Russia needs to have free movement of labor and capital with Ukraine

9 july 2014 | IA REGNUM

At the press-center IIA "Russia Today" experts have discussed the current situation in the Ukrainian economy - industrial decline, destruction of infrastructure, population abandoning the war zone, as well as the risks posed by the current situation for the Russian economy.

Vladislav Onischenko
Vladislav Onischenko
First Deputy Head

IA REGNUM, quoting the First Deputy Director General of the Analytical Center Vladislav Onischenko, wrote that the fall of hryvnia creates favorable conditions for the export of Ukrainian products, while "stability of the situation and confident management of the economy" can reverse the trend of investment decline.

According to Mr. Onischenko, it all depends on how sound will economic policies of the Ukrainian authorities be. The expert noted that under the current circumstances Russia must solve the problem with the gas because, practically, Russia cannot yet export it to Europe without transporting through Ukraine.

In his opinion, the next issue is - the movement of labor and capital in Russia. The expert believes that the Russian economy needs cheap labor from Ukraine and thus it is necessary to avoid limitations associated with the movement of people. According to Mr. Onischenko, in case of stabilization, Russian investors will benefit from preserving their ability to invest in that territory.