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IMF Funds for the Sopranos?

Steven Laack | 02.04.2015 12:20 | World

IMF continues largely supplying new credits to the country, “death-marked for freedom”.

IMF continues largely supplying new credits to the country, “death-marked for freedom”. Just in this flashy way Ukraine’s Minister of Finance, Natalie Jaresko, determines her country’s position now. Recently Kiev has won out disbursement of the next $17.5 bil. tranche for carrying out large-scale reforms allegedly in all spheres of life. In reality to obtain the IMF credit Ukraine was obliged to fulfill all requirements on reformation of own banking system. But it has been executed only on paper; or Ministry of Finance and National Bank of Ukraine simply substitute them by oral promises. So, speaking plainly, billions of dollars disappear in the black hole of Ukraine’s economy while loan repayment is certain only by insignificant word of mouth.

It is worthy of note that even analysts from the USA and European countries consider that credits do not go to realization of declared purposes as they are sacked in Ukraine. Moreover, it is recorded in IMF reports and accounts of National Bank of Ukraine (NBU) that starting from April, 2014 most funds received by Ukraine were placed into accounts of such private bank as PrivatBank, belonging to oligarch I. Kolomoyskyi. American journalists have conducted quite a full-scale investigation of this case (

To all seeming the well-known oligarch has made up a group, related to mafia and consisted of IMF mission chief for Ukraine Nikolay Georgiev from Bulgaria; Ukraine’s Minister of Finance Natalie Jaresko who is a citizen of the US; the current chairman of NBU and a millionaire from Dnipropetrovsk Valeriya Hontareva. And they try to secure new financial tranches not for Ukraine but for Mr. Kolomoyskyi, who makes a fool of international financial structures.

And with the tenacity of a bulldog, leaders of Western leading powers and influential international organizations do not want to detect that a complete outrage in economic relations, established in Ukraine, is defined not only by Kolomoyskyi’s corruptness but also by the rules of the game, which is usual for representatives of all branches of Ukrainian power as they always push own business advantages, using available advantages of administrative offices.

Take, for instance, Ukraine’s informational and political community-shaking conflict between Kolomoyskyi and staying in big business President Poroshenko who strived for stealing thunder from the odious oligarch in the domain of control over country’s petroleum industry.
In spite of useless attempts of Ukrainian media and state bodies to present the situation in the favorable civilized light, it is seen for everyone that political process substitutes by outright criminal infighting with raids and warlike gestures.

The oligarch’s dismissal from his office of Dnipropetrovsk governor under color of his own request has become an intermediate act of existing confrontation. But in practice such Poroshenko’s step has only let off the leash of Kolomoyskyi who is in control of 15 thousand of Donbas battle-seasoned militants, for his further actions of UkrTransNaft and UkrNaft protection as he constitutes himself the owner of these companies. The structures are the basis of Kolomoyskyi’s oil empire. And he doesn’t care a straw for the Ukrainian State, for his formal status in this state and the opinion of the country’s President with whom he is ready to fight to a finish for profitable active assets. Kolomoyskyi won’t chicken out. He can even ruin Ukraine’s financial system by means of the PrivatBank as oil is the most important yielder for him, as well as, control over Dnipropetrovsk, Odesa and Zaporizhye regions is principally important for the scheme of his earnings. Thus, he will retain this control in spite of any Poroshenko’s orders till many influential people in Ukraine are dependent from ‘the Dnipropetrovsk kinglet’; as long as greater part of the country’s bankroll are localized in his bank (it’s no mere chance that the rumor comes as if Poroshenko’s accounts for 50 million dollars have been blocked in the PrivatBank) and multi-thousand thugs’ armed groups are behind his back.
In order to touch the spot let’s simply project the situation to France. We’ll get something like this: President of France, a well-known ‘Sweets Baron’ F. Hollande forces a law through the Parliament to deprive the fuel oligarch (also Marseilles Mayor) of the opportunity to control the biggest oil company GDF Suez. The latter responds with swear words towards the journalist of Radio Liberty, sends the group of militants to Paris and after conducting some purge in the company’s headquarters, builds an iron fence round the house together with setting heavily-armed guard there. The guard beats one of French lawmakers. And then, several deputies in Marseilles initiate a meeting ‘against turning democracy of France into an authoritarian state’. They intimate that this region should be independent and aspire to carry their point by any means including armed resistance with small arms and armored vehicles.

Such thrilling subject is eligible for some Hollywood action movie or The Sopranos-like serial as it seems to be fantastic for Europe. Meanwhile it is a subject to realization in one of the largest (both by the territory and home population) European countries that strives for entering into the EU, and the IMF appropriates billions of dollars to it even without 100% guarantee to get the money back.

In fact, the process of degradation and state’s collapse in Ukraine has passed into the marked phase. Clashes between the country’s President and now-former governor of Dnipropetrovsk are not political, but crime events. But this criminal war of the most influential criminal bosses is made by clans of Poroshenko and Kolomoyskyi not in dark alleys, but within the sight of the whole world, namely, in the Verkhovna Rada, Ukraine’s government, mass media and on pages of Internet social media.

Steven Laack
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