Ukraine takes foreign investors hostage
The dramatic situation of Ukraines economy seems to be getting worse day by day. The recent measures taken by the state to prevent exit of foreign cash is the latest measure set to make foreign investors want to leave the country and at the same time keep away the potential foreign investors. The disagreement between the President and the Prime Minister over the sacking of the National Bank governor and the USD 5 billion loand from Russia is only adding tension to an economy in free fall. Ukraines rich oligarhs are reported to have lost over 40% of their assets during the past 5 months. This has a direct affect on the once flourishing luxury market, which has already dropped by over 20% in sales. The fact that the majority of international brands are controlled by a trio of franchisees adds to this worsening situation. Brands such as Hermes are now glad not to have entered the market at the peak of the market in 2007.