Ukraine crisis: From political to economic

Written by on February 7, 2014 in Europe - No comments

There’s another reason to hope Ukraine’s political crisis ends soon: The health of the economy depends on it.

Russia’s $15 billion bailout, announced on December 17, looked promising until Russian president Vladimir Putin suspended the lending at $3 billion, pending formation of a Kremlin-friendly government to replace Mykola Azarov, who resigned as prime minister on January 28. To reinforce the message to Ukrainian president Viktor Yanukovych, Russia has held up Ukrainian exports at the border again.

But while the nation’s currency has sunk to a five-year low, ending at Hr. 8.95/$1 on February 6, the expectation is that the hryvnia will not crash and that the government will not default on its debts.

But confidence in the markets is clearly eroding as the anti-government EuroMaidan protests enter their 79th day on February 7 with no political solution in sight.

For the full story, please visit The Kyiv Post.

(Photo: Euromaidan, via twitter)

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