Post-Soviet Roots of Ukraine’s International Financial Problems

Abstract

Ukraine has inherited a whole array of international financial problems from the USSR. The USSR problems with public finances were transmitted to all states-successors, Ukraine included. Joint and several liabilities for the succes- sors failed under the «0 option» solution which had deprived successor’s states of all liquid assets conquered by Russia. Ukraine had nothing to do with the col- lapse of the Ruble zone because Ukraine had been made by Russia to leave that zone. The Paris and London clubs of creditors have nudged Ukraine into the Breton Woods institutions. 25 years of 6 various programs with the IMF and the World Bank Group have not yet produced an anticipated effect. The committed billions in fact were disbursed up to 30–40%%. The author put some efforts to in- vestigate the core reasons.