Courtesy of Mish.
Scorched Earth Policy
Last week, the government in Ukraine cut off pensions benefits to residents of rebel-held areas until such time as these areas return to Ukrainian control.
Yesterday, in yet another scorched-earth policy move, president Petro Poroshenko announced Ukraine Rebel Areas to Lose State Services.
Ukraine’s president has ordered the withdrawal of all state services, including funding for hospitals and schools, from rebel-held areas.
Mr Poroshenko’s ruling says all state companies and institutions should end their work in the Donetsk and Luhansk regions within a week.
It also says Ukraine’s central bank is to close down all banking services – including card operations – in some areas within a month.
Initial Thoughts
- Poroshenko just ceded major portions of Ukraine to rebels
- Expect a run on ATMs
- Russia will have to intervene for humanitarian reasons
- Western Ukraine will have a difficult time getting needed coal from the East
Point number two is happening already.
I picked this up from ZeroHedge Ukrainians Line Up to Withdraw Money from a Bank in Donetsk.
That’s a small line now. I suspect it soon won’t be.
Human Rights Violations
Here’s some additional details on Poroshenko’s Bank Servicing Decree. …
