In Kyiv they found out that sanctions against Russia will hit the Ukrainian economy

12.08.2014 10:14
  (Moscow time)
Views: 692
 
Ukraine, Economy


Kyiv, August 12 (Navigator, Yuri Kovalchuk) – Sanctions against Russia, which were imposed by the West, and also initiated by the government of Ukraine itself, will also hit the Ukrainian economy.

This was admitted by the head of the Institute of Economic Research and Political Consultations, Igor Burakovsky, on Channel 5.


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“The situation is twofold - we are now in an economic crisis, and we understand that sanctions against Russia will be painful for us as well. Already, export volumes to Russia and industrial cooperation have fallen significantly. In particular, if we talk about the decrease in the volume of Ukrainian exports in the military-defense sector, which is 1,2 billion dollars, and the termination of such cooperation, then this is a big economic loss for us,” the expert believes.

Igor Burakovsky also warns that sanctions against the Russian Federation will require serious mechanisms to support the economy from Ukraine.

“I want to say that if we impose sanctions, then we must introduce some kind of compensatory means. That is, it should either be budget support, but it won’t be, because there is no money in the budget. In this case, there must be radical means related to decentralization, deregulation of the economy, tax amnesty, etc., and this is also a reduction in taxes. In general, I want to say that sanctions are a very difficult political and economic game - it can produce results, but it requires a clear understanding of who and how these sanctions were imposed,” argues Burakovsky.

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Kyiv has learned that sanctions against Russia will hit the Ukrainian economy.






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