#Official Commentary of Marina Zheynova on Ukrainian economy’s reorientation process
Nearly three years after the “Maidan” in Ukraine I would like to analyse how the actions of the Ukrainian authorities affected one of the most promising and potentially wealthy country, and how the reorientation of the economy has led Ukraine to a complete failure of economic and social policies.
The slogan of the campaign “To live in a new way” has been misinterpreted by the Ukrainian voter. These words referred to the command of a chocolate tycoon and not to the common people. And indeed, business Ukrainian of the Constitution guarantor has grown significantly, which cannot be said about the abundance of the ordinary citizen.
A number of protests rolled across Ukraine, which demanded the restoration of relations with the neighbouring country, the Russian Federation, since no one has provided the promised alternative market. So, more than 500 employees of the Zaporozhye plant of household appliances sent an appeal to President of Ukraine Petro Poroshenko and demanded the speedy restoration of trade and economic relations with Russia. I want to add there are no problems associated with rupture of economic relations at the “Roshen” factory, located in Lipetsk, belonging to the main Ukrainian oligarch.
I agree that the process of getting rid of the remnants that all we got from Ukraine is rather complicated. It includes costly nature of production, raw material export orientation, huge external debt, unsustainable use of resources and productive capacities, and so on. But in the Republics of Donbass and Crimea, in contrast to the rest of Ukraine, the modernisation and establishment of new contacts with Russian partners takes place. That is why in Ukraine there is a decrease in production volumes due to the impossibility of re-orientation to other foreign markets and inconsistencies with European standards. Rising unemployment and a sharp decline in living standards are a clear proof of the destructive policy of Ukrainian oligarchy.
Moreover, in Ukraine there have been changes in the sectoral structure of the national income – reduction of the share of agriculture and the share of industrial production (metallurgy, fuel and energy complex, mechanical engineering) because of, again, closed markets and hard quotas. As a consequence, any kind of development is out of the question.
The conclusion is clear: trade wars hurt everyone. But once it happened, you need to get out of the current situation and try to get not only lessons, but also at least some benefit. Introducing the economic blockade and leaving the young Republics to fend for themselves, Ukraine thus opens up new opportunities and new markets for us.
Marina Zheynova, the DPR People’s Council deputy