Ukraine faces battle to get back in the black

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Ukraine faces battle to get back in the black

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Away from the political crisis, Ukraine is also facing a future filled with economic challenges.

The country is riddled with debt and the risk
of bankruptcy is real.

The European Commission has said that up to 11 billion euros in aid could be provided over the next couple of years – money that Ukraine wants to use to resuscitate the economy.

According to Prime Minister Arseniy Yatsenyuk, the European Investment Bank and the European Bank for Reconstruction and Development are offering investments totaling 5.76 billion euros as part of the financial package.

“This money will be spent on modernising the Ukrainian economy,” he said, “building new plants, creating jobs and making Ukrainian products more competitive.”

The US has so far pledged 720 million euros and is working on a more comprehensive package.

Yatsenyuk says an opening up of new markets will also play a significant role in Ukraine’s recovery.

“EU countries announced that they will unilaterally open the European markets for Ukrainian producers and products,” he said.

He added that expert estimates show that in the first year alone, that will help bring in at least 290 million euros in additional funding.

Financial aid from Europe will not come for free – it will require painful economic reforms, like ending gas subsidies.

Ukraine’s battle to get back in the black is only just beginning.