12 August 2014

Ukraine - Could it get any worse?

It would be fair to say the business environment in Ukraine is well and truly ****ed.

Even before the Russians started trying to dismember parts of Ukraine the country was in a mess.
Unemployment is high. Inflation is out of control.
Public finances are in a mess. Although we now know that Yanukovych stole billions, it is doubtful if any of the stolen money, even when found will find its way back to Ukraine.
The government is in a mess. The public sector remains part of the old soviet system of doing things, or usually the system of not doing anything. Always easier to say NO just in case.
The parliament is still made up of members from the old regime and old way of doing things for their own personal gain. God forbid they would think about doing anything for the people of the country.

Businesses are not doing much and their employees are going unpaid for many months.

Oh...and the currency has gone into steep decline.  So, not a good environment for doing business in Ukraine.

The level of corruption is probably a little less than what it was under the old regime. We hope.
Many commentators claim that the black economy in Ukraine is over 60 percent.
There is still a massive hole in the country's tax collection. The road to recovery is going to be a long way.

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