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Kiev stops state services and banking to eastern Ukraine

Nov 18, 2014

The US-sponsored Kiev government is abandoning the east where “rebels” hold territory.


Ukraine's president has ordered the withdrawal of all state services, including funding for hospitals and schools, from rebel-held areas.

Petro Poroshenko issued a decree that also asks parliament to revoke a law granting self-rule to the Donetsk and Luhansk regions….

Mr Poroshenko's ruling says all state companies and institutions should end their work in the Donetsk and Luhansk regions within a week.

It also says Ukraine's central bank is to close down all banking services - including card operations - in some areas within a month….

Ukraine's government indicated earlier this month that it would freeze budget subsidies for areas not under its control.

The Kiev government’s pullout appears to recognize the reality that the eastern part of the country is seceding to form its own country. The east held its own elections last month and are already forming a new nation. Kiev’s president labels their action “illegal,” but in practice, there is little he can do about it. His government is financially and morally bankrupt. Politically speaking, if it is not a Nazi state, then it is its twin and is still fighting Russia decades after World War 2.


Any time a country decides to end its public services, others will always fill the vacuum. This decision appears to be a capitulation, as they recognize that the split is permanent. Russia, of course, will provide humanitarian aid to the east. Meanwhile, the Kiev government has turned West, and the IMF has only offered them its austerity program.

At this rate, Eastern Ukraine will rise, while Western Ukraine’s government in Kiev will collapse into another welfare state that the Germans will have to support—if possible.

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Category: In The News
Blog Author: Dr. Stephen Jones