Ukraine Actors PM Arseniy Yatsenyuk Pres Oleksandr Turchynov

Ukraine Actors Cash In

Acting PM Arseniy Yatsenyuk (L)
Acting President Oleksandr Turchynov (R)

EU offers $15 billion in aid to Ukraine

€11 billion

Within the shortest period of time, Ukraine will receive macro-financial aid of $2 billion to carry out reforms and stabilise the economic situation

KIEV, March 07. /ITAR-TASS/. The European Union has approved a $15 billion package of economic and financial aid to Ukraine, parliament-appointed Prime Minister [Kike] Arseniy Yatsenyuk told reporters on Friday.

“Within the shortest period of time, Ukraine will receive macro-financial aid of 1.6 billion euros or $2 billion,” he said. “This will make it possible for Ukraine to carry out reforms and stabilise the economic situation,” he added.

Alongside, the European Investment Bank and the European Bank for Reconstruction and Development (EBRD) were offering Ukraine $8 billion-worth of investment, Yatsenyuk said.

“We will be able to channel these means into new plants, economic modernisation, new jobs and making products more competitive,” he said.

“European countries unilaterally open the European market for Ukrainian products and producers,” he said. According to expert appraisal, alone in the first year following this decision, the Ukrainian economy would receive $400 million, Yatsenyuk added.

Growth in exports of grain, agricultural products and confectionery was forecast. “As for opening the Ukrainian market for European products, we will be holding additional consultations and decisions will be made after them to remove all speculation that it may negatively affect the Ukrainian economy,” he said.

“That is why the east may be calm. All that proceeds within the framework of bilateral co-operation between Ukraine and Russia may keep going,” he said, referring to eastern regions of the country backing closer ties with Russia.

“There have been and are no grounds for Russia’s putting up trade barriers to Ukrainian goods,” he said.

Crimea votes to join Russia, Obama orders sanctions

Reuters 2014.03.06


France has a deal to sell warships to Russia that it is so far not prepared to cancel, London's banks have profited from facilitating Russian investment, and German companies have $22 billion invested in Russia.

The European Commission has announced aid of up to 11 billion euros ($15 billion) for Ukraine over the next couple of years provided it reaches a deal with the International Monetary Fund, entailing painful reforms like ending gas subsidies.


CIA Factbook: Russia vs Ukraine (Economy)

Economy - overviewRussia has undergone significant changes since the collapse of the Soviet Union, moving from a globally-isolated, centrally-planned economy to a more market-based and globally-integrated economy. Economic reforms in the 1990s privatized most industry, with notable exceptions in the energy and defense-related sectors. The protection of property rights is still weak and the private sector remains subject to heavy state interference. In 2011, Russia became the world's leading oil producer, surpassing Saudi Arabia; Russia is the second-largest producer of natural gas; Russia holds the world's largest natural gas reserves, the second-largest coal reserves, and the eighth-largest crude oil reserves. Russia is also a top exporter of metals such as steel and primary aluminum. Russia's reliance on commodity exports makes it vulnerable to boom and bust cycles that follow the volatile swings in global prices. The government since 2007 has embarked on an ambitious program to reduce this dependency and build up the country's high technology sectors, but with few visible results so far. The economy had averaged 7% growth in the decade following the 1998 Russian financial crisis, resulting in a doubling of real disposable incomes and the emergence of a middle class. The Russian economy, however, was one of the hardest hit by the 2008-09 global economic crisis as oil prices plummeted and the foreign credits that Russian banks and firms relied on dried up. According to the World Bank the government's anti-crisis package in 2008-09 amounted to roughly 6.7% of GDP. The economic decline bottomed out in mid-2009 and the economy began to grow again in the third quarter of 2009. High oil prices buoyed Russian growth in 2011-12 and helped Russia reduce the budget deficit inherited from 2008-09. Russia has reduced unemployment to a record low and has lowered inflation below double digit rates. Russia joined the World Trade Organization in 2012, which will reduce trade barriers in Russia for foreign goods and services and help open foreign markets to Russian goods and services. At the same time, Russia has sought to cement economic ties with countries in the former Soviet space through a Customs Union with Belarus and Kazakhstan, and, in the next several years, through the creation of a new Russia-led economic bloc called the Eurasian Economic Union. Russia has had difficulty attracting foreign direct investment and has experienced large capital outflows in the past several years, leading to official programs to improve Russia's international rankings for its investment climate. Russia's adoption of a new oil-price-based fiscal rule in 2012 and a more flexible exchange rate policy have improved its ability to deal with external shocks, including volatile oil prices. Russia's long-term challenges also include a shrinking workforce, rampant corruption, and underinvestment in infrastructure.After Russia, the Ukrainian republic was the most important economic component of the former Soviet Union, producing about four times the output of the next-ranking republic. Its fertile black soil generated more than one-fourth of Soviet agricultural output, and its farms provided substantial quantities of meat, milk, grain, and vegetables to other republics. Likewise, its diversified heavy industry supplied the unique equipment (for example, large diameter pipes) and raw materials to industrial and mining sites (vertical drilling apparatus) in other regions of the former USSR. Shortly after independence in August 1991, the Ukrainian Government liberalized most prices and erected a legal framework for privatization, but widespread resistance to reform within the government and the legislature soon stalled reform efforts and led to some backtracking. Output by 1999 had fallen to less than 40% of the 1991 level. Ukraine's dependence on Russia for energy supplies and the lack of significant structural reform have made the Ukrainian economy vulnerable to external shocks. Ukraine depends on imports to meet about three-fourths of its annual oil and natural gas requirements and 100% of its nuclear fuel needs. After a two-week dispute that saw gas supplies cutoff to Europe, Ukraine agreed to 10-year gas supply and transit contracts with Russia in January 2009 that brought gas prices to "world" levels. The strict terms of the contracts have further hobbled Ukraine's cash-strapped state gas company, Naftohaz. Outside institutions - particularly the IMF - have encouraged Ukraine to quicken the pace and scope of reforms to foster economic growth. Ukrainian Government officials eliminated most tax and customs privileges in a March 2005 budget law, bringing more economic activity out of Ukraine's large shadow economy, but more improvements are needed, including fighting corruption, developing capital markets, and improving the legislative framework. Ukraine's economy was buoyant despite political turmoil between the prime minister and president until mid-2008. Real GDP growth exceeded 7% in 2006-07, fueled by high global prices for steel - Ukraine's top export - and by strong domestic consumption, spurred by rising pensions and wages. A drop in steel prices and Ukraine's exposure to the global financial crisis due to aggressive foreign borrowing lowered growth in 2008. Ukraine reached an agreement with the IMF for a $16.4 billion Stand-By Arrangement in November 2008 to deal with the economic crisis, but the program quickly stalled due to the Ukrainian Government's lack of progress in implementing reforms. The economy contracted nearly 15% in 2009, among the worst economic performances in the world. In April 2010, Ukraine negotiated a price discount on Russian gas imports in exchange for extending Russia's lease on its naval base in Crimea. In August 2010, Ukraine, under the YANUKOVYCH Administration, reached a new agreement with the IMF for a $15.1 billion Stand-By Agreement. Economic growth resumed in 2010 and 2011, buoyed by exports. After initial disbursements, the IMF program stalled in early 2011 due to the Ukrainian Government's lack of progress in implementing key gas sector reforms, namely gas tariff increases. Economic growth slowed in the second half of 2012 with Ukraine finishing the year in technical recession following two consecutive quarters of negative growth.
GDP (purchasing power parity)$2.555 trillion (2012 est.) 
$2.471 trillion (2011 est.) 
$2.369 trillion (2010 est.) 
note: data are in 2012 US dollars
$340.7 billion (2012 est.) 
$340.2 billion (2011 est.) 
$323.4 billion (2010 est.) 
note: data are in 2012 US dollars
GDP - real growth rate3.4% (2012 est.) 
4.3% (2011 est.) 
4.5% (2010 est.)
0.2% (2012 est.) 
5.2% (2011 est.) 
4.1% (2010 est.)
GDP - per capita (PPP)$18,000 (2012 est.) 
$17,300 (2011 est.) 
$16,600 (2010 est.) 
note: data are in 2012 US dollars
$7,500 (2012 est.) 
$7,500 (2011 est.) 
$7,100 (2010 est.) 
note: data are in 2012 US dollars
GDP - composition by sectoragriculture: 3.9% 
industry: 36% 
services: 60.1% (2012 est.)
agriculture: 10.2% 
industry: 31.6% 
services: 58.2% 
(2012 est.)
Population below poverty line12.7% (2011)24.1% (2010)
Household income or consumption by percentage sharelowest 10%: 5.7% 
highest 10%: 42.4% (2011 est.)
lowest 10%: 3.8% 
highest 10%: 22.5% (2011 est.)
Inflation rate (consumer prices)5.1% (2012 est.) 
8.4% (2011 est.)
0.6% (2012 est.) 
8% (2011 est.)
Labor force75.24 million (2012 est.)22.11 million (2012 est.)
Labor force - by occupationagriculture: 7.9% 
industry: 27.4% 
services: 64.7% (2011)
agriculture: 5.6% 
industry: 26% 
services: 68.4% 
Unemployment rate5.7% (2012 est.) 
6.6% (2011 est.)
7.5% (2012 est.) 
7.9% (2011 est.) 
note: officially registered; large number of unregistered or underemployed workers
Distribution of family income - Gini index41.7 (2011) 
39.9 (2001)
28.2 (2009) 
29 (1999)
Budgetrevenues: $416.8 billion 
expenditures: $418 billion (2012 est.)
revenues: $55.75 billion 
expenditures: $63.37 billion 
note: this is the planned, consolidated budget (2012 est.)
Industriescomplete range of mining and extractive industries producing coal, oil, gas, chemicals, and metals; all forms of machine building from rolling mills to high-performance aircraft and space vehicles; defense industries including radar, missile production, and advanced electronic components, shipbuilding; road and rail transportation equipment; communications equipment; agricultural machinery, tractors, and construction equipment; electric power generating and transmitting equipment; medical and scientific instruments; consumer durables, textiles, foodstuffs, handicraftscoal, electric power, ferrous and nonferrous metals, machinery and transport equipment, chemicals, food processing
Industrial production growth rate3.1% (2012 est.)-2.1% (2012 est.)
Agriculture - productsgrain, sugar beets, sunflower seed, vegetables, fruits; beef, milkgrain, sugar beets, sunflower seeds, vegetables; beef, milk
Exports$529.6 billion (2012 est.) 
$519.9 billion (2011 est.)
$69.81 billion (2012 est.) 
$69.42 billion (2011 est.)
Exports - commoditiespetroleum and petroleum products, natural gas, metals, wood and wood products, chemicals, and a wide variety of civilian and military manufacturesferrous and nonferrous metals, fuel and petroleum products, chemicals, machinery and transport equipment, food products
Exports - partnersNetherlands 14.4%, China 6.4%, Italy 5.3%, Germany 4.5% (2012)Russia 23.7%, Turkey 6%, China 4.1% (2012)
Imports$334.7 billion (2012 est.) 
$321.9 billion (2011 est.)
$90.3 billion (2012 est.) 
$85.67 billion (2011 est.)
Imports - commoditiesmachinery, vehicles, pharmaceutical products, plastic, semi-finished metal products, meat, fruits and nuts, optical and medical instruments, iron, steelenergy, machinery and equipment, chemicals
Imports - partnersChina 15.5%, Germany 9.5%, Ukraine 5.5% (2012)Russia 19.4%, China 10.2%, Germany 9.6%, Belarus 7.8%, Poland 7.1% (2012)
Debt - external$631.8 billion (31 December 2012 est.) 
$543 billion (31 December 2011 est.)
$135 billion (31 December 2012 est.) 
$126.2 billion (31 December 2011 est.)
Exchange ratesRussian rubles (RUB) per US dollar - 
30.84 (2012 est.) 
29.382 (2011 est.) 
30.368 (2010 est.) 
31.74 (2009) 
24.853 (2008)
hryvnia (UAH) per US dollar - 
7.991 (2012 est.) 
7.9676 (2011 est.) 
7.9356 (2010 est.) 
7.7912 (2009) 
4.9523 (2008)
Fiscal yearcalendar yearcalendar year
Investment (gross fixed)22% of GDP (2012 est.)18.9% of GDP (2012 est.)
Public debt7.7% of GDP (2012 est.) 
8.1% of GDP (2011 est.) 
note: data cover general government debt, and includes debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment, debt instruments for the social funds are not sold at public auctions
36.6% of GDP (2012 est.) 
36.3% of GDP (2011 est.) 
note: the total public debt of $64.5 billion consists of: domestic public debt ($23.8 billion); external public debt ($26.1 billion); and sovereign guarantees ($14.6 billion)
Reserves of foreign exchange and gold$537.6 billion (31 December 2012 est.) 
$498.6 billion (31 December 2011 est.)
$24.55 billion (31 December 2012 est.) 
$31.79 billion (31 December 2011 est.)
Current Account Balance$81.3 billion (2012 est.) 
$98.8 billion (2011 est.)
-$14.4 billion (2012 est.) 
-$10.25 billion (2011 est.)
GDP (official exchange rate)$2.022 trillion (2012 est.)$176.2 billion (2012 est.)
Stock of direct foreign investment - at home$502.5 billion (31 December 2012 est.) 
$457.5 billion (31 December 2011 est.)
$54.46 billion (31 December 2012 est.) 
$50.33 billion (31 December 2011 est.)
Stock of direct foreign investment - abroad$413.1 billion (31 December 2012 est.) 
$362.1 billion (31 December 2011 est.)
$7.853 billion (31 December 2012 est.) 
$6.898 billion (31 December 2011 est.)
Market value of publicly traded shares$845.4 billion (31 December 2012 est.) 
$796.4 billion (31 December 2011) 
$1.005 trillion (31 December 2010 est.)
$25.56 billion (31 December 2011) 
$39.46 billion (31 December 2010) 
$16.79 billion (31 December 2009)
Central bank discount rate8.25% (31 December 2012 est.) 
8% (31 December 2011) 
note: this is the so-called refinancing rate, but in Russia banks do not get refinancing at this rate; this is a reference rate used primarily for fiscal purposes
7.5% (31 January 2012 est.) 
11.97% (31 December 2010 est.)
Commercial bank prime lending rate9.1% (31 December 2012 est.) 
8.45% (31 December 2011 est.)
18.39% (31 December 2012 est.) 
15.95% (31 December 2011 est.)
Stock of domestic credit$922.6 billion (31 December 2012 est.) 
$702.2 billion (31 December 2011 est.)
$129.6 billion (31 December 2012 est.) 
$121 billion (31 December 2011 est.)
Stock of narrow money$452.8 billion (31 December 2012 est.) 
$399.3 billion (31 December 2011 est.)
$40.44 billion (31 December 2012 est.) 
$38.93 billion (31 December 2011 est.)
Stock of broad money$1.061 trillion (31 December 2012 est.)
$893.1 billion (31 December 2011 est.)
$97.4 billion (31 December 2012 est.) 
$85.33 billion (31 December 2011 est.)
Taxes and other revenues20.6% of GDP (2012 est.)31.6% of GDP (2012 est.)
Budget surplus (+) or deficit (-)-0.1% of GDP (2012 est.)-4.3% of GDP (2012 est.)
Unemployment, youth ages 15-24total: 15.5% 
male: 15.3% 
female: 15.7% (2011)
total: 18.6% 
male: 18.6% 
female: 18.7% (2011)
GDP - composition, by end usehousehold consumption: 49.2% 
government consumption: 18.6% 
investment in fixed capital: 22% 
investment in inventories: 2.6% 
exports of goods and services: 29.7% 
imports of goods and services: -22.1% 
(2012 est.)
household consumption: 70.8% 
government consumption: 19.4% 
investment in fixed capital: 18.9% 
investment in inventories: -0.6% 
exports of goods and services: 50.9% 
imports of goods and services: -59.3% 
(2012 est.)
Gross national saving30% of GDP (2012 est.) 
30.6% of GDP (2011 est.) 
27.3% of GDP (2010 est.)
9.9% of GDP (2012 est.) 
14.5% of GDP (2011 est.) 
16.3% of GDP (2010 est.)

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