A year in Dnepropetrovsk

An American volunteer in Ukraine

Economic crisis in Ukraine

The worldwide economic crisis has not passed over Ukraine. Every day the grivna (Ukrainian currency) deflates even more. While this is great for me, because I get more bang for my buck, it is really destroying Ukraine, whose economy is based largely on exports. This Kyiv Post article discusses the effect on the steel industry, based in the east (ie: where I live and work!). The article was written in Donetsk, one of the cities I travel to quite often; I just got back from a business trip there yesterday, in fact. Most eastern cities, like Dnepropetrovsk and Donetsk, are large industrial centers that run the entire Ukrainian economy, so while the crisis has only begun affecting the east, it will soon spread to the west. Already banks are suffering. I have heard stories of banks and ATM machines running low on cash in the past month. Naturally, investment in gold, like in the US, has greatly increased. JDC is struggling to cut its budget without having to cut services or fire employees. It’s rough. Things are looking up, though. The Verkhovna Rada (Ukraine’s parliament) finally met after two weeks of being deadlocked to approve legislation for a $16.5 billion loan from the IMF. This should help float the grivna and give banks more liquidity. For more, check out this Business Ukraine article.

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