Tighter Capital Controls in Ukraine, Transaction Limit About $100; New Head of Ukraine's Navy Defects After 1 Day

Intent on stopping 'destabilizing forces' (runs on the bank), Ukraine's Privatbank Limits Cash Withdrawals, Loans.

Ukraine's largest commercial bank, Privatbank, announced temporary limits on cash withdrawals for its account holders and suspended writing new loans, saying in a statement the measures were intended to stop those undermining the political situation in the country.

"A temporary limit on withdrawals… is needed to stop the forces that are working to destabilize the situation [and] are using the cash for [their] sabotage," the bank said in a statement. The bank didn't clarify which political forces it was referring to.

The bank first announced withdrawal limits of 1,000 hryvnia ($103) a day at both automated teller machines and in over-the-counter transactions. However, shortly after publishing this statement, the bank removed the statement amid fresh discussions about whether to increase the limit.

A bank spokesman declined to say what new parameters were under discussion.

Privatbank said it was suspending all its credit lines issued to both private and corporate customers, including credit cards. It said it would no longer accept debit cards from other banks in the Crimea.

Head of Ukraine's Navy Defects After 1 Day

The BBC reports New head of Ukraine's navy defects in Crimea.

The newly appointed head of Ukraine's navy has sworn allegiance to the Crimea region, in the presence of its unrecognised pro-Russian leader.

Rear Admiral Denys Berezovsky was only made head of the navy on Saturday, as the government in Kiev reacted to the threat of Russian invasion.

Admiral Berezovsky appeared in Sevastopol before cameras alongside Sergiy Aksyonov, the pro-Russian politician elected by Crimea's regional parliament as local prime minister.

Mr Aksyonov announced he had given orders to Ukrainian naval forces on the peninsula to disregard any orders from the "self-proclaimed" authorities in Kiev.

Sunday, he said, would go down in history as the birthday of the "navy of the autonomous republic of Crimea".

The admiral then pledged to "strictly obey the orders of the supreme commander of the autonomous republic of Crimea" and "defend the lives and freedom" of Crimea's people.

Admiral Berezovsky was later sacked by interim Ukrainian Defence Minister Ihor Tenyukh and a treason case launched against him.

It's rather bizarre that the new head of Ukraine's government could not manage to pick a loyal person to head the navy. Russia just may take over Crimea for a long time to come.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com