News / Europe

Ukraine Interim Leader Warns Economy in Steep Decline

EU, IMF Vow Assistance for Battered Ukraine Economyi
X
February 24, 2014 11:52 PM
Ukraine’s economy appears on the brink of collapse, following historic developments this weekend that saw the ouster of its Russian- backed president, Viktor Yanukovych. But Western creditors who met at the G20 in Australia say they’re ready to help. The International Monetary Fund says it’s prepared to lend support but says reforms are a prerequisite for any financial support. More from VOA's Mil Arcega.

Related video report by Mil Arcega:

VOA News
Ukraine's interim president says his country faces serious economic problems that began long before the deadly street protests against ousted president Viktor Yanukovych.

Acting President Oleksandr Turchynov said Sunday night that the country is in a steep economic decline, even as many of the world's economies are advancing.

"On the background of the world economic recovery, Ukraine is rolling down into an abyss and is a pre-default state," he said.

Ukraine's finance ministry said Monday that it needs $35 billion to survive this year and next, and some of the money is needed in the next week or two. The interim government is looking to the United States and the European Union for financial help, with the International Monetary Fund possibly financing an aid package.

U.S. Treasury Secretary Jacob Lew said there was broad support from leaders at a weekend G-20 meeting of the world's largest economies for IMF-based assistance, but only after a transitional Ukrainian government is established by parliament. He underscored the need for Ukraine to undertake government reforms.

Kyiv governments have long struggled with corruption and bad government. Ukraine's economy has relied on cheap natural gas supplies from Russia, which could be at risk with the ouster of Yanukovych. His rejection of closer EU ties and embrace of Moscow three months ago touched off the street demonstrations that led to his fall.

Newly-elected speaker of parliament Oleksandr Turchynov, who on Sunday assumed interim presidential powers, is seen in the parliament building in Kyiv February 22, 2014.Newly-elected speaker of parliament Oleksandr Turchynov, who on Sunday assumed interim presidential powers, is seen in the parliament building in Kyiv February 22, 2014.
x
Newly-elected speaker of parliament Oleksandr Turchynov, who on Sunday assumed interim presidential powers, is seen in the parliament building in Kyiv February 22, 2014.
Newly-elected speaker of parliament Oleksandr Turchynov, who on Sunday assumed interim presidential powers, is seen in the parliament building in Kyiv February 22, 2014.
Yanukovych turned down a free trade and association agreement with the EU and instead accepted $15 billion in Russian assistance, a package Moscow has put on hold with the political uncertainty in Kyiv.

In his speech Sunday, Turchynov said the Ukraine "must return to [the] family of European countries," while also recognizing "the importance of our relations with Russia."

Ukraine, with 44 million citizens, had a $174 billion economy in 2012, according to the U.S. Central Intelligence Agency. Its $7,300 per person economic production ranks 137th in the world.

It has a significant industrial base and substantial natural resources, including rich farmland. But its economy plunged sharply in the world economic downturn in 2009, dropping 15 percent. The CIA said it was "among the worst economic performances in the world."

Earlier this month, the Fitch financial services firm downgraded the country's credit rating. Fitch said the political uncertainty in Kyiv has contributed to weakening confidence in the country's currency, the hryvnia, and noted that its value had fallen 7 percent against the U.S. dollar since the first of the year.

You May Like

China May Be Biggest Winner From Ukraine Crisis

Missile sales, oil and gas shipments are among many areas that may drive Beijing and Moscow closer together in coming years More

Obama Faces Chaotic World, Limits of Power

Current foreign policy issues bring into focus challenges for US policymakers who are mindful of Americans' waning appetite for overseas military engagements More

SADC Meeting Lesotho Officials to Resolve Stalemate

Official says regional bloc has been engaged with leaders in Lesotho to resolve political disagreement that led to coup attempt More

This forum has been closed.
Comment Sorting
Comments
     
by: 1stworldview from: texas
March 18, 2014 4:34 AM

The invasion of the Ukraine by Russia is sending a ripple effect through out Eastern Europe. With the prospects now for possible cold war starting all over again investors brace for sanctions against Russia. And with the already falling economy of the Ukraine, investors and business are bailing out as fast as they can.

During the next few years, the Ukraine economy will be pushed to its limits. Currently, the Ukraine desperately needs 30 billion in loans to survive, and with ousted former president Viktor Yanukovich having already pulled the country out from the European Union, and the new government wanting nothing to do with Russia, the government will be in dire straits.

The US State department has issued a travel warning urging Americans not to travel to the Ukraine. Tourism is a huge part of Ukraine economy. with hotels, airlines and restaurants depending on tourism. As these businesses cut back, the ripple effect in cities like Kiev, Odessa and Yalta will have devastating consequences on the economy. Just as when the housing market died in the US, the effects were felt world wide. Not only will Ukraine's economy continue to decline, but most of Western Europe's fragile economy will also feel the effects.

One industry that seems to thrive on the situation is the foreign bride market, A Foreign Affair operates four office in the Ukraine. Kenneth Agee the marketing director says, "In the last few weeks we have seen the biggest surge ever on women signing up. Not only have we seen the biggest surge, but we have seen the highest quality of women signing up; doctors, engineers, even some of Ukraine's most beautiful models, With the possibility of war looming over the horizon, American men are looking very desirable." A Foreign Affair 's new member Irina of Kiev says, "America is stable, American men have very good family values. These are important to Ukraine women; we want a good environment to raise our families. With Russian tanks rolling down our streets, I do not see a bright future here for starting a family.

The future does not look good for the Ukraine. Russia has no intention of letting Ukraine have complete independence. Most western Ukrainians have had a strong dislike for Russia for many generations, and will do what ever it takes to resist Russian influence or occupation. This being said, the country will have a long battle and many lines drawn in the sand, from serious economic sanctions to full out war. At this time, it looks like this struggle could go on for a decade or more.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
West Africa Ebola Vaccine Trials Possible by Early 2015i
X
Carol Pearson
August 30, 2014 7:14 PM
A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video West Africa Ebola Vaccine Trials Possible by Early 2015

A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video Survivors Commemorate 70th Anniversary of Nazi Liquidation of Jewish Ghetto

When the German Nazi army occupied the Polish city of Lodz in 1939, it marked the beginning of a long nightmare for the Jewish community that once made up one third of the population. Roughly 200,000 people were forced into the Lodz Ghetto. Less than 7,000 survived. As VOA’s Kane Farabaugh reports, some survivors gathered at the Union League Club in Chicago on the 70th anniversary of the liquidation of the Lodz Ghetto to remember those who suffered at the hands of the Nazi regime.
Video

Video Cost to Raise Child in US Continues to Rise

The cost of raising a child in the United States continues to rise. In its latest annual report, the U.S. Department of Agriculture says middle income families with a child born in 2013 can expect to spend more than $240,000 before that child turns 18. And sending that child to college more than doubles that amount. VOA’s Deborah Block visited with a couple with one child in Alexandria, Virginia, to learn if the report reflects their lifestyle.
Video

Video Chaotic Afghan Vote Recount Threatens Nation’s Future

Afghanistan’s troubled presidential election continues to be rocked by turmoil as an audit of the ballots drags on. The U.N. says the recount will not be completed before September 10. Observers say repeated disputes and delays are threatening the orderly transfer of power and could have dangerous consequences. VOA correspondent Meredith Buel reports.
Video

Video Ukraine Battles Pro-Russia Rebel Assault

After NATO concluded an emergency meeting to discuss the crisis in eastern Ukraine, the country is struggling to contain heavy fighting near the strategic port of Mariupol, on the Azov Sea. Separatist rebels are trying to capture the city, allegedly with Russian military help, and Ukraine's defense forces are digging in. VOA's Daniel Schearf spoke with analysts about what lies ahead for Ukraine.
Video

Video Growing Business Offers Paint with a Twist of Wine

Two New Orleans area women started a small business seven years ago with one thing in mind: to help their neighbors relieve the stress of coping with a hurricane's aftermath. Today their business, which pairs painting and a little bit of wine, has become one of the fastest growing franchises across the U.S. VOA’s June Soh met the entrepreneurs at their newest franchise location in the Washington suburbs.
Video

Video Ebola Vaccine Trials To Begin Next Week

The National Institutes of Health says it is launching early stage trials of a vaccine to prevent the Ebola virus, which has infected or killed thousands of people across West Africa. The World Health Organization says Ebola could infect more than 20,000 people across the region by the time the outbreak is over. The epidemic has health experts and governments scrambling to prevent more people from becoming infected. Zlatica Hoke has more.
Video

Video Asian Bacteria Threatens Florida Orange Trees

Florida's citrus fruit industry is facing a serious threat from a bacteria carried by the Asian insect called psyllid. The widespread infestation again highlights the danger of transferring non-native species to American soil. VOA’s George Putic reports.
Video

Video Aging Will Reduce Economic Growth Worldwide in Coming Decades

The world is getting older, fast. And as more people retire each year, fewer working-age people will be there to replace them. Bond rating agency Moody’s says that will lead to a decline in household savings; reducing global investments - which in turn, will lead to slower economic growth around the world. But experts say it’s not too late to mitigate the economic impact of the world’s aging populations. Mil Arcega has more.
Video

Video Is West Doing Enough to Tackle Islamic State?

U.S. President Barack Obama has ruled out sending ground troops to Iraq to fight militants of the so-called Islamic State, or ISIS, despite officials in Washington describing the extremist group as the biggest threat the United States has faced in years. Henry Ridgwell reports from London on the growing uncertainty over whether the West’s response to ISIS will be enough to defeat the terrorist threat.
Video

Video Coalition to Fight Islamic State Could Reward Assad

The United States along with European and Mideast allies are considering a broader assault against Islamic State fighters who have spread from Syria into Iraq and risk further destabilizing an already troubled region. But as VOA State Department Correspondent Scott Stearns reports, confronting those militants could end up helping the embattled Syrian President Bashar al-Assad.
Video

Video Made in America Socks Get Toehold in Online Fashion Market

Three young entrepreneurs are hoping to revolutionize the high-end sock industry by introducing all-American creations of their own. And they’re doing most of it the old-fashioned way. VOA’s Julie Taboh recently caught up with them to learn what goes into making their one-of-a-kind socks.
Video

Video Americans, Ex-Pats Send Relief Supplies to West Africa

Health organizations from around the world are sending supplies and specialists to the West African countries that are dealing with the worst Ebola outbreak in history. On a smaller scale, ordinary Americans and African expatriates living in the United States are doing the same. VOA's Carol Pearson reports.

AppleAndroid