One Step Before DefaultThe Real State of Ukrainian

Economy

The Problems of Ukrainian State Budget in 2014Fiscal cliff

289,8 billion hryvna are lacking for the country survival in 2014

Extra money to sustain state debt (because of hryvna devaluation to 10,5 hrn for one US

dollar)“Naftogaz” deficit (if Russia increase

gas prices up to 487 dollars per 1000

cubic meters)

Non-reimbursed VAT

Taxes paid in advance

Taken from the state Treasury account to cover the deficit in Pension Fund and lending for local budgets

Overestimated profitable part of the budget

Budget deficit, planned by Yanukovych government

Deceleration of GDP increase during 2010-2013

Ukrainian Industrial Production Indexes

Taxes overpayment, billion hryvna

other

VAT

Corporate tax

GDP real, %

* During the world financial and economical crisis of 2008-2009 the amounts of tax overpayment increased** Starting from 2013, according to Ukrainian Revenue Act, advanced tax payment was introduced for businesses, leading to increase in overpaid taxes

Increase of the State Debts and the Debts Guaranteed by the State

in Ukraine

debts guaranteed by the statestate debtsstate and guaranteed by the state debts

state and guaranteed by the state debts to GDP

percentageBillion hrn.

Debts of the State Industries

“Naftogaz Ukrainy”85 billion

hrn

“Ukravtodor”

37 billion hrn

“Ukrzaliznycya”

24 billion hrn

Audits are currently carried out on hundreds of others state industrial institutions

International Reserves Dynamics in 2005-2014

Significant decrease of the international reserves since 2011,more than twice

Billions US dollars