Ukraine: Land Privatization Demanded by IMF, Links to Biden Graft
Scandal. Engineered Bankruptcy of National Economy
Global Research, November 30, 2019
New Cold War 28 November
2019
Region: Europe, Russia and FSU, USA
Theme: Global Economy
In-depth Report: UKRAINE REPORT
November in Ukraine has been marked by the adoption of the so called
‘land reform’, in accordance of the demands made by the IMF amongst other
international financial organizations. The reform opens the way for the mass
privatization of Ukraine’s agricultural lands. The IMF has been making these
demands for many years but assorted Ukrainian presidents have tried to postpone
such an unpopular decision. Recent polls show that the overwhelming majority of
Ukrainians of all political persuasions are opposed to land privatization, from
far-right to far-left.
After an intensive period of deindustrialization, which has taken place
in recent years, agricultural land remain the only asset with any value in
Ukraine but even so, it may be bought for very little. A remarkable fact is
that one of the deputies from the ruling party ‘Servant of the people,’ Nikita
Poturayev, while pressing his colleagues at the Parliament to vote for the
bill on land reform, claimed [1] that this would be ‘settling scores with
maniac V. Lenin’, i.e. the purpose of the bill was to abolish the land
nationalization carried out following the October revolution.
Ukraine’s fertile soil up for grabs
It has long been known that Ukraine’s soil is very fertile. Indeed,
during WW2 the invading Nazis made a point of appropriating quantities of it;
forcing POWs to collect the top soil and load it onto trains en route to
Germany. Now these same lands could fall into the hands of international
agro-holdings.
Ukrainian political expert Ruslan Bortnik says that the President of
Ukraine Vladimir Zelensky and his team came to power under
an obligation to sell out the agricultural land of Ukraine to foreign
companies. Those who buy these lands, according to Bortnik, will only
be thinking about making the quickest possible buck. “Foreign companies are
already operating on Ukrainian soil [renting land],” said Bortnik,
“But they are competing with large Ukrainian agricultural holdings. They
do not dominate. If the adopted land market model is launched, then only large
foreign companies will remain in our market… Let’s be honest – we are not a
sovereign country. At least our government is under external control. And this is
a part of the obligations of this government. This is the condition under which
they came to power. They are paying the debts through privatization.” [2]
Ukrainian farmers who still are landowners, formally at least – they
just can’t sell it – are the same people who are unable to pay their gas and
electricity bills, especially after the recent raising of energy prices –
another IMF demand. Obviously, their financial desperation will mean that many
will have to sell their land at a low price, certainly well below the market
value. Meanwhile, Ukraine remains the poorest country on the continent of
Europe and Ukrainian agricultural land remains the cheapest. Moreover, the
lands may be bought up as repaying large loans collected by the Kiev government
following the Euromaidan coup in 2014.
This scheme of buying up Ukraine’s land is connected with the ongoing
corruption scandal in the US: the one related to Joe Biden and the gas company
‘Burisma’. At the end of November, Ukrainian MPs (non-factional people’s deputy Andrey
Derkach; a deputy from the Batkivshchyna Party Aleksey Kucherenko; and a deputy
from the ruling Servant of the People party, Aleksandr Dubinsky) revealed
it at the press-conference [3].
The point here is that the former Minister of Ecology of Ukraine Nikolay
Zlochevsky, an owner of “Burisma” gas company, in 2014 introduced a
number of Western politicians to the board of directors of his company, which
helped him to avoid accusations of corruption. Hunter Biden, son of
former US Vice President Joe Biden, received monthly large payments
for his “consultancy services”. As a result Ukraine’s General prosecutor
General Viktor Shokin, who was investigating the corruption schemes of the
company, was forced – under pressure – to resign by Joe Biden, who even
boasted about it in the US media.
Ukrainian MPs have now claimed at a press-conference that the money used
to bribe the son of the former Vice President of the United States was in fact
stolen. “Biden received money, the source of which is not the successful
activity of Burisma, brilliant business moves, or recommendations. It is the
money of the citizens of Ukraine. It was obtained by criminal means,” said
the MP Andrey Derkach. The ultimate goal of all this fraud, in which the Bidens
were deeply involved, will be the bankruptcy of Ukraine in 2020-2021, through
the formation of a pyramid of public debt.
Laundering scheme to withdraw money from Ukraine
According to Ukrainian deputies, this was a part of a bigger laundering
scheme to withdraw money from Ukraine via Latvian banks and the fund ‘Franklin
Templeton Investments,’ which is close to the United States Democratic Party.
The founder of the foundation, John Templeton Jr., was one of the main
sponsors of the campaign of former US President Barack Obama.
For the most part, it was in the region of $7.4 billion of stolen
Ukraine’s public money, from which only a “small share” was used to bribe
Western politicians, like Hunter Biden. The deputies have stressed that,
according to the investigation of Ukraine’s general prosecution, the withdrawn
and laundered money was then invested back into Ukraine. In particular through
the Franklin Templeton Investments, the money was used to buy domestic
government bonds (DGB), issued by Kiev at high interest rate.
The principle of this scheme is that with the assistance of American
funds, the laundered money was legalised and invested in government bonds at
6-8% in dollars and 15-17% in Ukrainian currency (hryvnia). This is leading to
enormous growth in the Ukrainian public debt and eventually the bankruptcy of
the country’s economy.
Eventual bankruptcy of the economy
Ukrainian prosecutor Konstantin Kulik recently stated [4] in an
interview that Ukraine takes IMF loans to pay out on these debt
obligations (DGB). As deputy Aleksandr Dubinsky stressed at the press
conference, 40% of the current public budget goes towards the payment of the
public debt of Ukraine, including the repayment of DGB at inflated interest
rates.
According to him, bankruptcy on the debts could happen by the end of
2020 or 2021.
And this scheme is connected with land privatization, as adopted by Kiev
in November in accordance with the IMF demand. “DGBs are a financial instrument
by which the state owes all its property when paying off the DGB. And if the
land market is opened, the state will have no other valuable property, with the
exception of land,” said Dubinsky, demanding the suspension of debt
payments to international creditors.
As a result of this unpopular land reform and the widespread violations
of labour rights, Ukraine’s trade-unions called a general strike [5] for
November 14 and began preparations. For the first time in the history of
independent Ukraine, a strike committee was formed at the all-national level.
This committee was joined by trade unions, individual entrepreneurs, small
businesses, agricultural producers and farmers.
Management fires workers, pays themselves millions in bonuses
On November 14, Ukrainian railroad workers protested [6] in front of the
Presidential office in Kiev against the announced plans to fire some 50% of
railroad personnel. The workers demanded the railroad management should resign
instead. The deputy head of the railroad trade-union, Alexander Mushenok,
recently said [7] that currently “only 20 workers are employed where 60 workers
are needed.” At the same time the workers claim that the top-level management
of the company are paying themselves millions in bonuses. One of the IMF
demands requires that the Kiev authorities privatize the railroad system as
well. In practice, this means that the few profitable routes will be privatized
by western companies, while the majority of non-profitable routes – to poorly
developed provinces – will remain state-owned, making the railway transport
even less profitable.
The entire course of privatization, as promoted by the IMF, can be
summarized by the principle ‘privatization of profits, nationalization of
losses.” And the new Kiev government is far too dependent to protest against
the imposition of this policy; however, this will effectively mean that this
government will lose its credibility and trustworthiness among the people.
*
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Notes
[2] https://www.politnavigator.net/ehkspert-obyasnil-kakie-inostrancy-kupyat-ukrainskuyu-zemlyu-i-chto-oni-s-nejj-sdelayut.html
[4] https://apostrophe.ua/article/politics/2019-11-20/myi-berem-dengi-mvf-dlya-togo-chtobyi-vyiplachivat-dengi-figurantam-obschaka-yanukovicha—prokuror-kulik/29279
[5] https://strana.ua/news/233632-v-ukraine-anonsirovali-zabastovku.html?fbclid=IwAR2wEBfMiIoSbW6dAHi1xE-d77f0CR1ByPXMnx07AksAcgBUjnUz9X_lV_E
[6] http://www.dsnews.ua/society/zheleznodorozhniki-ustroili-miting-pod-ofisom-zelenskogo-14112019112400
The original source of this article is New Cold War
Copyright © Dmitriy Kovalevich, New Cold War, 2019
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