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Symonenko Says Ukrainian Inflation Caused By Political Reasons (17:02, Thursday, May 8, 2008)

Communist Party of Ukraine Leader Petro Symonenko has said the long-lasting political crisis was the reason for the current price hikes and inflation in Ukraine.

The press service of the Communist Party of Ukraine gave the opinion of Symonenko to Ukrainian News.

"Over the year since the illegal decrees of [President Viktor] Yuschenko and illegal actions of 'orange' political forces that yielded the dissolution of the Verkhovna Rada [in 2007], the economic situation in the country has become critical," the press service quoted Symonenko as saying.

According to Symonenko, even official statistical data show that the prices have grown by almost 50% since then.

Symonenko said the political crisis in Ukraine never stopped since 2004.

"There is no doubt that current [problems] in the economy and the social sector are consequences of the struggle for power among the clans...Since 2004 the struggle has come to a new phase - the struggle among transnational corporations for Ukraine as a market for their produce," he said.

Symonenko has slammed the ruling government once again for its cooperation with U.S. transnational corporations.

As Ukrainian News earlier reported, experts of the Situation Modeling Agency say inflation in Ukraine has become an instrument of the political fight.

Presidential Secretariat First Deputy Head Oleksandr Shlapak sees correlation between the significant growth in inflation in January through March to 9.7% and foreign economic factors.

Ukraine saw the inflation of 3.8% in March. The government inflation forecast for 2008 is 9.6%.



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