Ukraine’s Economy Plummeted By Nearly 10 Percent In 2015

Map of Ukraine, Including Crimea, and Neighbors, Including Russia

(RFE/RL – rferl.org – March 22, 2016) Ukraine’s battered economy shrank by 9.9 percent in 2015 due to implosions in the financial sector and consumer demand, the state statistics service reported on March 21. The stunning fall last year followed a drop of nearly 7 percent in 2014, the year Russia annexed Crimea and Ukraine’s war with Russia-backed separatists broke […]

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BNE: Parliamentary populism embarrasses Ukrainian government

Rada File Photo

(Business New Europe – bne.eu – KYIV BLOG: Sergei Kuznetsov in Kyiv – July 8, 2015) Ukraine’s parliament has sent a series of worrying signals to the country’s Western backers: it has approved a populist law that could cost Ukraine’s banks up to $4.65bn; at the same time, parliament has failed to adopt a package of bills that are meant […]

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War-Weary Ukraine Shutters Cash-Starved Banks as Trust Falls

Maidan Square in Kiev, Ukraine

(Bloomberg – bloomberg.com – Volodymyr Verbyany, Andras Gergely – June 12, 2015) When Vasyl Klos plunked $9,000 into a bank branch in his hometown of Lviv, Ukraine, in 2013, he assumed it was safe because it was German owned. He was wrong. Bank Forum JSC had already been sold by Commerzbank AG to Ukrainian businessman Vadim Novinsky, a fact Klos […]

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A break in the clouds over Ukraine’s future

Maidan Square in Kiev, Ukraine

(Business New Europe – bne.eu – KYIV BLOG: Ben Aris in Moscow – June 8, 2015) It’s not exactly blue-sky news, but after a little over a year in office, Ukrainian President Petro Poroshenko had a few things to boast about in his recent annual speech before the Rada lower chamber of Parliament. Reforms have started and the first green […]

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Russia Says Ukraine Must Be ‘Neutral’ as It Accuses U.S., NATO

Maidan Square in Kiev, Ukraine

(Bloomberg – bloomberg.com – Henry Meyer, Daryna Krasnolutska, Volodymyr Verbyany – April 22, 2015) Russia said it wants a “neutral” and unified Ukraine as it accused the North Atlantic Treaty Organization of seeking to turn its neighbor into a hostile state. The U.S. wields enormous influence over Ukraine, while Russia wants the people of its “near neighbor” to have a […]

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Eastern Ukraine returns to the ruble

Map of Ukraine, Including Crimea, and Neighbors, Including Russia

(Business New Europe – bne.eu – Graham Stack in Kyiv, Mari Bastashevski in Donetsk – April 15, 2015) The Russian ruble is gaining ground against the hryvnia across rebel-held parts of East Ukraine’s Donbas region, 19 years after Kyiv introduced the national currency to end the country’s membership of the ruble zone. As Eastern Ukraine heads towards becoming a frozen […]

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S&P downgrades Ukraine to ‘CC’, says default ‘virtually inevitable’

Maidan Square in Kiev, Ukraine

(Business New Europe – bne.eu – bne IntelliNews – April 13, 2015) Ratings agency Standard & Poor’s has downgraded Ukraine’s sovereign credit rating from ‘CCC-‘ to ‘CC’, three levels above default, with a negative outlook. S&P said it views a Ukrainian default as “virtually inevitable”, with Ukraine’s sovereign debt to reach 93% of GDP in 2015. “The negative outlook reflects […]

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