Ukraine is looking for ways to prop up its economy as it deals with owing three billion dollars to Russia. Forecasts suggest if Russia refuses to renegotiate the terms of that debt, Ukraine could default by the end of the year, making it ineligible for a proposed IMF bailout. Analysts said in order to avoid default, Ukraine needs to attract more foreign investment and make better use of resources at home.
Increasing energy efficiency is a top priority for the government and Ukrainian businesses. Ukraine imports 75 percent of its natural gas from neighboring Russia. Economists say reforming the energy sector and investing in new technology are keys to reducing dependence on gas imports.
For more on the outlook for Ukraine’s economy, CCTV America interviewed Josh Cohen, the former project director for Economic Reform Programs in the former Soviet Union and also a columnist for The Moscow Times.