This article originally appeared at RT Deutsch. Translated for RI by Anita Zalaldinova
The Ukrainian Finance Minister Natalie Jaresko has stated that the 17.5 billion US dollars extended rescue package from the International Monetary Fund (IMF) is not to flow into the real economy of the country as previously promised. RT spoke with the writer Ernst Wolf (World power IMF– Chronicles of a raid) about the real beneficiaries of IMF loans to Ukraine, such as the seed company Monsanto and US defence companies.
Mr. Wolf, did the Ukrainian Premier Arseny Yatsenyuk know before receiving the loan that the funds would not flow into the economy?
It was clear from the beginning. In the case of Ukraine it is particularly dramatic. Ukraine, as a state, is completely bankrupt. Funds which go to Ukraine, whether these are the funds from the IMF or funds from other organizations, serve only the government in Kiev to retain their power and to make it possible to service loans, i.e. to pay off interests and compound interests. But no part of this money will be invested into the real economy. But this is true everywhere, not only in Ukraine. We see this in Greece, Spain, everywhere. These countries are completely bankrupt and are kept alive only in order to service loans of the big foreign investors, and of course this is particularly cynical, when just a few days ago the Finance Minister stated this openly.
What does Ukraine still have to do to prove reform efforts to the IMF?
The program in Ukraine, as Yatsenyuk announced, includes the raising of the retirement age by ten years for women and by five years for men, a reduction of the school period for two years, a complete privatization of the entire education sector, a freeze on pensions, cuts in the medical and health services, and mass layoffs in the public service.
Ms. Lagarde stated before that Ukraine had already met several demands of the IMF. Do you know what these were exactly? Since nothing had been met. But Ms. Lagarde and the IMF are nothing more than an extension of Wall Street, and Wall Street is very much interested in fomenting the conflict between the EU, on the one hand, and Russia on the other, and that’s why they push it to be carried out in Ukraine.
Who benefits from these loans in the end?
The money, granted to Ukraine, now flows increasingly into the military operation, and if previously the budget spending on military was 1.25 percent, now it has suddenly been raised to more than five percent. These are huge sums of money spent on the military. And beyond that, of course, there are large defence companies and banks in the US that make a lot of money on these companies. In addition, in the background there is the large corporation Monsanto, so the small farmers in Ukraine have become so impoverished that they have to sell their land. And who is the major investor standing there and buying their land? This is Monsanto, the largest grain and seed producer in the world.
What goal is then pursued by giving loans?
The goal is to destabilize Ukraine completely, to foment the conflict in the long run. The US is keen to get rid of the big competitors on the world market, i.e. the EU, and now the US leads a very aggressive policy towards Russia, which started after Russia and China completed an energy deal, which is not in dollars, but yuan and ruble. You could actually see it as an affront to the US currency, because the dollar is virtually the last support, in addition to the military, on which US power is resting.
The United States currently uses any conflict to push the EU into the corner. An equally aggressive policy the US leads indeed with China, but now, as the country established its own bank and as the Europeans joined immediately, so the English, the Germans, the French have already agreed on everything that is contrary to what the Americans want from them.
The interview was conducted by RT editor Anna Shalimova