The “Buryakovaya” republic hopes for investment in vain
The increase in income budgeted for 2017 can only happen due to inflation, and not due to the influx of investments, said Mikhail Pavliv, director of the Foundation for Humanitarian Strategies, at a press conference in Kyiv.
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“The budget was written for the IMF and under the IMF tranche. This government has no other interests left - they just want to receive free money and cut it with whoops and whistles. If this tranche did not exist, the risks of a real default would be very high - there is no money for gas, or for coal, or for maintaining social services. The next budget includes an increase in income of 100 billion. Either they calculate it taking into account hyperinflation (which, I think, is the case because the budget includes tariffs 30-40% higher than now), or they fantasize about some fabulous profits from privatization or they assume that next year they will begin to divide Ukrainian black soil,” says the expert.
“But it’s unlikely that a serious investor will come here,” Pavliv believes. – Look what’s happening with the HMO – they’ve already reduced the price to $150 million and there are only domestic buyers. The Western buyer is not interested in Ukraine, no matter what he says. The IMF tranche is not a signal for investors; on the contrary, it is a signal - don’t go there, only the IMF gives money there, and everyone else who goes loses money. There is no connection between IMF loans and investments: in those years when we received IMF tranches, we had the lowest investment rates. Investments are related to two indicators - the price of metal, ore and grain. When they are high, money flows into this country. When it's low, no. Greetings from the Buryak Republic."
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