Ukraine in meldown

There appears to be an effective news blackout on this in the western media.

Ukraine To Halt Currency Trading Again Any Minute

Zero Hedge,

26 February, 20145

With Prime Minister Yatsenyuk putting his foot down and squeezing the central bank to lift capital controls, Ukraine's currency is totally collapsing this morning. Up over 5 handles to a fresh record low of 33.75/USD, we suspect currency trading will be halted any minute. While we discussed the endgame for Ukraine last night, on the street, things are dire with ATM lines, shelves emptied, and local currency exchanges marking up levels dramatically more than the 'official' rates...

The 'independent' Central Bank halted currency trading, and then the government screamed...

"I learned this morning on the Internet that the National Bank of Ukraine has, as usual on its own without any sort of consultations, made the decision to close the interbank currency market, which will absolutely not add to the stability of the national currency that the national bank is responsible for. This situation has a very complex and negative influence on the country's economy," Ukrainian Prime Minister Arseniy Yatsenyuk said.

And it was unhalted... and this happened... UAH collapsed...

The picture is significantly worse on the street...

 As Colonel Cassad report,

Mariupol exchangers Today the dollar has broken another record. Buy 1 dollar for 44 hryvnia can sell for 32 hryvnia, according to the city's website 0629.com.

Related to this is a panic in the city - in many shops in the city are buying cereals, flour, sugar. By the way, the price of sugar already reached 18 hryvnia per kilogram. "Soon people will buy cookies to drink tea without sugar," - joked seller.

broke the record and the cost of a liter of gasoline - more than 26 hryvnia per liter of A-95.

According to experts, now the price rise for imported goods and products. For example,the city has increased dramatically the cost of a kilogram of herring - up to 60 hryvnia. For the same money you can buy a kilo of meat.

It is noteworthy that the dollar in Kiev a little different - there you can buy a dollar for 36 hryvnia, but also to sell for 32 hryvnia. According to the workers exchangers, such a situation has developed in Mariupol for the area ATO.

with lines at the ATMs

Tyler Jump @TylerJump

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Long lines at banks & ATMs as concerns about currency in #Ukraine grow. @theIRC in Artemivsk

4:10 AM - 27 Feb 2015

and empty shelves...

Oksana‏@Ksjusha142

Ukraine. The national currency has turned into paper. In Ukraine is a massive grocery psychosis. Photo (Kiev)

• RETWEETS15
• FAVORITES4
• 

12:25 AM - 27 Feb 2015

as Ukrainians try to get rid of Hryvnia for real goods.

Alarming Currency Devaluation Provokes Consumer Panic in Ukraine

The rapid devaluation of Ukraine's currency has provoked a "consumer panic" in the country, adding fuel to the fire of the ongoing political and economic crisis.

Sputnik News,

26 February, 2015
Ekaterina Blinova – The rapid devaluation of the hryvnia has triggered a panic amongst Ukrainian consumers, prompting people to "storm" supermarkets and pharmacies.

The Ukrainian currency has already lost 70 percent of its value, triggering a "consumer panic" in the country. Ukrainians are stockpiling food and medicine, scouring the shelves for sugar, cooking oil, flour, canned products, cakes and frozen chickens. Most of these products have already disappeared from Ukrainian stores.

Local media outlets depict a gloomy picture of people standing in queues for hours, cursing and jostling each other. The panic has emerged in the last few days in Kiev and other cities of the country: cheap products such as coffee, tea and sunflower oil have vanished from the shelves due to consumer hysteria.

Ukrainian stores have already introduced rationing of basic products in order to reduce the negative impact caused by the nationwide panic. Restrictions have been introduced for goods like cooking oil, flour and sugar; with retailers allowed to sell only two bottles of oil and three to five kilograms of flour and sugar per person.

Experts warn Ukrainian consumers against stockpiling flour and cereals, suggesting that the cost of these products is unlikely to rise drastically. They recommend buying caviar, medicine and alcohol – products which are becoming more and more expensive due to the hryvnia's continuous slide.

Meanwhile, the exchange rate of the hryvnia is falling steadily. The gap between the US dollar and the Ukrainian currency has widened tremendously over the past two days. Banks are currently buying the dollar for 32.8 hryvnias and selling it for 26.5 hryvnias, trying to slow down the speed of the devaluation.

Ukraine is in a deep political and economic crisis, balancing on the brink of default. The hryvnia's sharp devaluation is only adding fuel to the fire, making the prospects of the country's economy bleak and unpredictable.

"Financial Maidan" in Kiev Violently Dispersed by Riot Police

http://fortruss.blogspot.co.nz/2015/02/financial-maidan-in-kiev-violently.html

2/26/2015

"Financial Maidan" in Kiev Violently Dispersed by Riot Police

By J.Hawk

The "Financial Maidan" was a protest staged at the National Bank of Ukraine to protest the crash of the hryvnya and the resulting impoverishment of masses of people. Earlier in the day, Kiev mayor Klichko accused the demonstrators of being "Russian provocateurs" and expressed puzzlement as to why anyone would protest higher utility costs and prices, as well as lower wages. Then he unleashed riot police on the demonstrators. Note that the demonstrators are quite unlike the "European Maidan" ones, in that you don't see masked thugs waving neo-Nazi banners, only ordinary people suffering from the policies of the government. Judging by the high emotions, one should expect a repeat in the coming days. Possibly on a larger sale.

You can sense, however, that European values have taken root in Ukraine! Shortly after the 5:00 mark, one of the police kindly informs the demonstrators that "if anyone hits us, we'll shoot. I'm just telling you." No, there will be none of the Yanukovych-style brutality.

On the other hand, when one of the protesters asks the police "aren't you concerned that what you are doing right now might be declared unlawful by the next government?", the police don't seem to have an answer..

"Кровавый режим Януковича". Реинкарнация

West-backed Kiev regime brutally attacks peacefully protesting students on Maidan, destroys protest camp

Bandera party in Dnepropetrovsk (video)

Andriy Porubiy and Victoria Nuland

The star crossed lovers: Neocon Nuland met Neo Nazi Parubi. The sparks flew [from the Molotovs]. They couldn't contain their lust. Cookies were in the oven. Months later, the Maidan was born.

Hyperinflation crisis in Ukraine

Minimum Wage in Ukraine Now Lower than in Zambia and Ghana

Devaluation has set the minimum wage at a record low level. Devaluation has set the minimum wage at a record low level

Not good.

Russia Insider,

24 February, 2015

This article originally appeared at Segodnya. It was translated forRussia Insider by Johanna Ganyukova

After yet another fall in the Ukrainian currency, the Hryvnia, the minimum wage in Ukraine has reached an all-time low: 1218 Hryvnia is now worth less than 43 US dollars.

Even in the impoverished countries of Bangladesh, Ghana and Zambia, people receive around 4 dollars more. Significantly wealthier are those in the African countries of Lesotho, Gambia and Chad, where the minimum wage is as high as 51 dollars.

By comparison, the highest global minimum wage can be found in Australia, where workers are paid no less than 2700 dollars (a month).

It is a sobering thought that the next national wage increase is not due in Ukraine till December 2015.

Ukraine Enters Hyperinflation: Currency Trading Halted, "Soon We Will Walk Around With Suitcases For Cash"

ZeroHedge

24 February, 2015

Yesterday we summarized the most recent economic, political and social situation in Ukraine as follows:

"A year or so on from the last coup in Ukraine, Ukraine’s former Prime Minister Sergey Arbuzov told TASS, with growing popular discontent, "another state coup can’t be ruled out in Ukraine." As the cease-fire deal hangs torn and tattered in the Debaltseve winds, the nation is a mess: a new gas dispute looms as Gazprom demands upfront payments; capital controls have been tightened as the $17.5bn IMF loan may not be enough; and the central bank governor faces prosecution as the economy craters. All of these factors have driven massive outflows from Ukraine and the Hryvnia has crashed to over 33 to the USD - a record high (and 70% devaluation from the last coup)."

So as the Ukraine government watches its country go down in flames, with the blessings of the US State Department of course, it decided to take action. According to Reuters, with the hryvnia in free fall (see above) the central bank tried to call a halt on Wednesday by banning banks from buying foreign currency on behalf of their clients for the rest of this week.

Although banks could still trade with each other, by mid-morning there were no registered trades at any rate, leaving the currency in limbo. The previous day, the central bank rate based on reported trades had fallen 11 percent against the dollar.

Exchange kiosks on the streets in Kiev were selling limited amounts of dollars for 39 hryvnias, around 20 percent worse than the rates advertised in the windows of commercial banks where dollars were not available. This compares to the official rate of 33 USDUAH posted yesterday, a rate which will continue in freefall, now that the central bank has no more gold left to sell (it's mysteriously gone), and virtually no foreign reserves.

Following the closing of the FX market closing, the central bank has been able to artificially dictate the interbank rate, which it reduced from 32 to 24 hryvnias as of 12:45 p.m. local time. The artificial rate only affects exporters, who are forced to sell 75 percent of their foreign currency revenue to the National Bank at the rate.

Even the Ukraine government is shocked by what is going on: "I learned this morning on the Internet that the National Bank of Ukraine has, as usual on its own without any sort of consultations, made the decision to close the interbank currency market, which will absolutely not add to the stability of the national currency that the national bank is responsible for. This situation has a very complex and negative influence on the country's economy," Ukrainian Prime Minister Arseniy Yatsenyuk said.

The Ukrainian National Bank chairwoman Valeriya Hontareva, however, contradicted the Prime Minister's statement. "We coordinate all administrative measures with the International Monetary Fund first, and only then implement them," Hontareva told reporters.

In short: total chaos, which is indicative of any country's collapse into the hyperinflationary abyss.

It gets better. According to RIA, on Tuesday, Ukrainian television channel Ukraina announced that with the new exchange rate, the minimum wage in Ukraine stands at around $42.90 per month, which according to the channel, is lower than in Ghana or Zambia. There are currently no plans to raise the minimum wage until December.

Behold hyperinflation: "Food prices among producers rose 57.1 percent, with the price for grains and vegetables rising 91 percent from January 2014 to January 2015, while the official inflation rate over the period totaled 28.5 percent. Meanwhile, Ukrainian consumers responded to economic difficulties by cutting their spending in hryvnias by 22.6 percent, which amounts to an almost 40 percent decrease in real consumption."

And the punchline: "A construction worker exchanging dollars at a kiosk in a grocery shop in return for a bag filled with thousands of hryvnia, laughed and told shoppers: "Soon we will have to walk around with suitcases for cash, like in the 1990s.""

Which is ironic, because the central banks of "developed world" nations, most of which are now facing over 300% debt to consolidated GDP, would define Ukraine's imminent hyperinflation with just one word: "success."

This Is What Happens To Gold In A Hyperinflationary Currency Crisis: Ukraine Edition

Zero Hedge

24 February, 2015

As Ukraine's socio-economic situation goes from wost to worst-er, today's announcement by President Poroshenko that the government will take actions to stabilize the currency (which as we previously noted, appears to be heading for hyperinflation) has Ukrainians rushing for the exits into precious metals... with only one goal in mind - wealth preservation.

This is what gold does in a fiat-currency crisis. Now if only Ukraine actually still had some gold...

Furthermore, according to RIA, on Tuesday, Ukrainian television channel Ukraina announced that with the new exchange rate, the minimum wage in Ukraine stands at around $42.90 per month, which according to the channel, is lower than in Ghana or Zambia.

There are currently no plans to raise the minimum wage until December.

Behold hyperinflation:

"Food prices among producers rose 57.1 percent, with the price for grains and vegetables rising 91 percent from January 2014 to January 2015, while the official inflation rate over the period totaled 28.5 percent.

Meanwhile, Ukrainian consumers responded to economic difficulties by cutting their spending in hryvnias by 22.6 percent, which amounts to an almost 40 percent decrease in real consumption."

Nothing to fear though: we are sure all that hard-earned US taxpayer-lent money will be safe and sound.

It's not as if the Ukrainian state brought this situation on itself. It was all,of course, a plot from the Kremlin following a "roadmap" for the annexation of eastern Ukraine. Blame Putin!

Russia's roadmap for annexing eastern Ukraine 'leaked from Vladimir Putin's office'

One of Russia's leading independent newspapers says it has received a bombshell document showing Putin's office put together a 'step-by-step' guide to taking Crimea and other eastern Ukrainian provinces more than a year ago

the Independent

24 February, 2015

Moscow has been planning to annex parts of Ukraine for more than 12 months, according to sensational claims made in a Russian newspaper.

Vladimir Putin’s office reportedly compiled a detailed roadmap of how a "pro-Russian drift" could allow it to seize Crimea and some eastern provinces, just a few weeks prior to the ousting of President Viktor Yanukovych and the start of the Ukrainian crisis.

According to a document allegedly leaked to the Novaya Gazeta newspaper, Russia had identified Mr Yanukovych as “politically bankrupt”, and outlined a plan by which a “coup” would set in motion events ultimately leading to Russian expansion.

The extraordinary claims made by the newspaper, which is one of the last independent media outlets in the country and was recently nominated for the 2015 Nobel Peace Prize for its investigations, could not be independently verified.

The alleged document, translated into English by the Kyiv Post, was reportedly provided to Mr Putin’s office for consideration between 4 and 12 February 2014 – the same month that Mr Yanukovych was removed by the Ukrainian parliament.

Novaya Gazeta reported in its introduction that the events that have followed in the past year in Ukraine resemble with “a great deal of correlation” the “step-by-step [guide to] the basis, political and PR logistics of Russia's interference into Ukrainian affairs and estrangement from Ukraine of Crimea and eastern provinces”.

Among the highlighted details of the plan are “a pejorative assessment of Yanukovych, whom Russia later presented as a victim of a coup and the only legitimate leader of Ukraine”.

It details the eastern, cross-border regions of “Donbas” and “Dnepr”, among others, as “euroregions” that are “legitimate from the point of view of the European Union”.

“Using [this] instrument, Russia should achieve deals on cross-border cooperation and then establish direct interstate relations with the Ukrainian territories where stable pro-Russian electoral sentiments exist,” the alleged document reads.

The document also suggests that Russia’s support for such territories “will obviously be a burden for the budget in the current situation”, but adds that “in geopolitical perspective it will give us a priceless gain – our country will receive access to new demographic resources and highly-qualified personnel in the industrial and transport sphere”.

One section of the document appears to lay out the need for the destabilisation of “events in western Ukraine”. “To launch the process of the ‘pro-Russian drift’ of Crimean and Eastern Ukrainian territories, it's needed to create the events that would give this process political legitimacy and moral justification, beforehand,” it reads.

In his most recent comments on the Ukrainian crisis during an interview with Russian state TV, Mr Putin repeated denials that his government was providing support to rebels in eastern Ukraine.

The Novaya Gazeta report, issued on Tuesday evening, came as a long-awaited truce appeared to be taking hold in eastern Ukraine with the start of the withdrawal of heavy weapons from the front line.

A truce agreed in Minsk by Russia, Ukraine, France and Germany was due begin on 15 February, and after a shaky start seemed on Wednesday to have halted most of the violence on the frontline.

The OSCE says it cannot yet verify the withdrawal because the sides have not said how many guns were in place before the truce. It reported some shelling and shooting at various locations, including near Shyrokyne, a coastal town on the road to Mariupol where Kiev has also reported fighting.

The Kiev military nevertheless said the number of ceasefire violations had "significantly decreased" for a second straight night, and its account of the past 24 hours was the calmest since the truce was agreed in the Belarusian capital.

You can read the “bombshell’ in an English translation in the Kyiv Post HERE, or in the original article in Novaya Gazeta HERE