ECONOMIC HARAKIRI

The Ukrainian government decided once again to bid farewell to Russia, having struck a blow to the economy. The own economy. The rejection of the “Program for Economic Cooperation with Russia” will bring Ukraine further losses, job losses and further impoverishment of the population.
On March 21, on the eve of Fool’s Day, the Cabinet of Ministers unanimously and without discussion adopted a suicidal decision to end the “Program for Economic Cooperation with Russia for 2011-2020”, explaining its decision by “national interests of the country.” “We will do everything to ensure that the aggressor country pays a high price for aggression in Ukraine,” Prime Minister Vladimir Groisman said. At the same time, he did not say what price Ukraine would pay for it and, most importantly, its people.
“The program of economic cooperation with Russia for 2011-2020” was adopted and signed in June 2011. It provided for the development of a free trade regime, mutual protection of investments, the creation of an integrated system of payment and settlement operations and the provision of free movement of citizens of the two countries. It also talked about the integration of the aviation complexes of the two countries, the joint development and development of technologies for exploration and production of gas from unconventional sources, including gas-bearing shales and sandstones, as well as joint development and exploitation of hydrocarbon, and much more.
Kiev now does not need it. According to Groisman, the matter is “in reorienting the Ukrainian economy and increasing exports to the EU and other countries of the world.”
Not all experts and specialists see in this decision only symbolism. Ukrainian economists and politicians unanimously say that such an ill-considered decision will harm only Ukraine, but not Russia.
“We will lose tens of thousands working places, loss of budget revenues and further impoverishment of the people. This is what it will lead to. Otherwise, as a fool, it can not be called. The Ukrainian economy is going through not the best of times. It is in a condition both after a heart attack. First of all, the machine-building, metallurgy, and energy industries will suffer,” the Verkhovna Rada deputy Vadim Novinsky commented on the government’s decision, by the way, one of the oligarchs.
The economist Alexander Okhrimenko is sure that the decision of the Cabinet will hit first of all the Ukrainian economy, because “Ukraine supplies almost half of the machine-building products to Russia, and only 4% to the EU”.
Note that the government of Ukraine has already promised to compensate for the loss of the market with Russia by the EU market, but there is no positive result and will not be. Kiev lost $ 35 billion, and earned $ 1.5 billion on cooperation with the EU. What kind of compensation is it? Ukraine will not be allowed to enter Ukraine with Ukrainian goods. Europe needs only raw materials from Ukraine. Now Ukraine has increased the supply of iron ore to Germany, but Europeans are in no hurry to buy the steel that is produced by Ukrainian metallurgical enterprises.
Breaking the relationship does not require a lot of intelligence. But to raise the economy and protect the interests of the country – this is not enough for the Ukrainian government. According to some estimates, if there were not the markets of Bangladesh, Thailand, Egypt and Turkey, the Ukrainian economy would not have existed for a long time.
Konstantin Zatulin, First Deputy Chairman of the State Duma Committee on CIS Affairs, Eurasian Integration and Relations with Compatriots, believes that “for the Ukrainian authorities, aggravation of relations with Russia is much more important than the well-being of one’s own country.”
Kiev is struggling to demonstrate solidarity with the West and also at least something to threaten Russia. Even if they suffer their own interests. What is significant – the Cabinet adopted this decision without discussion. It’s not surprising: the election is just around the corner, Poroshenko and his proteges in power need the support of the West, especially when the internal fronts are strengthened due to the support of the oligarchs – a number of political forces that will try to pull out the chair from under the incumbent president. And then Groisman will remain out of work. So we have to invent more and more new ways to annoy Russia – hence the talk of withdrawing from the CIS, the Treaty of Friendship, Cooperation and Partnership and the breakdown of the economic program.
At the same time, some Ukrainian experts believe that Russia will not respond and it will be possible to further cheat the cheeks, declaring the end of relations with the Russian Federation.

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