Monthly Archive: February 2015

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The Environmental Tax Policy in Ukraine and Sweden

The environmental tax policy is significantly different in developed countries and in countries with transition economies. We discuss such economic instruments like Ecological tax and compare two countries with different levels of ecological policy Sweden and Ukraine, to prove the feasibility and necessity to take action to prevent emergencies and not to eliminate their effects. We offer not to forget the principle of fairness of taxation and take into account the priority of the development of forestry for carbon uptake.

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In Defense of the NBU’s Capital Controls

The National Bank of Ukraine (NBU) tightened capital controls on February 23, 2015. The central bank introduced these additional administrative measures in response to violent fluctuations in the value of hryvnia. The NBU claimed that there is no fundamental reason to have an exchange rate of 30 hryvnias per U.S. dollar. Is Ukraine the first country to implement temporary capital controls in similar circumstances? Certainly not! Capital controls were used extensively in the World Wars I and II. In addition, there is evidence that capital controls helped Malaysia during the Asian crisis in the 1990s.

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Answering Remaining Questions About Ukraine’s Maidan Protests, One Year Later

A year has passed since mass protests on the central square in Ukraine’s capital Kiev, also known as the Maidan, culminated in bloodshed and President Viktor Yanukovych’s unexpected flight to Russia. Since then, Ukraine has plunged into a bloody civil conflict and proxy war with Russia. Relations between Russia and the West continue to worsen, and Europe has come to the brink of a large-scale interstate war for the first time since World War II.

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Only Full Liberalization of Currency Regime Will Save Ukrainian Hryvna

As with most men-caused incidents,in retrospect it’s always clear what decisions should or shouldn’t have been made to avoid disaster- I will attempt to do this analysis while it still may not be too late to avoid complete catastrophe. The causes for the current sad state of affairs are obvious – empty state coffers left by thieving Yanukovich and his cronies, vicious stab in the back from Russia, inflexible economic environment. That said, it still feels that some obvious mistakes in managing the currency could have been avoided.

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How to Stabilize Hryvnia

In recent days, hryvnia fell dramatically to new lows, threatening economic and financial stability in Ukraine.
The primary reasons driving the observed collapse were a strong confidence crisis, reinforced by the ongoing Russo-Ukrainian conflict in eastern Ukraine, lack of external financing and weak financial sector, and a critically low level of international reserves, precluding the National Bank of Ukraine (NBU) from any meaningful, credible intervention to stabilize the foreign exchange market.

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Is Ukrainian Agriculture Subsidized

All state support to agriculture could be structured in four big blocks: VAT exemption, direct subsidies, general services and fixed agricultural tax. The negative actions come through two ways: absence of VAT refunds and export quotas and duties. Of course, there are many small positives and negatives coming from the state policy but they are relatively immaterial.

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The Lack of Impartiality in Ukrainian Law Enforcement

Evasion of military service has always been and remains the crime, but the attitude to this action has drastically changed in Ukraine since “Anti-Terrorist Operation” has been launched. Interestingly, prior to the war famous Ukrainian poet Serhii Zhadan had expressed a similar sentiment in his poem “Military Commissariat” (Voenkomat, 2008). Does this fictional story of draft-dodging expressed publicly on multiple occasions radically differ from Ruslan’s story published in his own video blog? Whenever there is a breach of individual right, the reaction of publicity and civil control over the adherence to procedural and substantive norms become crucial. It is an obligation of the civil society to react to any injustice irrespectively of whether it happens to “conventional ideological adversary” or not.