Ukraine watch: UkraineTeeters as Citizens Blame Banks and Government

[cobben]

Perhaps start a Ukraine thread?


http://www.nytimes.com/2009/03/02/wo...e.html?_r=1&hp

"By CLIFFORD J. LEVY
Published: March 1, 2009
KIEV, Ukraine — Steel and chemical factories, once the muscle of Ukraine’s economy, are dismissing thousands of workers. Cities have had days without heat or water because they cannot pay their bills, and Kiev’s subway service is being threatened. Lines are sprouting at banks, the currency is wilting and even a government default seems possible.
. . . "

[cobben]

Russia Tops Stock Gains, Strengthening Putin as Ukraine Tumbles

http://www.bloomberg.com/apps/news?p...efer=exclusive

" . . .
While Russia’s government said the economy will contract for the first time in a decade and currency reserves are down 36 percent from August, the nation’s relative strength is raising Prime Minister Vladimir Putin’s influence over former Soviet states. Ukraine discussed borrowing $5 billion. Kazakhstan wants Russia to buy ailing BTA Bank. Belarus is asking for $3 billion in loans, on top of $2 billion granted last year.
“Russia isn’t looking at a straight-line deterioration into oblivion,” said Kieran Curtis, who helps manage $800 million in emerging-market fixed-income assets in London at Aviva Investors Ltd. “It has enough liquid assets to take stakes in all kinds of things in the former Soviet states.”
. . .
Eighteen years after the collapse of the Soviet Union depleted Moscow’s power, Ukraine needs foreign funds to close its $12.3 billion current-account deficit after the global recession curbed demand for steel and international credit dried up. The currency, the hryvnia, dropped 45 percent against the dollar in the past six months. The country’s 22 percent inflation rate is the highest in continental Europe.
Ukraine estimates a budget deficit at 5 percent of GDP for 2009 and risks violating terms of a $16.4 billion International Monetary Fund loan agreement. Foreign-currency reserves fell 24 percent since August and are below the $30.2 billion the IMF required. The second portion of the credit, due in January, hasn’t been approved.
. . .
Now, the sinking economy is giving Putin, 56, the advantage. Timoshenko requested aid from Russia, the U.S., the European Union, China and Japan this year and Russia gave a “positive response,” she said Feb. 9. Yushchenko shut down what he called “unauthorized” negotiations for a loan.
. . .

[raja]

Re: Russia Tops Stock Gains, Strengthening Putin as Ukraine Tumbles

My wife's Ukrainian relatives report that for every one job, there are 3,000 or 4,000 unemployed. The government will not pay any welfare benefits to any unemployed person who owns land. The idea is that if you're out of work, you can grow food and survive.

If you moved to an apartment in Kiev, you are probably still listed officially on your village parent's record, so you won't be able to get any assistance since they have land.

My wife says the government is even considering refusing all apartment dwellers assistance, since each apartment building usually has a bit of yard, so the building's residents would be considered landowners.

It's a desperate situation . . . . .

[cobben]

Re: Russia Tops Stock Gains, Strengthening Putin as Ukraine Tumbles

Do you see any emigration to the RF? Those Ukrainians who have or can acquire Russian citizenship would see that as a solution I would think, and they should be many.