Sweeping Reforms Introduced in the Ukraine
- New Europe Investor
- September 02, 2015
As of yesterday, a host of reforms were implemented in the Ukraine affecting wages and the price of a range of goods and services.
The reforms brought in include an increase by one third in the minimum price for alcohol. Electricity prices which are heavily subsidised in the Ukraine, were increased an average of 23%.
Wages and Pensions
Also included, was an increase in the minimum wage and pensions in the country. The minimum wage and pensions were initially to be increased on the 1st December, but the date was recently brought forward. The Ukraine has experienced hyper inflation as a result of the economic crisis since the revolution, the annexation of Crimea by Russia and the continued fighting in the now separatist rebel held east of the country.
The minimum pension is now 1,074 hryvia with the minimum wage going to 1,378. On average, increases were approximately 13%. In euro amounts, the minimum pension now stands at €43 a month, with the minimum wage currently €55 a month. The levels appears considerably low in euros due to the devaluation of the hryvnia over the past number of years.
The reforms, according to Ukrainian media are satisfying the European Union, which will bode well for the release of the remaining two tranches of their IMF loan plan.