Articles Economics

Foreign trade deficit is on the rise in Ukraine, having already exceeded the psychological mark of $9 billion. Future prospects are also disappointing. What threats does this economic "hole" bring and how can it be patched?

Director of Defense Express Consultancy, Serhiy Zgurets, in an interview with UNIAN spoke about the main results of the domestic defense industry development in 2019, production of new weapons for the Ukrainian Army, and the challenges the new year is bringing.

Ukraine continued the transit of Russian gas to the EU, the State Statistics Service said inflation had fallen to a record low over the past six years, while the Cabinet of Ministers unveiled a draft new Labor Code providing for the liberalization of labor relations, albeit criticized by trade unions and experts – these are the main economic developments of the past week.

The past year was marked by more record crops of grains and oilseeds, the abolition of state monopoly on production of alcohol, and a high-profile bill set to launch historic land reform in October 2020 if adopted.

In 2019, Ukraine launched a large-scale reform of the tax and customs services, which became possible due to the reorganization of the Fiscal Service by dividing it into two agencies. The leaders of the new structures promise that Ukrainians will feel the changes as early as this year. Among them are payments of all taxes online, as well as the elimination of smuggling and queues at customs.

The growth of the Ukrainian economy in 2019 may become the highest in the last eight years, while inflation – the lowest over the past six years. The country's leading experts provided their economic forecasts for 2020 and identified key risks.

Ukraine concludes 2019 with small economic victories, grounds for high hopes, and reasons for certain disappointment. The upcoming 2020 may also be full of changes, and the declared reforms can thoroughly shake up the national economy.

The Ukrainian hryvnia has rapidly strengthened against the dollar and the euro, the state budget has fallen short of billions of target revenues, while public debt has grown by billions of dollars. How are these events connected, and what awaits the country's financial system and personal finances of Ukrainians in 2020?

Ukraine and Russia agreed on a new contract for the transit of Russian gas via the Ukrainian territory to the EU after the existing deal expires on December 31, 2019. The protocol of the future agreement was coordinated by the parties in Minsk on December 20. The formal signing of the contract is scheduled for December 29. UNIAN learned whether Naftogaz or Gazprom could be declared a winner.

Ukraine and Russia have reached an agreement on key issues of a new contract for the transit of Russian gas, the government has declared a "war" on the gambling business, while the Ukrainian hryvnia continues to beef up – these are the main economic developments of this week.

Ukraine's national debt has reached $82 billion, while the Cabinet continues its borrowing spree, each week placing bonds, most of which are being purchased by non-residents. What are the risks of such a policy, and will the country be able to pay off its debts?

Ukraine and the International Monetary Fund have reached a staff-level agreement on a new three-year extended fund facility, the National Bank once again lowered the key rate, while the State Statistics Service said inflation was slowing to a six-year low – these are the main economic developments of the outgoing week.

Negotiations have been held in the Normandy format between the leaders of Ukraine, Germany, France, and Russia. The main issue of discussion is the fate of Donbas. But the gas topic was also touched upon on the summit's sidelines. Zelensky and Putin discussed it bilaterally.

The Cabinet of Ministers extended trade sanctions against Russia and launched the new Customs Service, Ukrtransnafta agreed with the Russian Federation to extend oil transit, while the hryvnia updated four-year highs five times in a week – these are the main economic developments of this week.

Ukraine continues to defend its position in the gas transit dispute with Gazprom. Billions in revenue for the Ukrainian budget are at stake. So far, in international courts, the Ukrainian position looks more confident than the Russian one.

Ukraine won appeal in gas transit dispute with Gazprom, the Cabinet began to pay off insurance arrears, while the hryvnia renewed its four-year high twice a week – these are the main economic developments of the outgoing week.

Oleg Bakhmatyuk, ex-owner of VAB Bank, and owner of Ukrlandforming agricultural holding, who was put on wanted list on November 22 on suspicion of embezzling UAH 1.2 billion in VAB Bank's stabilization loan, told UNIAN about the circumstances of the case, the nature of conflict with NABU Director Artem Sytnyk, as well as further plans to shape up his line of defense and return to Ukraine.

The World Bank has improved the forecast for the Ukrainian economy development, the Cabinet of Ministers updated the plan for the implementation of the Ukraine-EU Association Agreement, while IMF talks are still ongoing – these are the main economic developments of the outgoing week.

The second week of November became historic for Ukraine – the parliament passed land reform at first reading of the law on the land market, and the next day adopted the state budget. The IMF staff mission arrived in Kyiv to complete negotiations on a new EFF program, while the statistics agency announced a slight slowdown in GDP growth in 3Q 2019.

The government announced its intention to reduce government spending by 10% and cut thousands of jobs in regional state bodies, Prime Minister Oleksiy Honcharuk promised not to raise taxes, while Naftogaz placed 7-year securities worth $500 million – these are the main economic news of the past week.