Russian expert: “Ukrainian economy’s key problem is high dependence on domestic political situation”

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Key problem of Ukraine’s investment attractiveness is high dependence of its economy on the domestic political situation, Russian political analyst, Director General of the International Institute for Political Expertise Yevgeny Minchenko announced at a news conference in Kiev yesterday, a REGNUM correspondent reports. According to him, such are results of the joint survey “Ukraine’s Energy Potential” conducted by Sofia Center for Social Studies and the International Institute for Political Expertise in the period from March 1 to 15, 2007.

“Assessments of Ukrainian economy’s investment attractiveness have become higher, but at the same time, the experts pointed out the factor of the current domestic political situation. At that, GUAM countries, the USA have minimal influence upon potential development of the Ukrainian energy industry, EU’s influence has increased, and, what is quite interesting, impact of Asian countries (Kazakhstan, Azerbaijan) increased too,” the expert said. According to him, “expert community lives in the same world where politicians live.” “I mean the complex of myths, which rules now in the Ukrainian politics,” Minchenko elaborated on his idea. “The myth on Russia using its energy weapon, the myth that NATO would assist in achieving more favorable conditions in the talks with Russia and the holy thrill inspired by the word ‘pipe’ and the gas-transporting system.” He also added that experts believe that there is an opportunity to establish new alternative energy routes, but their economic efficiency is assessed as very low. “As for Ukraine’s joining NATO, 72% experts say it would result in raising energy carriers’ prices, search for alternative supply routes bypassing Ukraine (19%), and would help guaranteeing Ukraine from energy carriers’ price increasing (6%),” he added.