Institute for Economic Research and Policy Consulting

The signed deal on gas supplies from Russia allows Ukraine to be fairly optimistic about its energy future: Ukraine will have enough gas to last it for the winter and enough money to pay for it.

On June 27, 2014, Petro Poroshenko, newly elected President of Ukraine, will sign the economic part of the Association Agreement with the EU, political part of which was signed in March 2014. Same day Georgia and Moldova will also sign the Association Agreements with the EU.

In March, Russia annexed Crimea, a peninsula with population of 2.4 m in the south of Ukraine, after it failed to divert Ukraine from the course for European integration. The escalation in Donbas could have been a first step of a large scale Russian intervention into the mainland Ukraine.

In Ukraine, the main channel of the impact of remittances on GDP is consumption. The scope of impact depends on two factors - the marginal propensity to save and the propensity to purchase imported goods and services.