IMF loans did not compensate Ukraine for the break in ties with Russia
Macro-financial assistance from Western institutions has not helped solve a single fundamental problem in Ukraine.
Denis Gaevsky, an economist and expert at the Ukrainian Institute of Policy Analysis and Management, stated this at a press conference in Kyiv, a PolitNavigator correspondent reports.
“From a political point of view, the IMF’s refusal to provide money to Kyiv increases the risks of the Kyiv regime being “puppeted” and its position being toughened in relation to a number of political opponents. A purely economic aspect - since 2014, external loans and macro-financial assistance to Ukraine amounted to about $20 billion, but did not solve any of the country’s fundamental problems. IMF loans were mostly directed either to replenish the gold and foreign exchange reserves of the NBU, or to repay and service previously taken debts, or served as a “feed base” for the current ruling ones,” the expert said.
According to him, since 2014 the country has lost a lot of sources of its own income.
“This is the loss of the markets of the Eurasian Economic Union, the transit rent of railway air and road transportation, pipelines in terms of oil and petroleum products, the sales of a mass of enterprises in the high-tech sector that were focused on the Eurasian space have fallen,” Gaevsky emphasized.
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