The crisis in Ukraine will take on enormous proportions – the ex-Minister of Economy predicts a disaster
Ukraine is facing a crisis, the scale of which will be unexpectedly enormous. Due to record high gas prices, businesses will be forced to close or greatly increase the prices of goods.
Former Minister of Economy Viktor Suslov stated this on the UkrLive TV channel, a PolitNavigator correspondent reports.
“For all enterprises in our economy, in industry, the price of gas is determined by the price on the Ukrainian energy exchange. At the same time, the basis of this price is the exchange price in Europe, which has already exceeded two thousand dollars. And accordingly, today there is a message that on the Ukrainian exchange the price for our industry has already reached 71 thousand hryvnia,” he noted.
“Just now, before the broadcast, I read a statement from the confectionery industry. They announce that due to such a sudden and huge increase in gas prices, most likely this industry will have to stop operating. Bakery factories say the same thing; chemical plants are shutting down.
In surveys published by the Federation of Employers, more than 90% of surveyed gas-consuming enterprises stated that they cannot operate competitively in such conditions; their only option is to either stop working or sharply increase prices. There are no recent data, but in October the National Bank published data that prices in industry increased by 57% in one month, by the way.
In November the situation was no better, in December we will see that we are creeping into a situation of huge inflation. Therefore, if someone thinks that people will save a lot on regulated gas tariffs, everyone goes to the store, you yourself see how prices rise there literally every day, and we are at the beginning.
Therefore, the decisions that have now been made are generally ineffective. We are destroying our industry; here the crisis can acquire completely unexpected, enormous proportions.
The shutdown of enterprises means unemployment, a drop in the income of all budgets - including local ones, and the situation with payment for the same gas will be even worse. This topic is being lost, but it is the main one for today,” said Suslov.
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