Russian treasury unable to meet it’s financial obligations

Investment Watchblog

All government agencies see asset freeze in Cyprus-Prime Minister Medvedev

Interesting interview by Medvedev today who admitted that most Russian government agencies use Cyprus for it’s financial transactions.

A few points here: 

-How corrupt does a country have to be for its government agencies to use a tax haven for financial transactions?

-From latest reports, the Cypriot banks might open on March 26th at the earliest. That’s two weeks after being shut down. That’s two weeks of unmet financial obligations, ie government employee salaries, public works financing, unpaid pensions etc etc…Expect unrest on the streets of Moscow

-The EU/Germany are certainly aware that 95% of all Russian money goes through the Cypriot banks. Certainly they were well aware of the consequences this would lead to. Is this the first salvo in the new world war??

Russia complains government accounts blocked in Cyprus

Russian Prime Minister Dmitry Medvedev complained Thursday that accounts of Russian government agencies in Cyprus had been blocked as Cypriot Finance Minister Michalis Sarris was set to resume talks in Moscow to secure aid.

In comments released early Thursday, Medvedev warned that Russia would take a “firm” stand on Cyprus because the accounts of governmment structures had been blocked on the island.

Cyprus ATMs Low On Cash, Credit Card Payments Refused; Medvedev Compares Europe To USSR

So far the market has been largely oblivious of the shattered trust and changed dynamic in European banking dynamics for one simple reason: Cyprus banks have been closed, and likely will be closed indefinitely, preventing the mass media from broadcasting what happens when an entire population, and foreign depositors, decide to clear out the holdings of their bank accounts, either physically or electronically, and the public anger the will result when they find that courtesy of fractional reserve banking, only a tiny amount of said deposits is actually present. In the meantime, retail depositors have had their withdrawals limited through a form of capital controls, allowing them to pull only as much as the daily limit is on given ATMs. So far the banks have had enough cash to keep ATMs stocked up to the daily required minimum, but that may soon be ending. BBC’s Mark Lowen, in Nicosia, reports that “Cyprus’ banks are still giving out cash through machines – although with limits, and some are running low.” Ironically, as physical cash becomes ever scarcer, merchants are now clamping down on electronic payments unsure if they will ever be able to convert electronic euros into actual ones: “Some businesses are now refusing credit card payments, our correspondent reports.”

Pictures From A Cyprus ATM Line

Markets believe that we will find a solution and that we will provide more money and this might not be the case.”

One thought on “Russian treasury unable to meet it’s financial obligations

  1. This was translated to English

    These aircraft are for directing nukes and bombers. Russia is moving big time planes around. Take this article for what its worth. Something is going down.

    Published on 03/21/13 13:57 Read aloud
    Media Report: Russian military aircraft flying over Luxembourg

    An Antonov AN-30B-flyer in use.
    Photo: Igor Dvurekov
    (Thi) – If you watch these days, a Russian Antonov military plane on the horizon, you need not be concerned. Check Russian military experts at the time, as part of the” Open Skies” agreement. Part of their material during flights in Germany and in the Benelux region A normal standard procedure assures the Luxembourg Army.

    Of 18 to 23 March fly over a media report ( Rianovosti ) According to Russian military experts, 15-20 Germany, Belgium, the Netherlands and the Grand Duchy. To use it is an Antonov AN-30B aircraft.

    The Russian military observers, accompanied by foreign colleagues start from Cologne-Bonn Airport. The flights take between five and eight hours.

    As part of the” Open Skies” agreement

    This observation flights as part of the” Open Skies” instead. This international agreement was signed at the end of the Cold War by a majority of member states of the” Organization for Security and Cooperation in Europe” (OSCE).

    Upon request of the Luxembourg Army confirmed that the Russian Federation last week had informed the OSCE, to want to conduct observation flights in Germany and the Benelux countries. The Netherlands has responded on behalf of the three Benelux countries on request.

    Flights also about Luxembourg?

    Thus, the Luxembourg Army currently has no information on the exact course and the number of flights scheduled this Russian observation flights. The Luxembourg army points out that it does not necessarily lead to flights over the Grand Duchy. The final report of this mission will clarify whether eventually an Antonov AN-30B aircraft has crossed the local airspace or not.

    Alain Duschène, Colonel of the Luxembourg Army emphasizes that observation flights are not uncommon:” Luxembourg has signed this Agreement as well. This is a normal standard procedure”.

    Luxembourg at observation missions in operation

    The” open skies” agreement also provides that the observation plane can be accompanied by an escort missions during the pilots.

    In this context, Colonel Alain Duschène because the Luxembourg army with their” Groupement d’inspection et de vérification de l’Otan” regularly monitoring missions abroad is to use.

    Another related article

    Russian Air Defence Force starts massive drills

    Russian Air Defence Force has begun massive drills
    in eastern part of the country, in which over 500 weapon systems, 50 aircraft and some 2,000 troops have been deployed, military officials said Wednesday.
    The exercise in the Buryatia, a federal subject of Russia, saw Wednesday the use of S-300 surface-to-air missile systems, Osa, Buk, Strela and Shilka antiaircraft missiles, Igla man-portable SAM missiles, and Pantsir-S gun-missile systems, Eastern Military District press officer Lt. Col. Alexander Gordeyev said.
    The exercise, which will last through mid-April, is designed to test the readiness of the district’s air-defense forces and combat aviation to perform joint missions and rehearse a range of combat training tasks in modern warfare, Gordeyev said.

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