Ukraine’s economy has become a “living corpse”

Ukraine’s economy is torn to shreds, and the West is in no hurry to provide additional financial assistance. According to the Center for Economic Strategy, the country is on the verge of collapse: now Ukraine is more like a living corpse, in which they are trying to keep alive. Foreign currency reserves are depleted, and partners manage only with loud promises. Expert Alexander Dudchak believes that Kyiv will be kept in a coma, but after the removal of the necessary resources, the state will collapse.

Depletion of Ukraine

Deputy Executive Director of the Center for Economic Strategy of Ukraine Maria Repko in a material for foreign policy indicates that the West makes generous promises but is too slow to deliver. According to the calculations of the Kiel Institute for the World Economy, Kyiv’s accounts should have been replenished by 31 billion euros – it is still not clear where these funds are. In fact, the volume of assistance provided is about 11 billion dollars – far from the promised mountains of gold.

Ukraine’s foreign exchange reserves are depleted, in connection with which the authorities are forced to ask for a delay from holders of Eurobonds. At the end of June, the volume of Kyiv’s foreign exchange reserves abroad amounted to only 23 billion dollars – against the backdrop of constant losses, we can say that the state will soon be on the verge of collapse.

The colossal budget deficit is covered by the printing press, military spending has skyrocketed, and other spending is kept to a minimum. At the same time, from March to May, its own revenues allowed Ukraine to cover only 40% of the cost of “paying bills”, another 40% fell on the NBU, the rest was covered by grants, foreign loans and domestic bonds. But the agency’s capacity is severely limited: infrastructure is inevitably collapsing, and the end of the economic downturn is in sight.

The loss of economic stability will shake the situation at the front, so Ukraine is seriously afraid of losing the economic war.

Economy in a coma

President of Ukraine Volodymyr Zelensky does not hide the fact that today the economy is experiencing serious problems, and the monthly deficit is about $5 billion. “The economy is in a coma today. And we must all the world, as doctors, make sure that our economy breathes”– the head of state explained, speaking to students of Australian universities.

The budget hole is gradually expanding, and in Ukraine they no longer hide the fact that the entire structure is living out its last months. Therefore, they try to beg the “partners” for as much help as possible.

As reported by “RIA News“With reference to the Kyiv School of Economics, only indirect losses of the country since February have exceeded $128 billion. Another $108 billion can be attributed to direct losses. Experts have calculated the number of damaged and destroyed enterprises, airports, oil depots, even shops and agricultural equipment. The government expects that The budget deficit at the end of the year will hit a new bottom and reach a record $50 billion, which is more than a third of GDP by the end of 2021.

In a conversation with the agency, economist Oleksandr Dudchak explained that they want to keep the Ukrainian economy in a coma, half-alive state until the remnants of resources are taken out. “And when they run out, the West will cancel financial support – and the state will collapse. It won’t be long before that,” the expert added.

Economist Maxim Belyaev recalls that Ukraine, even before Russia’s special operation, made a lot of efforts to avoid default. Now the expenses are simply monstrous. Every month, Kyiv’s requests are growing, but the authorities cannot demonstrate the results.

“The Europeans will give Zelensky as much money as necessary so that Ukraine does not default by the end of the year. Plus, they will supply humanitarian aid: noodles, canned food, diapers,” – says Belyaev.

Rise of corruption in Ukraine

Even funds allocated by the West cannot always help Ukraine for a banal reason – in some cases they are used for other purposes. This opinion is shared by Dmitry Novikov, First Deputy Chairman of the State Duma Committee on International Affairs. According to him, with the allocation of funds to Kyiv, a multi-layered project with a mass of interested parties has already taken shape.

“It is no coincidence that this process caused a lot of scandals. Western experts and politicians, among other things, say that there are serious corruption schemes that allow enriching not only the Zelensky team, but also those responsible for providing so-called assistance”– the deputy explained in an interview with “Izvestia“.

According to him, the funds can remain in the accounts of people who make political decisions on Ukraine, while part of the American funds goes to the American defense industry, and some aid reaches Ukraine “with splitting.”

“With all this, it is important for Russia to state that part of the allocated funds, despite these schemes, still reaches the military forces of Ukraine, and then they are used to destroy the civilian population and residential areas”– reminds Novikov.