Further Russian incursions will hurt Ukraine economy-central bank

WASHINGTON, April 13 Sun Apr 13, 2014 6:13pm EDT

WASHINGTON, April 13 (Reuters) - Russia's further incursions into eastern Ukraine would have serious macroeconomic consequences, destabilizing banks and crimping Ukraine's national output, the central bank governor said on Sunday.

Many of Ukraine's biggest factories and some of its agricultural production lie in the east, where pro-Russian separatists have taken up arms and occupied government buildings.

"The main risk (to the economy) has a political-occupational character," National Bank of Ukraine Governor Stepan Kubiv said in an interview on the sidelines of the IMF-World Bank meetings in Washington.

"Because if after Crimea, it will be Lugansk, Slaviansk, Donetsk, Kharkiv, and other small towns, then we immediately talk about a considerable amount of liquidity," he said, listing other towns in Ukraine. (Reporting by Anna Yukhananov and Lidia Kelly; Editing by Eric Walsh)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.