The Economy of Ukraine
2014: Crimea, Donbas and the Economic Shock
After the Maidan revolution and Russia's annexation of Crimea, war in the Donbas and a currency crash cut output and forced an IMF rescue.
The crisis began in 2014.
Loss of territory
Crimea and parts of the Donbas fell outside Kyiv’s control, taking industry and revenue.
Currency
The hryvnia lost more than half of its value in 2014-15.
Trade
Trade with Russia collapsed, and exporters looked to the EU.
IMF
A large IMF programme stabilised finances in exchange for reforms.
A shifting market
Ukrainian exporters had to find new customers after trade with Russia collapsed.
Seeing 2022 as the first shock
The economy was already weakened by 2014.
Key takeaways
- Territory and industry were lost.
- The hryvnia crashed.
- Trade turned to the EU.
- The IMF supported stabilisation.
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