dollarvigilante.com / Jeff Berwick / March 31st, 2014
In a TV address to a torn nation, Ukraine’s PM Yatsenyuk first implied heating prices would rise incrementally, and then later confirmed a plan to increase prices 100% in the next two years (and nearly 200% by 2017) as the cost of imported Russian gas is expected to rise to $500 from the current $84.
Not only did the Ukrainians have the hard rug of the consequences of statism pulled out from underneath them, but the move was followed with tougher capital controls, which restricted cash purchases to $1,300 per person per day after the Central Bank said ”amid a tense situation in money markets” it is now broke. (We covered a reported shipment of gold out of Ukraine a couple of weeks ago)
The Ukraine Central Bank implements capital controls:
- Sets limits on foreign currency purchases.
- Limits purchasees to 15,000 Hryvnia per person per day ($1,300).
- Ukraine central bank limit purchases to 150,000 Hryvnia per person per month ($13,000).
Oh yeah and they’re broke…