Prince Amir Al Saud

Political and Socio-Economic Issues between Russia and Ukraine

Political and Socio-Economic Issues between Russia and Ukraine


History of the Conflict

Chronicles disclosed Russia and Ukraine have been entangled by turbulence for many centuries. Just what is Ukraine to Russia? It is one of the latter’s largest markets for natural gas exports. The Ukraine is also a vital transportation route and native land for around 7.5 million native Russians. Majority of them inhabit Southern Crimea and Eastern Ukraine.


Both the Ukraine and Russian Federation have been gripped by conflict when Ukrainian President Victor Yanukovycvh turned down the call to sign an accord with the European Union in 2013. He was ousted from power but those who supported Yanukovycvh did not support the insurgency and advocated closer relationship with Russia. Protest actions were staged in Crimea which supported concurrence to the Russian Federation. This eventually led to the Crimean Crisis of 2014.


The Russian Federation took possession of Crimea following the regional crisis. The Russian armed forces intervened while civil protests worsened into armed pro-autonomy rebellion. The Ukrainian armed forces launched a counter-offensive against the rebels and pro-Russian troops eventually joined the fray.  The Kremlin seized the Crimean Peninsula and fuelled a nationalist uprising in the eastern provinces of Donetsk and Lugansk. Ukraine is at a disadvantage. Only the support of Western powers has kept it surviving. There was a brief lull in fighting but the armistice was broken by sporadic encounters.


Present Conditions

Ukraine remains a divide nation wedged in a vehement struggle between the precedent and forthcoming conditions. Its unstable economy is dependent on Moscow. The dispute rose and fell between hostilities and negotiations. At present, Ukraine has three main concerns. It needs to bring back economic stability and diminish the stages of corruption. The armed conflict must end by all means.

The economy is on the verge of collapse. On the other hand, Russia’s financial system and currency has been affected considerably although the Ruble managed to rally during the recent months. Ukraine has deteriorating foreign reserves and declining currency. The country cannot depend alone on financial subsidies or aid from other countries. Additional loans from the International Monetary Fund require a severity program that will restrict rages and public service cuts.


The only alleviating factor is that its nemesis (Russia) is confronted with parallel problems minus destructive consequences that the Ukraine experienced during the last few years especially during the term of President Yanukovycvh. The consensus is that the economic dilemma of Russia lessens the chances of Moscow to cause additional destabilization to Eastern Ukraine. It may not have significant effect on modifying the Crimean situation which Russian President Vladimir Putin cannot afford.


Ukraine’s Options

Autocrats or totalitarians in the Ukraine are compelled to commit sacrifices. Ukraine needs to embark on legal transformation and put an end to nepotism. The government must implement rebuilding and pursue economic effectiveness. Conflicts in Eastern Ukraine have been aggravated by the costs of fighting; military and civilian casualties which have reached the thousands; influx or millions of refugees; and, loss of industrial yield (coal output). The Ukraine needs to resolve major issues for its territories in the east.


The nation has discussed free-trade position with Belarus, Kazakhstan and Russia of the Eurasian Customs Union. One of Russia’s objections to Ukraine forging an inclusive free-trade covenant with the EU is the apprehension that this will permit transfer of commodities from the Union to saturate markets in Russia. Henceforth, it is possible to come up with a trade system that will develop confidence and transparency with the Russian Federation and the Euro Zone.

In case the Ukraine is capable of consolidating free-trade pacts with the EU and Eurasian Customs, it can acquire extensive benefits which can bring long-term gains. Kiev needs to formulate a trade regimen that will spur growth and employment across the entire war-devastated Ukraine. Without jobs and increase of revenues, there is greater risk for the Ukraine to weaken. The principal concern is not bureaucrat tariff rates but non tariff and regulatory impediments to commerce.


At present, the World Bank categorizes the Ukraine as one of the hardest nations to conduct business with. Import and export processes can take a month due to Kiev’s bureaucratic preconditions. One of the government’s main concerns is to do away with technical and regulatory hindrances. The good news is this is attainable just like in Georgia and Greece. Research divulged that the enhancement of trade performance in this country can bolster real income by a minimum of 25 percent.



The plan of the government is to set up a multiparty commission on trade relations among the Ukraine, Russian Federation and the European Union. The Minsk Treaty reinforces this by discussing no-nonsense solutions for concerns that Russia raised regarding the profound and all-inclusive free-trade conformity between Ukraine and Europe. Cessation of hostilities on the combat zone will keep going only if it is augmented by collaboration in the marketplace.


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