forces in the Crimea continues.

From Bosphorus Nabal News:

Today, two Ropucha class landing ship from Russian Navy passed through Bosphorus returning from their Syrian deployment. As the political crisis in Ukraine particular in Crimea is increasing it is possible that Russian Navy wanted these valuable assets closer to home.

Large landing ship Kaliningrad passing through Bosphorus. Photo: seabreeze.org.ua via webcam.

Large landing ship Minsk passing through Bosphorus. Photo: seabreeze.org.ua via webcam.

And in other more perplexing news, AFP reported that a Russian warship was docked in Havana Wednesday, without explanation from Communist Cuba or its state media. "The Viktor Leonov CCB-175 boat, measuring 91.5 meters (300 feet) long and 14.5 meters wide, was docked at the port of Havana's cruise ship area, near the Russian Orthodox Cathedral.

The Vishnya, or Meridian-class intelligence ship, which has a crew of around 200, went into service in the Black Sea in 1988 before it was transferred seven years later to the northern fleet, Russian media sources said.

Neither Cuban authorities nor state media have mentioned the ship's visit, unlike on previous tours by Russian warships.

The former Soviet Union was Cuba's sponsor state through three decades of Cold War. After a period of some distancing under former Russian president Boris Yeltsin, the countries renewed their political, economic and military cooperation.

The ship is reportedly armed with 30mm guns and anti-aircraft missiles.

The Mail adds that The intelligence vessel bristles with electronic eavesdropping equipment and weaponry, including AK-630 rapid-fire cannons and surface-to-air missiles.

Why is Russia planting a spy ship in the US backyard? It might have something to do with John Kerry's earlier admonition that the US is now behaving like a "poor nation" - maybe Russia decided to test just how poor?

http://www.zerohedge.com/news/2014-02-27/pro-russian-gunmen-seize-ukraine-crimean-parliament-russia-puts-jets-high-alert-hryv

( Shitte hitting the proverbial fan today ..... )

Pro-Russian Gunmen Seize Ukraine Crimean Parliament; Russia Puts Jets On High Alert; Hryvnia In Record Plunge

Submitted by Tyler Durden on 02/27/2014 07:01 -0500

International Monetary Fund

All those clips we showed in the past few days of Russian forces amassing in the Crimean (such as this one)? Well, turns out they were all predictive of what has just happened in the Crimean region parliament at Simferopol, where around 120 pro-Russian Gunmen occupied the parliament building and raised the Russian flag. The scene was the site of Wednesday’s scuffles between Tatar groups and pro-Russian supporters. As Euronews reports, local Tatar leader Refat Chubarov posted that the buildings have been occupied by men in uniforms bearing “no recognisable insignia.” Kyiv says it would regard any movements by Russian military in Crimea outside Moscow’s Black Sea Base in Sevastopol as an act of aggression. Following the fall of President Viktor Yanukovych divisions in Ukraine have come to the fore. All this happens as Russian troops in the area are building up and at the same time as Russia put fighter jets on combat alert, according to Interfax.

The Russian flag flies atop the parliament building:

Euronews clarifies that the 120 men that seized Crimea parliament "have enough weapons to defend [the buildings] for a month" according an MP quoted by Interfax agency. Former Crimean Prime Minister and UDAR MP Serhiy Kunitsyn said to the agency that he spent all the night in contact with the armed group, "These professionally trained people are armed. They brought weapons - automatic weapons, grenade launchers, and machine guns," he said, while speaking from the Ukraine parliament on Thursday.

According to Bloomberg, the group is allowing deputies to enter the legislature in the city of Simferopol for a possible vote on the status of Crimea, home to Russia’s Black Sea fleet, the Center of Journalist Research said. Ukraine prosecutors began a terrorism probe. .

“Provocateurs are on the march,” Acting Interior Minister Arsen Avakov said on his Facebook Inc. page as police cordoned off the block around parliament. “It’s time for cool heads, the consolidation of healthy forces and precise actions.”

At the same time Ukraine's Foreign Ministry summoned Russia's acting envoy in Kiev for immediate consultations.

"I am appealing to the military leadership of the Russian Black Sea fleet," said Olexander Turchinov, acting president since the removal of Viktor Yanukovich last week. "Any military movements, the more so if they are with weapons, beyond the boundaries of this territory (the base) will be seen by us as military aggression

Reports Reuters:

There were mixed signals from Moscow, which put fighter jets along its western borders on combat alert, but earlier said it would take part in discussions on an International Monetary Fund (IMF) financial package for Ukraine. Ukraine has said it needs $35 billion over the next two years to stave off bankruptcy. The fear of military escalation prompted expressions of concern from the West, with NATO Secretary General Anders Fogh Rasmussen urging Russia not to do anything that would "escalate tension or create misunderstanding".

Polish foreign minister Radoslaw Sikorski called the seizure of government buildings in the Crimea a "very dangerous game"."This is a drastic step, and I'm warning those who did this and those who allowed them to do this, because this is how regional conflicts begin," he told a news conference.

It was not immediately known who was occupying the buildings in the regional capital Simferopol and they issued no demands, but witnesses said they spoke Russian and appeared to be ethnic Russian separatists.

Interfax news agency quoted a witness as saying there were about 60 people inside and they had many weapons. It said no one had been hurt when the buildings were seized in the early hours by Russian speakers in uniforms that did not carry identification markings.

"We were building barricades in the night to protect parliament. Then this young Russian guy came up with a pistol ... we all lay down, some more ran up, there was some shooting and around 50 went in through the window," Leonid Khazanov, an ethnic Russian, told Reuters. "They're still there ... Then the police came, they seemed scared. I asked them (the armed men) what they wanted, and they said 'To make our own decisions, not to have Kiev telling us what to do'," said Khazanov.

About 100 police were gathered in front of the parliament building, and a similar number of people carrying Russian flags later marched up to the building chanting "Russia, Russia" and holding a sign calling for a Crimean referendum. One of them, Alexei, 30, said: "We have our own constitution, Crimea is autonomous. The government in Kiev are fascists, and what they're doing is illegal ... We need to show our support for the guys inside (parliament). Power should be ours."a

As a reminder, so far Putin has been silent on his views about the sovereignty of the Crimean region which is host to the critical Russian Sevastopol naval base. Russian President Vladimir Putin has ignored calls by some ethnic Russians in Crimea to reclaim the territory handed to then Soviet Ukraine by Soviet Communist leader Nikita Khrushchev in 1954. The United States says any Russian military action would be a grave mistake. But Russia's foreign ministry said in a statement that Moscow would defend the rights of its compatriots and react without compromise to any violation of those rights.

Russian Lenta, citing the Crimean information agency, reports that the Crimean deputees have begun a referendum on the status of the Crimean autonomy, which is not quite a secession. Yet.

Elsewhere, Ukraine's deposed president, who as we reported first some time ago had fled to Russia, reappeared, as expected in Russia, and claimed legitimacy to his post saying the Ukraine's "mob" actions were illegal . From Reuters:

Ukraine's Viktor Yanukovich said on Thursday he was still the legitimate president of his country and that people in its southeastern and southern regions would never accept the "lawlessness" brought by leaders chosen by a mob. Russian news agencies quoted a statement by Yanukovich as saying he had asked Moscow to guarantee his personal safety.

The statement could not be independently verified and it was not clear where Yanukovich was, although some media groups have suggested he is in Moscow after fleeing Ukraine, where he was toppled by opposition forces at the weekend.

Russian President Vladimir Putin's spokesman said he had no information and could not comment on the statement.

"I, Viktor Fedorovich Yanukovich appeal to the people of Ukraine. As before I still consider myself to be the lawful head of the Ukrainian state, chosen freely by the will of the Ukrainian people," he was quoted as saying.

"Now it is becoming clear that the people in southeastern Ukraine and in Crimea do not accept the power vacuum and complete lawlessness in the country, when the heads of ministries are appointed by the mob."

"On the streets of many cities of our country there is an orgy of extremism," he said, adding that he and his closest aides had been threatened physically.

"I have to ask the Russian authorities to provide me with personal safety from the actions of extremists."

Russian television showed what it said was a copy of the statement.

Interfax news agency quoted a source in the authorities as saying Moscow would ensure Yanukovich's safety on the Russian territory.

"In connection with the appeal by president Yanukovich for his personal security to be guaranteed, I report that the request has been granted on the territory of the Russian Federation," the source was quoted as saying.

And just to make sure tensions reach a fever pitch, Interfax reported a few hours ago that Russian fighter jets along the Western Border were put on high alert:

The crews of fighter jets deployed in Russia's Western Military Districts have been placed on high alert as part of surprise combat drills ordered by Russian President and Supreme Commander-in-Chief Vladimir Putin on Wednesday, the Defense Ministry said.

"Our fighter jets are constantly patrolling the airspace over border districts," the ministry said in a press release, seen by Interfax-AVN on Thursday. "As soon as they were put on high alert, aviation units of the Western Military District redeployed to their operative air fields," it said.

At the moment, "the district's bombers are tackling combat training tasks targeting an imaginary adversary at aviation training ranges," the ministry said.

Not surprisingly, the Ukraine economy, already in critical condition, is shutting down and the Hryvnia is imploding: Ukraine’s currency weakened 10.3 percent to 11.2 per dollar at 12:21 p.m. in Kiev, the lowest level since it was introduced in 1996, data compiled by Bloomberg show. The central bank imposed capital controls this month to stem its decline.

Finally, the story in pictures as reported by Euronews:

Russia's deterrent? Nikolai Valuyev former boxer & now Russian MP arrives in Sevastopol to "support" Russian speakers 

5:35 AM - 27 Feb 2014

Speaker of Crimea Parliament confirms: No hostages, negotiations are under way, gunmen "are not showing any signs of aggression." #Ukraine

5:27 AM - 27 Feb 2014

http://www.businessinsider.com/ukraines-hryvnia-obliterated-2014-2

Ukraine's Currency Is Getting Obliterated

SAM RO

FEB. 27, 2014, 5:25 AM 410 3

Ukraine's hryvnia dropped another 7.7% today to 11 per dollar today.

According to Bloomberg, the currency has now dropped 19% in the past four days.

The country continues to be in chaos. Earlier today, armed men took control of a parliament building in Ukraine's Crimea region. Meanwhile, fugitive president Viktor Yanukovych remains on the run. According to the AP, he was last seen in a hotel in Moscow.

Ukraine's leaders are currently seeking a bailout of as much as $35 billion.

Here's a four-year chart from Reuters' Jamie McGeever showing the weekly percentage decline:

http://rt.com/news/maidan-government-announce-protesters-915/

Protesters in Kiev’s Maidan have announced a new government line-up and asked parliament to approve the candidatures. The Verkhovna Rada is expected to vote on the new cabinet members on Thursday.

Opposition leader Arseny Yatsenyuk, a member of the Batkivshchina (Fatherland) Party, has been suggested for the post of prime minister.

The Cabinet line-up was announced from the stage of central Kiev’s Independence Square on Wednesday evening as protesters and their leaders gathered for a popular assembly, “veche.”

Boris Tarasyuk, 65, also of the Fatherland party, was proposed for the seat of deputy premier in charge of European integration. The pro-Western politician served as Ukraine’s Foreign Minister between 1998 and 2000 and, then again from February 2005 till January 2007.

People listen to speeches on Independence square in Kiev to hear the line-up of the new Ukranian cabinet on February 26, 2014. (AFP Photo / Louisa Gouliamaki)

The Maidan gathering wants Andrey Parubiy, 43, to head the country’s National Security and Defense Council. A deputy for Fatherland party, he actively participated both in the recent uprising and in the Orange Revolution. Parubiy began his political career back in the late '80s, when he headed a nationalist youth organization.

A leader of the radical group Pravy Sektor (Right Sector), Dmitry Yarosh was reportedly proposed as the council’s deputy head. However, he has so far not accepted the offer.

Aleksandr Shlapak was suggested to head the Finance Ministry. He occupied the post between July 2001 and August 2002. Fatherland’s MP Pavel Petrenko may become Justice Minister and Pavel Sheremeta - Ukraine’s Economy Minister.

Andrey Deshchitsa, a career diplomat, is a possible foreign minister. The acting interior minister, Fatherland MP and public figure Arsen Avakov, may retain the post as the head of the ministry.

Former Energy Minister Yury Prodan, who occupied the post in Yulia Tymoshenko’s government, may also come back to the cabinet as head of the Fuel and Energy Ministry.

According to the opposition's estimates, about 20,000 people gathered on Kiev’s Maidan for the meeting. They said they will not leave the square – which has been the main site of the months-long protest – unless all their demands are fulfilled, reports Itar-Tass.

“Now you [politicians] are under close public control. If you detach from the people, you will face the same fate as the previous government,” protesters announced from the stage.

The demonstrators are set to stay there until presidential elections scheduled for May 25. In case of a run-off – until June 15.

Acting President of Ukraine Aleksandr Turchinov announced his intention to resign after the normalization of the situation in the country.

"Once we are able to normalize the situation in the country within a month, restore the power, I will resign as a man who has done his duty," Turchinov said, speaking from the stage on Maidan’s Square.

He also warned, that the current composition of the Rada, if approved by the body on Thursday, may not last long.

"The new government will be forced to make unpopular decisions, so it is possible that in a few months it will get burned," the acting president said, adding that the country should also hold parliamentary elections after the presidential race.

http://rt.com/news/kiev-clashes-rioters-police-571/

Thursday, February 27

08:38 GMT:

Ukraine’s acting President Aleksandr Turchinov has warned Russia against “military aggression” in Crimea. He stressed that Russian troop movements around the Black Sea Fleet’s base in Sevastopol, Crimea, would be seen by Ukraine as act of aggression.

08:38 GMT:

The number of injured in Crimea clashes has risen to 35, Interfax reported.

08:37 GMT:

Crimean Premier Anatoly Mogilev has given his contact number to the unknown armed group which seized the parliament’s building.

08:35 GMT:

The Crimean parliament building has been seized by an armed group calling itself “Self-defense of the Russian-speaking population of Crimea.” The group has said it will only allow legitimate MPs and the speaker of the parliament into the building, Russia-24 TV reports.

08:28 GMT:

Ukraine’s acting President Aleksandr Turchinov has urged for calm after the seizure of administration buildings in Crimea by “criminals in military fatigues,” Reuters reported him as saying.

Photo from facebook.com/aleksandr.jankowski

06:08 GMT:

The buildings of the Crimean parliament and administration have been seized by an unknown armed group.

Law enforcement authorities are stationed next to the Council of Ministers, with officers banning people from approaching the building, Interfax-Ukraine reported, citing the press service of the Crimean parliament.

00:19 GMT:

Canada’s Foreign Affairs Minister John Baird will meet the newly appointed leaders of Ukraine on Friday.

"What we're going to do is talk to the transitional government about their goals and how they intend to strengthen their democratic institutions,” Baird said Wednesday.

Wednesday, February 26

23:41 GMT:

The US has not yet made a decision on granting Ukraine a loan guarantee, State Department spokesman Jen Psaki said Wednesday, as she encouraged the authorities in Kiev to form a representative multiparty technical government.

“Once that government is formed, we and our international partners can begin to take immediate steps to help support Ukraine economically and implement the reforms necessary to restore Ukraine’s political and economic health,” Psaki said at a press briefing.

Earlier Washington's top diplomat John Kerry said the US is considering offering Kiev $1 billion in loan guarantees.

"We are formulating initially a $1 billion loan guarantee with some other pieces," Kerry said Wednesday, adding that the European Union was looking at offering another $1.5 billion.

22:17 GMT:

The OSCE has expressed concern about an initiative from a group in Ukraine’s parliament to ban broadcasts of some television and radio programs.

“Banning broadcasts is one of the most extreme forms of interference in media freedom and should only be applied in exceptional circumstances,” OSCE Representative on Freedom of the Media Dunja Mijatovic wrote in a letter to the acting president Aleksandr Turchinov.

On 22 February a group of MPs filed a petition in the Parliament to ban broadcast of television and radio programs produced in countries, which are not party to the European Convention on Transfrontier Television.

“The Convention should not be interpreted to undermine international media freedom standards that must prevail,” Mijatović said. “I firmly believe that in difficult and sensitive situations such as the current one in Ukraine, media freedom and plurality of opinions must be ensured. All citizens must have the right to receive all available information, irrespective of its source, without interference from the authorities and regardless of frontiers, so that democratic processes in the country can be strengthened.”

21:02 GMT:

The interim General Prosecutor of Ukraine will launch a large-scale probe of budget funds and public procurement.

"According to various estimates, including those from international experts, unprecedented robbery took place in the last 4 years under the old leadership,” Oleg Mahnitsky said at a press conference.

After corruption documents surfaced implicating Yanukovich and his entourage in large scale public theft, Mahnitsky says the legislative branch agreed “to carry out an immediate large-scale compliance verification with anti-corruption legislation.”

http://rt.com/news/crimea-parliament-building-capture-987/