London-based Fitch’s Edward Parker, head of emerging Europe sovereigns, said in a report published on Thursday last week, that concerns over public finances had moved to centre stage:
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aicTjCmDfYSQ
There was also news that day that the IMF said it may conclude negotiations with Ukraine by the end of this week, in which case, Max Alier, the Washington-based lender’s local representative, said in an interview in Kiev, Ukraine may get the fourth tranche of its $16.4 billion loan sometime in November. One of the provisos, however, is that the government needs to endorse several policy decisions, including a veto of the wage and pension law which had been approved by the Ukraine Parliament on 20 October, in an effort to win voters’ support ahead of the general election early next year.
Then on Friday, David Haslem, director for emerging Europe sovereigns, told a conference in Kiev that Fitch saw significant risk for financial stability in Ukraine.
So get ready for the ghost ride:
http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article6900303.ece
The Russian Prime Minister’s warning of a gas conflict relates to mounting tension in Ukraine between Yulia Tymoshenko, the country’s Prime Minister, and President Yuschenko. Both are candidates in presidential elections due to be held in January and Russia hopes that the winner will be more sympathetic to Moscow than the incumbent. According to Mr Putin, Mr Yuschenko is blocking the transfer of funds needed to pay for gas. Mr Putin insists that Ukraine has the funds to pay its gas bills but the money is being withheld. “According to the International Monetary Fund, Ukraine does have the money. Furthermore, the IMF thinks paying for Russian gas out of Ukraine’s foreign reserves is possible,” Mr Putin said.
Next, roll up for the funny mirrors and the wobbly walk:
http://www.telegraph.co.uk/finance/globalbusiness/6474614/Russias-11bn-UK-bond-bid.html
“Russian Prime Minister Vladimir Putin needs Western money to rebuild his economy, while Lord Mandelson is keen to exploit trading opportunities”
Mandy and keen to exploit are pretty well synonymous – with Blair right behind him, I’ll bet.
Oh hang on, what did Putin say yesterday when he urged the EU to lend Ukraine the money and accused it of being ungenerous? “Let the Europeans throw in a lousy billion. Why have they gotten so stingy down there? Let them get something out of their pockets.”
Candyfloss anyone?
As the Observer reported on Sunday, there is a scenario where the UK could run out of gas within six hours this winter – last winter, the UK was left with only three days of reserves when foreign energy companies started exporting gas to supply their European customers after Russia cut supplies that used a pipeline through Ukraine.
So, will the threat of another gas shortage be the next H1-crunch-anyone to be dragged squealing out of the pigpen? And who’s first with the coconuts?
