All is fair in love and war, and what the west has been doing to Russia of lately is full on war. So far Russia has been very measured in its response, but maybe that is about to change.
In 2013, Russia issued Ukraine a loan of $15 billion and purchased Ukraine’s first Eurobonds worth $3 billion. In November 2014, Vladimir Putin stated that Russia would not demand that Kiev make an early repayment of the $3 billion Eurobonds, in order to help Ukraine restore its battered financial system.
Now the core covenant of that loan (covered by UK law) has been broken. Sputnik News Agency reports:
Kiev breached the conditions on a $3 billion Russian loan once Ukraine’s state debt topped 60 percent of the country’s Gross Domestic Product (GDP) and Moscow may immediately demand the loan repayment, Russian Finance Minister Anton Siluanov said Saturday.
“Ukraine has actually breached the conditions of the loan, which requires that the Ukraine’s state debt should not be more than 60 percent of the GDP,” Siluanov told journalists.
The minister added that Russia had all grounds “demand the immediate repayment of that loan, but that decision has not yet been made.”
Earlier in the day, a source in the Russian government told RIA Novosti that it was likely that Moscow would have to demand the early repayment of Kiev’s debt in the near future.
If we examined the real facts surrounding the entire Ukraine crisis, it is immediately clear that the only thing keeping Ukraine together is the grace of Vladimir Putin…and this must drive neo-cons and neo-liberals absolutely mad.
Hence the demonisation of a man who is actually the only stabilising force to the madness unleashed by Victoria Nuland and her pack of wolves.
Ukraina.ru explains in detail:
If we take a detached view of the situation in Ukraine, a view from the sidelines, it becomes clear that despite the massive flow of propaganda in the Ukrainian media with regard to “Russian aggression” and even the “war with Russia,” the Ukrainian economy has not yet slipped into final chaos and default, thanks solely to Vladimir Putin’s goodwill.
Don’t believe me? Then let’s consider the facts.
First, if Putin wanted to, he could have provoked a default, making a “margin call” on a $3 billion loan. A “triggering condition” is already in place: Ukraine’s debt has significantly exceeded the 60 percent of the GDP level stipulated in the agreement. However, Putin went on record as saying that he will not demand the early repayment of the loan.
Second, Ukrainian companies owe Russian financial institutions several billion dollars. No one is demanding the early repayment of those funds. Moreover, some companies have received new loans, which saved them from bankruptcy.
Third, four large Russian banks keep around $20-25 billion in the Ukrainian banking system. If Putin wanted to wipe out Ukraine’s banking system, all he would have to do would be to order these banks to stop all business activity in Ukraine and pull out their assets. That would finish off Ukraine’s moribund banking system, but Putin is not issuing such orders.
Fourth, if Russia and Ukraine really were in a state of war, the export of Ukrainian goods to the Russian market would have fallen to zero. However, even though it has dropped (solely through the actions of the Kiev regime), it is still quite significant, enabling a lot of Ukrainian companies (which are paying wages to their employees and taxes to the budget) to remain afloat, and helping to reduce the trade deficit. If Russia fully severed all trade and production relations with Ukraine, that would have buried Ukraine’s industry a long time ago (because it can only sell grain, ore and other raw materials to the EU, but that does not require manufacturing facilities).
Fifth, Russia could have stopped supplies of fuel rods, and then Ukrainian nuclear power plants would have ground to a halt in May.
Sixth, under the terms of the Gazprom-Naftogaz contract, Russia could have stopped gas supplies due to chronic non-payment, not on June 16 but on May 3.
And then there would have been not 12 billion cubic meters of gas in Ukraine’s underground gas storage facilities, but 3-4 billion (in other words, Ukraine would have run out of gas).
Seventh, if Russia and Ukraine were at war, Russian business would have pulled out of Ukraine. However, Russian investment in Ukraine is the largest (even though it formally comes from Cyprus or elsewhere). I realize that Ukrainian Nazis, such as “Vita Zaviryukha,” are only dreaming about that, but this would definitely not have done the economy any good.
Finally, eighth, if Putin wanted to destroy Ukraine he would simply not have sold it coal and electricity. And then in five or ten days Ukraine’s overstrained utilities system would have effectively ceased to exist.
To sum up: the financial system, the banking system, jobs, the balance of trade, heating and the energy sector: all of this exists in Ukraine only because of Putin’s goodwill.
You can never argue with facts…unless you are part of the western media spin machine.