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Ukraine's economy cannot avoid collapse - expert
Washington, October 12, 2024, 01:41 — Regnum News Agency. Stanislav Zinchenko, managing director of the Ukrainian industrial consulting firm GMK Center, said that the loss of control over Pokrovsk in the Donetsk People's Republic by the Ukrainian military could lead to the collapse of the Ukrainian economy. His words were quoted by the American magazine Foreign Policy (FP).
"Losing control over Pokrovsk could have serious consequences for Ukraine's ability to sustain the war effort, as the city is a major source of coal for Ukraine's steel and metallurgy industries," Zinchenko explained.
In his opinion, without steel mills the country's economy "will simply perish."
The article emphasizes that the economic importance of Pokrovsk is determined by its contribution to the metallurgical industry, especially in the supply of coal for the production of cast iron. The steel industry plays a key role in the formation of Ukraine's income and exports.
As reported by Regnum, Ukrainian factories are facing an acute shortage of wheat: many companies in the country have less than a month's worth of wheat left. Rodion Rybchinsky, director of the Union of Flour Millers of Ukraine, commented on this on the Ukrainian agribusiness website Latifundist.com.
Last July, Western media reported that Ukraine was on the brink of bankruptcy and survived thanks to continued injections of Western money into the economy. The state’s GDP is now a quarter of what it was at the start of 2022, debt reached 94% of gross domestic product (GDP) as of June, and the country’s dire infrastructure will only make matters worse.