Kiev Effectively Cedes East Ukraine to Separatists;...

Mish's Global Economic Trend Analysis ^ | 11/16/2014 | Mish Shedlock

[Rusty0604]

Last week, the government in Ukraine cut off pensions benefits to residents of rebel-held areas until such time as these areas return to Ukrainian control.

Yesterday, in yet another scorched-earth policy move, president Petro Poroshenko announced Ukraine Rebel Areas to Lose State Services.

Ukraine's president has ordered the withdrawal of all state services, including funding for hospitals and schools, from rebel-held areas.

Mr Poroshenko's ruling says all state companies and institutions should end their work in the Donetsk and Luhansk regions within a week.

It also says Ukraine's central bank is to close down all banking services - including card operations - in some areas within a month.

Initial Thoughts

1.Poroshenko just ceded major portions of Ukraine to rebels 2.Expect a run on ATMs 3.Russia will have to intervene for humanitarian reasons 4.Western Ukraine will have a difficult time getting needed coal from the East

Poroshenko asked the government Saturday to keep the Council of Europe informed on Kiev being forced to take steps violating the European Convention for the Protection of Human Rights in Donbas.

[Rusty0604]

Full Title:

Kiev Effectively Cedes East Ukraine to Separatists; Poroshenko Withdraws Hospital and School Funding, Bank Card Operations

[11th Commandment]

Bad Title. Kiev wants Russia to bear the burdens of their imperialism. There was a better article on this in the WSJ. Crimea is hurting and needs help. This is the Russian M.O., control areas with Russian speaker while offering NO help.

WSJ In similar Russian-backed rebel states, such as Abkhazia and South Ossetia in Georgia, buildings stand destroyed more than 20 years after the wars that created the separatist enclaves.

[tcrlaf]

“Western Ukraine will have a difficult time getting needed coal from the East”

Was reading that Ukraine’s coal-fired power plants can only run on the type of coal that comes from Donbas.

To use another type would require fairly significant plant upgrades, and they can’t be done before it get really cold.