The Association Agreement with the EU was promoted in Ukraine as the path to European paradise and social well-being; it has actually turned out to be a time-bomb for the newly minted "democratic" country. As it was reported earlier, agricultural lands are being transferred to oligarchs and foreign agroholdings while its once prospering steel industry is facing complete ruin.

The article originally appeared at German Economic News. Translated for RI by Anita Zalaldinova.

Ukraine is on the verge of national bankruptcy. A resurgence of the steel industry would be a bright spot for the budget. However, the opposite is happening (Photo: Reuters)

Due to corruption, mismanagement and war, Ukraine, being a country with abundant in natural resources, is facing bankruptcy. The Iron and steel industry of Ukraine, which is based onnatural resources, is in free fall. The decrease in world prices accelerated this development. The Kiev government has done nothing to counteract.

By 2011 Ukraine had the world's largest diggings of iron ore. These deposits are concentrated in the region Kryvbas, in the centre of the country. Iron ore can be mostly recovered in strip mines there. And, besides, famous coal reserves, especially the manganese deposits, concentrated in the now embattled Donbass region of Ukraine, are significant. Herein Ukraine has a quarter of world reserves. The centre of manganese mining is in the region of Nikopol in the central southern part of the country. Other important ore reserves include titanium, aluminium, and not least uranium.

Iron ore, however, remains the most important natural resource for the Ukrainian steel industry. Manganese