A Solution to the Ukraine Economic Crisis by George Soros

People around the world tend to listen very carefully when George Soros has something to say. This is because he oversees one of the largest financial empires on the planet. Over the years, Soros has chimed in on a wide range of issues that he has deemed important. The recent economic crisis affecting Ukraine is the latest event that has caught the attention of the billionaire hedge fund manager. He is horrified at what has happened to the country in the wake of the invasion ordered by President Vladimir Putin of Russia. Soros wants the world to know that the invasion of this sovereign nation has caused many problems. One of the biggest involves the country’s economy.

There has never been an economic crisis of this magnitude in the entire history of Ukraine. Many basic services in the country have become very unreliable. In some cases, they have ceased to function completely. It is true that Russia is also feeling the negative impact on their own economy as a result of stiff economic sanctions that have been imposed against them. The main reason for Russia’s economic woes comes from the fact that the price of oil has fallen sharply. A balanced budget in Russia needs to have the price for each oil barrel to be roughly $100. However, it has not even been close to that amount in recent months. Barrels of oil have plummeted all the way down to $55. It was 18 years ago when Russia last had an economic crisis anywhere close to what they are experiencing now. Unfortunately, Ukraine has been taken down with them.

Read more:
George Soros – Business Leader, Philanthropist

George Soros – Project Syndicate

Soros believes that the economic crisis in Ukraine is so severe that immediate assistance from countries around the world is needed to prevent it from completely destroying the country. George Soros has created a plan that he thinks will effectively eliminate the financial woes that the country is currently facing. His plan begins with convincing companies from across the globe to start doing business in Ukraine. Soros knows that this will be no easy task. He suggest that significant financial incentives be given to any company that is interested in such a risky business venture.

According to Soros, one of the other significant problems that needs to be solved right away involves the national gas supplier of Ukraine called Naftogaz. This is a company that is completely owned and operated by the Ukrainian government. Therefore, they have been setting their prices in a way that you would expect from a company that has a monopoly over an entire country. Soros feels that it is time for Naftogaz to undergo a complete restructuring. This would allow the prices charged by the company to be directly determined by conditions in the current marketplace.

On a related subject, Soros is also calling for discounts on gas to be offered to people who fall under a specific income level to be determined. He believes that many people in Ukraine cannot afford the current rates that Naftogaz is charging.

Learn more George Soros:
https://www.project-syndicate.org/commentary/george-soros-calls-on-the-eu–and-germany-in-particular–to-take-the-lead?barrier=true

http://www.investopedia.com/university/greatest/georgesoros.asp