Friday, February 27, 2015

Western Concerns Rise On Ukraine Corruption As They Prepare To Provide Billions In Aid

Robin Emmott and Anna Yukhananov, Reuters: Insight: West's offer to rebuild Ukraine faces reality check

(Reuters) - Western powers are preparing what they say may be their most potent weapon against Moscow's interference in Ukraine - a multi billion dollar aid package to rebuild a near-bankrupt state and realize the European dream cherished by many Ukrainians.

There is just one problem: foreign governments and international financing institutions are not willing to pour money into a dysfunctional state. Only this week the businessman brought in by the new authorities to clean up the tax service was himself suspended pending a corruption inquiry.

WNU Editor: Here is an easy prediction .... much of this aid is going to be wasted, and at the end of the day Ukraine will just have a bigger debt to pay-off. Corruption and a bloated system dependent on government subsidies and assistance is one of Ukraine's biggest problems .... and I see no movement by anyone in Kiev to address these issues. This is what happens when you have a dysfunctional state mired in a war .... and Western countries should be very leery when they give money .... because I sincerely doubt that it will be paid back.


Jay Farquharson said...

They opened up the Emergency Food Reserves for public distribution last week, and there were none.

$8 billion dollars in frozen foods, canned food, flours and grains, was either used to feed the troops,

Or illegally shipped to the EU for cash.

War News Updates Editor said...

This is the first time that I am hearing about this .... and I am not surprised.

Jay Farquharson said...

WNU Editor,

They have also started food rationing in Kiev and Liev, staples of course, not luxury items.

War News Updates Editor said...

Jay .... just a heads up on how difficult it is becoming to helping family members in Ukraine. I have been sending money to my aunt in Kharkiv for the past 6 months via through Western Union .... cannot do it anymore or through any other institution .... Kiev has stopped that. Another thing I have just learned .... and it is not being reported in the West, any unusual deposits (what does that mean I do not know .... but I guess it is based on the discretion of the official) ... any unusual deposits into a bank account will result in the funds being seized. I then told my aunt to go to Belarus where I can then send money to her grandson who is there to avoid the Ukraine draft .... but he now cannot come back to Ukraine because to do so would mean that he was trying to avoid the draft, and he will be arrested immediately. I then told my aunt that she should go .... but she then told me that she will be completely checked at the border when she comes back .... and most likely her money will then be seized. The only way that I can send her euros or dollars is via through the Orthodox church .... but they will take a big cut of the proceeds.


What a mess .... you cannot even give aid if you want to .... that is how screwed up they are in Kiev.

Jay Farquharson said...

WNU Editor,

Do it the old fashioned way.

Have your Aunt set up a Corporate Bank Account, in the name of say, Porshenko's Fat Free Chocolates Inc., or YatsMobileTel LLC.

Wire transfer her the money, under an account heading called Greasy Wheels Funding.

No one in power in the Ukraine will interfere with the free flow of bribe money. Most Banks will expedite the transfer, and HSBC has an entire Division set up to help.

War News Updates Editor said...

I needed that laugh Jay. Thank you.