KYIV Ukraine (Xinhua) —
The deep political and economic crisis that
has gripped Ukraine for two years is now easing, as the conflict in
its eastern region has partially subsided and its economy has seen a
glimmer of light for recovery.
Torino are still waiting for an answer from Dynamo Kyiv for creative midfielder Younes Belhanda.
Kyiv’s determination to continue to spoil ties with Moscow may have a “disastrous impact” on Ukraine in the end, Radio France International (RFI) reported. (More …)
Russia says it’s suing Ukraine for defaulting on a $3 billion Eurobond debt owed to Moscow.
MOSCOW: Russia will file a lawsuit against Ukraine after Kyiv failed to repay a US$3 billion (£2 billion) Eurobond and US$75 million of interest by Dec. 31, the Russian finance ministry said late on Thursday.
Ukraine officially defaults on $3bn debt to Russia; Moscow to sue Kyiv in London court Russia’s Finance Ministry is filing a lawsuit against Ukraine for failing to pay off its $3 billion debt to Russia before the December 31 deadline. This means that Ukraine is now officially in a state of default, the ministry added.
KYIV: Ukraine’s free-trade deal with the EU has come into effect, coinciding with the start of Moscow’s food embargo against Kyiv that will force the former Soviet republic to revisit its economic model.
The free-trade accord is part of the broader EU Association Agreement — signed at the end of June 2014 — and stands at the heart of the drastic deterioration of Ukraine’s relations with Russia, furious at seeing its Soviet-era satellite turn to the West.
Ukraine, whose market has been traditionally oriented toward Russia, will now have to turn itself toward the European market and abide by its rules.
“The agreement will contribute to the modernization and diversification of the Ukrainian economy and will create additional incentives for reform,” the European Commission said in a statement.
Brussels also said the deal would help Ukraine improve its business climate and attract foreign investment, a view shared by Yegor Perelygin, an analyst at UniCredit bank. The road to Ukraine’s adoption of the deal has been peppered with obstacles.
In November 2013, Ukraine’s then pro-Kremlin president Viktor Yanukovych rejected the association agreement, triggering pro-European protests that led to his downfall and eventually to the armed conflict in eastern Ukraine, which has left more than 9,000 people dead.
Fearing the deal could see its market flooded with European goods, Russia has taken retaliatory measures, suspending its free-trade agreement with Ukraine and banning the import of Ukrainian food starting on Friday.
Prime Minister Arseny Yatsenyuk has put the cost of Moscow’s measures to his country at some $600 million.
President Petro Poroshenko admitted recently that Russia’s retaliatory move would cause “damage” to Ukraine’s economy but said he was “ready to pay the price” and press on with efforts to join a European Union free-trade zone.
He blasted the embargo in his New Year address, saying Moscow was trying to “economically strangle” Ukraine.
“Moscow closing its market to Ukrainian merchandise, a powerful economic attack, is another part of the war (…) against us,” Poroshenko said.
Kyiv has vowed to strike back with its own measures and is expected to announce a list of banned Russian products in the near future.
Ukraine mostly exported agricultural products, vegetables, fruit, dairy and sweets to Russia, with the countries’ trade ties shrinking by 70 percent compared to 2011, according to Russia’s deputy minister of economic development Alexei Likhachev.
“This (the Russian embargo) will of course be a problem for Ukrainian food producers, but let’s not forget that many of them have already entirely or partially reoriented their production toward alternative markets: the EU, Africa, Kazakhstan, China, the Middle East,” said UniCredit analyst Perelygin.
The impact of European products flooding onto the Ukrainian market remains unclear according to investment specialist Olexandra Brovko, with other analysts saying the effects of the deal will only be tangible in the long term given the current economic slowdown in Europe.
“It’s difficult to predict how competition will be established and what consequences this will have on Ukrainian producers,” said Brovko, who works for a Ukrainian NGO that aims to facilitate business and investment in the country.
Brovko added that the arrival of European products on Ukraine’s would not necessarily dampen demand for Ukrainian goods.
“It’s possible that certain European products will find buyers and find a niche on the market where there are no competitors,” she said.
According to economist Olexandr Valchyshen of Investment Capital Ukraine, the free-trade agreement with the EU will boost investment in the country given the “very competitive” cost of Ukrainian labor.
Ukraine’s free-trade deal with the EU comes into effect Friday, coinciding with the start of Moscow’s food embargo against Kyiv that will force the impoverished former Soviet republic to revisit its economic model.
