The conflict in Ukraine has shattered the country’s economy while a meaningful peace deal appears out of reach for now. CCTV’s Owen Fairclough reported this story from Washington, D.C.
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Ukraine faces economic decline, continued conflictThe conflict in Ukraine has shattered the country's economy while a meaningful peace deal appears out of reach for now. CCTV’s Owen Fairclough reported this story from Washington, D.C.
Fighting for control of this eastern Ukraine city has escalated sharply between pro-Russia separatist forces and Ukrainian troops.
Ukraine claimed there are some 9,000 Russian troops on its territory, while the Kremlin denies involvement.
International leaders who brokered a ceasefire in Minsk, Belarus, last September fear the worst.
“The ceasefire in Ukraine gets more and more fragile and that we are in the process of getting further and further away from the Minsk agreement,” German chancellor Angela Merkel said.
The Central Bank has also lost about $30 billion in the last four years, more than half its reserves.
The economy was forecast to shrink more than 6 percent in 2014, but growth is only expected to be about 1 percent this year.
The dire economic situation has forced Ukraine to ask the International Monetary Fund for a second bailout on top of a previous $17 billion program. The IMF said it needs to calculate the exact amount. But last September it warned that Ukraine could need an additional $19 billion if the conflict continued into 2015.
Ukraine’s President Petro Poroshenko told the World Economic Forum meeting Wednesday that his country is attracting investment as it makes key reforms to fulfill the terms of its bailout.
Poroshenko estimates that within two years, reduced gas consumption and increases in domestic production will make his country independent of Russian imports.
Former USAID official Joshua Cohen discusses Ukraine economy
CCTV America interviewed former project officer at USAID Joshua Cohen, who has managed economic reform projects in the former Soviet Union, about the latest events in Ukraine.