Connect with us
//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js (adsbygoogle = window.adsbygoogle || []).push({});

Latest

IMF approves $1 billion advance to Ukraine as Kiev contradicts itself on Russian debt

As court case looms Ukraine makes contradictory statements about its liability for $3 billion Russian debt whilst IMF makes first reduced payment of $1 billion in more than a year.

Alexander Mercouris

Published

on

As anticipated the IMF approved a $1 billion loan tranche to Ukraine at its meeting on 14th September 2016.  As also anticipated this was less than the $1.7 billion Ukraine asked for.

Officially the reason the IMF has provided Ukraine with less than the $1.7 billion it asked for is that Ukraine has failed to carry out all the reforms it committed itself to.  Whilst that is true, a similar failure to carry out reforms did not prevent the IMF lending Ukraine money last year.

Unofficially, as I have discussed before, the true reason Ukraine has received no funding from the IMF since 2015 and only $1 billion now is almost certainly concern about the pending court case Russia is bringing against Ukraine for recovery of the $3 billion loan Ukraine owes Russia, which London’s Commercial Court is due to hear in January.  As I have explained previously, in the event the Judgment goes against Ukraine, further advances by the IMF to Ukraine would be against its own rules, even after they were amended last year.

In a possible sign that Ukraine is starting to worry that it may lose the court case, RT is reporting Ukraine’s finance minister telling the IMF contradictory things:

“Ukrainian Finance Minister Aleksandr Danilyuk told the IMF that Kiev is ready to settle with Moscow, but is also preparing to go to court. Earlier he said that it was a “political loan we were forced to take” and “our position is that we should not return the money.””

This looks like an admission Ukraine must pay the debt and a denial Ukraine must pay the debt at one and the same time.  If “Kiev is ready to settle with Moscow” then that is obviously an admission Ukraine must pay the debt.  If “our position is that we should not return the money” then that is clearly a statement that it is not liable to pay it.

Danilyuk’s contradictory statements show the difficult position Ukraine finds itself in.  It has to deny it must pay the debt since were it to admit the debt should be paid it would automatically lose the court case in London.  At the same time it has to say it is willing to negotiate with Moscow to pay the debt – which of course means admitting it has to pay the debt – in order to satisfy the IMF and keep its restructuring programme on track.

My guess is that the Ukrainians seriously underestimated how quickly the case would come to trial and are uncertain what to do.  Some Ukrainian officials were reported to have said at the time the claim was issued last January that they expected the case to go on for at least 2 years.  It seems they thought they could string out the case – as apparently happens often in Ukraine itself – apparently unaware that London’s High Court – of which the Commercial Court is part – always to decide cases quickly as part of its overriding duty to do justice. 

The result is that the case has taken just a year to bring to trial.  The highly unconventional defence Ukraine has made against the Russian claim made it all but inevitable that it would.

The future of Ukraine’s IMF now likely depends on the stance of the judges of Britain’s Commercial Courts.  If they follow established precedents Ukraine will lose, in which case it is difficult to see how Ukraine’s IMF programme can continue and Ukraine’s IMF agreed debt restructuring programme will collapse.  If Ukraine wins then in light of the unconventional defence Ukraine is making it will mean that for the first time in its history the Commercial Court is bringing politics into its decisions.

Liked it? Take a second to support The Duran on Patreon!
Advertisement //pagead2.googlesyndication.com/pagead/js/adsbygoogle.js (adsbygoogle = window.adsbygoogle || []).push({});
Click to comment

Leave a Reply

avatar
  Subscribe  
Notify of

Latest

Trump Has Gifted “No More Wars” Policy Position To Bernie Sanders (Video)

The Duran Quick Take: Episode 148.

Alex Christoforou

Published

on

RT CrossTalk host Peter Lavelle and The Duran’s Alex Christoforou discuss how US President Donald Tump appears to have ceded his popular 2016 ‘no more wars’ campaign message and policy position to Bernie Sanders and any other US 2020 candidate willing to grad onto a non-interventionist approach to the upcoming Democrat primaries.

Remember to Please Subscribe to The Duran’s YouTube Channel.

Follow The Duran Audio Podcast on Soundcloud.

“Is Bernie Stealing Trump’s ‘No More Wars’ Issue?” by Patrick J. Buchanan…


The center of gravity of U.S. politics is shifting toward the Trump position of 2016.

“The president has said that he does not want to see this country involved in endless wars… I agree with that,” Bernie Sanders told the Fox News audience at Monday’s town hall meeting in Bethlehem, Pennsylvania.

Then turning and staring straight into the camera, Bernie added:

“Mr. President, tonight you have the opportunity to do something extraordinary: Sign that resolution. Saudi Arabia should not be determining the military or foreign policy of this country.”

Sanders was talking about a War Powers Act resolution that would have ended U.S. involvement in the five-year civil war in Yemen that has created one of the great humanitarian crises of our time, with thousands of dead children amidst an epidemic of cholera and a famine.

Supported by a united Democratic Party on the Hill, and an anti-interventionist faction of the GOP led by Sens. Rand Paul and Mike Lee of Utah, the War Powers resolution had passed both houses of Congress.

But 24 hours after Sanders urged him to sign it, Trump, heeding the hawks in his Cabinet and National Security Council, vetoed S.J.Res.7, calling it a “dangerous attempt to weaken my constitutional authorities.”

With sufficient Republican votes in both houses to sustain Trump’s veto, that should be the end of the matter.

It is not: Trump may have just ceded the peace issue in 2020 to the Democrats. If Sanders emerges as the nominee, we will have an election with a Democrat running on the “no-more-wars” theme Trump touted in 2016. And Trump will be left defending the bombing of Yemeni rebels and civilians by Crown Prince Mohammed bin Salman of Saudi Arabia.

Does Trump really want to go into 2020 as a war party president?

Does he want to go into 2020 with Democrats denouncing “Trump’s endless wars” in the Middle East? Because that is where he is headed.

In 2008, John McCain, leading hawk in the Senate, was routed by a left-wing first-term senator from Illinois, Barack Obama, who had won his nomination by defeating the more hawkish Hillary Clinton, who had voted to authorize the war in Iraq.

In 2012, the Republican nominee Mitt Romney, who was far more hawkish than Obama on Russia, lost.

Yet, in 2016, Trump ran as a different kind of Republican, an opponent of the Iraq War and an anti-interventionist who wanted to get along with Russia’s Vladimir Putin and get out of these Middle East wars.

Looking closely at the front-running candidates for the Democratic nomination of 2020 — Joe Biden, Sanders, Kamala Harris, Beto O’Rourke, Pete Buttigieg, Elizabeth Warren, Cory Booker — not one appears to be as hawkish as Trump has become.

Trump pulled us out of the nuclear deal with Iran negotiated by Secretary of State John Kerry and reimposed severe sanctions.

He declared Iran’s Islamic Revolutionary Guard Corps a terrorist organization, to which Iran has responded by declaring U.S. Central Command a terrorist organization. Ominously, the IRGC and its trained Shiite militias in Iraq are in close proximity to U.S. troops.

Trump has recognized Jerusalem as Israel’s capital, moved the U.S. Embassy there, closed the consulate that dealt with Palestinian affairs, cut off aid to the Palestinians, recognized Israel’s annexation of the Golan Heights seized from Syria in 1967, and gone silent on Bibi Netanyahu’s threat to annex Jewish settlements on the West Bank.

Sanders, however, though he stands by Israel, is supporting a two-state solution and castigating the “right-wing” Netanyahu regime.

Trump has talked of pulling all U.S. troops out of Syria, Iraq and Afghanistan. Yet the troops are still there.

Though Trump came into office promising to get along with the Russians, he sent Javelin anti-tank missiles to Ukraine and announced a pullout from Ronald Reagan’s 1987 INF treaty that outlawed all land-based intermediate-range nuclear missiles.

When Putin provocatively sent 100 Russian troops to Caracas — ostensibly to repair the S-400 anti-aircraft and anti-missile system that was damaged in recent blackouts — Trump, drawing a red line, ordered the Russians to “get out.”

Biden is expected to announce next week. If the stands he takes on Russia, China, Israel and the Middle East are more hawkish than the rest of the field, he will be challenged by the left wing of his party, and by Sanders, who voted “no” on the Iraq War that Biden supported.

The center of gravity of U.S. politics is shifting toward the Trump position of 2016. And the anti-interventionist wing of the GOP is growing.

And when added to the anti-interventionist and anti-war wing of the Democratic Party on the Hill, together, they are able, as on the Yemen War Powers resolution, to produce a new bipartisan majority.

Prediction: By the primaries of 2020, foreign policy will be front and center, and the Democratic Party will have captured the “no-more-wars” political high ground that Candidate Donald Trump occupied in 2016.

Do You Appreciate Reading Our Emails and Website? Let us know how we are doing – Send us a Thank You Via Paypal!

Liked it? Take a second to support The Duran on Patreon!
Continue Reading

Latest

Over 200 killed, hundreds injured in series of blasts at Sri Lankan hotels & churches

A series of bombings hit churches and hotels across Sri Lanka on Easter Sunday, killing more than 200 people.

RT

Published

on

By

Via RT…


A series of eight explosions rocked Catholic churches and luxury hotels in Sri Lanka as Christians began Easter Sunday celebrations, with over 200 killed and hundreds injured, media reported, citing police.

The blasts started at around 8:45am local time at St. Anthony’s Church in Colombo and St. Sebastian’s Church in Negombo, a Catholic-majority town outside of the capital. The Zion Church in Batticaloa on the eastern coast was also targeted. At around the same time, the Shangri-La, Cinnamon Grand and Kingsbury five-star hotels were also hit, police confirmed.

Two more explosions happened later in the day, targeting two more locations in Colombo. All attacks appear to have been coordinated.

At least 207 people were killed, Reuters reported, citing police. More than 450 were injured in the attacks.

Alleged footage of the aftermath, shared on social media, showed chaos and large-scale destruction inside at least one of the churches.

Liked it? Take a second to support The Duran on Patreon!
Continue Reading

Latest

Mike Pompeo reveals true motto of CIA: ‘We lied, we cheated, we stole’ (Video)

The Duran Quick Take: Episode 147.

Alex Christoforou

Published

on

The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris take a look at a Texas A&M University speech, and subsequent interview, with US Secretary of State Mike Pompeo.

The former CIA Director admitted, ‘as an aside’ to the question asked, that the Intelligence agency he headed up before being appointed as the top US Diplomat had a motto “we lied, we cheated, we stole”…which, according to Pompeo, contained entire CIA training courses based on ‘lying, cheating and stealing.’

Pompeo finally speaks some truth.

Remember to Please Subscribe to The Duran’s YouTube Channel.

Follow The Duran Audio Podcast on Soundcloud.

Liked it? Take a second to support The Duran on Patreon!
Continue Reading

JOIN OUR YOUTUBE CHANNEL

Your donations make all the difference. Together we can expose fake news lies and deliver truth.

Amount to donate in USD$:

5 100

Validating payment information...
Waiting for PayPal...
Validating payment information...
Waiting for PayPal...
Advertisement

Advertisement

Quick Donate

The Duran
EURO
DONATE
Donate a quick 10 spot!
Advertisement
Advertisement

Advertisement

The Duran Newsletter

Videos

Trending