Washington's Bait-And-Switch: NATO Armed Kiev Under Cover Of Ceasefire
Submitted by Tyler Durden on 09/16/2014 22:05 -0400
Just over ten days ago, as the pro-independence forces in east Ukraine were on the march with significant gains on the battlefield, a ceasefire was signed in Minsk, Belarus. According to the terms of the ceasefire, the pro-independence fighters were to lay down their arms, cease their offensive to regain lost territory in the Donetsk and Lugansk region, and disband.
In exchange for this, the US-backed government in Kiev was to agree to an amnesty for pro-independence fighters, commit to economic development in the east, and agree to enshrine decentralization in law to provide autonomy to the east.
Most importantly, the ceasefire was to stop the Kiev government's shelling of major population centers in the east and stop the slaughter of military forces on both sides.
It turns out to be a grotesque sleight of hand, with Kiev receiving guarantees at the September 5, NATO summit in Wales that NATO members would provide the military equipment to finish the pro-independence forces in the east after the ceasefire gave time to re-group a badly beaten, largely conscript Ukrainian army.
This grand deception came to light yesterday, as Valery Heletey, defense minister of the US-backed regime in Kiev, bragged that, as Reuters put it:
NATO countries were delivering weapons to his country to equip it to fight pro-Russian separatists and "stop" Russian President Vladimir Putin.
We are already seeing the result of this bait and switch, as yesterday saw a dramatic resumption of the US-backed government's shelling civilian Donetsk, which is under control of the pro-independence movement.
The ceasefire provided pro-US Kiev forces time to regroup and absorb NATO weapons under the guise of stopping the violence, with the intent of slaughtering rather than negotiating with the pro-independence forces. This is no great surprise, as the February coup itself proceeded with US cooperation just as a compromise power-sharing agreement between the elected president, Yanukovich, and the Maidan rebels was signed.
It remains a great mystery why the pro-independence forces would strike a deal with a Kiev regime which came to power as a result of a US and EU sponsored coup in February, and whose veracity and track record of fair play is rather wanting.
A greater mystery perhaps, is why a Russia that was accused of "invading" Ukraine as the NATO summit kicked off, would agree to the decapitation of a Moscow-friendly independence movement next-door as it consolidated its gains.
Whatever the case, the bloodshed in eastern Ukraine is about to resume. The pro-US regime in Kiev, by deception, is about to claim bloody victory from the jaws of defeat.
Ukraine Currency Crashes To Record Low As IMF Blasts "Gross Abuses"
Submitted by Tyler Durden on 09/16/2014 19:24 -0400
Despite celebrations of de-escalations and truce in US equity markets (by asset-gathering commission-takers), the situation continues to go from bad to worse in the nation almost forgotten now that ISIS is stealing American headlines. The Hryvnia plunged 7.5% this morning - its biggest single-day drop on record - following the release of a scathing IMF letter and devaluation warnings from BofA. The IMF blasted Ukraine's "premature emission of extra money," and demanded it "immediately halt these gross abuses," as BofA warns of risk of "10-20% devaluation" in the next year is high given reserves are at a "critical level."
UAH plunges 7.5% to record lows this morning...
As far as the truce is concerned, we leave it to Bloomberg's Richard Breslow to explain the idiocy...
For a truce that people keep celebrating -- the 11th day -- there seem to be a lot of people still dying, troops moving around, still questions about more sanctions, ultimate effects on Russia eco, the local markets look quite ill.Russia itself has put out dire f/casts, growth down 3%-4% and recession;RUB made yet another all-time low, seems to have quieted, Micex is up, hryvnia getting pole-axed
Additionally Luhansk Rebels Would Like to Switch to Ruble, RIA Says
Self-proclaimed Luhansk People’s Republic hopes it won’t have to use Ukraine’s hryvnia much longer, RIA Novosti reports, citing republic’s leader Igor Plotnitskiy.Plotnitskiy says political issues complicate matter, though he doesn’t expect hryvnia to be used for much longer: RIALuhansk still must resolve many economic, financial issues, including development of banking system: RIA
And then there is the IMF! (Source: e-news)
Which likely confirms BofA's warning of the potential for a Hyrvnia devaluation...
Central bank may have to further deplete FX reserves, now near “critical level” of $15b, Bank of America Merrill Lynch economist Vadim Khramov says in reportNatural gas purchases for winter to widen current-account deficit: Khramov“We see risks of 10%-20% hryvnia devaluation from the current level within a year": Khramov
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But apart from that, everything is under control in Ukraine. Given the extent to which the UAH is falling and the strong language from the IMF, one could be mistaken for thinking the USA is pushing for another leader to be put in place once again...
Topic: Sanctions Against Russia