Poroshenko on consequences of Donbas blockade: hryvnia devaluation, $2 bln losses

Ukraine may lose up to $2 billion and the national currency exchange rate will weaken due to the blockade of Donbas, Ukrainian President Petro Poroshenko said on Thursday at a ceremony marking the Day of honoring the troops who fought on foreign land.

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If the blockade fails to be stopped, Ukrainian metallurgy may lose up to 300,000 jobs, according to the Ukrainian president. "300,000 people will lose their jobs. The state will lose up to $2 billion in foreign exchange earnings with all the consequences for the hryvnia exchange rate," he said.

Poroshenko also said that tens of thousands of people would lose jobs in the occupied territories. "I emphasize that there is no labor market there, and where will a large part of them go to make some money? That's right, [they'll go] to the militants. And this trend was clearly confirmed by the Main Intelligence Directorate yesterday. So would it be better for us if they were engaged in mining or shot at our soldiers?" he said.

Read alsoNSDC to consider issue of energy blockade of Donbas – PoroshenkoAs UNIAN reported earlier, in late January a group of ATO veterans along with a few members of parliament initiated a blockade of rail tracks used to transport deficient anthracite coal from the temporarily uncontrolled areas to Ukraine's thermal power stations. According to the government report, the supplies were suspended February 10, 2017. The operator of Ukraine's united power grid, Ukrenergo, said that anthracite coal reserves (842,000 tonnes as of Feb 12) would be exhausted within 40 days.

Read alsoList of goods eligible for transportation across Donbas contact line to be cut - PoroshenkoCiting a threat to continued energy supplies to the industries, the Cabinet at its extraordinary meeting February 15 decided to introduce a state of emergency on the electricity market, providing for cuts in consuming anthracite coal to ensure stable operations of the country's energy grid.

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