Business » Finance
Author`s name Dmitry Sudakov

Ukraine finds gold

Ukraine announced the discovery of a gold deposit, the reserves of which are evaluated at at 2.4 tons. However, even two tons of gold will not help Ukraine overcome the pre-default condition of its economy.

The deposit was found in the Rakhov district of the Transcarpathian region of Ukraine. The deposit is believed to hold 2.4 tons of gold.

Meanwhile, the Ukrainian economy remains in deplorable condition. The country's need in money is enormous. The Ukrainian government is still waiting for as much as $3 billion in new tranches from international creditors. Yet, both the IMF and the World Bank have made it clear to Ukraine that new tranches would be possible only if Ukraine continued conducting reforms and anti-corruption struggle.

Ukraine's public debt currently totals more than $77 billion. Spokespeople for the Ministry of Finance of Ukraine announced that the limit of the state-guaranteed debt was going to grow 2.3 times by the end of 2018.

To crown it all, in addition to numerous debts to international organizations, Kiev will most likely have to pay the debt to Russia in 2018 too. In late 2013, former Ukrainian President Viktor Yanukovych borrowed $3 billion from Russia. Russia purchased Ukrainian Eurobonds using the National Welfare Fund for the purpose. However, the new Ukrainian administration refused to pay the debt to Russia and offered to restructure the loan.

Russia turned to the High Court of London and won the lawsuit against Ukraine. The court obliged Ukraine, in addition to the principal amount of the debt, to make additional payments and penalties to Russia in the amount of $75 million.

It is worthy of note that Ukraine's newly discovered gold deposit is not large at all from the point of view of international standards. It is highly unlikely Ukraine is going to build a gold-mining factory there to develop the deposit, because the country has no money for it. Preparations may take up to two years, wheres the actual development - up to 15 years.

Pravda.Ru

Comments
Ukraine's Poroshenko signs decree to terminate Treaty of Friendship with Russia
On the verge of war: NATO tries to take over former Soviet states
Russia sees Israel as enemy after Il-20 shootdown
How Russia can respond to Israel following Ilyushin Il20 shootdown
How Russia can respond to Israel following Ilyushin Il20 shootdown
How Russia can respond to Israel following Ilyushin Il20 shootdown
The Globalization of the Law: A chimera
The Globalization of the Law: A chimera
Russia blames Israel for Syria's move to shoot down Il-20 military aircraft above Mediterranean
Russia blames Israel for Syria's move to shoot down Il-20 military aircraft above Mediterranean
The Globalization of the Law: A chimera
Russia blames Israel for Syria's move to shoot down Il-20 military aircraft above Mediterranean
The Globalization of the Law: A chimera
Russia blames Israel for Syria's move to shoot down Il-20 military aircraft above Mediterranean
Russia blames Israel for Syria's move to shoot down Il-20 military aircraft above Mediterranean
The Globalization of the Law: A chimera
Russia mourns victims of Ilyushin Il-20 shootdown
The Globalization of the Law: A chimera
53 million Russians may lose their jobs within a few years
Russia mourns victims of Ilyushin Il-20 shootdown
Russia mourns victims of Ilyushin Il-20 shootdown