Former Prime Minister of Ukraine Yuriy Yekhanurov warned Kiev

Former Prime Minister of Ukraine Yuriy Yekhanurov warned Kiev about the risk of “playing out” because of a weak economy."We will finish the game"

Former Prime Minister of Ukraine Yuriy Yekhanurov warned Kiev

Former Prime Minister of Ukraine Yuriy Yekhanurov warned Kiev about the risk of “playing out” because of a weak economy. According to him, it is too early for the authorities to play "like an adult". He also lamented the plight of the country. Ukraine is on the list of the poorest countries in Eastern Europe, Kiev is forced to carry out unpopular reforms to obtain loans from the International Monetary Fund.

Former Prime Minister of Ukraine Yuriy Yekhanurov, who held his post in 2005-2006, said that the Kiev authorities could “play out” trying to do impossible things for a weak economy.

“This is trouble, we will finish the game. They [other countries], for example, the economy of China is already long in front, and we have not yet passed the initial stages, in which we must, as they say, gain strength, and we begin to play these adult games, and all these fictitious means that are spinning back and forth, bring real dollars and euros in the West to the full, and we are losing from this ",

- said Yekhanurov on the air of “112 Ukraine”.

  • According to him, the Government of Ukraine needs to think about how the country will return to the real sector of the economy and create jobs.

  • The negative side of the Ukrainian economy is that income from exports from the sale of unprocessed raw materials remain offshore, Yekhanurov said. He also added that the country's budget receives substantial funds at the expense of Ukrainians who work abroad.

Yekhanurov’s warning sounded against the introduction by Ukraine of special duties on the import of most Russian goods.

  • In particular, the list of restrictions included diesel fuel and reduced natural gas. A similar decision in Kiev was called a response to Russian sanctions.

  • According to the Prime Minister of Ukraine Vladimir Groisman, special duties will allegedly replenish the country's budget by $ 77 million a year.

  • “Testing will make Ukraine stronger, no matter how difficult it may be. We will play a key role in world markets that are civilized and promising for Ukraine, ”said Groysman.

  • He also added that the restrictions will apply to goods that are manufactured in Ukraine.

  • At the same time, from July 1, Russia imposed a ban on the supply of petroleum products in Ukraine. This decision was a response to restrictions on Russian goods. Kiev in 2016 systematically introduces sanctions against Russian-made products.

  • Despite Kiev’s claims that restrictions would not adversely affect the country's economy, in May the World Bank included Ukraine into the list of the poorest countries in Eastern Europe in terms of per capita GDP.

  • At the same time, it will take Ukraine about 50 years to catch up in the level of welfare of neighbouring European countries. Currently, GDP growth in the country remains too low.

One of the reasons for the crisis in Ukraine is incomplete reforms, because of which the country is heavily dependent on exports and is not popular with foreign investors. A similar situation has developed in the country after the 2014 coup d'etat. Then the authorities headed by Petro Poroshenko announced a course in the European Union and NATO.

  • However, for the implementation of such a plan, Ukraine needs to meet EU criteria. Therefore, Kiev began to carry out and promote reforms that did not meet the needs of the population but was requirements of Brussels. The situation has worsened due to the cooperation of the Ukrainian authorities with the International Monetary Fund ( IMF ).

  • The program of credit cooperation between Kiev and the IMF is designed to pay $ 3.9 billion over 14 months. Under the conditions, Ukraine is obliged to raise gas prices for the population, reduce budget costs and adopt several anti-corruption bills.

  • At the same time, this cooperation led to an increase in the country's debt. At the end of March, the amount of Ukraine’s gross external debt exceeded $ 114.7 billion. At the same time, this year Kiev needs to pay about $ 15.7 billion in foreign debt.

  • This state of affairs led to a discussion of the possibility of a default in Ukraine. According to the oligarch Igor Kolomoisky, this decision will allow Kiev not to pay the debt to the IMF.

“We should treat our lenders the same as Greece. In 2015, Athens faced creditors and became the first developed country that did not pay the IMF loan.  How many times defaulted in Argentina? And what, they restructured everything. Everything is in order, ”said Kolomoisky.

  • He also added that the people of Ukraine want to take a break from the reforms that the International Monetary Fund requires.

  • According to media reports, Zelensky does not exclude the declaration of a default in the country, but the president of Ukraine himself denies this information. “As for the default, these are rumours. These are well-thought-out actions that have nothing to do with my official position, ”Zelensky stressed.

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