On the financial situation in Ukraine – demand SPECIFIC results from the government on a quarterly basis

by Sergio Zalyubovskiy

I repeat my post about the financial situation in Ukraine. FYI, so to say.

I would not be celebrating, if I were Russia, i.e. the country having the external debt of 650 billion, which continues to grow this year rather disastrously, I estimate it can easily reach 800-850 billion. Instead I would be preparing canned food and packing my suitcase. The situation there won’t get better, that’s for sure.

Regarding Ukraine. The dollar usually climbs for two reasons: 1. Inflation. 2. The absence of effective mechanisms of financial regulation. If the national bank had enough currency, it could regulate the dollar exchange rate by releasing its reserves. Currently, this option is not possible. The next year or two is going to be difficult, the tax burden would be increased because of the external borrowings; subsidies would be reduced or canceled. In the absence of financial resources, it is problematic to live on borrowed funds, but sometimes it is inevitable.

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Yatsenyuk: Ukraine’s total debt rose to UAH 800bn

Friday, March, 28, 2014, 08:57

The total amount of Ukraine’s debt has reached 53 % of GDP, or UAH 800bn, Prime Minister Yatsenyuk stated in the Verkhovna Rada on Tuesday.

He said that the amount of foreign reserves has dropped from USD 34.6bn by USD 20bn since January 1, 2013.  Today, reserves stand at only USD 15.5bn.

Ukraine to claim its part of assets of the former USSR illegally owned by Russia

Kyiv, March 16, 2014

Oleksandra Kondratenko

On March 16, 2014, during the session of the Cabinet of Ministers of Ukraine Prime Minister Arseniy Yatsenyuk charged the Minister of Foreign Affairs of Ukraine Andriy Deshchytsya with a mission to get ready to protect Ukraine’s interests in the process of distributing assets of the former USSR with Russia. “Ukraine has legitimate and legal claims to Russian Federation regarding the assets that Russia has reserved for itself. I ask you to prepare the legal reasoning for the protection of national interests of Ukraine regarding the distribution of the funds and property of the former USSR immediately,” said Arseniy Yatsenyuk.