CNN article suggests Ukraine financial collapse imminent

Article on the exposure of foreign non-Russian banks in Ukraine if there is a financial collapse. Apparently not as bad as the exposure in 2008/2009 but still French and Italian banks are not in a strong position to react to another financial crisis and Austria's banking sector have been having their own problems just lately.

https://www.friedlnews.com/article/austrian-banks-with-significant-exposure-in-ukraine

 

Roughly 32% of EU energy imports come from Russia. I'm pretty sure if they were so inclined they could increase energy imports from other trading partners.

 

All Ukraine has to do is sign over all national assets & sovereignty to the IMF and the EU will release to them all the debt they require.

 

Imfukraine doesn't sound like a country I'd want to live in....

 

It's not the entire EU that is the point here. Countries around Ukraine and in the eastern part of Europe are strongly affected by the Russian gas. Central Europe, the Balkans (many are not EU members) would be severely affected in case a shortage occurs.

 

This post makes no sense in the context of the conversation. You previously only made reference to the EU. Of course the other non-EU Balkan countries would be effected, but they haven't tried to enter a trade agreement with the EU either unlike the Ukraine. That's something that Putin will have to take up with the other Balkans before considering turning off the gas to Europe.

 

Oh yes, it does make sense.
The topic is about the Ukraine. And I was replying to your post.


Anyway, I wanted to say that some parts of the EU will be more affected than others - like the central and eastern parts. This includes Germany, Hungary, Austria, Croatia, Slovenia etc.
Other EU countries might be able to obtain gas from the North Sea area.

As for the non EU members in the Balkans - they are also vulnerable.

My reply was to underline how many could be affected beyond the Ukraine. But the UK, Sweden, Netherlands, to a significant extend Germany too, Belgium and non-EU member Norway will be least influenced by this. They have access to the North Sea gas reserves and the ones exploited by Norway.

Some are speculating about a possible split of the Ukraine. There is a possibility that the Eastern part will be cut off. And those are considered the most important areas economically. Natural resources, major factories are located on those parts.

Things can get much worse.

Currently there are bank runs in the Ukraine.
I read in a news article the other day that they're limiting cash withdrawals to about 1,000 EUR a day. And their currency is devaluing. Anyway, no solid economy behind it. (the Ukraine has a population of 45 million and a GDP of 175 billion $, while EU member Austria has 8.4 million people and a GDP of 398 billion $)

This was not the original article, but here's another source on this issue:
http://www.channelnewsasia.com/news/world/ukraine-puts-crisis-limit/1015726.html

And a map of Europe's major gas pipelines:


The crisis will get worse. I think we'll witness a terrible crisis in the Ukraine. War, even.
Tensions have moved to the Crimean Peninsula and there is turmoil in the eastern parts (the ones with richest in resources and with a Russian-speaking majority).

Besides humanitarian crises, the economy is crashing already and they are certainly going to have a severe currency crisis as well, on the long-term.

I am digging to understand what influence this could have on the EU and the euro, which will influence PM prices as well. Perhaps the euro will become an alternative to the hryvnia.
Although the Ukraine doesn't have a major impact industrially, financially on the EU/euro, it does have a huge population and lots of citizens work abroad in the EU. There will be some in and out fluxes of capital - not just from the general population, but from the rich, from the investors and companies as well.