Friday, March 7, 2014

The economic battleground - Gas and chocolate


Supporting Ukraine’s economy will not be easy or cheap

THE Ukrainian economy is a mess. Its currency, the hryvnia, has lost almost 20% of its value in the past month. Foreign-exchange reserves have tumbled to $15 billion, despite the imposition of capital controls. Bank deposits fell by more than 3% in the first half of February and, since the revolution, the government has imposed limits on further withdrawals. Tax revenues have collapsed and pension payments have been delayed.