page_title: Euromaidan
section_title: Economic impact
hierarchical_section_title: Euromaidan / Impact / Economic impact
caption_attribution_description: Petro Poroshenko addresses Euromaidan on December 8, 2013.
context_page_description: Euromaidan was a wave of demonstrations and civil unrest in Ukraine, which began on the night of 21 November 2013 with public protests in Maidan Nezalezhnosti in Kiev. The protests were sparked by the Ukrainian government's decision to suspend the signing of an association agreement with the European Union, instead choosing closer ties to Russia and the Eurasian Economic Union. The scope of the protests soon widened, with calls for the resignation of President Viktor Yanukovych and his government. The protests were fueled by the perception of "widespread government corruption", "abuse of power", and "violation of human rights in Ukraine". Transparency International named President Yanukovych as the top example of corruption in the world. The situation escalated after the violent dispersal of protesters on 30 November, leading to many more protesters joining. The protests led to the 2014 Ukrainian revolution.
  During the Euromaidan, there were protests and clashes with police throughout Ukraine, especially at the Maidan in Kiev, which was occupied and barricaded by protesters, along with some administrative buildings, including Kiev City State Administration.
context_section_description: The Prime Minister, Mykola Azarov, asked for 20 billion Euros (US$27 billion) in loans and aid from the EU The EU was willing to offer 610 million euros (838 million US) in loans, however Russia was willing to offer 15 billion US in loans. Russia also offered Ukraine cheaper gas prices. As a condition for the loans, the EU required major changes to the regulations and laws in Ukraine. Russia did not.
  Moody's Investors Service reported on 4 December 2013 "As a consequence of the severity of the protests, demand for foreign currency is likely to rise" and noted that this was another blow to Ukraine's already poor solvency. First deputy Prime Minister Serhiy Arbuzov stated on 7 December Ukraine risked a default if it failed to raise $10 billion "I asked for a loan to support us, and Europe [the EU] agreed, but a mistake was made – we failed to put it on paper."
  On 3 December, Azarov warned that Ukraine might not be able to fulfill its natural gas contracts with Russia. And he blamed the deal on restoring gas supplies of 18 January 2009 for this.
  On 5 December, Prime Minister Mykola Azarov stated that "money to finance the payment of pensions, wages, social payments, support of the operation of the housing and utility sector and medical institutions do not appear due to unrest in the streets" and he added that authorities were doing everything possible to ensure the timely financing of them. Minister of Social Policy of Ukraine Natalia Korolevska stated on 2 January 2014 that these January 2014 payments would begin according to schedule.
  On 11 December, the second Azarov Government postponed social payments due to "the temporarily blocking of the government". The same day Reuters commented (when talking about Euromaidan) "The crisis has added to the financial hardship of a country on the brink of bankruptcy" and added that (at the time) investors thought it more likely than not that Ukraine would default over the next five years (since it then cost Ukraine over US$1 million a year to insure $10 million in state debt).
  Fitch Ratings reported on 16 December that the (political) "standoff" had led to "greater the risk that political uncertainty will raise demand for foreign currency, causing additional reserve losses and increasing the risk of disorderly currency movement". It also added "Interest rates rose sharply as the National Bank sought to tighten hryvnia liquidity."
  First Deputy Finance Minister Anatoliy Miarkovsky stated on 17 December the Ukrainian government budget deficit in 2014 could amount to about 3% with a "plus or minus" deviation of 0.5%.
  On 18 December, the day after an economical agreement with Russia was signed, Prime Minister Mykola Azarov stated, "Nothing is threatening stability of the financial-economic situation in Ukraine now. Not a single economic factor." However, BBC News reported that the deal "will not fix Ukraine's deeper economic problems" in an article titled "Russian bailout masks Ukraine's economic mess".
  On 21 January 2014, the Kiev City State Administration claimed that protests in Kiev had so far caused the city more than 2 million US dollars worth of damage. It intended to claim compensation for damage caused by all demonstrators, regardless of their political affiliation.
  On 5 February 2014, the hryvnia fell to a five-year low against the US dollar.
  On 21 February 2014, Standard & Poor's cut Ukraine's credit rating to CCC; adding that the country risked default without "significantly favourable changes". Standard & Poor's analysts believed the compromise deal of the same day between President Yanukovych and the opposition made it "less likely Ukraine would receive desperately needed Russian aid, thereby increasing the risk of default on its debts".
caption: Petro Poroshenko addresses Euromaidan on 8 December 2013
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