2008–2009 Ukrainian financial crisis
Encyclopedia
Ukraine
was hit heavily by the late-2000s recession, the World Bank
expects Ukraine's economy to shrink 15% in 2009 with inflation being 16.4%.
The deficit of Ukraine's foreign trade in goods and services January through September 2009 was estimated at $1.08 billion, which was 9.5 times down on the same period in 2008, export of goods over the period decreased by 48.7%, to $27.478 billion, while imports fell by 53.5%, to $31.570 billion; export of services dropped by 23.2%, to $6.841 billion, while imports were down by 19.9%, to $3.829 billion (the deficit of Ukraine's foreign trade over the first nine months of 2008 was estimated at $10.284 billion, which was 2.7 times up on the same period of 2007).
According to a forecast by the State Employment Center unemployment in Ukraine will triple to 9% in 2009 (there was 3% unemployment at the end of 2008), which would mean about 3 million people will apply for employment services. In September 2009 the official level of unemployment was 1.9%. 95% of the population of Ukraine have felt influence of the financial crisis; in July 2009 21% of them stated that "The crisis has a catastrophic impact on me and my family", this figure dropped to 17% in October 2009. Actual year-on-year wages in Ukraine fell in October 2009 by 10.9%, while in October 2008 it grew by 4.8% year-over-year according to the State Statistics Committee of Ukraine
. The real income
s for Ukrainians
in 2009 fell down 8.5% while the nominal income went up 6.2%. The Ukrainian economy shrank 15 percent in 2009. The second Tymoshenko Government
had predicted GDP growth of 0.4% in 2009 and a slowdown in inflation to 9.5% (also in 2009), although the overwhelming majority of economists considered this forecast to be excessively optimistic.
The Ukrainian economy recovered in the first quarter of 2010.
. This made key industries such as metallurgy and machine building lay off workers, and real wages started to fall for the first time in a decade.
In 2008 the hryvnia dropped 38% against the US dollar, eclipsed only by the Icelandic krona
and the Seychelles rupee
. Since many loans and mortgages were issued in dollars and most Ukrainians are paid in hryvnyas
(Ukraine's currency), they had to buy dollars with the weak hryvnya, and so they were paying back much more on the loans than they had expected. From December 2008 till mid-May 2009 Ukrainian banks were not to allowed to grant requests for early withdrawals of bank deposits. As of September 2009 financial analysts predict a recovery of the hryvnia.
According to David Heslam of Fitch ratings
"At the root of the problem is Ukraine’s inconsistent macroeconomic policy framework, as the authorities are aiming to defend the exchange rate
while avoiding necessary fiscal tightening
in the absence of adequate sources of non-monetary financing
".
In November 2009 (Ukraine's) Minister of Economics Bohdan Danylyshyn stated that in his view the "permanent conflicts" and "lack of understanding" between the National Bank of Ukraine
(NBU) and the Cabinet of Ministers
was one of major factors of the deep fall of the Ukrainian GDP in 2009, as in his view the conflicts affected the efficiency of the anti-crisis policies of Ukraine (he also insists government should get involved in NBU's activity).
Asked in August and October 2009 "Who bears the most responsibility for the difficult socioeconomic situation in Ukraine?" about a half of all Ukrainians polled (47%) answered President of Ukraine
Viktor Yushchenko
, and 22% blamed Prime Minister of Ukraine
Yulia Tymoshenko
, while 17% of the respondents thought that the Verkhovna Rada
is also responsible for the lack of progress in solving economic problems.
introduced a moratorium on withdrawals ahead of schedule. Industrial output in November 2008 tumbled 28.6 percent, following a 19.8 decline in October 2008. Steel production
slumped 48.8 percent, oil refining
and chemical output
fell 35.2 percent and machine building
by 38.8 percent. Ukraine's economy shrunk 14.4 percent year-on-year in November 2008. Statistical data showed the gross domestic product (GDP) growth slowed to 3.6 percent in January-November compared to 5.8 percent in January-October. Ukraine's Economy Ministry expects the economy to grow 3.5-4.0 percent in 2008. The Hryvnia also lost value.
According to a poll (held November 25 through December 5, 2008) by the Horshenin Institute of Management Problems about 79% of those polled suffered from rise in prices, about 29% from delays in payment of salaries. More than some 20% have suffered from reduction of salaries. In the families of some 14.8% somebody lost their job, and some 6% said their enterprise shut down. A total of 90.8% of those polled described their financial state as "making both ends meet" and 83.1% said they are short of money for food. Only 2.4% of Ukrainians said they were not hit by the economic crisis at all.
Mid-December 2008 the International Monetary Fund
(IMF) has lowered the forecast for Ukraine's GDP in 2009 from a 2.5% growth rate to a 5% decline, the same day the Cabinet of Ministers
worsened the GDP growth forecast to 0.4% from 6% for 2009.
In November 2008, the IMF approved a stand-by loan program for Ukraine to the tune of $
16.5 billion. A second one worth $1.87 billion might be granted in February 2009.
In November 2008, the official unemployment rate increased by 0.4 percent to 2.3 (Previously 1.9% in September), the State Statistics Committee said that as of December 1 (2008), it registered 640,000 unemployed people.
, the IMF mission chief in Ukraine, stated that there were a number of encouraging signs that Ukraine's economy had started to adjust to the global crisis. According to Olena Belan, analyst at Dragon Capital, "that is a good signal for investors, showing that Ukraine is taking anti-crisis measures and the economic situation is under control." Foreign direct investment
did plunge 66% (to $2.7 billion) in the first half of 2009.
On May 18, 2009 Ukraine's State Statistics Committee reported that the deficit of Ukraine's foreign trade in the first quarter of 2009 was estimated at $419.7 million, which was 9 times down on the same period the previous year.
The Ukrainian state became the de-facto owner of Ukrhazbank (84.21% after investing UAH 3.2 billion), Rodovid Bank (99.97% after investing UAH 2.809 billion) and Bank Kyiv (99.93% after investing UAH 3.563 billion) early June 2009.
The industrial output of Ukraine in the period January-August 2009 shrank by 29.6% compared bij the same period in 2008. The fall in Ukraine's industrial output slowed to 26.7% in July 2009 compared to July 2008, compared to a fall of 27.5% in June and 31.8% in April and May 2009 (compared to 2008 again).
On September 17, 2009 the World Bank
approved a loan for Ukraine in the amount of $400 million.
According to a public opinion poll conducted by FOM-Ukraine
in September/October 2009 46.2% of those polled thought that the economic situation in the country would worsen within the next few months, while 35% stated that the economic situation in Ukraine would remain unchanged and 8% thought the situation would improve.
On November 1, 2009 the International Monetary Fund
(IMF) warned that it could cut financial assistance to Ukraine, Managing Director of the IMF Dominique Strauss-Kahn
stated he was “very worried” with President
Viktor Yushchenko
’s decision to sign a bill adopting wage and pension increases. Prime Minister
Yulia Tymoshenko
accused Yushchenko and other candidate for the Ukrainian presidential election, 2010
of backing the increase to sabotage her government
and thereby undercutting her presidential bid.
Late November 2009 acting vice governor of the National Bank of Ukraine
Vasyl Pasichnyk forecasted no mass bankruptcies in the Ukrainian banking sector.
upgraded Ukraine's rating the same day.
March 18, 2010 the National Bank of Ukraine
stated the total external debt in Ukraine increased 2.3% to $103.973 billion in 2009, and it considered a 4% GDP growth realistic for 2010 the same day.
The Ukrainian economy recovered in the first quarter of 2010 due to stronger-than-expected growth in the global economy, driven primarily by emerging Asia and Latin America, larger social transfers to the population approved in the 2010 budget law and a lower price for imported natural gas (due to the 2010 Ukrainian–Russian Naval Base for Natural Gas treaty
).
Ukraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
was hit heavily by the late-2000s recession, the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
expects Ukraine's economy to shrink 15% in 2009 with inflation being 16.4%.
The deficit of Ukraine's foreign trade in goods and services January through September 2009 was estimated at $1.08 billion, which was 9.5 times down on the same period in 2008, export of goods over the period decreased by 48.7%, to $27.478 billion, while imports fell by 53.5%, to $31.570 billion; export of services dropped by 23.2%, to $6.841 billion, while imports were down by 19.9%, to $3.829 billion (the deficit of Ukraine's foreign trade over the first nine months of 2008 was estimated at $10.284 billion, which was 2.7 times up on the same period of 2007).
According to a forecast by the State Employment Center unemployment in Ukraine will triple to 9% in 2009 (there was 3% unemployment at the end of 2008), which would mean about 3 million people will apply for employment services. In September 2009 the official level of unemployment was 1.9%. 95% of the population of Ukraine have felt influence of the financial crisis; in July 2009 21% of them stated that "The crisis has a catastrophic impact on me and my family", this figure dropped to 17% in October 2009. Actual year-on-year wages in Ukraine fell in October 2009 by 10.9%, while in October 2008 it grew by 4.8% year-over-year according to the State Statistics Committee of Ukraine
State Statistics Committee of Ukraine
State Statistics Committee of Ukraine is the government agency responsible for collection and dissemination of statistics in Ukraine. For brevity it also referred to as Derzhkomstat. In 2010 the committee was transformed into the State Service of Statistics under the Ministry of Economic...
. The real income
Real income
Real income is the income of individuals or nations after adjusting for inflation. It is calculated by subtracting inflation from the nominal income...
s for Ukrainians
Ukrainians
Ukrainians are an East Slavic ethnic group native to Ukraine, which is the sixth-largest nation in Europe. The Constitution of Ukraine applies the term 'Ukrainians' to all its citizens...
in 2009 fell down 8.5% while the nominal income went up 6.2%. The Ukrainian economy shrank 15 percent in 2009. The second Tymoshenko Government
Second Tymoshenko Government
The second Tymoshenko Government was appointed on December 18, 2007 as a coalition between Bloc of Yulia Tymoshenko and Our Ukraine-People's Self-Defense Bloc , OU-PSD is the party of then-President of Ukraine Viktor Yushchenko, following the 2007 Ukrainian parliamentary election...
had predicted GDP growth of 0.4% in 2009 and a slowdown in inflation to 9.5% (also in 2009), although the overwhelming majority of economists considered this forecast to be excessively optimistic.
The Ukrainian economy recovered in the first quarter of 2010.
Reasons for crisis
Analysts say the reasons for the crises are slumping steel prices, local banking problems and a the cutting of Russian gas supply of January 20092009 Russia–Ukraine gas dispute
The Russia–Ukraine gas dispute of 2009 was a pricing dispute between Russia and Ukraine that occurred when Russian natural gas company Gazprom refused to conclude a supply contract for 2009 unless Ukrainian gas company Naftogaz paid its accumulating debts for previous gas supplies...
. This made key industries such as metallurgy and machine building lay off workers, and real wages started to fall for the first time in a decade.
In 2008 the hryvnia dropped 38% against the US dollar, eclipsed only by the Icelandic krona
Icelandic króna
The króna is the currency of Iceland. The króna is technically subdivided into 100 aurar , but in practice this subdivision is no longer used....
and the Seychelles rupee
Seychelles rupee
The rupee is the currency of the Seychelles. It is subdivided into 100 cents. In the local Seychellois Creole language, it is called the roupi. The international currency code is SCR. The abbreviations SR and SRe are sometimes used.-History:The Seychelles rupee was introduced in 1914...
. Since many loans and mortgages were issued in dollars and most Ukrainians are paid in hryvnyas
Ukrainian hryvnia
The hryvnia, sometimes hryvnya or grivna ; sign: ₴, code: , has been the national currency of Ukraine since September 2, 1996. The hryvnia is subdivided into 100 kopiyok. In medieval times, it was a currency of Kievan Rus'....
(Ukraine's currency), they had to buy dollars with the weak hryvnya, and so they were paying back much more on the loans than they had expected. From December 2008 till mid-May 2009 Ukrainian banks were not to allowed to grant requests for early withdrawals of bank deposits. As of September 2009 financial analysts predict a recovery of the hryvnia.
According to David Heslam of Fitch ratings
Fitch Ratings
The Fitch Group is a majority-owned subsidiary of FIMALAC, headquartered in Paris. Fitch Ratings, Fitch Solutions and Algorithmics, are part of the Fitch Group....
"At the root of the problem is Ukraine’s inconsistent macroeconomic policy framework, as the authorities are aiming to defend the exchange rate
Exchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...
while avoiding necessary fiscal tightening
Fiscal policy
In economics and political science, fiscal policy is the use of government expenditure and revenue collection to influence the economy....
in the absence of adequate sources of non-monetary financing
Monetary policy
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment...
".
In November 2009 (Ukraine's) Minister of Economics Bohdan Danylyshyn stated that in his view the "permanent conflicts" and "lack of understanding" between the National Bank of Ukraine
National Bank of Ukraine
National Bank of Ukraine is the central bank of Ukraine. Its headquarters building, constructed between 1902 and 1934, is located at no. 9 Institutska St., in Kiev-History:...
(NBU) and the Cabinet of Ministers
Cabinet of Ministers of Ukraine
The Cabinet of Ukraine is the highest body of state executive power in Ukraine also referred to as the Government of Ukraine...
was one of major factors of the deep fall of the Ukrainian GDP in 2009, as in his view the conflicts affected the efficiency of the anti-crisis policies of Ukraine (he also insists government should get involved in NBU's activity).
Asked in August and October 2009 "Who bears the most responsibility for the difficult socioeconomic situation in Ukraine?" about a half of all Ukrainians polled (47%) answered President of Ukraine
President of Ukraine
Prior to the formation of the modern Ukrainian presidency, the previous Ukrainian head of state office was officially established in exile by Andriy Livytskyi. At first the de facto leader of nation was the president of the Central Rada at early years of the Ukrainian People's Republic, while the...
Viktor Yushchenko
Viktor Yushchenko
Viktor Andriyovych Yushchenko is a former President of Ukraine. He took office on January 23, 2005, following a period of popular unrest known as the Orange Revolution...
, and 22% blamed Prime Minister of Ukraine
Prime Minister of Ukraine
The Prime Minister of Ukraine is Ukraine's head of government presiding over the Cabinet of Ministers of Ukraine, which is the highest body of the executive branch of the Ukrainian government....
Yulia Tymoshenko
Yulia Tymoshenko
Yulia Volodymyrivna Tymoshenko , née Grigyan , born 27 November 1960, is a Ukrainian politician. She was the Prime Minister of Ukraine from 24 January to 8 September 2005, and again from 18 December 2007 to 4 March 2010. She placed third in Forbes Magazine's List of The World's 100 Most Powerful...
, while 17% of the respondents thought that the Verkhovna Rada
Verkhovna Rada
The Verkhovna Rada of Ukraine is Ukraine's parliament. The Verkhovna Rada is a unicameral parliament composed of 450 deputies, which is presided over by a chairman...
is also responsible for the lack of progress in solving economic problems.
2008
The share of problem loans in bank portfolios grew to 10.3 percent by December 11, 2008 and is continuing to grow. Banks have all but stopped issuing loans, and clients have hurried to withdraw deposits. In October 2008 the National Bank of UkraineNational Bank of Ukraine
National Bank of Ukraine is the central bank of Ukraine. Its headquarters building, constructed between 1902 and 1934, is located at no. 9 Institutska St., in Kiev-History:...
introduced a moratorium on withdrawals ahead of schedule. Industrial output in November 2008 tumbled 28.6 percent, following a 19.8 decline in October 2008. Steel production
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...
slumped 48.8 percent, oil refining
Oil refinery
An oil refinery or petroleum refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas...
and chemical output
Chemical industry
The chemical industry comprises the companies that produce industrial chemicals. Central to the modern world economy, it converts raw materials into more than 70,000 different products.-Products:...
fell 35.2 percent and machine building
Machine
A machine manages power to accomplish a task, examples include, a mechanical system, a computing system, an electronic system, and a molecular machine. In common usage, the meaning is that of a device having parts that perform or assist in performing any type of work...
by 38.8 percent. Ukraine's economy shrunk 14.4 percent year-on-year in November 2008. Statistical data showed the gross domestic product (GDP) growth slowed to 3.6 percent in January-November compared to 5.8 percent in January-October. Ukraine's Economy Ministry expects the economy to grow 3.5-4.0 percent in 2008. The Hryvnia also lost value.
According to a poll (held November 25 through December 5, 2008) by the Horshenin Institute of Management Problems about 79% of those polled suffered from rise in prices, about 29% from delays in payment of salaries. More than some 20% have suffered from reduction of salaries. In the families of some 14.8% somebody lost their job, and some 6% said their enterprise shut down. A total of 90.8% of those polled described their financial state as "making both ends meet" and 83.1% said they are short of money for food. Only 2.4% of Ukrainians said they were not hit by the economic crisis at all.
Mid-December 2008 the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
(IMF) has lowered the forecast for Ukraine's GDP in 2009 from a 2.5% growth rate to a 5% decline, the same day the Cabinet of Ministers
Cabinet of Ministers of Ukraine
The Cabinet of Ukraine is the highest body of state executive power in Ukraine also referred to as the Government of Ukraine...
worsened the GDP growth forecast to 0.4% from 6% for 2009.
In November 2008, the IMF approved a stand-by loan program for Ukraine to the tune of $
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
16.5 billion. A second one worth $1.87 billion might be granted in February 2009.
In November 2008, the official unemployment rate increased by 0.4 percent to 2.3 (Previously 1.9% in September), the State Statistics Committee said that as of December 1 (2008), it registered 640,000 unemployed people.
2009
Ukraine's banking system recorded losses of 7 billion hryvnias (UAH) ($909 million) in the first quarter of 2009 compared to a profit of 2.1 billion hyrnvias in the same period a year ago, according to a central bank report of April 22, 2009. In April 2009 the IMF forecast a 8.0 percent shrink of the Ukrainian economy in 2009 and a 1.0 percent grow in 2010. Mid-April 2009 Ceyla PazarbasiogluCeyla Pazarbasioglu
Ceyla Pazarbasioglu is a Turkish economist. As of January 2010 she is an assistant to the director of the International Monetary Fund's Monetary and Capital Markets department and will in charge of financial supervision.-Biography:...
, the IMF mission chief in Ukraine, stated that there were a number of encouraging signs that Ukraine's economy had started to adjust to the global crisis. According to Olena Belan, analyst at Dragon Capital, "that is a good signal for investors, showing that Ukraine is taking anti-crisis measures and the economic situation is under control." Foreign direct investment
Foreign direct investment
Foreign direct investment or foreign investment refers to the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor.. It is the sum of equity capital,other long-term capital, and short-term capital as shown in...
did plunge 66% (to $2.7 billion) in the first half of 2009.
On May 18, 2009 Ukraine's State Statistics Committee reported that the deficit of Ukraine's foreign trade in the first quarter of 2009 was estimated at $419.7 million, which was 9 times down on the same period the previous year.
The Ukrainian state became the de-facto owner of Ukrhazbank (84.21% after investing UAH 3.2 billion), Rodovid Bank (99.97% after investing UAH 2.809 billion) and Bank Kyiv (99.93% after investing UAH 3.563 billion) early June 2009.
The industrial output of Ukraine in the period January-August 2009 shrank by 29.6% compared bij the same period in 2008. The fall in Ukraine's industrial output slowed to 26.7% in July 2009 compared to July 2008, compared to a fall of 27.5% in June and 31.8% in April and May 2009 (compared to 2008 again).
On September 17, 2009 the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
approved a loan for Ukraine in the amount of $400 million.
According to a public opinion poll conducted by FOM-Ukraine
FOM-Ukraine
The FOM-Ukraine is political sociology company in Ukraine. It is joint venture of FOM company favoring Viktor Yanukovych were the only allowed to be publicized on TV during Ukrainian presidential election in 2004. All others polling was censored....
in September/October 2009 46.2% of those polled thought that the economic situation in the country would worsen within the next few months, while 35% stated that the economic situation in Ukraine would remain unchanged and 8% thought the situation would improve.
On November 1, 2009 the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
(IMF) warned that it could cut financial assistance to Ukraine, Managing Director of the IMF Dominique Strauss-Kahn
Dominique Strauss-Kahn
Dominique Gaston André Strauss-Kahn , often referred to in the media, and by himself, as DSK, is a French economist, lawyer, politician, and member of the French Socialist Party...
stated he was “very worried” with President
President of Ukraine
Prior to the formation of the modern Ukrainian presidency, the previous Ukrainian head of state office was officially established in exile by Andriy Livytskyi. At first the de facto leader of nation was the president of the Central Rada at early years of the Ukrainian People's Republic, while the...
Viktor Yushchenko
Viktor Yushchenko
Viktor Andriyovych Yushchenko is a former President of Ukraine. He took office on January 23, 2005, following a period of popular unrest known as the Orange Revolution...
’s decision to sign a bill adopting wage and pension increases. Prime Minister
Prime Minister of Ukraine
The Prime Minister of Ukraine is Ukraine's head of government presiding over the Cabinet of Ministers of Ukraine, which is the highest body of the executive branch of the Ukrainian government....
Yulia Tymoshenko
Yulia Tymoshenko
Yulia Volodymyrivna Tymoshenko , née Grigyan , born 27 November 1960, is a Ukrainian politician. She was the Prime Minister of Ukraine from 24 January to 8 September 2005, and again from 18 December 2007 to 4 March 2010. She placed third in Forbes Magazine's List of The World's 100 Most Powerful...
accused Yushchenko and other candidate for the Ukrainian presidential election, 2010
Ukrainian presidential election, 2010
The Ukrainian presidential election of 2010 is Ukraine's fifth presidential election since declaring independence from the Soviet Union in 1991. The first round was held on January 17, 2010...
of backing the increase to sabotage her government
Second Tymoshenko Government
The second Tymoshenko Government was appointed on December 18, 2007 as a coalition between Bloc of Yulia Tymoshenko and Our Ukraine-People's Self-Defense Bloc , OU-PSD is the party of then-President of Ukraine Viktor Yushchenko, following the 2007 Ukrainian parliamentary election...
and thereby undercutting her presidential bid.
Late November 2009 acting vice governor of the National Bank of Ukraine
National Bank of Ukraine
National Bank of Ukraine is the central bank of Ukraine. Its headquarters building, constructed between 1902 and 1934, is located at no. 9 Institutska St., in Kiev-History:...
Vasyl Pasichnyk forecasted no mass bankruptcies in the Ukrainian banking sector.
2010
Ukraine's total foreign debt (state and corporate) had reached 93.5% of the 912.563 billion Hryvnya GDP in March 2010; late February 2010 the Ukrainian Finance Ministry had reported that the country's total state debt by early 2010 was to 32.9% of the GDP. Standard & Poor'sStandard & Poor's
Standard & Poor's is a United States-based financial services company. It is a division of The McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds. It is well known for its stock-market indices, the US-based S&P 500, the Australian S&P/ASX 200, the Canadian...
upgraded Ukraine's rating the same day.
March 18, 2010 the National Bank of Ukraine
National Bank of Ukraine
National Bank of Ukraine is the central bank of Ukraine. Its headquarters building, constructed between 1902 and 1934, is located at no. 9 Institutska St., in Kiev-History:...
stated the total external debt in Ukraine increased 2.3% to $103.973 billion in 2009, and it considered a 4% GDP growth realistic for 2010 the same day.
The Ukrainian economy recovered in the first quarter of 2010 due to stronger-than-expected growth in the global economy, driven primarily by emerging Asia and Latin America, larger social transfers to the population approved in the 2010 budget law and a lower price for imported natural gas (due to the 2010 Ukrainian–Russian Naval Base for Natural Gas treaty
2010 Ukrainian–Russian Naval Base for Natural Gas treaty
The Russian Ukrainian Naval Base for Gas treaty, widely referred to as the Kharkiv Accords or the Kharkiv Pact in the Russian and Ukrainian media, is a treaty between Ukraine and Russia whereby the Russian lease on naval facilities in Crimea would be extended beyond 2017 by 25 years with an...
).