Billionaire George Soros has never been shy about proposing bold actions to help parts of the world that are in political or financial trouble. Soros has become famous for using his incredible wealth to help regions of the world that he believes are unable to help themselves. He also has a history of developing very large plans that require the involvement of governments in order for them to work properly. Such is the case for his plan to get Ukraine out of the financial crisis that it currently finds itself in.
The trouble for Ukraine started when Vladimir Putin commanded his Russian troops to cross the border and go into Ukraine. He did this even though his actions were condemned by the United Nations and leaders from around the world. As a result, the United Nations voted to impose very heavy sanctions on Russia. These sanctions essentially crippled Russia’s economy and made it impossible for the country and many of its wealthiest citizens to do business with other countries. An unfortunate problem caused by the sanctions is the fact that Ukraine’s economy is also in complete disarray. Things are so bad that immediate help is needed. Otherwise, the country faces imminent economic collapse that it will be very difficult to recover from. Soros has been watching the events in Ukraine with great interest because he has had business dealings in the country for many years.
George Soros – The New York Times
Soros has reached out by writing an open letter to many countries. In the letter, he asks for the help of these countries in supporting Ukraine during this difficult time. His plan is rather complicated. However, the core of the plan is to use financial support for the country in combination with political risk insurance. He has also devised a brilliant way of attracting companies from other countries to start doing some business in Ukraine. Soros has proposed that incentives are provided as part of a package that will be given to every company that invests over a specific dollar threshold in Ukraine. He believes that it is unlikely that companies will be lining up to do business in Ukraine unless they are given a financial reason to do so.
According to Soros, Naftogaz is also at the heart of the economic problems that Ukraine is experiencing right now. This is a Ukrainian government gas company that controls all of the gas production for the entire country. Needless to say, this company is in a position of incredible power. Soros feels that the monopoly Naftogaz has on the Ukrainian gas market is not good for the country in the long run. He suggests that the company undergo a total restructuring that is overseen by officials who are not involved with the Ukrainian government. He does not like the artificially low prices that have been used for a long time in the country. He feels that the conditions of the market at the present time should determine gas prices.
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