European tales and European reality in Ukraine

European tales and European reality in Ukraine

The President, the Prime Minister of Ukraine and Parliament have for a long time fed our people’s promises of a visa-free regime, a high standard of living for Ukrainians, similar to the European one….

The visa-free regime for Ukraine is postponed indefinitely. Yes, and does the Ukrainian need a visa to Europe, if he has nothing to pay for utilities, have nothing to feed himself and his children, there is no reason to treat his parents, there are no vaccines to make vital vaccinations for children?!

Ukraine’s industry is in a state of progressive collapse and the same progressive theft, under the pretext of privatization. Privatized not unprofitable state-owned enterprises, but the most profitable and promising, strategic enterprises of Ukraine, such as the Odessa port plant (OPP), which is a transistor ammonia not only from the main 5 giant plants of Ukraine, but is also a transitor of nitrogen fertilizers, which are produced, including, at the chemical plants of the giants of the Russian Federation. In fact, the Odesa Portside Plant (OPF), is a monopolist on the entire territory of the former USSR, from the export of nitrogen fertilizers, accounting for almost one third of the annual turnover of nitrogen fertilizers worldwide.

Ukraine’s gas transit system is analogous to the Odessa Port Plant (OPP).

In previous parliaments and governments there was a responsibility to ban the sale of Ukraine’s gas transportation system. The current leadership of our country has decided to take advantage of the “gaps” made by the previous, more responsible statesmen, who attributed the IPF to the enterprises of improper privatization.

We are witnessing the privatization of a unique, supermarket, strategic state-owned enterprise in undoubtedly for corrupt purposes. The plant is sold for $ 0.5 billion, while its real value is well above $ 10 billion, and maybe more, as it is of strategic importance both for the chemical industry of Ukraine and for similar enterprises of the whole post-Soviet area.

A similar fate has been prepared for Ukrainian sea ports. Privatization of the Southern sea port looks like a blasphemous port, as it is the deepest and most powerful port, capable of accepting the largest vessels in the world, such as Panamax, and others. Especially since recent work on dredging and modernization of the port infrastructure of this port has invested billions of public money. To sell the port are going for a penny.

We see that the most profitable enterprises that bring in the state treasury billions of dollars, and are not loss-making, are sold for nothing. A priori is aware of the existence of a huge corruption component.

Thus, instead of saving the most profitable state-owned enterprises, they are trying to “sabotage”, but really unprofitable enterprises continue to “hang” on the state budget. The two above mentioned companies are not the only common list of the most valuable state assets. There are dozens of such examples.

That’s what brought us eurointegrators who came to power!

The agrarian sector collapses with enviable tenacity . For this purpose, various methods of destruction of the rural sector are involved. Even attempts by the few, prudent deputies of the current convocation, who are trying to return the agricultural sector to the special tax regime, encounter the obviously deliberate reluctance of the President, the Government, and Parliament to preserve the agrarian sector.

We are campaigning to live like in Europe, but do worse than in Honduras!

In the European Union, more than 36% of the annual budget (more than 44 billion euros) is annually spent on direct subsidies to farmers of all forms of property. At the same time, in the “minor” EU countries (Lithuania, Latvia), subsidies amount to only 80 euro per hectare per year, whereas in the “main” European countries: France – 405 € per hectare per year, Greece – 529 €; per hectare per year, Germany up to € 700 per hectare per year. Direct free subsidies are allocated irrespective of whether the profit or loss was received by a European farmer, moreover, if the producer has suffered any damage due to unfavorable weather conditions, unfavorable prices on the domestic or foreign market, the state fully compensates for these losses.

A similar system of protection and direct government subsidies exists in the USA, where the farmer has not only direct state subsidies, but also so-called indirect (cross-subsidies) subsidies. For example, in the United States since 2007, since the enactment of the law on increasing the use of bioethanol, as one of the main components of automotive fuel, all producers of bioethanol, as well as corn used as the main raw material for the production of bioethanol, allocates the state additional subsidies for the development of more environmentally friendly types of fuel. In addition, in America there is also state insurance for agricultural production, which depends on unfavorable weather and market factors.

For example, in 2009, American cotton producers, who suffered losses from drought in the amount of only 5%, received state compensation of 100%.

Thus, we see that, in America and in the European Union countries, the state allocates huge direct subsidies to all producers and 100% offsets all their losses from adverse weather conditions or market conditions.

And now let’s see what’s happening in Ukraine, which declares European values:

Instead of direct or indirect subsidies to farmers, they are taken by a special tax regime, the so-called value added tax (VAT), which was previously owned by producers, for purely production needs. Today, 75% goes to the state budget. In addition, all spare parts for agricultural machinery, plant protection products (herbicides, insecticides, fungicides), hybrids of advanced crops (corn – Pioneer, sunflower – Syngenta, etc.), mineral fertilizers produced from imported gas – all these products have import origin, as in Ukraine, for all its years of existence, no government has taken care of the creation of its own goods vital for agricultural production. For all these goods, the current government introduced an additional tax – value added tax (VAT), which further aggravated the situation of Ukrainian farmers. But these “innovations” reject the agroindustry of Ukraine in the difficult 90s, turned out to be too easy for the President and the Government for the peasants, they were raised several times, the so-called “fixed” agricultural tax. But this “European support” to the President, the Government, the Parliament was not enough – they almost increased the rate of rental payments for state land by almost 7 times compared to 2010. With such “help” of the native Government and enemies do not need! Given the difficult weather conditions of the current year, as well as all the above-mentioned agro-data, or, more precisely, agricultural plots, the agro-industrial sector of Ukraine has already shown a drop in production, which in the next six months will turn into a tragedy for Ukrainian farmers and residents of our villages, living standards which is directly related to the efficiency of the work of farms.

The collapse of the banking system of Ukraine: accident or regularity? And who benefits?

To date, almost half of Ukrainian banks go bankrupt, almost 45 thousand of former employees of banking institutions have been thrown into the street. It is 45 thousand families who have lost their main source of their existence, as well as stolen billions of hryvnia from millions of Ukrainian depositors.

This is indeed the values of the European Union, for which the country was drawn into a “revolutionary” nepersedel, into the war in the South-East of Ukraine.

Who needs this? The answer to this question is simple and obvious. Who financed the “revolution”, he used this.

Strategic American real estate investor NAI Global enters the Ukrainian market. In order to make a liquid product worthless, it is necessary to disturb the stability (economic, political) of the given country, which is done in our state. Logically and rationally, that transnational American companies are buying up our real estate, our seaports, OPP, make a lucrative farm, in order to continue to buy, for no time, an unnecessary, unprofitable land that will lead to bankruptcy throughout the country.

American banks (Goldman Sachs, Bank of New York) and others will appear on the site of the destroyed banking system of Ukraine.


Public figure, Academician
and Vice-President of the Academy of Economic Sciences of Ukraine

Anatoly Peshko

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