Ukraine crisis- The drastic Economic slowdown

The Russia-Ukraine conflict is gradually giving way to a much desolate Ukraine, sliding to cut off the nation’s economy.   This geopolitical unrest is affecting industries ranging from electricity suppliers to food processing.   Disruptions in the mining industry is being felt with power plants deprived of resources while Ukraine’s biggest poultry producer is now looking for incubatory eggs abroad.   Following the conflict between the two countries, pro-Russian rebels have succeeded in paralysing the eastern regions of Ukraine.   The International Monetary Fund (IMF) has proclaimed that the $17 billion might not be enough to revamp Ukraine’s economy out if its idleness.   It also stated that by the time the extension of this conflict ends in 2015, Ukraine will witness a $19 billion hole in its finances.   Erik Berglof, chief economist at the European Bank for Reconstruction and Development states that the damages incurred over the country has damaged its backbone; it will take much time to re-construct everything.   Investors are already on their guard following the cut off in energy flows from Russia, pulling Ukraine down to the worst scenario, even from the 2009 recession.   Source: Bloomberg
Priscilla Camryn By: Priscilla Camryn
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