Home / Economy / The bitterness of European integration: Berlin destroyed Ukrainian industry

The bitterness of European integration: Berlin destroyed Ukrainian industry

Горечь евроинтеграции: Берлин разрушил украинскую промышленность

Former Minister of economy of Ukraine Viktor Suslov said that during the two years after the Maidan, the volume of industrial production in Ukraine dropped by 30 percent, and in such key industries as mechanical engineering – more than 30 percent.

In fact, it suggests that Ukraine was left without industry, which confirms the rating of 100 biggest taxpayers of the Ukrainian edition “Business”.

According to this ranking, the largest taxpayers in the country were the company “Naftogaz” and the Ukrainian branch of the world’s tobacco giants such as “Philip Morris” and “J. T.” and machine-building enterprises, which previously was a basis of economy of Ukraine, virtually not present in the ranking.

The President of the Ukrainian analytical center Oleksandr Okhrimenko said that, despite the overall decline in output of engineering industry of Ukraine in 2015 compared with 2013, you can say that on a number of commodities the country has seen the growth of production.

First, it is the transformers, the demand for which has increased due to the growth in electricity tariffs. Secondly, the products that are necessary for the functioning of agriculture. Thirdly, accessories for household goods in the framework of cooperation of Ukrainian companies with such large foreign companies as Indesit.

“In Ukraine it turns out is a part of the machinery, which now will remain and will continue to evolve, and some indeed will be closed,” – says Okhrimenko.

In fact, all of this suggests that complex production, which were previously sharpened by the Russian market, currently rolled up and closed, and those small and medium-sized enterprises focused on internal demand, kept afloat and look to the future with some optimism.

The head of the Center for economic research Institute of globalization and social movements Vasily Koltashov in conversation with BAFS “the Economy today” notes that this is all a consequence of the fact that Ukraine is currently preparing to participate at “bird rights” in the European economy and anti-Russian political bloc.

Everyone knows, and it is not hidden that nobody take the Ukrainians in the official European structures is not going to. It is enough to recall the recent statement by the President of the European Commission Jean-Claude Juncker that in the next 25 years, Kyiv should not count on EU membership. Meanwhile, the services of such a big economy out there, for sure, will use in the coming years it will fit for your needs the EU.

“Ukraine now simply adapts to closer cooperation with the EU with a direct focus on the Western European market, the inevitable consequence will be the destruction of its own national industry,” says Koltashov.

According to Koltashov, industrial Ukraine does not need Western Europe and the destruction of its industry – this is a normal and obvious result of the so-called “European integration”.

“The whole process will go in step with the decline in living standards, growing unemployment and other social problems that, in turn, need to recognize a direct consequence of the overall “success” of the process of Ukraine’s adaptation to unfavorable trade and economic relations,” says Koltashov.

According to Koltashov, very questionable are the statements of the Ukrainian government, that even in this situation, Ukraine could in the coming years to demonstrate economic growth.

“The fact that a couple of years, we will see a complication of the economic situation in the European Union, so that, even if measures of the Ukrainian government become more effective, it would have negated all the possible benefits of Kiev path of development. For Ukraine this will be a serious blow, so 2014 will be a recall as an economically prosperous and 2015 as a year with some challenges but not so bad. Of course, years of stay in power, “tyrant” of Viktor Yanukovych on this background will look even nice and wonderful, despite the fact that industrial production decreased in Ukraine due to the second wave of the economic crisis,” says Koltashov.

Koltashov argues that Ukrainians still saves the fact that the hryvnia is still alive, but if she was again devalued, Ukraine expects a total economic catastrophe.

“With the economy without its industry, production, sharpened by the European Union, Ukraine will not wait for economic growth, not least because the role of a German contractor for a long time and quite successfully occupied Poland. So, Ukraine can only join the queue for Bulgaria, Romania and other depressed countries of the European Union, but unlike them it will not be part of the European Union and to indulge in experiments absolutely nothing,” says Koltashov.

Other options, according to Koltashov, the Ukraine today simply do not, because they are associated with non-integration, in germanocentric the European system, which largely implies the destruction of industry in those countries that decided, for some reason it embedded.

Check Also

Will America manage a soft landing in 2024?

Policymakers rarely bring down inflation without a recession. This time they might Could 2024 be …