16 May, 2022 14:20

HomeBusiness News

Ukraine warns of draconian measures to support crashing economy

(Unbelievable since they got $54 billion this year alone. Proof of money laundering)

An extended conflict with Russia may lead to huge tax hikes and nationalization

The Ukrainian government will take “painful” measures if the military conflict in the country lasts another three or four months, according to the country’s Finance Minister Serhiy Marchenko. He said that the drastic steps may include a sharp increase of taxes, spending cuts as well as nationalization.

“What in recent years has become a fairly market-driven and free-wheeling economy could face a wave of nationalization that will undo years of hard progress,” Marchenko said in an interview with The Economist.

The minister cited the latest forecast revealed by the World Bank that expects the Ukrainian economy to shrink by 45% in 2022.

According to Marchenko, customs revenue fell by about a quarter due to a reduction in imports and the dropping of many duties.

He highlighted that the salaries of the military is “a huge burden,” adding the country’s monthly losses amount up to $5 billion due to the current situation.

The conflict also poses significant challenges for exporting wheat, barley, sunflower seeds, Marchenko said, warning that the EU may face food shortages as a result of the bureaucratic hurdles Ukrainian lorries are running against as the country is not a member of the bloc.

In March, the finance minister said that the damage caused to the Ukrainian economy because of the Russian military operation could amount to about $500 billion. He added that revenue from customs duties decreased by 85%, while Odessa, Ukraine's last remaining sea port, which accounted for 20% of all custom revenue, had halted operations.

https://www.rt.com/business/555551-ukraine-economy-russia-conflict/

16 May, 2022 14:20

HomeRussia & FSU

Putin outlines position on looming NATO enlargement

Russia “has no problem” with Sweden or Finland but considers deployment of the bloc’s military infrastructure a threat

The possible accession of Finland and Sweden to NATO does not represent an immediate threat to Russia but the expansion of the alliance’s military infrastructure will “certainly” prompt a response from Moscow, Russian President Vladimir Putin said on Monday.

On Sunday, the two Nordic countries officially announced their NATO membership bids, despite multiple warnings from Moscow. Speaking at the Collective Security Treaty Organization’s summit in the Kremlin, Putin said that further NATO enlargement “is a problem that has been created completely artificially, since it is being done in the foreign policy interests of the United States.”

He added that the military bloc has been routinely used as a foreign policy instrument of one country – the US, but “quite persistently, skilfully and very aggressively.”

The new development, in the Russian leader’s opinion, aggravates an already complicated international security situation. Putin, however, emphasized that it isn’t the actual accession of Finland and Sweden to NATO that bothers him.

“Russia has no problems with these states, and in this sense, the (NATO) expansion through the accession of these countries does not create an immediate threat for Russia. But the expansion of military infrastructure into this territory will certainly provoke our response,” Putin asserted.

He said the nature of Moscow’s response would depend on the particular threat posed by NATO.

“We will respond accordingly,” the Russian president stated.

Putin’s remarks came as Sweden’s ruling Social Democratic Party announced that if the country joins NATO, it would stand “against the deployment of nuclear weapons and permanent bases on Swedish territory.”

Earlier on Monday, Russian Deputy Foreign Minister Sergey Ryabkov claimed that by applying for membership of the alliance, Helsinki and Stockholm had chosen to “sacrifice common sense.” “They should have no illusions that we would simply tolerate it,” Ryabkov said.

NATO Secretary General Jens Stoltenberg, who recently called NATO’s enlargement “a historic success,” said last month that the bloc “will warmly welcome” Finland and Sweden if they apply to join, and is prepared to make a decision on membership “quite quickly.”

Finland and Sweden decided to reconsider their long-standing policy of non-alignment following a major change in public opinion amid the ongoing Russia’s attack on Ukraine. According to recent polls, a majority in both countries now support membership of NATO

https://www.rt.com/russia/555565-putin-outlines-position-nato/