Guno צְבִי
We fight, We win, Am Yisrael Chai
Vladimir Putin is now running the Communist revolutionaries’ playbook on foreign investment, foreign assets, and foreign debts. History tells us this is a quick path to a massive economic calamity, but Putin appears willing to commit economic suicide in order to bring his vision of a conquered Ukraine to fruition.
Vladimir Putin, Making Russia Soviet Again
In February 1918, the Communist revolutionaries who had taken over Russia announced that they no longer recognized the debts owed by the previous government under the czar. The new Soviet government declared that it had a clean slate, and anyone who was owed money by the previous Russian government was out of luck.
This may seem like long-forgotten history, but it is particularly relevant now that Putin has announced Russia will confiscate the assets of foreign companies and foreign investors and strongly hinted that it won’t pay its debts.
Yesterday, Putin revealed how he wants to respond to the challenges of foreign companies’ shutting down their operations in Russia:
With regard to those who are going to close their production, we need to act resolutely and in no case allow any damage for local suppliers, Russian suppliers of components. It is necessary then to introduce external management as the prime minister suggested, and then turn over these enterprises to those who want to work. We have enough legal, market tools.
Kristalina Georgieva, the managing director of the International Monetary Fund, said yesterday that a Russian default is no longer “an improbable event.” The World Bank concurs. This coming Wednesday, Russia is supposed to make “a $117 million payment on some of its debts denominated in US dollars.” Russia will qualify for a 30-day grace period, which would make the default official in mid April. (The Belarusian government is also close to default, according to the World Bank.)
https://www.nationalreview.com/the-morning-jolt/putin-flirts-with-economic-suicide/
Vladimir Putin, Making Russia Soviet Again
In February 1918, the Communist revolutionaries who had taken over Russia announced that they no longer recognized the debts owed by the previous government under the czar. The new Soviet government declared that it had a clean slate, and anyone who was owed money by the previous Russian government was out of luck.
This may seem like long-forgotten history, but it is particularly relevant now that Putin has announced Russia will confiscate the assets of foreign companies and foreign investors and strongly hinted that it won’t pay its debts.
Yesterday, Putin revealed how he wants to respond to the challenges of foreign companies’ shutting down their operations in Russia:
With regard to those who are going to close their production, we need to act resolutely and in no case allow any damage for local suppliers, Russian suppliers of components. It is necessary then to introduce external management as the prime minister suggested, and then turn over these enterprises to those who want to work. We have enough legal, market tools.
Kristalina Georgieva, the managing director of the International Monetary Fund, said yesterday that a Russian default is no longer “an improbable event.” The World Bank concurs. This coming Wednesday, Russia is supposed to make “a $117 million payment on some of its debts denominated in US dollars.” Russia will qualify for a 30-day grace period, which would make the default official in mid April. (The Belarusian government is also close to default, according to the World Bank.)
https://www.nationalreview.com/the-morning-jolt/putin-flirts-with-economic-suicide/
