By the time the popular uprising succeeded in toppling Victor Yanukovych as president, foreign direct investment had dwindled to less than $3 billion, government revenues had fallen and capital flight increased. Meanwhile, withdrawal of savings from Ukrainian banks intensified in February.
The new government, in turn, realized it would have to free the hryvnia from its artificial perch of Hr 8 to the U.S. dollar.
“We could delineate the events of the last few years into several distinct phases of crises,” said Steven Fisher, managing director of Citibank in Ukraine. “Phase one was basically a ‘train wreck’ that was sooner or later going to happen due to the rapidly deteriorating economic conditions and the quickly declining…foreign currency reserves level…that was pre-Maidan. Then Maidan was the second phase…where in Kyiv personal safety and the viability of operating your premises was the key concern.”