Ukrainian economist: Goodbye Russia, goodbye economy

September 6, 2015

September 7, 2015
Translated from French by Tom Winter
Original title: 
Ukraine confronted with a massive disindustrialization

Breaking ties with Russia and other countries of the Eurasian Economic Community has caused many companies to close their doors, says an expert on Ukrainian economy.

The fall in production recorded in several branches of Ukrainian industry is a very bad sign, said Ukrainian economist Alexandr Koltunovich on the digital information portal “Ukrainian choice”.

After analyzing the data on industrial development in Ukraine, Koltunovich indicated that production levels had dropped in mining (23.4%), automotive (22.1%), textiles (8.5 %), iron and steel (25.4%) and in refineries and companies producing coal (38.5%).

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“As we can see, Ukraine has been facing a process of de-industrialisation for two years now. On one hand, the breakdown of cooperation with Russia and other countries of the Eurasian Economic Community has caused many industrial high-tech companies to close. Other joint ventures are also on the brink of bankruptcy. Millions of Ukrainians have been left without work,” noted the expert in economics.
At the same time, according to the specialist, relevant government policy is “poor, populist, pseudo-economic” and a total failure.

“Instead of mechanisms to stimulate entrepreneurship, we see new taxes; instead of simplified conditions for starting a new business, we see the creation of new barriers,” said Alexandr Koltunovich.

Bottom line, millions of entrepreneurs throughout Ukraine are forced to abandon their business because of the actions of the Kiev authorities, the expert concluded.

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