Archive for the ‘Ukraine’ Category

Ukraine government cuts cash off to rebel territories in risky bid to defeat separatists

A woman stands at an ATM that doesn't work outside a Ukrainian bank in Donetsk, eastern Ukraine, Tuesday, Nov. 25, 2014. Money is running short in the rebel heartland since the government announced this month that it will suspend banking services as it piles on the pressure. Almost all ATMs have stopped working and the remainder are expected to stop operating over the next two weeks. (AP Photo/Balint Szlanko)(The Associated Press)

DONETSK, Ukraine For hours, small crowds in Donetsk huddle hopefully in the cold around cash machines that never get filled, as artillery rumbles in the distance.

Money is running short in the rebel heartland since the government announced this month that it will suspend banking services as it piles on the pressure. Almost all ATMs have stopped working and the remainder are expected to stop operating over the next two weeks.

The move is part of Ukraine's plan to suffocate its separatist foe, now that its costly military campaign has foundered. Authorities say they are also withdrawing all state services from rebel areas, although hospital and school workers in the rebel stronghold of Donetsk say it has been a while since they last saw funding anyhow.

Yet if the government of President Petro Poroshenko government hopes to turn people in eastern Ukraine against separatist leadership, the evidence on the ground suggests the strategy may only be hardening their resolve.

"What Poroshenko is saying to us is: 'You are no longer Ukrainians. You won't get pensions, you won't get social payments, When you croak, then we'll stop this war against you,'" said Donetsk retiree Georgy Sharov. "But I don't want to go to Ukraine and beg for their mercy."

The cash lines have typically formed in front of cash machines belonging to state savings bank Oshcadbank, which handles pensions and social support payments.

"Even they don't always have money," said Donetsk resident Sergei Smotovsky, standing outside a branch of the bank. "The worst thing is that not only can you not get social payments. You can't even withdraw money that you earned, your salary."

Even though cash machines don't work, account-holders wait from early morning until lunchtime in the hope that bank workers will top them up, but the doors to the banks often remain firmly shut.

Despite the unremitting fighting taking place across Donetsk and Luhansk, the two regions affected by the armed separatist conflict, large supermarkets are still reasonably stocked.

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Ukraine government cuts cash off to rebel territories in risky bid to defeat separatists

Who Invests In Ukraine In A Time Of Turmoil?

Thousands of people gathered in Kyivs Independence square, known as Maidan, to commemorate the first anniversary of protests that unleashed a year of turmoil in Ukraine. November 21st, 2014. Photo: Genya Savilov/AFP/Getty

A year after Ukraines anti-government protests ousted corrupt president Viktor Yanukovych, the crisis in Ukraine continues with a Russian invasion in the countrys East and a nationwide political system that so far hasnt proven its capable of fighting corruption and bringing about much-needed reforms. Nevertheless, some consider Ukraine an opportunity.

I think that Ukraine remains an attractive investment destination, said Varel Freeman, Executive Advisor at the European Bank of Reconstruction and Development (EBRD) during an interview with Forbes at the Invest in Ukraine conference New York this month. And that may be paradoxical because of the coverage that the conflict gets.

Freeman said the Russian military invasion in Ukraines eastern industrial region, Donbass, thats been taking place since spring, is not dramatically affecting the balance of the country and that Ukraines new administration is substantially reform oriented. There is a blast there, thats not appreciated by many who simply look at the headlines, he adds.

EBRD has been investing in Ukraine for 20 years focusing on long-term financing of equity and debt and has so far bet about $10 billion in the eastern European nation. The main part of the banks portfolio in Ukraine is financial institutions (34%) as well as infrastructure and energy. The bank the largest financial investor in the region is designed to support a transition to market economy in countries like Ukraine and works with private investors and local authorities on public projects. Freeman sees Ukraines investments potential in projects that require intellectual capital, precision manufacturing and anything that requires trained engineering staff. You can find opportunities in putting together teams that are competitive worldwide.

But today Ukraines economic situation is risky. The estimated real GDP for the 3rd quarter of 2014 shrunk by 5.1%, on its way to its 7% contraction this year, according to SigmaBleyzer macroeconomic report.

Ukraines central banks reserves were at $12.6 billion in October, with JP Morgan forecasting a drop to $7.4 billion by years end. According to the International Monetary Fund, Ukraines budget deficit was at 10.1% of GDP the last summer, while Consumer Price Index grew to 17.5% in September.

The International Monetary Fund approved $17 billion bailout program for Ukraine, however the country is unlikely to receive a second tranche an expected $2.7 billion this year.

Anders Aslund, an economic expert in Eastern Europe and a senior fellow at the Peterson Institute for International Economics in the US, foresee a major problems for the country moving forward. In his recent assessment of Ukraines economic situation, he said Ukraine is entering a depreciation-inflation cycle which, if not taken care of by austerity measures and structural reforms immediately imposed by the government, would lead to a financial meltdown.

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Who Invests In Ukraine In A Time Of Turmoil?

Ukraine Today Press Review: One-year Euromaidan anniversary – Video


Ukraine Today Press Review: One-year Euromaidan anniversary
Peter Byrne has a look at international press to find out what they write about first anniversary of pro-European protests, which led to the ouster of President Victor Yanukovych. Check out...

By: UKRAINE TODAY

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Ukraine Today Press Review: One-year Euromaidan anniversary - Video

Maidan activists.Ukraine Crisis Media Center, 21th of November 2014 – Video


Maidan activists.Ukraine Crisis Media Center, 21th of November 2014

By: Ukraine Crisis Media Center

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Maidan activists.Ukraine Crisis Media Center, 21th of November 2014 - Video

Ukraine War – Militias firing heavy machine gun at positions of the Ukrainian army [FULL VIDEO] – Video


Ukraine War - Militias firing heavy machine gun at positions of the Ukrainian army [FULL VIDEO]
Ukraine War - Militias firing heavy machine gun at positions of the Ukrainian army [FULL VIDEO] Ukraine War - Militias firing heavy machine gun at positions of the Ukrainian army [FULL VIDEO]...

By: Ukraine News Today

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Ukraine War - Militias firing heavy machine gun at positions of the Ukrainian army [FULL VIDEO] - Video