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dipsydoodle

(42,239 posts)
Sun Jun 29, 2014, 05:23 AM Jun 2014

Kharkiv, in eastern Ukraine, looks west as war next door imperils its Russian market.

KHARKIV, Ukraine — After 20 years of running a large commercial tube-manufacturing plant out of eastern Ukraine’s biggest city, Leonid Filshtinskiy is moving some of his operations westward — to Spain.

“I decided to do it because I fear losing Russia as a market,” Filshtinskiy said, explaining how his business, which mostly depends on buyers in the former Soviet Union, struggled as political upheaval gripped Ukraine. “This political situation, this bad experience, has pushed us toward these kinds of changes.”

In larger Kharkiv, a Russian-speaking region known for its universities, factories and farms, evidence of an adverse political situation is scant: There have been no big protests for months, the war with separatists in neighboring Donetsk and Luhansk has not spilled over the region’s borders, and life in the regional capital has been almost boringly calm — apart from a late-April assassination attempt on the mayor, Gennady Kernes.

But even relatively quiet parts of Ukraine have not escaped the economic backlash of the country’s political problems. In Kharkiv, the setbacks come with a special challenge: how to revive a flagging economy largely dependent on trade with Russia and Ukraine’s other neighbors to the east when Ukraine as a whole is making a concerted turn to the West.

http://www.washingtonpost.com/world/europe/kharkiv-in-eastern-ukraine-looks-west-as-war-next-door-imperils-its-russian-market/2014/06/28/ce54c8f0-fd72-11e3-b1f4-8e77c632c07b_story.html?tid=hpModule_04941f10-8a79-11e2-98d9-3012c1cd8d1e

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Kharkiv, in eastern Ukraine, looks west as war next door imperils its Russian market. (Original Post) dipsydoodle Jun 2014 OP
It's become a battle of the economic analysts. Igel Jun 2014 #1
I did read way back on the subject of Ukraine's exports to the EU dipsydoodle Jun 2014 #2

Igel

(35,300 posts)
1. It's become a battle of the economic analysts.
Sun Jun 29, 2014, 01:42 PM
Jun 2014

Many in Ukr and in the EU say that 80% or more of Ukraine's production satisfies or, with trivial changes (often to packaging) can easily satisfy EU rules. Some cite up to 90% of production.

Nobody cares about things like RR track gauge and spacing. It just makes shipping a bit harder.

Analysts in Russia, however, say up to 90% of Ukr's manufacturing, if it meets EU requirements, won't be acceptable. The closer they are to the government the greater the number, making their statements appear to me more along the line of Searlean speech acts instead of analysis. A bit under most people's radar, a lot of Ukrainian produce gets declared "unsuitable" for import into Russia. In some cases, yeah, there are problems. In other cases, the reports are that they've recently discovered a long-standing problem just as Ukraine's being pressured to do something--and as soon as Ukr submits, suddenly the problem can be overlooked as it had been for years. (That's the thing about top-heavy bureaucracies--there are so many rules that it's almost impossible to abide by all of them or even know all of them; so the only ones that really matter are those that are enforced. But since any rule can be enforced at any time, it reduces the 'rule of law' to 'rule of man' and caprice. Thus was the USSR--if you're unemployed and they like you, you're in a state of grace; if you're unemployed because the state fired you, the next day you're a parasite and your employer-provided apt. is being let out to somebody more deserving ... too bad about your family. And it's still so in Russia. So in the last few days a couple of the last few Tatar media figures in Crimea have been replaced with loyal monolingual Russians because they failed to provide real-time translation from Tatar into Russian; it didn't matter that it was a rule that was introduced in March, only is followed when lack of translation into Russian is at issue, or that it's a state-run company and they had repeatedly requested the technology and funding to make it so. They're suspected of disloyalty to the regime because they're Tatars, and a rule was found to ethnically cleanse them.)

dipsydoodle

(42,239 posts)
2. I did read way back on the subject of Ukraine's exports to the EU
Sun Jun 29, 2014, 02:19 PM
Jun 2014

that large amounts of their manufacturing does not comply with EU standards regarding both safety and quality. There are also pricing issues. The foregoing appear to have no material effect on sales to Russia. Doubtless Ukraine will obtain the necessary licenses in time but the licenses wouldn't overcome pricing issues. The exception of course will be Russian military goods for which there is no alternative market.

Mention has also been made of late that much of their current agricultural produce is also unlikely to be acceptable to the EU - nothing new there as the issue affects other parts of the EU too .

The subjects had come up in context with the fact that the trade agreement , which is all it is a present , is predicted to be one sided. It will increase the EU's exports but not necessarily be of matching help to Ukraine.

I had noticed reports that some Ukrainian produce had been deemed no longer acceptable to Russia but cannot recall what the products were - milk related ?

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