Special edition from Severodonetsk
This week’s question, or more precisely, three questions, took the Kyiv Post to the industrial east of Ukraine to learn the extent to which the economic and political crises are affecting this region. Severodonetsk in Luhansk Oblast is hometown to one of the biggest chemical enterprises in the country, Azot, where fertilizers and other industrial chemicals are made. The city of 150,000 people also has an airport, Ice Palace and four institutions of higher education. But Azot remains its major economic engine, with an estimated 10,000 employees. The company is owned by New York-based IBE Trade Corporation through its Worldwide Chemical subsidiary. A 40 percent stake remains held by the Ukrainian government, according to Ukraine Business Weekly.
Kapitalina Kostyleva
Pensioner, retired head of an Azot laboratory
1. “Prices have become just outrageous. The panic with the banks seems to have settled down though. There aren’t delays in paying salaries or pensions, nor reduction of staff at the enterprises. This is only because Azot, the foundation of Severodonetsk’s economy, is working.”
2. “Production fully depends on natural gas, which has gone up in price dramatically. That’s why storage facilities are filled with products and there is almost no shipment abroad, as there used to be. No salary decreases for workers have taken place. However, if things get worse, Azot may start paying only two-thirds of salaries.”
3. “Nothing will change with new elections, as the same people remain in power. There is a small possibility for cooperation between BYuT [Bloc of Yulia Tymoshenko] and [Party of] Regions, but not likely.”
Larysa Hrynyova
Teacher
1. “The crisis has not had a tremendous effect on me. However, mass panic about the banking system’s collapse overtook Severodonetsk for some time, particularly in connection to Prominvest Bank. The crisis has not fundamentally affected our school. There aren’t any delays in salaries or staff reductions, although some of Severodonetsk’s private enterprises are already cutting their personnel.”
2. “Certainly, Azot is working, but definitely not to its full capacity. The plant is struggling with the standstill.”
3. “It’s just unacceptable to spend such amounts of money on new elections when the country is facing crises and disorder. There just isn’t any trust in our deputies, any hope for the better and any belief that elections are capable of changing something.”
Nataliya Burym
Head of an Azot laboratory
1.“Certainly, inflation and prices are going up.”
2. “The plant is functioning at 85 percent. We still pay bonuses and haven’t cut or delayed salaries. However, as export market prices are going down, we are losing competitiveness, as the primary costs for our products are still very high.”
3. “Nobody needs new elections. They will make no difference.”
Nataliya Fomenko
School principal
1. If the government does not take any active measures, all budget organizations, including schools, will face salary delays, reductions in staff, budget cuts, etc. For me, as a school principal, it’s a primary concern, as it will immediately result in budget cuts. However, we are doing fine at the moment. I believe things will improve. Our Severodonetsk mayor does take proper care of our town. And it would be wrong to state that we all are absolutely disappointed. We all realize this is not a small Severodonetsk crisis, not even a big Ukrainian crisis, but a global crisis.
2. We all are very afraid that as the crisis takes more global forms. Azot, our major source of budget revenue, will definitely suffer, which is disastrous for Severodonetsk.
3. Today’s Ukrainian authorities have lost their position as leaders in the nation’s eyes. I clearly remember how, back in 2004, every single soul in school was fighting over the elections. Today, general tiredness and mass political indifference have captured our people. Educated people, energetic and open-minded, those who had experience abroad and are able to see the bigger picture, will be able to change this pathetic situation. We need a new wave. The worst thing, however, is that the economic crisis coincided with a political one. If we don’t want to lose our future generations, order has to be established.”
Ihor Osaulenko
Engineer
1. “We are facing the danger of reducing work hours and personnel. Prices are going up in seven-league strides.
2. “Azot is working. But it still may be struggling with the real consequences of the crisis very soon.”
3. “There is a keen necessity for a strong new coalition. However, new people have to come. It’s no use to stick further to what we’ve got now in power.”
