The decision to impose blockade on Transnistria amid the announced privatization of the seaports will eventually result in budget losses, says ex-minister of economy of Ukraine Viktor Suslov.
The ex-minister is sure that the blockade of Transnistria will cause more tensions and make Ukraine even less attractive to investors. Suslov said it is not the right time to privatize the seaports in the South of Ukraine and the government of Ukraine will hardly get a good price from investors.
“Everyone is concerned over the decision to impose blockade on Transnistria. It seems to have nothing to do with the seaports, but it will fuel tensions and if anything flares up there, it is will be ‘high time’ to privatize these ports. The price will fall even lower. Therefore, it is difficult to understand the reason for creating another hotbed in the already volatile region,” Suslov said.
In this light, the ex-minister quoted an investor who described the Ukrainian government’s privatization offers saying, “Ukraine suggests us to buy flats in a burning house.”
In 2015, import from Ukraine to Transnistria halved. The Ministry for Economic Development of the unrecognized states explains this mainly with the blockade measures imposed by Ukraine. Since May 2015, the State Frontier Service of Ukraine has restricted import of excisable goods via its Platonovo and Kuchurgan customs points to the Moldovan territory on the left bank of the River of Dniester.
Export from Transnistria to Ukraine is low too. “A big number of enterprises has lost its sales markets in Ukraine after depreciation of hryvnia and for lack of solvent demand,” says Deputy Minister of Economic Development Dmitry Boltrushko.