Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: Owen

Why will the pro-Russian government recognize the debts of prior regime? Why shouldn’t it have an income? Check out the history of post-Cold war Ukraine. Its economy was booming under the neutral governments, but nosedived under pro-Western coupsters.


15 posted on 12/24/2025 11:01:18 PM PST by NorseViking
[ Post Reply | Private Reply | To 12 | View Replies ]


To: NorseViking

Sovereign debt is very tricky. You can announce that you don’t recognize it and you have defaulted, but the creditor does not have to agree. It can seize assets, like ships on the high seas. This happened to Argentina.

As for having an income I was referring primarily to the transit fee of gas to the pipelines from Russia to Europe. Europe can refuse a price that has the transit fee built in.

What would a post war, pro Russian, Kiev government budget look like? It relies on Transit fee for revenue. It certainly will have taxes on businesses and people, but the spending obviously we’ll have to overwhelm that in order to pay for repairs.

Ukraine population was also in decline long before 2014. A declining population is not the formula for reduction of deficit.


16 posted on 12/25/2025 2:29:19 AM PST by Owen
[ Post Reply | Private Reply | To 15 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson