Maidan Anniversary: Economic Accomplishments


Vasil Muravitsky (Editor of “New Wave”, Kiev) for Politnavigator

In order to understand the results of Euromaidan, you just need to look at the economic indicators of Ukraine a year after the coup. This will be the most telling result of the “revolution”.

Inflation is about 20%.

The fall in GDP is no less than 10%, 1.23 trillion UAH.

Devaluation of the hryvnia is two times.

The deficit of the Pension Fund – 20 billion UAH, which may lead to another increase in the retirement age next year.

Undercapitalization of banks of groups I and II of NBU (National Bank of Ukraine) classification is 66 billion UAH, taking into account the devaluation of the hryvnia – almost 100 billion UAH, according to experts from “Raiffeisen Bank Aval”. Huge risk of failure of the largest banks.

A sharp increase in utility rates and all types of services from water and phone to heating.

Decline of exports of goods – 25 %,

Decline in imports of goods – nearly 40%, according to the NBU.

Balance of payments deficit amounted to 11% of GDP – one of the worst indicators in 20-year history. It grew 8.5 times in less than a year.

Last year balance of payments had a surplus of 11 billion dollars.

And by the end of 2014 budget deficit may reach 15% of GDP.

The state debt of Ukraine has reached 945 billion UAH, which is 72% higher than a year ago. Recall, Yatsenyuk criticized Yanukovich government for debt of 42% of GDP.

Gold and foreign currency reserves by the end of the year may be reduced in half as compared to the beginning of the year, and will be only about 10 billion dollars, which actually means a technical default of the state.

NBU is selling gold, of which there are only 14 tons left.

Salary liabilities for November 1, 2014 increased by 4.5 times. Taking into account bankrupt state enterprises, the amount may reach 2.2 billion UAH.

Hundreds of mines, companies and factories have been closed or destroyed. There are numerous illegal takeovers of businesses. Chemical industry is on the brink of survival.

“Antonov” and “Yuzhmash” companies are on the brink of liquidation, along with “ZAZ”, which lost 70-90%  of sales for the year.

No reforms have been implemented in any of the industries or social spheres. Real wages of the population have been cut. Benefits were reduced and slashed, including benefits for second and third child.

Hundreds of kilometers of roads, bridges, thousands of buildings were destroyed.

Donetsk airport was completely destroyed, to restore which will require 1 billion Euros.

The amount of needed assistance as estimated by the IMF is at least two times greater than the Fund intends to allocate.

The volume of investments into the Ukrainian economy in 2014 was reduced by almost 9 billion dollars, that is half of the amount promised in IMF loan.

Tens of thousands psychologically damaged and physically disabled, which will need to be rehabilitated at the expense of the state.

Densely populated region with 3.5 million people is exposed to a real modern famine by those who for ten years cried “crocodile tears” on the “official holiday” in the name of Holodomor of 1933.

Happy Anniversary, Maidan…

Translated by Kristina Rus

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