As of May 2014, George Soros noted that voters in Europe were highly dissatisfied with the way the European Union was handling Ukrainian’s desire to be part of the EU. This desire came from the need to receive debt relief from its creditors. Soros added that giving aid to Ukraine is going to benefit the entire part of Europe. The initial formation of the EU was so that sovereign nations were going to have closer relationships for their common good. George Soros has however noted that as years pass by, most of the neighboring countries have consistently gotten into debt. Such debts became more pronounced after the euro crisis. The transformations resulted in several countries asserting their dominance to creditors.
Ukraine is one such nation that has faced a heavy debt burden. It is on the verge of defaulting most of its debts. The country has now been considered as a threat to default. This is goes in a bid to receive debt relief both from the United States and the EU. Apart from a simple financial assistance, George Soros noted that effective political and economic policies is what is going to make Ukraine a hub for investors. Ukraine will only experience economic success when its key resources are maximally exploited. Mr. Soros advocates that the gas company that was shut down be reopened on wsj.com. Profits gained from such operations ought to be used to help need homes. Political reforms that Ukraine needs should help in the formation of a strong anti-corruption commission. It should go on to form a proper judicial system and well-established media.
Read more: Ukraine Deserves Debt Relief
Soros goes ahead to argue his case in the New York Review of Books. Soros states that solving the Ukrainian current condition should involve a two-step approach. The first step should be in providing Ukraine with adequate financial support to establish democracy and rebuild its economy. The second step involves getting help from external nations such as the U.S. and the EU who should put pressure on Russia. He notes the ineffectiveness of the recent sanctions posed to Russia by both the U.S. and the EU.
Despite efforts by the EU to place such sanctions, Soros expresses his frustration in the way other world leaders have approached the Ukrainian situation. Even though there are many nations all over the globe that are on a constant financial turmoil, Ukrainian’s condition is different since it is under constant military threat from Russia. Soros goes ahead to argue that the situation experienced should not be treated lightly since it is not business as usual. With the UK withdrawing from the European Union, European banks have to face financial challenges within their own countries.
If Ukraine and its lenders come to a conclusion, the country will have its economy up and running within two years. Smart investors should look in the future of the country when weighing their interest in lending to the Ukraine. Unless the country has a good financial backing from other countries and the International Monetary Fund, foreign investors are likely to keep out for a long time.