This is a curated list of the biggest economic news in Ukraine for the past week.
This past week has been all about independence. Tuesday, Ukraine celebrated 30 years of independence with an enormous military parade in Kyiv. Much of the news flow has been dominated by this event and to general stories about Ukrainian struggle for independence.
Much in line with this theme, the first Crimean Platform was held in Kyiv with presidents from Latvia, Lithuania, Estonia, Poland, Slovakia, Hungary, Moldova, Slovenia, and Finland and the president of the European Council and the prime ministers of Romania, Georgia, Croatia, and Sweden.
Switzerland and the Czech Republic sent their speakers of parliament. Turkey, France, Germany, Spain, Italy, Belgium, Austria, the Netherlands, Luxembourg, Ireland, Denmark, Bulgaria, Montenegro, and North Macedonia sent ministers of foreign affairs. Britain and Portugal will be represented by defense ministers.
The U.S. delegation with a presidential status will be represented by the energy secretary. Germany also delegated the energy minister. The multilateral summit of world leaders and international organizations meeting to reaffirm their support for Ukraine is arguably the largest diplomatic effort of the Zelensky Administration.
Naturally, it was not well received in Russia who strongly believe that Crimea is Russian and not Ukrainian.
The Ukrainian Finance Ministry has suggested that the current 18-month SBA with the International Monetary Fund is extended with 6 months, said the Finance Minister Serhiy Marchenko.
“It is being discussed, but there is no final decision yet. That is, the stand-by program could be extended for six months. But it is too early to talk about such an extension,” Marchenko said.
Naturally, IMF would have to agree to this and as of now they have not reached a decision. It is still expected that the IMF mission will return to Kyiv in September following a conversation between the President of Ukraine and IMF chief Kristalina Georgieva.
Russian gas meets European bureaucracy
A German court has ruled, that Russia might only be allowed to use half of the Nord Stream 2 gas pipeline capacity. Because of EU regulations, half the pipeline’s capacity will have to be auctioned to third parties because of monopoly regulations.
Naturally, this has been well received in Ukraine, who has been opposing the pipeline for the entire duration of the project. Nord Stream 2 will make the gas transit from Russia to EU through Ukraine obsolete and that, in turn, will cost Ukraine a lot of money.
The decision is not final and appeals are already on their way to turn around the court decision.
Zelensky wants American investments
Ukrainian President Volodymyr Zelensky is traveling to America on August 31 to meet U.S President Joe Biden and is expected to come with a list of wishes for future cooperation. Among other things, Zelensky is hoping to attract more investments to Ukraine’s titanium industry and is expected to push for a free trade agreement with its strategic partner.
Zelensky is also expected to be asking for more American military support after the escalation near the frontline in Donbas in Spring, where Russia increased its military presence near the border and sparked tensions. Previously, Zelensky pushed for Ukrainian NATO membership, and it is also possible to be discussed.
Suggestion: The Museum of Corruption
Ukraine Nu visited the Museum of Corruption, the former palace of president Viktor Yanukovich. The Maidan Revolution that ousted Yanukovich was easily one of the biggest events in the history of independent Ukraine.
If you aren’t blown away by the enormous garden or its golden fence, the actual residence of former President Viktor Yanukovych is sure to do the trick. It is built like a palace in secrecy by billions of hryvnias stolen from the country’s treasury. Inside, you will find a one-million-dollar chandelier, hidden passages, and a 2.5 million dollar piano.
Read more here:
The economy is recovering
According to Ukraine Business News, Prime Minister Denis Shmyhal has told the government that the economy is recovering after the coronavirus hit it has taken.
“For the first time in many months, the agricultural sector grew by 2.5%. There’s an active upturn is in important industries. Metallurgy has grown by 7% this year, mechanical engineering – by 10%.”