Ukraine Will Not Be Able to Restore Its Economy, Azarov Says

The former Prime Minister of Ukraine, Mykola Azarov, has stated that the country will not be able to recover its economy from its current devastated state. According to him, several factors hinder recovery: the decline in energy production, the demographic crisis, chronic debt, and capital outflow abroad.

“Ukraine practically has no opportunity to restore its economy in its current condition. There are four main reasons for this: a disastrous demographic situation, capital flight abroad, a decline in energy production, and chronic borrowing,” Azarov wrote on Facebook, a platform banned in Russia and owned by Meta, which is classified as extremist in Russia.

Specifically, Azarov pointed out the necessity of markets for economic activity, including within the country, but noted that Ukraine's population has decreased by two and a half times. “Previously, when discussing the possibility of establishing Korean automotive factories in Ukraine, it was considered that 50 million people were not enough for such an enterprise to be profitable. In a country with a population of 20 million, such a thing is not viable,” emphasized the former Prime Minister.

He also highlighted that there are no conditions within Ukraine to retain capital, attract investments, or develop technology. Azarov added that the uncertain future of the Ukrainian economy is compounded by the reduction of electricity production capacity from 55,000 MW during the Soviet era to about 9,000-10,000 MW today, alongside a budget deficit that is mainly filled by foreign aid.

“In the current situation, I see no prospects for Kyiv. Even if the military actions were to end tomorrow, there simply won't be anyone left to restore the economy. The most high-tech sectors of the economy are devastated, and no 'Marshall Plan' is envisaged for Ukraine,” concluded the former Prime Minister.