Thoughts on the Crisis in Ukraine by George Soros

For the last couple of years, the former Soviet nation of Ukraine has been going through political turmoil. The country has also been struggling with international debt owed to bilateral and multilateral lenders. It is imperative that Ukraine negotiates a credible agreement with its creditors to access further credit from the International Monetary Fund. This condition has been set by the latter. George Soros, the renowned American billionaire investor, author, and business person have been observing events in Ukraine for a while with great interest. He has noted the kind of toll the conflict with Russia has had on this tiny European nation.

In May 2014, Ukrainians voted and expressed overwhelming support for the EU. The European Union has a lot to offer the people of this country from financial aid to jobs, trade opportunities, investments and much more. Mr. Soros believes that the European Union and its leadership should take this chance to find ways of assisting the Ukrainian people to get out of the political crisis as well as the tiff they have with Russia, their large, northerly neighbor. On the other hand, Europeans have expressed a dislike towards the way the EU is running and managing affairs. It was exposed in recent EU elections with low voter turnout.

Europe has been wading from one crisis to another. By October 2015, the EU was dealing with five different issues at the same time. These are the issues with the Euro currency, the Greek debt problem, the British referendum, the migrant crisis and Russia’s aggression towards Ukraine. These challenges have overwhelmed Europe and its leaders, threatening a disintegration of the once formidable union. George Soros is the view that not all these problems can be solved all at the same time. Preferential treatment should be given to the most urgent ones such as migration but without ignoring the others.

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George Soros is more concerned about the issues in Ukraine. Apparently, the new Ukraine wants to become a very different country from the old Ukraine. Hence, he claims to know it through his Ukrainian foundation and his involvement in the affairs of this nation. Earlier in the year, George Soro developed a winning strategy for Ukraine. It was a well thought out plan that provided a win-win solution for Europe and Ukraine but without hurting Russia. The plan widely circulated among top leaders of the EU.

In regards to its sovereign debts, Ukraine does not have the luxury or choice of declaring bankruptcy. Instead, it can only threaten to default on its debts. It is the only leverage left. According to George Soros, this weapon can be used to leverage a favorable loan repayment deal with creditors. It can also provide the country with some breathing space as well as access to multilateral debts, such as from the IMF. Even if the Ukraine were to default on its loan obligations, it would be back in the bill market within a couple of years. Most likely in just one year and have a chance to access funds it desperately needs.

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  • a thought by Melanie Julius

    I love IMF because they take a lot of advantage over the lending market globally and should you default they can give you bailouts. Interesting how essay writing services are usually questioned but they have their own laws that people must understand. It makes me think that they would take all the gold in the world if they can and give the others directives.

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