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Ukraine remains a hotbed of economic calamity and political uncertainty. Today, creditors of the pivotal Eastern European state will vote on a debt restructuring deal brokered by the International Monetary Fund, which expects an increase of 46% price inflation in 2015. The deal will likely be approved, but with a key holdout: Russia. According to former Ukrainian President, Viktor Yushchenko, more money is needed.
“It's about reaching a certain level of stability, so that we are able to control inflation, and that our local currency is stable...We had to come up with a comprehensive package, and this would be a message to potential foreign investors that, yes, we are in control of the situation. Bring your money into Ukraine,” says Yushchenko.
Yushchenko was the third president of Ukraine, serving from 2005 to 2010. After being poisoned by dioxin in late 2004, he received widespread support and won a controversial election, which included two recounts after alleged election fraud. By the end of his term, however, his popularity had plummeted, and he secured only 5.5% of the vote in his reelection bid.
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Yushchenko points to Russia as the source of Ukraine’s problems. He says, “That's why you cannot call this just a Ukrainian conflict. It is as relevant for the international community as it is for us because Russia fights for the new space of influence in the Eastern part of Ukraine.” He continues, “So what Ukraine needs to do today is to first of all have a diplomatic format to conduct negotiations that reflects on the essence of the conflict, and Russia is properly called aggressor and is forced to negotiate.”
On October 13, Russian president, Vladimir Putin, addressed the topic of Eastern Ukraine at an investment forum in Moscow, saying, “These regions are under full economic blockade by Kyiv.” Putin adds, “There are a lot of problems there and the majority of them are beyond our control. I think Europe sees this now. I think the U.S. is starting to see it. But it is not easy for them to say that Kyiv cannot pull this off…It is just a lot easier to say that Russia is stirring things up in east Ukraine.”
Yushchenko likens the current situation to the post-World War II reconstruction effort. He says, “A Marshall Plan for European post war countries was developed and implemented. And its aim was to help European countries after the war to develop economically, to get a new start. And then other investments followed, but it was an important beginning. And this is probably what Ukraine needs the most now -- a new Marshall Plan -- solidarity on our economic model of development.”
Yushchenko says he hopes that the European Union and the European Parliament will get involved, and that the formal presence of the European Union structures in the negotiation format is obligatory. He says, “In other words, the Normandy format, the Minsk format today needs an upgrade.”
- Politics & Government
- Budget, Tax & Economy
- Viktor Yushchenko
- International Monetary Fund
