Ukraine's Economy Will Collapse

Ukraine Interim Leader Warns Economy in Steep Decline -- Voice of America

Ukraine's interim president says his country faces serious economic problems that began long before the deadly street protests against ousted president Viktor Yanukovych.

Acting President Oleksandr Turchynov said Sunday night that the country is in a steep economic decline, even as many of the world's economies are advancing.

"On the background of the world economic recovery, Ukraine is rolling down into an abyss and is a pre-default state," he said.

Read more ....

More News On Ukraine's Economy

Ukraine Hopes for $35Bln in Western Aid -- RIA Novosti
EU examining immediate and long-term aid for Ukraine -- Reuters
Ukraine calls for urgent aid after Yanukovich ousted -- Reuters
Western nations scramble to contain fallout from Ukraine crisis -- The Guardian
Western Leaders Move to Secure Financial Aid for Ukraine -- RIA Novosti
EU examining immediate and long-term aid for Ukraine -- Reuters
Ukraine Hopes Russian Gas Price Won't Change – Report -- RIA Novosti
Hague: Ukraine faces economic collapse -- The Telegraph
White House Talks Up Aid for Ukraine With Eye on Putin -- Bloomberg Businessweek
U.S.-EU Ready to Help Cash-Strapped Ukraine as President Ousted -- Bloomberg Businessweek
Ukraine bond investors remain anxious despite relief rally -- Reuters
Ukraine Bond Rally Seen Tied to New Aid Amid Default Concern -- SFGate/Bloomberg Businessweek
What economic help for Ukraine? -- Andrew Walker, BBC
Explainer: Why Ukraine Needs Western Economic Help -- Radio Free Europe

My Comment: This is an easy prediction .... Ukraine's economy is going to collapse. Ukraine is already hinting to the West that they need $35 billion in aid ASAP .... the truth is that they need more than that .... probably $50 - $60 billion this year alone .... and God knows how much next year. For the EU .... this is money that they do not have. Russia has been the main provider of aid to Ukraine .... but I doubt that any aid is going to go to a government that Moscow now regards as illegitimate. This leaves the U.S. .... but I know that any money or financial assistance coming from Washington is a pipe-dream at best.

On a bright note .... last week my aunt (who lives in the eastern part of the country) did not get her pension payment .... but the money was deposited this morning (a week late). She is relieved .... but she is no fool .... she sees this as a sign that times are going to get rough.

Update: Here is an excellent post on how Ukraine's fiscal mess resulted in the political mess of today. Bottom line .... the EU does not have the resources (nor will it commit the reousrces) to bail the Ukrainians out.

Update #2: The financial panic is settling in .... Ukraine calls for urgent Western aid after Yanukovich ousted -- Reuters