Comments on: The problem of Ukraine’s Russia bond http://blogs.reuters.com/felix-salmon/2014/03/18/the-problem-of-ukraines-russia-bond/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: link http://blogs.reuters.com/felix-salmon/2014/03/18/the-problem-of-ukraines-russia-bond/comment-page-1/#comment-54042 Wed, 01 Oct 2014 16:58:13 +0000 https://blogs.reuters.com/felix-salmon/?p=23246#comment-54042 I have been browsing on-line more than 3 hours today, but I by no means discovered any fascinating article like yours. It is lovely value sufficient for me. In my view, if all web owners and bloggers made good content material as you probably did, the net might be much more useful than ever before.

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By: yurakm http://blogs.reuters.com/felix-salmon/2014/03/18/the-problem-of-ukraines-russia-bond/comment-page-1/#comment-49636 Thu, 03 Apr 2014 11:42:56 +0000 https://blogs.reuters.com/felix-salmon/?p=23246#comment-49636 First, Ukraine was essentially bankrupt in November 2013: actually, the poor state of its finances is the main reason why it asked for the credit and for gas discount. The following three months its government was paralyzed by Occupy Kiev protests; many more Ukrainians were too busy with protests or afraid of the protests to be productive. The country either was going to ask for more help, or default on its debts even without the coup d’etat / revolution / government change.

Second, though a 22 year history of dully elected kleptocracy contributed mighty to Ukrainian woes, the main reason was different. A fragile balance between voters blocks forced all governments to avoid obvious but unpopular decisions, to kick a proverbial can down the road. Wast agricultural regions are overpopulated: modern agricultural technologies cannot use so many hands. They are subsidized by industrial regions. However, the industrial regions are nothing but a huge rust belt. Whatever coal mines and plants did not close yet, it happens mostly due to a government support.

Ironically, the capture of Crimea slightly improves Ukrainian finances, because the net subsidized region used to receive more funds from the state coffers than it contributed as taxes.

As a side note, to my understanding the discussed Ukrainian bonds were issued not in UK, but in Ireland.

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By: Strych09 http://blogs.reuters.com/felix-salmon/2014/03/18/the-problem-of-ukraines-russia-bond/comment-page-1/#comment-49484 Wed, 19 Mar 2014 23:51:56 +0000 https://blogs.reuters.com/felix-salmon/?p=23246#comment-49484 If this was the summer of 1914, we’d already have a shooting war going on, so I guess letting the Russians “have” Crimea constitutes progress, if you think avoiding a land war at all costs is the best possible outcome.

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By: Trollmes http://blogs.reuters.com/felix-salmon/2014/03/18/the-problem-of-ukraines-russia-bond/comment-page-1/#comment-49480 Wed, 19 Mar 2014 03:06:37 +0000 https://blogs.reuters.com/felix-salmon/?p=23246#comment-49480 And then, after stiffing Russia on the $3 billion, the UK will supply Ukraine with natural gas at 30% below market prices for … how long, exactly?

Surely someone in the EU will supply them, no? oh dear…

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By: skeptonomist2 http://blogs.reuters.com/felix-salmon/2014/03/18/the-problem-of-ukraines-russia-bond/comment-page-1/#comment-49476 Tue, 18 Mar 2014 18:14:56 +0000 https://blogs.reuters.com/felix-salmon/?p=23246#comment-49476 Why exactly would Western creditors be afraid of Ukraine defaulting on its debt to them just because it defaults on its debt to Russia? The excision of the Crimea would appear to make the Ukrainian state more stable and more securely in the Western sphere, not so liable to the alternating succession of East-West-favoring kleptocrat governments. Anyway Western European governments are reportedly giving Ukraine $15B to the new insurgent government – that seems to indicate some confidence.

Of course the whole thing could blow up if Russia decides to take over more of Ukraine, but that possibility seems to be receding.

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