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On the Brink of Civil Confrontation
UKRAINE · In Brief · 02 Dec 2013

The events of last weekend shocked everyone.  On the morning of November 30 riot police attacked protesters at Maidan Square and brutally beaten the people, who were guarding the camp.  Shocking videos and photos flooded media and social nets.  It appeared that for this action the authorities bro...

Are We at Customs Union?
UKRAINE · In Brief · 29 Nov 2013

Unfortunately, results of Vilnius Summit did not surprise with positive results.  As we discussed, Victor Yanukovitch decided not to decide at this time.  The general opinion is that Moscow stands behind of such decision.  We do not want to refute this statement – pressure from Moscow and possibi...

Fumbling the Euro-Bluff
UKRAINE · Report · 26 Nov 2013

Executive Summary Just a few days after the anniversary of the Orange Revolution, on November 24th thousands of Ukrainians took the streets to protest the delay of the EU Association agreement.After long preparation for the Vilnius Summit, and widely-promoted Euro-integration prospects, the Cabin...

Is It New Revolution?
UKRAINE · In Brief · 24 Nov 2013

The exciting bluffing game of Viktor Yanukovicth was interrupted with social outburst which has been aggravating since the stoppage of Euro-integration process was announced.  On that day (November 21st) social nets exploded with comments of people who emotionally reacted to the change in Ukraine...

Does Ukraine Stop EU Association Process?
UKRAINE · In Brief · 21 Nov 2013

 A strange document has been released by the Cabinet today. The prime-minister Mykola Azarov ordered the state bodies to stop preparation activities to EU Association agreement.  The regulation also suggested creation of three-side working group with representatives of EU and Russia for solving t...

Euro-integration Stories
UKRAINE · Report · 29 Oct 2013

Executive Summary Every other burning issue seems forgotten, as the whole country waits to see whether Ukraine and the EU will sign the Association Agreement. Businesses are anticipating positive news. The FX market has calmed, since officials have promised lots of foreign cash after the signing....

Tymoshenko Agreed to go to Germany for Treatment
UKRAINE · In Brief · 04 Oct 2013

Finally we have a piece of positive news about Ukraine, the jailed former Prime Minister Yulia Tymoshenko agreed to go to Germany for treatment thus opening the way for signing EU Association agreement in November.Recall, over the last few months the main uncertainty about potential EU Associatio...

Critical Choices
UKRAINE · Forecast · 25 Sep 2013

Executive Summary November will be a critical month for Ukraine. The results of the Eastern Partnership Summit will address many lingering questions. We will soon know how serious the authorities are about releasing jailed former Prime Minister Yulia Tymoshenko; how likely Ukraine is to cooperate...

Gross Reserves Fell to 5% in August
UKRAINE · In Brief · 09 Sep 2013

Gross foreign reserves declined $1.1 billion (4.7% m/m) in August down to $21.65 billion or 2.4 months of future imports, according to the Central bank report on September 6th.It is the lowest level of gross foreign reserves over the last seven years.  Still in 2006 when Ukraine had reserves near...

Budget Deficit Reaches 2% of GDP just for 7M 2013
UKRAINE · In Brief · 01 Sep 2013

Through January-July 2013 the central budget deficit reached UAH 30.3 billion (2.0% of GDP) or 60% from the targeted UAH 50.6 billion deficit for 2013.  It is very unusual to see such a high fiscal deficit by the end of July.  Traditionally, the authorities used to postpone the main part of publi...

Russia the Troublemaker
UKRAINE · Report · 27 Aug 2013

Executive SummaryRussia is actively intimidating Ukraine, in light of the November Eastern Partnership Summit in Vilnius, where Kyiv expects to sign the EU Association Agreement. In mid-August, Ukrainian exports were effectively stopped for one week at the Russian border. The conflict has seeming...

Will Ukraine Fall?
UKRAINE · Report · 30 Jul 2013

Executive SummaryUnprecedented social unrest, coming on atop severe economic problems, could lead to massive investor and capital flight. It’s hard to pinpoint just how or when that might happen -- but we foresee things proceeding along an extremely turbulent path in the runup to the 2015 preside...

Gross reserves declined to $23.1 billion in June
UKRAINE · In Brief · 06 Jul 2013

Gross foreign reserves declined $1.4 billion (5.7% m/m) in June down to $23.1 billion or 2.55 months of future imports, according to the Central bank report on July 5th.It has been already for the second month in row gross reserves have been falling.  This tendency was the direct consequence of Q...

Budget revenues down 8.1% y/y in June
UKRAINE · In Brief · 04 Jul 2013

Budget revenues declined 8.1% y/y in June, according to Treasury report on July 3rd.  That was already third month in row state collections have been sliding.  For the first six months of the year state revenues went down 0.3% y/y (against 4.9% y/y 2013 revenues plan).  Such trend confirms our vi...

Alert: Currency Risk Ahead
UKRAINE · Forecast · 25 Jun 2013

Executive Summary Ukraine is facing a new challenge: QE3 tapering. The end of the cheap money era will change a lot for the economy.Over the past year, only the abundant international liquidity has propped up the hryvnia and, by extension, economic growth.The outflow of money from emerging market...