Will Ukraine be able to withstand a long war?
The Economist magazine Ukraine writes that its economy will hardly withstand Russian aggression for a long time. But Finance Minister Sergei Marchenko told the magazine “we can do it.”
Ukraine The economy was in good condition before the war, wheat, iron and Good steel export prices also played a role. Currently in the country Russia Despite struggling with the occupation, the magazine retired and writes that government salaries are still paid, even in the occupied territories. That’s the point that, Internet in Ukraine and 3G mobile service works well everywhere.
$ 5 billion deficit per month
Come on, the forecasts are not encouraging. The world BankThe economy is projected to shrink by 45% this year. Marchenko says their forecast is 44 percent. Customs revenues fell to 25 percent of pre-war levels. Military salaries are also high, although most of the weapons come from the West. Marchenko is currently small and on a voluntary basis for medium-sized businesses tax stressed that he paid.
Minister in the country every month 5 billion He noted that there was a financial deficit of about $ 5 billion, which is about 5 percent of Ukraine’s declining GDP as the war continues. Marchenko is the center of the event banksees in printing extra money. Another way is to issue war bonds. The main source may be foreign aid that, The minister said he spent most of his day lobbying.
Painful measures
The US House of Representatives approved a $ 40 billion aid package for Ukraine on May 11. About 15 billion of this amount Ukraine weapons for the army and purchase of military equipment, 14 billionhumanitarian aid, support for Ukrainian refugees, 5 billionand should be spent on mitigating the effects of wheat shortages.
The Ukrainian Finance Minister admitted in an interview that, If the war lasts another “three or four months,” painful measures may be needed, taxes may be raised, and huge reductions in spending may be needed.
The sowing season has already ended in Ukraine, and sowing has been carried out for 80 percent of previous years. The magazine touches on problems that may arise during the collection. Odessa, the country’s main port, is completely closed, and the ports of Berdyansk and Mariupol are also under Russian control.
The warehouses are full
The warehouses are full because Ukraine has not sent its products abroad as usual.
“Warehouses are ready to export wheat, flour, snowI saw it full of food. Russia’s war and blockade of Black Sea ports is very importantrzahas stopped the delivery of food and caused dramatic consequences for vulnerable countries, “said Odessa. Europe This was stated by President of the Council of the Union Charles Michel.
President of Ukraine Volodymyr Zelenski called on the international community to put pressure on Russia to lift the blockade.
Europe Reconstruction and Development Bankforecast announced this week according toThe Ukrainian economy is expected to decline by 30 percent.