Former Ukrainian Deputy Vladimir Oleinik: Ukraine Faces the Prospect of Announcing a Default in 2019

Translated by Ollie Richardson & Angelina Siard


The results for 6 months of 2018 in relation to the budget of Ukraine are awful. The budget deficit in six months is slightly less than 10 billion hryvnia. And this is the rock bottom. In addition, the time to pay back loans has come, and next year Ukraine will face the prospect of announcing a default.

This was stated by the former deputy of the Verkhovna Rada Vladimir Oleinik on his Facebook page. According to him, it won’t be possible to avoid making payments after a default, that’s why the Ukrainian authorities are already being told to combat corruption.

“But for them it is simply unrealistic. How will a corrupt official fight against himself? They found a way out by strengthening the burden on the bank accounts of ordinary citizens, especially as big resources indeed come into the country thanks to those who work abroad and send money to their family. Today it is precisely this fact that keeps the hryvnia exchange rate above the water. Recently the national bank obtained about 400 million in currencies in the foreign exchange market. Where did the population acquire such money from? It’s simple. This is the money that was earned by people working in Russia, Poland, and other countries and was sent to their family in order to pay for utilities and to simply survive. Foreign currency is exchanged into hryvnia for internal use. This seriously helps, but the economy is collapsing. Everyone recognises this fact,” stressed the former deputy.

“The other day Dneprazot, the only enterprise that produces liquid chlorine, stopped working. It would seem that it isn’t much of a problem, but it was socially important for the water supply of the population. What did the government do? It made the decision to buy chlorine abroad. They spat on their own domestic production – after all, producing it domestically would mean the arrival of money into the budget, the salaries of the people, and the employment of the population. There is the same situation concerning mineral fertilisers, mechanical engineering, and other industries. Why would Europe want our cars, tractors, turbines, planes, and engines? Ukraine cut ties with the Russian market and gradually ruined its own industry. There is still a buoyancy reserve. And it can be saved if the government is urgently replaced. Otherwise we will for sure lie on the very bottom,” said Oleinik.

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