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Ukraine: withdrawal of Russian banks means the inevitable war

Украина: уход российских банков означает неизбежную войну

This is, apparently, all! Moscow has made a final decision and more compromise with the West on the Ukrainian question, and the Ukraine will not be. Negotiations in the Normandy format foreign Ministers of Germany, France, Russia and Ukraine from Russia is now seen as a mere formality, as evidenced by the behavior Lavrov at a recent meeting in Berlin.

Mission Nuland in Moscow ended in failure, she explained that Moscow will not take into account any interpretations of the implementation of the Minsk agreements and strictly requires the fulfillment by Ukraine of the signed agreements in the form and in the same order as it was recorded in Minsk. Otherwise, Moscow has a free hand, and she is going to act unilaterally as it sees fit, particularly to the issue of holding the elections in the Donbass.

Nuland expected snapped that the West does not recognize the elections, on Moscow but it had no effect — in response to DNR and LNR leaders Zakharchenko and Carpenter made a demonstrative statement that the delays of Kiev are not going to tolerate, and in the fall will hold elections anyway. And not in the election business. On the eve of the visit, Nuland Americans have three times demonstrated how they will try to break Russia and to ignore its interests. First, finally made the decision to deploy missile defense elements in Europe, and secondly is inflated doping scandal to disqualify the national team of Russia and its suspension from participation in the Olympics in Rio, in the third carried out a provocation at the Eurovision song contest, where victory was awarded to Ukraine in violation of all parliamentary rules, making it clear that Ukraine has once again received a pardon for all his actions.

Russia understood everything, and Nuland have left empty-handed. Challenge accepted. A diplomatic solution of the Ukrainian question will not. If Kiev does not want to fulfill the signed in Minsk agreement, it be forced to this force. Make a fuss with him Russia no longer intends to. And the main evidence of this – information about the departure from Ukraine of Russian banks with state participation.

It sounded well-informed Russian newspaper Kommersant: come to grips with the search of the exit from the Ukrainian market, “Sberbank”, VTB and Vnesheconombank. It comes amid a notable recovery in their own businesses and in General the Ukrainian banking market. According to experts, the state-owned banks are guided not so much by the economic situation, many political and use the window that appears for sale ” (http://kommersant.ru/doc/2989694)

The Ukrainian Sberbank in the first quarter was able to turn a profit — UAH 53 million against a loss of 2.3 billion hryvnia in the first quarter of 2015, VTB-24 and the web from the losses did not come, but significantly reduced. It seems that “life is getting better”, but the banks are trying to use “window of opportunity” to overthrow the Ukrainian assets. Why should you be?

Here would do well to recall the history and application 2 years ago.

19 Jun 2014 hodorova Rada adopted in first reading the draft law “On tax and customs control in the free economic zone of Crimea and on peculiarities of economic activities on the temporarily occupied territory of Ukraine”. One of his articles of predusmatrivaet ban on working in the country banks belonging to the group created under the laws of “occupation”. Essentially, the item had imposed a ban on all subsidiaries of Russian banks. But then in the Verkhovna Rada introduced amendments to the second reading of the bill that softened the controversial article. They included the prohibition of work on the territory of Ukraine only for those banks that operate in the Crimea, and at that time, all Russian banks with “daughter” in Ukraine, has already left the Crimea. Thus, Russia has taken on the care of their largest banks from Crimea in return preserve the possibility of their work in Ukraine. This means that the Kremlin was hoping for constructive cooperation in the future and not to cut down the ends.

Moreover, 22 Sep 2014 RIA Novosti news Agency disseminated the following message: “ the Banks of the Russian Federation will continue to work in Ukraine because their withdrawal from the market will seriously hit the Ukrainian economy. This was stated by Russian President Vladimir Putin, reports information Agency RIA Novosti. The Russian financial institutions occupy more than 30% of the banking sector of Ukraine, said the Russian President. “Certainly we need to continue. First of all, because in the banking sector of Ukraine Russian financial institutions occupy more than 30% and if we will suspend its work, it will be extra large, a very serious blow to the Ukrainian economy. And we are not interested in this”, — Putin said. He stressed that Russia is interested in the fact that she was a reliable, stable partner. “Therefore, despite all the difficulties, we must continue to work. Moreover, as far as I know, the relationship with the Central Bank of Ukraine have quite the partner”, — said the President.”

So now it turns out that Russia does not care that the withdrawal of the Banks will hit the Ukrainian economy, Russia does not hope and does not want to see Ukraine as a stable and reliable partner. It is clear that the decision about the withdrawal of Russian banks from Ukraine not accepted not Gref and Kostin, and the Kremlin, which thus puts an end to relations with Ukraine and for Ukraine itself.

A small note about the Ukrainian assets of the Russian subsidiaries of banks. As of August 2014, the volume of Russian capital in the banking system of Ukraine amounted to 32%. On April 1, 2015, the top 10 Ukrainian Banks by assets consisted of only four Ukrainian financial organisation: the country’s largest private PrivatBank Kolomoisky, two state banks and “First Ukrainian international Bank” (FUIB), Rinat Akhmetov. The remaining six are foreign banks, four of them – just Russian: Prominvestbank (owned VEB), Sberbank, Alfa-Bank and “VTB Bank”. There are still two banks with European maternal capital: Ukrsotsbank (owned by UniCredit) and “Raiffeisen Bank Aval”.

“On may 18, 2016 in Ukraine there are eight banks with Russian capital, the authorised capital of which exceeds 38.3 billion hryvnias (more than $1.5 billion). According to the National Bank of Ukraine (NBU), this amounts to 20% of the share capital of the banking system of Ukraine (191,88 billion hryvnia). The assets of Russian banks in Ukraine are 185,35 billion (7.4 billion dollars), which exceeds 15% of all Bank assets in the country, and the obligations equal 170,39 billion hryvnia ($6.8 billion), representing 15.8% of all Bank liabilities”http://tass.ru/info/3292214

So, you should decide what consequences will result the withdrawal from Ukraine of Russian Banks. For completeness, we add that another negative consequence of care that Russian banks will be problems with nuclear power. “It so happened that there are a number of loan programs that are only Ukrainian “daughter” of Russian banks. Through these banks is lending for the purchase of fuel rods (nuclear fuel) for nuclear power plants of Ukraine. Plus through these banks often go to the settlements under foreign economic contracts between Russia and Ukraine”http://vz.ru/economy/2015/9/29/769240.html

The next round of economic crisis in Ukraine is guaranteed. This is one of the variants of the asymmetric answer to the Americans in response to the sanctions, an unprecedented information attack and the deployment of missile defense in Europe. Now let Washington wrestle with how to save their Kiev puppets, and the IMF decides to give or not to give the next tranche of the country, where soon there will be only 2 major private Bank, owned by Kolomoisky and Akhmetov, respectively, which are in fact located in preddefoltnom condition.

On normal and good-neighbourly relations with Ukraine in Moscow finally put an end, in a good now will not agree, and a forceful solution of the problem now becomes the primary. Anyway, and in the chain of anti-Russian Ukraine is a weak link, and it will finish. To realize it took the Kremlin for two years.

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