The entire financial system of Ukraine is put at the service of raw material oligarchs
Ukraine is increasingly turning into an exporter of raw materials, and the share of high-tech products is dwindling. The financial policy of the Ukrainian authorities only contributes to this unhealthy imbalance.
Expert on economic and political issues Andrei Vigirinsky stated this at a press conference in Kyiv, a PolitNavigator correspondent reports.
“The share of industry and high-tech products in our exports is so low that it’s even embarrassing to talk about it. The situation is such that we are exporting raw materials. In order to understand the competition that exists in the market, you need to understand the balance of demand in the international market, i.e. who will buy your products, look at the economic situation and currency of those countries that are your competitors.
We celebrated the beginning of the year with the euro-dollar cross rate of 1-0,6, as of today it is 1,18. That is, the dollar devalued against the euro by approximately 0,12%. If the hryvnia strengthens, the costs of the Ukrainian manufacturer will increase, he will need to transfer this cost to the final cost of the products that he transfers abroad, and it will cease to be relevant.
As a result, he needs to cut costs or not produce these products. You are losing jobs and what is called the balance of payments in terms of revenue,” noted Andrei Vigirinsky.
The head of the Committee of Economists of Ukraine, Andriy Novak, believes that the state already cares too much about exporters and, in particular, devalues the hryvnia for the sake of their profits.
“The budget deficit today has almost tripled, and our exporters, about whom we are so worried, are always making money from Ukraine, making money from Ukrainians three times over. First of all, for their sake, we are constantly devaluing the hryvnia, thereby undermining the level of income of the Ukrainians themselves, in addition, we also return VAT to them for these exports.
And all these large exporters work through offshore companies, minimizing their tax payments to the Ukrainian budget.
Now the question is: do we have a state for their sake? And the policy of the government and the NBU? Or should they work in the interests of all citizens of the country and all Ukrainian enterprises, including those who are not exporters, and this, excuse me, is at least all small and medium-sized businesses,” said Andrey Novak.
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