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Crimea Names Ruble Currency; Applies To Join Russia, Expects To Become Region Of Russian Federation By Thursday | Zero Hedge

Crimea Names Ruble Currency; Applies To Join Russia, Expects To Become Region Of Russian Federation By Thursday | Zero Hedge.

First, for those who have missed this weekend’s developing story surrounding events in Crimea, here is the 30 second summary, courtesy of Bloomberg:

  • U.S., EU warn Russia not to annex Crimea after 95.5% of voters backed leaving Ukraine to join Russia in referendum.
  • Ukrainian govt, EU, U.S. consider vote illegal
  • Russia said vote  “fully met international norms”
  • Russia deployed about 60,000 troops along Ukrainian border, Ukrainian government said yday; Ukraine closed border crossings and will mobilize as many as 15,000 volunteers in next 15 days
  • Obama spoke with Putin, said referendum would never be recognized by intl community; U.S. prepared to impose “additional costs” on Russia for its actions
  • Putin told Obama Kiev regime unable to curb radical, ultra- nationalists groups that are destabilizing situation, terrorizing peaceful residents
  • EU ministers meet today to discuss sanctions that target Russian individuals rather than businesses; EU leaders to meet March 20-21 in Brussels to discuss further measures
  • “We are all reluctant to impose sanctions because Russia will probably respond and we’ll all suffer as a result,” Poland Foreign Minister Radoslaw Sikorski said on CNN. “But Russia is leaving us with no choice.”
  • Russian lawmakers to consider bill on March 21 that would allow Russia to incorporate parts of countries where residents want to secede, says a Kremlin adviser
  • Russia vetoed UN Security Council resolution declaring referendum illegal; China abstained from voting
  • Crimeans celebrate vote

And here is the latest : just hours ago, Crimea’s parliament officially applied to become part of Russia. The parliament “made a proposal to the Russian Federation to admit the Republic of Crimea as a new subject with the status of a republic,” according to a statement on its website. A Crimean parliamentary delegation was expected to arrive in Moscow on Monday to discuss the procedures required for the Black Sea peninsula to become part of the Russian Federation.

“If everything’s signed we’ll become a fully fledged region of the Russian Federation Wednesday or Thursday,” First Deputy Prime Minister Rustam Termigaliyev says in interview at govt headquarters in Simferopol. Termigaliyev added that Crimea will promptly get $1b aid from Russia in near-term, and that Hryvnia reserves enough for 10 days, then Crimea will switch to ruble. April pensions “most likely” to be paid in rubles. Crimea can be self-sufficient in natural gas after today’s nationalization of Chernomoreneftegaz. Crimea risks 150,000 hectares being left without water if Ukraine shuts off supply, though that’s “not critical,”  says Termigaliyev.

In other news, the west continues dithering and considering just how best to telegraph to the world that it is completely helpless in stopping the annexation of Crimea, which is now a fact, and that it is praying that Putin does nothing to annex any of the other Pro-Russian cities in east Ukraine in the coming days, as once again, it has absolutely no stopping power with Putin continuing to hold all the chips.

Crimea Names Ruble Currency; Applies To Join Russia, Expects To Become Region Of Russian Federation By Thursday | Zero Hedge

Crimea Names Ruble Currency; Applies To Join Russia, Expects To Become Region Of Russian Federation By Thursday | Zero Hedge.

First, for those who have missed this weekend’s developing story surrounding events in Crimea, here is the 30 second summary, courtesy of Bloomberg:

  • U.S., EU warn Russia not to annex Crimea after 95.5% of voters backed leaving Ukraine to join Russia in referendum.
  • Ukrainian govt, EU, U.S. consider vote illegal
  • Russia said vote  “fully met international norms”
  • Russia deployed about 60,000 troops along Ukrainian border, Ukrainian government said yday; Ukraine closed border crossings and will mobilize as many as 15,000 volunteers in next 15 days
  • Obama spoke with Putin, said referendum would never be recognized by intl community; U.S. prepared to impose “additional costs” on Russia for its actions
  • Putin told Obama Kiev regime unable to curb radical, ultra- nationalists groups that are destabilizing situation, terrorizing peaceful residents
  • EU ministers meet today to discuss sanctions that target Russian individuals rather than businesses; EU leaders to meet March 20-21 in Brussels to discuss further measures
  • “We are all reluctant to impose sanctions because Russia will probably respond and we’ll all suffer as a result,” Poland Foreign Minister Radoslaw Sikorski said on CNN. “But Russia is leaving us with no choice.”
  • Russian lawmakers to consider bill on March 21 that would allow Russia to incorporate parts of countries where residents want to secede, says a Kremlin adviser
  • Russia vetoed UN Security Council resolution declaring referendum illegal; China abstained from voting
  • Crimeans celebrate vote

And here is the latest : just hours ago, Crimea’s parliament officially applied to become part of Russia. The parliament “made a proposal to the Russian Federation to admit the Republic of Crimea as a new subject with the status of a republic,” according to a statement on its website. A Crimean parliamentary delegation was expected to arrive in Moscow on Monday to discuss the procedures required for the Black Sea peninsula to become part of the Russian Federation.

“If everything’s signed we’ll become a fully fledged region of the Russian Federation Wednesday or Thursday,” First Deputy Prime Minister Rustam Termigaliyev says in interview at govt headquarters in Simferopol. Termigaliyev added that Crimea will promptly get $1b aid from Russia in near-term, and that Hryvnia reserves enough for 10 days, then Crimea will switch to ruble. April pensions “most likely” to be paid in rubles. Crimea can be self-sufficient in natural gas after today’s nationalization of Chernomoreneftegaz. Crimea risks 150,000 hectares being left without water if Ukraine shuts off supply, though that’s “not critical,”  says Termigaliyev.

In other news, the west continues dithering and considering just how best to telegraph to the world that it is completely helpless in stopping the annexation of Crimea, which is now a fact, and that it is praying that Putin does nothing to annex any of the other Pro-Russian cities in east Ukraine in the coming days, as once again, it has absolutely no stopping power with Putin continuing to hold all the chips.

Crimea To Abandon Hyrvnia, Switch To Russian Ruble On April 1st | Zero Hedge

Crimea To Abandon Hyrvnia, Switch To Russian Ruble On April 1st | Zero Hedge.

Crimean Deputy Prime Minister Rustam Temirgaliev has told RIANovosti that the region will abandon Ukraine’s Hyrvnia:

  • *CRIMEA TO SWITCH TO RUSSIAN RUBLE APRIL 1: RIA NOVOSTI

This is not a total surprise as Reuters reported the Crimean Deputy PM stating “we are ready to introduce a ruble zone,” a week ago.

For the last few years the UAH/RUB exchange rate has oscillated around 38 in an ‘almost’ peg anyway…

But this move would isolate Crimeans from the potentially large devaluation that capital flows would create should a default occur (which looks increasingly likely)

From Reuters last week:

The Ukrainian region of Crimea could adopt the Russian ruble as its currency and “nationalize” state property as part of plans to join the Russian Federation, a regional official was quoted as saying on Thursday.

Interfax news agency cited Rustam Temurgaliyev, Crimea’s vice premier, as saying: “All Ukrainian state enterprises will be nationalized and become the property of the Crimean autonomy.”

Hoping Moscow would let Crimea become part of Russia, he said: “We are ready to introduce the ruble zone.”

Of course, this may lead to the emergence of an even more broad ‘black market’ for dollars or rubles in Ukraine as we are sure the Ukraine government would fight back with capital controls of some sort.

Crimea To Abandon Hyrvnia, Switch To Russian Ruble On April 1st | Zero Hedge

Crimea To Abandon Hyrvnia, Switch To Russian Ruble On April 1st | Zero Hedge.

Crimean Deputy Prime Minister Rustam Temirgaliev has told RIANovosti that the region will abandon Ukraine’s Hyrvnia:

  • *CRIMEA TO SWITCH TO RUSSIAN RUBLE APRIL 1: RIA NOVOSTI

This is not a total surprise as Reuters reported the Crimean Deputy PM stating “we are ready to introduce a ruble zone,” a week ago.

For the last few years the UAH/RUB exchange rate has oscillated around 38 in an ‘almost’ peg anyway…

But this move would isolate Crimeans from the potentially large devaluation that capital flows would create should a default occur (which looks increasingly likely)

From Reuters last week:

The Ukrainian region of Crimea could adopt the Russian ruble as its currency and “nationalize” state property as part of plans to join the Russian Federation, a regional official was quoted as saying on Thursday.

Interfax news agency cited Rustam Temurgaliyev, Crimea’s vice premier, as saying: “All Ukrainian state enterprises will be nationalized and become the property of the Crimean autonomy.”

Hoping Moscow would let Crimea become part of Russia, he said: “We are ready to introduce the ruble zone.”

Of course, this may lead to the emergence of an even more broad ‘black market’ for dollars or rubles in Ukraine as we are sure the Ukraine government would fight back with capital controls of some sort.

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