Ukraine on the financial front – the problem of Ukraine’s foreign public debt. OSW COMMENTARY NUMBER 178|05.08.2015

One of the key challenges that Ukraine is facing is the scale of its foreign debt (both public and private). As of 1st April it stood at US$ 126 billion, which is 109.8% of the country’s GDP. Approximately 45% of these financial obligations are short-term, meaning that they must be paid off within a year. Although the value of the debt has fallen by nearly US$ 10 billion since the end of 2014 (due to the private sector paying a part of the liabilities), the debt to GDP ratio has increased due to the recession and the depreciation of the hryvnia. The value of Ukraine’s foreign public debt is also on the rise (including state guarantees); since the beginning of 2015 it has risen from US$ 37.6 billion to US$ 43.6 billion. Ukraine does not currently have the resources to pay off its debt. In this situation a debt restructuring is necessary and this is one of the top priorities for the Ukrainian government as well as for the International Monetary Fund (IMF) and its assistance programme. Without this it will be much more difficult for Ukraine to overcome the economic crisis.

Dissolved organic carbon in sediments of the central Arctic Ocean collected during POLARSTERN cruise ARK-XXVII/3 from August-September 2012

Marine organic matter (OM) sinks from surface waters to the seafloor via the biological pump. Benthic communities, which use this sedimented OM as energy and carbon source, produce dissolved organic matter (DOM) in the process of remineralization, enriching the sediment porewater with fresh DOM compounds. We hypothesized that in the oligotrophic deep Arctic basin the molecular signal of freshly deposited primary produced OM is restricted to the surface sediment pore waters which should differ from bottom water and deeper sediment pore water in DOM composition. This study focused on: 1) the molecular composition of the DOM in sediment pore waters of the deep Eurasian Arctic basins, 2) whether the signal of marine vs. terrigenous DOM is represented by different compounds preserved in the sediment pore waters and 3) whether there is any relation between Arctic Ocean ice cover and DOM composition. Molecular data, obtained via 15 Tesla Fourier transform ion cyclotron resonance mass spectrometer, were correlated with environmental parameters by partial least square analysis. The fresher marine detrital OM signal from surface waters was limited to pore waters from < 5 cm sediment depth. The productive ice margin stations showed higher abundances of peptides, unsaturated aliphatics and saturated fatty acids formulae, indicative of fresh OM/pigments deposition, compared to northernmost stations which had stronger aromatic signals. This study contributes to the understanding of the coupling between the Arctic Ocean productivity and its depositional regime, and how it will be altered in response to sea ice retreat and increasing river runoff.