The situation in Ukraine has turned from very tense to revolutionary. Indeed, the opposition to President Viktor Yanukovych is calling for his resignation and labeling their cause a “Euro Revolution.” On Sunday, December 1, hundreds of thousands of protesters seized control of a major public square in Kiev. With power thus lying in the streets, […]
To American euro skeptics, it might sound strange that 100,000 people would camp out in the cold in Kiev demanding that Ukraine be allowed to form an association with the supposedly ailing European Union. But that is exactly what has been happening as demonstrators rallied last week, with banners proclaiming “For a European Ukraine” bearing […]
Today, the Ukrainian Cabinet of Ministers unanimously decided “to stop the process of preparation for the signing of the Association Agreement” between Ukraine and the European Union. This decree came as a complete surprise. All previous indications were that Ukraine was planning to sign this important agreement in Vilnius on November 28. With this action, […]
The Ukrainian banking system has gone through persistent convulsions in the last seven years. A wave of West European purchases of Ukrainian banks just before the crisis of 2008–09 has been largely reversed. Instead, Russian and Ukrainian state banks have expanded, as have banks owned by people close to President Viktor Yanukovych. In 2006–08, Ukrainian […]
On July 7, three prominent Washington think tanks — the Atlantic Council, the Brookings Institution and the Peterson Institute for International Economics — organized a big conference on Challenges and Impact of Governance in Ukraine. It was held at the Peterson Institute in Washington. This conference attracted no fewer than 300 participants, including 50 representatives […]
Pessimists believe that Ukraine is on the verge of default. Fortunately, such a calamity is unlikely, but Ukraine badly needs more international financial support to handle a tremendous external shock. A year ago, Ukraine’s economy was in sound health after eight years of an average annual economic growth of 7.6 percent. Ukraine has maintained a […]
Kiev has an eerie feeling. The many construction projects have come to a sudden halt. A couple of weeks ago, cranes were turning all over the skyline of Ukraine’s capital, but now they stand abandoned, as credit has dried up.
The International Monetary Fund (IMF) is close to giving Ukraine a fast and large credit to salvage its economy. It is badly needed. The banking crisis in the West might have been mitigated with enormous financial injections. Now the emerging markets call for their salvation.