EAVEX Weekly

October 09, 2017

It was an active week on the Ukrainian Stock Exchange amid positive news that Parliament finally adopted a long-awaited pension reform bill, proving that the reform agenda in Ukraine is still alive and well despite slower-than-hoped-for progress. Although it is not yet clear if the approved pension overhaul meets all the requirements of the IMF, heavy opposition from Ukraine’s irresponsible populist parties indicates that tough but necessary measures have been included. Of course, it should be stressed that the pension reform looks like the easiest target in political terms of the key reform triad that also includes heating tariff increases and lifting the country’s prohibition on farmland sales. President Poroshenko now looks likely to prioritize his immediate political interests over long-term reform goals ahead of his expected reelection campaign.