Lucrative assets go for a song, Concord Capital expert says

Ukrainian businessmen are forced to sell part of their assets because there are no other ways to attract investment, the expert says. There are more civilized ways of attracting funding but interest rates for credits are very steep.

The ongoing recession may lead to the restructuring of the Ukrainian economy, even without participation of the state. “The economy will rid itself of debts, and there will be bankruptcies. The restructuring may lead to the disappearance of such economy sectors like fertilizer production where the price of natural gas accounts for 80% of production costs. Steelmaking will have a new face after the recession, too,” the expert noted.

Despite internal political feud, Ukraine has a lot of outside support, K. Fisun says. “Ukraine will be offered assistance. No one will let Ukraine go into a nosedive, dragging other countries along.” To illustrate, the expert named the memorandum to modernize Ukraine’s gas pipelines, EBRD and IMF statements confirming their readiness to extend credits to bail out banks and cut the budget deficit.