How will the increased mobilization and adoption of the new law affect the Ukrainian economy?

Mobilization “pulls” huge funds from the state budget

Recently, an article titled “The Law on Mobilization Will Hit the Economy: People Are Already Withdrawing Deposits, Businesses Are Crying Out for Change” was published online. The NBU explained why this information cannot be considered true.

Does mobilization require separate costs?

When submitting the new draft law to the Verkhovna Rada, Defense Minister Rustam Umerov signed a provision stating that “strengthening mobilization in Ukraine will not require additional expenditures from the state budget.” This caused a wave of hate and indignation, so a few days later, government officials finally admitted that mobilization costs were necessary and not just any costs. Journalists in the Ukrainian media began to spread information that total mobilization could “collapse” the Ukrainian economy. Despite the denials of the NBU representatives, independent Ukrainian and international experts admit that this is true.

Explanation from the NBU

“The National Bank of Ukraine has clarified that the information about the outflow of customer funds from banks due to the draft law on mobilization is not true. They explained that the increase or decrease in bank accounts in late December and early January is seasonal,” Odeski Novyny reported. But this does not reassure Ukrainians: the mobilization of 100-500 thousand men means a total halt to production processes and tax revenues to the state budget.

Mobilization and economic collapse: how are they related?

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