News / Europe

Ukraine Interim Leader Warns Economy in Steep Decline

EU, IMF Vow Assistance for Battered Ukraine Economyi
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.
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

Nearly Every Job in America Mapped in Detail

A nifty map pinpoints practically every job in the United States, revealing the economic character of America’s metropolitan areas, which also helps to inform the local culture

Corruption Busting Is Her Game

South African activist is building 'international online community of thousands of corruption fighters'

Former SAF Businessman Gives Books, Love of Reading to Students

Steve Tsakaris now involved in nonprofit Read to Rise, which distributes books in Soweto, encourages lower-grade primary school students to read

This forum has been closed.
Comment Sorting
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.
Belgium-Germany Border Remains Porous, Even As Manhunt For Paris Attacker Continuesi
Ayesha Tanzeem
November 25, 2015 10:46 PM
One of the suspected gunmen in the Nov. 13 Paris attacks, Salah Abdeslam, evaded law enforcement, made his way to Belgium, and is now believed to have fled to Germany. VOA correspondent Ayesha Tanzeem makes the journey across the border from Belgium into Germany to see how porous the borders really are.

Video Belgium-Germany Border Remains Porous, Even As Manhunt For Paris Attacker Continues

One of the suspected gunmen in the Nov. 13 Paris attacks, Salah Abdeslam, evaded law enforcement, made his way to Belgium, and is now believed to have fled to Germany. VOA correspondent Ayesha Tanzeem makes the journey across the border from Belgium into Germany to see how porous the borders really are.

Video Islamic State Unfazed by Losses in Iraq, Syria

Progress in the U.S.-led effort to beat Islamic State on its home turf in Iraq and Syria has led some to speculate the terror group may be growing desperate. But counterterror officials say that is not the case, and warn the recent spate of terror attacks is merely part of the group’s evolution. VOA National Security correspondent Jeff Seldin has more.

Video Taiwan Looks for Role in South China Sea Dispute

The Taiwanese government is one of several that claims territory in the hotly contested South China Sea, but Taipei has long been sidelined in the dispute, overshadowed by China. Now, as the Philippines challenges Beijing’s claims in an international court at The Hague, Taipei is looking to publicly assert its claims. VOA’s Bill Ide has more from Beijing.

Video Syrian Refugees in US Express Concern for Those Left Behind

Syrian immigrants in the United States are concerned about the negative tide of public opinion and the politicians who want to block a U.S. plan to accept 10,000 Syrian refugees. Zlatica Hoke reports many Americans are fighting to dispel suspicions linking refugees to terrorists.

Video After Paris Attacks, France Steps Up Fight Against IS

The November 13 Paris attacks have drawn increased attention to Syria, where many of the suspected perpetrators are said to have received training. French President Francois Hollande is working to build a broad international coalition to defeat Islamic State in Syria and in Iraq. Zlatica Hoke reports.

Video US, Cambodian Navies Pair Up in Gulf of Thailand

The U.S. Navy has deployed one of its newest and most advanced ships to Cambodia to conduct joint training drills in the Gulf of Thailand. Riding hull-to-hull with Cambodian ships, the seamen of the USS Fort Worth are executing joint-training drills that will help build relations in Southeast Asia. David Boyle reports for VOA from Preah Sihanouk province.

Video Americans Sharpen Focus on Terrorism

Washington will be quieter than usual this week due to the Thanksgiving holiday, even as Americans across the nation register heightened concerns over possible terrorist threats. VOA’s Michael Bowman reports new polling data from ABC News and the Washington Post newspaper show an electorate increasingly focused on security issues after the deadly Islamic State attacks in Paris.

Video World Leaders Head to Paris for Climate Deal

Heads of state from nearly 80 countries are heading to Paris (November 30-December 11) to craft a global climate change agreement. The new accord will replace the Kyoto Protocol on Climate Change that expired in 2012.

Video Uncertain Future for Syrian Refugee Resettlement in Illinois

For the trickle of Syrian refugees finding new homes in the Midwest city of Chicago, the call to end resettlement in many U.S. states is adding another dimension to their long journey fleeing war. Organizations working to help them integrate say the backlash since the Paris attacks is both harming and helping their efforts to provide refugees sanctuary. VOA's Kane Farabaugh reports.

Video Creating Physical Virtual Reality With Tiny Drones

As many computer gamers know, virtual reality is a three-dimensional picture, projected inside special googles. It can fool your brain into thinking the computer world is the real world. But If you try to touch it, it’s not there. Now Canadian researchers say it may be possible to create a physical virtual reality using tiny drones. VOA’s George Putic reports.

Video New American Indian Village Takes Visitors Back in Time

There is precious little opportunity to experience what life was like in the United States before its colonization by European settlers. Now, an American Indian village built in a park outside Washington is taking visitors back in time to experience the way of life of America's indigenous people. Carol Pearson narrates this report from VOA's June Soh.

Video Even With Hometown Liberated, Yazidi Refugees Fear Return

While the northern Iraqi town of Sinjar has been liberated from Islamic State forces, it's not clear whether Yazidi residents who fled the militants will now return home. VOA’s Mahmut Bozarslan talked with Yazidis, a religious and ethnic minority, at a Turkish refugee camp in Diyarbakır. Robert Raffaele narrates his report.

Video Nairobi Tailors Make Pope Francis’ Vestments

To ensure the pope is properly attired during his visit, the Kenya Conference of Catholic Bishops asked the Dolly Craft Sewing Project in the Nairobi slum of Kangemi to make the pope's vestments, the garments he will wear during the various ceremonies. Jill Craig reports.

Video Cross-Border Terrorism Puts Europe’s Passport-Free Travel in Doubt

The fallout from the Islamic State terror attacks in Paris has put the future of Europe’s passport-free travel area, known as the "Schengen Zone," in doubt. Several of the perpetrators were known to intelligence agencies, but were not intercepted. Henry Ridgwell reports from London European ministers are to hold an emergency meeting Friday in Brussels to look at ways of improving security.

Video El Niño Brings Unexpected Fish From Mexico to California

Fish in an unexpected spectrum of sizes, shapes and colors are moving north, through El Niño's warm currents from Mexican waters to the Pacific Ocean off California’s coast. El Nino is the periodic warming of the eastern and central Pacific Ocean. As Faiza Elmasry tells us, this phenomenon thrills scientists and gives anglers the chance of a once-in-a-lifetime big catch. Faith Lapidus narrates.

Video Terrorism in Many Forms Continues to Plague Africa

While the world's attention is on Paris in the wake of Friday night's deadly attacks, terrorism from various sides remains a looming threat in many African countries. Nigerian cities have been targeted this week by attacks many believe were staged by the violent Islamist group Boko Haram. In addition, residents in many regions are forced to flee their homes as they are terrorized by armed militias. Zlatica Hoke reports.

Video Study: Underage Marriage Rate Higher for Females in Pakistan

While attitudes about the societal role of females in Pakistan are evolving, research by child advocacy group Plan International suggests that underage marriage of girls remains a particularly big issue in the country. VOA’s Ayesha Tanzeem reports how such marriages leads to further social problems.

VOA Blogs