Ukraine's leading English-language newspaper since 1995

If the government chooses to impose administrative economic measures, Ukrainian industries must be given time to prepare for them weeks in advance.

align=justify>The folly of such approaches is beginning to reveal itself. Sunflower oil exports were banned, which was supposed to increase the domestic supply and help consumers.

Yet the plan failed, and prices jumped 8 percent in February alone, according to recent state figures. Now Ukraine’s cognac industry has similar complaints, claiming recent tax hikes threaten their industry.

What’s most disturbing about such measures is the lack of concern the Ukrainian government has for its own domestic producers. Tymoshenko pledged to make government more responsive to its constituents, including legitimate businessmen.

Yet within the first days of her government, abrupt and drastic decisions to ban sunflower oil exports and hike cognac excise taxes were made without warning or consultation with the industry’s top players.

If the government chooses to impose administrative economic measures, for whatever reason, Ukrainian industries must be given time to prepare for them weeks in advance. They need a free market with protections.

The government should help industries adjust to EU and WTO integration, instead of sending jolts and shocks into the economy. Such techniques not only harm industry, but spur inflation. While cognac price increases are limited in their overall effect, sunflower oil extends into the home of every Ukrainian.

Controlling inflation is equally about stable and predictable political leadership as it is economic models and theories.

Yulia and her team should know better.