FocusEconomics Speaks to Russia Today Regarding Ukraine Crisis
Russian English-language television channel Russia Today recently interviewed FocusEconomics’ Economist Angela Bouzanis about the dire economic situation in Ukraine. Ukraine has had a torrid time over the last year with the military conflict with Russia and now their economy is suffering immensely. Ukraine has been granted foreign aid packages from the West to help their floundering economy, but high inflation, currency devaluation and soaring energy tariffs persist with no signs of improvement.
When asked who was to blame Angela stated, “You can’t really pick just one person or one policy to blame in Ukraine’s case, it’s basically a combination of the fact that the economy was already weak in 2013 from maintaining the fixed exchange rate and not having diversified or modernized industrial sectors. That combined with the military conflict led us to this situation.”
Angela went on to say that the economic crisis that Ukraine finds itself in is not just the result of a run of bad luck, but years of economic and financial mismanagement. Angela explained that the economic policies implemented by the previous Ukrainian governmental regime under the leadership of President Viktor Yanukovych were fundamentally different from those of the current government.
“The previous government under President Yanukovych, at the end of 2013, had to choose between two possible solutions to the country’s crisis: Yanukovych was presented with both a deal from Russia and one from the EU, both agreements included an immediate bailout of a failed economy, but the deal with the EU included substantial reforms…Ukraine has historically been reluctant to engage in reform and [the reforms] would have been particularly unpopular.”
Instead, Ukraine chose to make a more straight-forward agreement with Russia, which Angela stated, “translated into more of the same for Ukraine, continuing with the basic structure of the economy.”
In contrast, the current government led by President Petro Poroshenko, went the other route and made deals with the IMF and the EU which included massive reforms: “overhauling the energy sector, removing fuel subsidies, fighting corruption, and modernizing the state bureaucracy…reforms that are a radical departure from the Ukrainian economic structure from before (Poroshenko’s regime).”
If you would like to watch the full interview, check out the video below.
Author: Brian Dowd, Sales & Marketing Assistant
Date: February 20, 2015
TagsWorld Bank Inflation Financial Sector Commodities Vietnam Housing Market Ukraine OPEC Industrial Metals Commodities Sub-Saharan Africa Brazil Major Economies UK Turkey oil prices Euro Area Investment India Latin America Canada Italy Company News United States Infographic Portugal Tunisia G7 Consensus Forecast Economic Growth (GDP) Unemployment rate Energy Commodities Argentina Fed Base Metals Commodities Venezuela USA Colombia South Africa Germany MENA Asia Australia Forex China Emerging Markets Precious Metals Commodities IMF European Union Mexico Exchange Rate Brexit Gold Trade Banking Sector Nordic Economies precious metals Greece Spain Eastern Europe Panelists Oil Africa Japan Russia France Agricultural Commodities Iran
3 hours ago
6 hours ago
6 hours ago
6 hours ago
6 hours ago
- The History of OPEC: Has it been a Success?
- FocusEconomics Announces 2017 Analyst Forecast Awards Winners
- Latin America’s rising unemployment bucks nearly decade long trend
- Escape from the Central Bank Trap by Daniel Lacalle
- China's economic rebalancing act: What to look out for in 2017
- Driving Growth in Latin America: Challenges & Priorities
- Is the Global Economy Rebalancing?
- Commodity exporters face challenging times
- Recent Global Events Facilitate Mercosur-Pacific Alliance
- 23 economic experts weigh in: Why is productivity growth so low?
- Mexico's outlook as Trump nears 100-day mark
- Interview with Oxford Economics Senior Economist on implications of the possible outcomes of the French Presidential Election
- The anxiety of the small saver in a world of negative interest rates
- Brexit negotiations. Between Uncertainty and Urgency
- An Economic History of the EU from El Blog Salmón
- Baby Boomin': Implications of high population growth in Latin America
- Survey of International Economists Predicts a Le Pen Defeat in French Elections, Says Macron has Best Economic Plan
- Spain in a global context: developed economy with some challenges
- How much is crime costing Latin America?
- Predictions & Estimates from Economist Daniel Lacalle
- What economy will the new Dutch government inherit?
- “The data is not a true reflection of reality in India” Interview with Société Générale India Economist
- 2017 & 2018 Economic Outlook for the Top Oil Producing Countries
- Which countries will have the highest and lowest inflation in 2017?
- What are the prospects for Emerging Economies in 2017?
- What to expect in Asia for 2017
- Top Economics & Finance Blogs of 2017
- Latam to Resume Moderate Growth in 2017 but Important Risks Plague Outlook
- 4 Key European Elections That Will Impact the Economy in 2017
- How are security concerns and political chaos affecting Turkey’s economy?
- Global growth to edge up in 2017
- Set to breach targets again? Debt and deficit outlooks for Southern European Eurozone countries in 2016 & 2017
- What does Donald Trump mean for the U.S. economy?
- How will emerging markets perform in 2017?
- The economic impact of a break in U.S.-Philippines ties
- Trump election: Base metals surge due to infrastructure plan
- 5 updates on the Venezuelan economic crisis
- Canada: When your neighbor’s house is on fire…
- Short-term pain before long-term gain? A look at French labor reform and economic growth
- Asia: Unremarkable growth & unfulfilled promises?
- How India's latest monsoon is affecting the economy
- Russian economy update in wake of OPEC deal announcement
- Innovation in Latin America: Potential Goes Untapped Due to Weak Economic Conditions
- The Wisdom of the Crowds and the Consensus Forecast
- Can the peso predict the U.S. election results?
- There's no end in sight to the Venezuela crisis
- A Look at the European Union Political Calendar
- Survey of international economists shows uncertainty surrounding elections damaging U.S. growth prospects
- FocusEconomics partners with leading online statistics provider Statista
- China: Recent postive economic data may be papering over the cracks
- Sub-Saharan Africa's 2016 & 2017 growth rates
- The Italian Dilemma: Weak banks pose risk to already faltering domestic demand
- How much money do migrants from Latin America send home?
- The U.S.' (Not So) Mysterious Case of the Missing Men
- What to expect from the G20 economies by 2020
- The Pain in Spain: Robust GDP growth cannot mask the persistent structural deficit