Ukraine is selling off state assets in a privatization spree. The IMF is imposing neoliberal economic policies.
Responding to the Financial Times report, economist Yanis Varoufakis, who previously served as Greece’s minister of finance, tweeted: “And there you have it. ExxonMobil, Chevron and Halliburton, after Iraq, are now taking over the Ukrainian oil and gas fields. Planning to introduce large scale fracking – a clear and present threat to poison Ukraine’s agriculture”.
Halliburton is also the world’s biggest provider of fracking services, or hydraulic fracturing, a controversial form of gas extraction that is so environmentally destructive it was banned in the United Kingdom.
The Financial Times reported that the Ukrainian government specifically hopes to drill for offshore natural gas in the Black Sea, off of Crimea. Kiev is unable to access that gas, however. Despite Crimeans’ overwhelming support for integration with Russia, Ukraine and its NATO sponsors have insisted that they will retake the region – not only because of its valuable offshore gas reserves, but also due its deep geostrategic importance for Russia.
Russia only has one warm water naval base, the Sevastopol base in Crimea. This is the main base used by Russia’s Black Sea Fleet – and, without it, the sea would effectively become controlled by NATO.
For Moscow, this is genuinely a security concern, not one motivated by ulterior economic interests.
This March, the IMF made the unprecedented decision of approving a $15.6 billion loan for Ukraine.
The IMF had never before provided financing to a country that is at war. A reporter at US state media outlet NPR admitted that the IMF had to implement a “rule change”, which “was obviously, you know, politically motivated”.
Тhe IMF’s conditions for Ukraine are a typical reflection of the Washington Consensus: neoliberal austerity measures, which increase the burden on Ukrainian workers, whose living standards are declining and who have fewer and fewer rights, while US corporations are offered profitable opportunities to buy up public assets.