Remittances are both a vital prop and risk for Ukraine

Subject

Labour remittances and the Ukrainian economy.

Significance

Ukrainians account for one of the largest migration waves to the EU, thanks to visa-free travel arrangements under the Association Agreement. As emigration has risen since 2014, remittances sent home by workers abroad have risen to 8-9% of GDP. Ukraine does not depend on remittances to same extent as some regional countries, but the inflows are now important for economic stability.

Impacts

• Migrants may become an important constituency pushing for political change.
• Increased migration to EU states is reorienting Ukraine away from Russia.
• Ukrainians are contributing to economic performance in host countries in Central-Eastern Europe.