Thursday, December 18, 2014

Ukraine Situation ( December 18 - 19 , 2014 ) -- Ukraine has claimed it needs 15- 19 billion ( on top of the present 15-17 billion IMF / EU Financial Lifeline ) , US and EU have no intention of funding that additional lifeline and are disgusted with the incompetence and corruption of Kiev and their Oligarchs ...... Russia ( which had been funding Ukraine until Ukraine Revolution ) , possibly being " encouraged " through punitive , ever increasing sanctions / through attacks on oil , currency and economy - to " resume " financial backstop and funding for Western Vassal State Ukraine ?

Ukraine .....

Poroshenko Says Ukraine Can’t Scrimp on Army as S&P Rating Cut via  

EU interestingly expects Russian aid ?


War Has Made Us Stronger

Ukraine president says "War has made us stronger".

That lie is so stupid my dead grandmother knows it from the grave. The evidence is a CCC- debt rating, a step or so above 

above default, with default imminent.

The story gets even stranger. 

To avoid default, Ukraine needs a "Russian contribution to the package” according to Pierre Moscovici, the economic policy 

commissioner for the European Commission.

Amazing Irony

Europe and the US have crippling sanctions on Russia for the conflict in Ukraine, yet the EC wants Russia to bail out Ukraine 

while accusing Russia of invading Ukraine.

Icing on the wonderland-cake is the Russian Ruble has plunged nearly 50% this year, but Ukraine needs money from Russia 

to fight Russia.

Is this complete lunacy or what?


EU ready to help if Ukraine reforms - Merkel

 December 19, 2:24 UTC+3

EU may consider lifting sanctions against Russia if Ukraine’s territorial integrity is preserved, also said Merkel

BRUSSELS, December 19. /TASS/. The European Union is ready to help Ukraine provided that the government pushes through economic reforms and tackles corruption, German Chancellor Angela Merkel said on Friday.
“Europe is ready to support Ukraine further but Ukraine should pursue economic reforms and actively combat corruption,” she told a news conference after an EU summit in Brussels.
EU may consider lifting sanctions against Russia if Ukraine’s territorial integrity is preserved, said Merkel.


  Tore retweeted

SOTT EXCLUSIVE: Despite talks of peace Ukraine is actively preparing for war - -

EU leaders decide not to strengthen sanctions against Russia, easing to depend on progress in Ukraine - Hollande

14/12/2014: IMF (Emergency) Mission to Kiev - Given economic / fiscal position of Ukraine (see http://trueeconomic...

14/12/2014: IMF (Emergency) Mission to Kiev

Given economic / fiscal position of Ukraine (see it is unsurprising that the IMF has dispatched a 'rapid response' team out to Kiev. Here's the IMF official statement on the visit:

Not to over-interpret the above, it suggests that the IMF is considering seriously further 'assistance' to Ukraine and that such a commitment will be based not so much on the progress of structural reforms to-date, but on the progress of the promises of reforms in the future.

Of course, it is hard to imagine Ukrainian authorities unrolling any big and binding reforms in the current climate and given short span of life of the new Rada to-date, so don't take the above comment as sarcasm - Ukraine needs assistance now and the promise of reforms is real, in my opinion. The only problem is that any assistance via IMF will be short-term (3 years or so) and will be in the form of debt, while what Ukraine really needs is longer-term funding and in a form of a Marshall Plan (even if in debt form, at least on terms of near-zero cost of funding and flexible maturity). Sadly, such preferential funding is unlikely to come...

The article first appeared here:
14/12/2014: IMF (Emergency) Mission to Kiev

Fight Breaks Out In Parliament When Ukraine Learns It Has Quietly Become The Newest US State


hopes will realize in foreign policy have no prospects

What are Psaki's 'specific steps' that Russia can do in order to have lifted?