The European Union is the only solution to the economic crisis in Ukraine according to investor and philanthropist George Soros Ukraine. In 2014 Ukrainians held protests to remove the then president Victor Yanukovych from power and pave way for new reforms that would stabilize the nation politically and economically. The new Ukraine is intent on becoming democratic and working closely with European nations. The citizens have showed their patriotisms by abandoning good jobs in favor of serving their country. One such patriot is Natalie Jaresko who decided to stop working as an investment banker and serve as the country’s new finance minister, despite the pay being considerably low.
The new reforms are to face many challenges and implementing them is not going to be an easy task. The supporters of the new reforms are up against the conservatives from the old Ukraine. The Russian president Vladimir Putin is also against the new reforms and this is manifested through his aggression towards Ukraine, a move aimed at destabilizing the nation. For the reforms to be successful Ukraine needs urgent financial help from western powers which also have to provide additional sum to counter the Russian aggression. There is a glimmer of hope considering that sanctions imposed on Russia by Europe and USA have negatively impacted on the Russian economy. The effectiveness of the sanctions has been boosted by the decline in the price of oil. According to George Soros the current Russian financial crisis is similar to the one of 1998.
The damage done on the Russian economy however has a global effect and most of the European countries are affected. This complication has prompted European Union to make reforms and look for other policies that can best deal with the Ukrainian-Russian problem. George Soros advises that sanctions are a necessary evil since it is the only way to deal with Russia’s aggression to Ukraine. The other option is war with Russia, and that would be a riskier approach for the US and the European Union. The only problem is that sanctions imposed on Russia also affect the countries imposing them and this is likely to cause deflation in Europe. Financial assistance from the European Union to Ukraine is meant to stabilize her economy thereby encouraging investment. This would put Ukraine in a better position to defend itself against aggression from Putin’s government.
European leaders however do not seem to see the importance of Ukraine to the euro given its financial crisis. Most of them see it as just another country in need of financial assistance. In the Association agreement between the EU and Ukraine (2007-2012) Ukraine was advised on what to do to merit financial assistance. Ukraine’s problems slowed down Europe’s willingness to help. This included its poor track record with other IMF programs. Lenders decided to provide assistance only because of the reforms to be undertaken by the new Ukraine. Another was the fact that Ukraine was not a member of the European Union. This made it difficult for European institutions to directly offer any assistance.
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