The shadow economy of Ukraine reached a record high of 42% of GDP in 2014. This fact is recognized in the Ukrainian government. At the same time the rise in prices, the decline in production and exports accelerate in the country. The Ukrainian GDP in the first quarter fell by more than 17%, while exports declined by almost a third. At the same time, Kiev requires the debt relief and refuses the payment of interest, and Ukrainian officials seek increase of their own salaries from the European Union.
No investor will invest in the economy of the warring country
Leonid Grigoriev, the Chief Adviser to the Head of the Analytical Center, commented on the situation to "Nezavisimaya Gazeta". According to him, it is important to remember that the decline in the Ukrainian economy has begun even before the revolution, at the end of 2012. "Even 20 years ago, the economy was at the level of Turkey and Romania. Now these countries are ahead, but the situation in Ukraine remained the same as it was 20 years ago," he said. The expert considers that any positive change in the country is possible only when peace is established in the country. "No investor will invest in the economy of a country at war without being sure of the development of the country at least for the next 5-10 years," said Mr. Grigoriev.