The Ukrainian government will take “painful” measures if the military conflict in the country lasts another three or four months, according to the country’s Finance Minister Serhiy Marchenko. He said that the drastic steps may include a sharp increase of taxes, spending cuts as well as nationalization.
“What in recent years has become a fairly market-driven and free-wheeling economy could face a wave of nationalization that will undo years of hard progress,” Marchenko said in an interview with The Economist.
The minister cited the latest forecast revealed by the World Bank that expects the Ukrainian economy to shrink by 45% in 2022.
According to Marchenko, customs revenue fell by about a quarter due to a reduction in imports and the dropping of many duties.