Posted on 07/22/2022 3:29:20 PM PDT by delta7
Western governments have allocated well over $100 billion to prop up Ukraine in its war against Russia, with countless billions more flooding into the country at an increasing pace. Yet as each day passes, it’s becoming more and more clear that all of the money awarded and assigned to Ukraine continues to dissolve into a black hole of secrecy, corruption, deceit, and now, default.
On Wednesday, Ukraine finance ministry asked foreign creditors to accept a delay in its debt repayments, requesting a two year freeze on billions of dollars in Eurobonds. Per the Financial Times, “a rescheduling would amount to a Ukrainian default” on Kiev’s tens of billions in foreign debt.
The news comes just one day after the EU ambassador to Kiev insisted that Ukraine would not default on its foreign debt.
The junk-rated sovereign has a balance of about $25 billion of foreign debt, Bloomberg reports.
Despite all of the money coming in from around the world, Ukraine’s budget deficit has spiraled out of control. Zelensky’s office now claims to have a $9 billion monthly budget deficit, up 80% from just last month.
“Ukraine’s dollar bonds due in 2033 are trading around 18 cents on the dollar, down from about 25 cents at the end of last month and more than 80 cents before Russia’s invasion in February,” the Bloomberg report adds, highlighting the continuing decline of creditor confidence.
Ukraine estimates a 35 to 45 percent crash in its GDP this year. The government in Kiev is hoping to finalize the debt deferral by August 9, Reuters reports.
As we’ve covered in depth at The Dossier, Ukraine is losing both the economic war and the war on the physical battlefield, but the Zelensky government continues to dismiss the prospect of an armistice or peace deal with Moscow.
In addition to the government as a whole, Ukraine’s state-owned infrastructure and national energy companies have also announced their intent to default on international bonds. Earlier this week, Kiev announced that it has sold some $12+ billion in gold reserves since the start of the war.
The Western government creditors of Ukraine released a joint statement in support of Ukraine’s debt freeze, adding that they “will continue to closely coordinate and assess the situation with the support of the IMF and the World Bank.”
Translation: Western governments will continue to print huge amounts of cash and launch it in the direction of the Ukraine operation.
While this default will not stop the West’s perpetual Ukrainian money train operation, it sends a very loud $25+ billion signal to greater credit markets. What if other countries follow suit, citing other "national emergencies" and the like? Is the “Climate Emergency” now grounds for default?
UKRAINE IS A MONEY LAUNDERING SCAM FOR RATS AND THE UNIPARTY
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Understated, Ukraine has THE most corrupted financial and banking system in the world. It is well known in the International banking industry. What makes them the most corrupted is their financial and banking industry is government sponsored….child trafficking, human trafficking, drugs, laundering, international weapons dealing, prostitution, financial document (s) forgery, passport forgery….in short, corruption in every sector and their way of life….”10 percent to Joe” isn’t going away.
One other addendum to your analysis:
Russia was able to pay their debts to other nations thanks to a US Treasury loophole that allowed it to continue paying in spite of the sanctions.
The US Treasury then decided to close that loophole, rendering it impossible for Russia to pay in foreign currency thanks to the sanctions and the exclusion from SWIFT.
It would be equivalent to your mortgage company refusing to accept American dollars for the monthly payment, refusing to accept alternative payment arrangements, and then declaring you in default regardless (even though you were *able* and **willing** to repay).
oops, No image link from article.
I found this photo in duck-duck go images????
Russia has much to institutionalized government corruption as well as from criminal Russian mofia:
child trafficking, human trafficking, drugs, laundering, international weapons dealing, prostitution.
Info sites regarding Human Trafficking:
1- The Russian Connection: How Russia Became a Leader in the
World’s Human Trafficking MarketWorld’s Human Trafficking M
https://stars.library.ucf.edu/cgi/viewcontent.cgi?article=6299&context=etd
2- Human Trafficking: The Secret to Putin’s Economy
25.Nov.2020
https://hir.harvard.edu/putin-and-human-trafficking/
3- The War Against Human Trafficking in Russia
https://www.borgenmagazine.com/war-human-trafficking-in-russia/
4- 2019 Trafficking in Persons Report: Russia
https://www.state.gov/reports/2019-trafficking-in-persons-report-2/russia/
“The Government of Russia does not fully meet the minimum standards for the elimination of trafficking and is not making significant efforts to do so”
5-’Worst Human Traffickers’ Include Russia, Belarus, Iran, Turkmenistan
https://www.rferl.org/a/russia-belarus-iran-turkmenistan-human-traffickers-report/29326302.html
6- WHEN THE GOVERNMENT IS THE TRAFFICKER: STATE-SPONSORED TRAFFICKING IN PERSONS:
The 2021 Trafficking in Persons Report includes the following 11 governments with a documented “policy or pattern” of human trafficking, trafficking in government-funded programs, forced labor in government-affiliated medical services or other sectors, sexual slavery in government camps, or the employment or recruitment of child soldiers:
Afghanistan
Burma
China
Cuba
Eritrea
Korea, North
Iran
RUSSIA [RANKS TIER 3]
South Sudan
Syria
Turkmenista
What is the point of this propaganda? Russia is not in a default.
“Russia is not in a default?”
What’s happening with Russia’s 1st default on foreign debt in a century [Russia appears to default. Here’s why Putin won’t recognize it : NPR]
Updated June 27, 202210:35 AM ET
https://www.npr.org/2022/06/27/1107750231/russia-default-foreign-debt-payments-explained
Russia appears to have defaulted on its international debt for the first time in over a century, after Western sanctions made the country's efforts to pay its overseas creditors impossible...This put Russia on default watch as early as the spring. But Moscow kept paying its debts from currency reserves at home. In May, however, the U.S. Treasury blocked even those transfers to American investors.
TRUE.
Continue to explore information from the additional article I cited :)
Are you stupid or play your readers for stupid?
Thank you for the correct observation.
Does anyone know how much of the WW2 Lend Lease money Ruaaia ever paid back? I’ll bet Ukraine repays any default debts it has faster than Russia does.
At least according to one Ukrainian source, the outstanding Lend-Lease debt by the USSR was considered paid in full by Russia as of 2006: https://babel.ua/en/texts/65179-79-years-ago-ussr-entered-the-lend-lease-program-the-us-supplied-it-with-everything-tanks-aircraft-even-stew-and-felt-boots-the-ussr-dragged-with-payment-until-the-collapse-archival-photos
bookmarked
LOL! Max and Leo, take a bow!
Makes sense, Ukies are Russian. They learned well.
“Are you stupid or play your readers for stupid?”
How very kind of you to ask a question with such options. Kind of like “have you stopped beating your wife?”
The Russians never paid back a dime. Not a penny. They never intended to.
The Brits paid back every penny, with interest.
You probably need to check facts. The British paid after the Russians not to stand out.
Yes, the Brits paid, in full. I don’t understand the editing of the second half of what you said.
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