The economic situation in Ukraine doesnt look very good.

[GregfromGa]

Everything was sky high in September. I knew that couldnt last. Maybe on my return in June I can afford the Dublin breakfast at Obriens.

[Mir]

Despite the fall in the value of UAH I doubt there were be any reduction in the price of any purchase.
Resturants etc. simply increase their prices  in line with the fall of currency.

[Vinnvinny]

Despite the fall in the value of UAH I doubt there were be any reduction in the price of any purchase.
Resturants etc. simply increase their prices  in line with the fall of currency.

You’ve lost me there Mir. Why would say a restaurant (your example) reduce or increase their prices because the UAH is not doing so well against other currencies?

I’m out there 2 or 3 times a month and I haven’t seen any difference in prices.

[Shadow]

Simple economics. First of all the buying price of their suppliers rises, which will make them increase teir psrices.
Secondly (and this is certainly true when in tourist business) prices are kept at a level that will only just not lose the regular foreigner.
Thus prices increase in line with the currency, but rarely go down because of any economic influence...

[TwoBitBandit]

I’m out there 2 or 3 times a month and I haven’t seen any difference in prices.

This statement is ambiguous.  Do you mean "I’m out there 2 or 3 times a month and I haven’t seen any difference in prices in UAH terms?" or "I’m out there 2 or 3 times a month and I haven’t seen any difference in prices in dollar/euro terms?"

[Vinnvinny]

This statement is ambiguous.  Do you mean "I’m out there 2 or 3 times a month and I haven’t seen any difference in prices in UAH terms?" or "I’m out there 2 or 3 times a month and I haven’t seen any difference in prices in dollar/euro terms?"

I was referring to actual prices paid in restaurants etc which will be invariably in UAH.

Simple economics. First of all the buying price of their suppliers rises, which will make them increase teir psrices.
Secondly (and this is certainly true when in tourist business) prices are kept at a level that will only just not lose the regular foreigner.
Thus prices increase in line with the currency, but rarely go down because of any economic influence...

I’m not an economist and so I can’t comment on the mechanisms, I’m just a consumer and prices don’t seem to be rising, quite the opposite. I was in Kiev twice in the past 4 weeks and both times I was offered $149 and $159 per night apartments for $79 and $89 respectively. Similarly, I noticed in Odessa last week that just about every clothing shop had their windows plastered with discounts available from 30% to 70%. Those discounts weren’t available on my previous visit in mid January. Also in Odessa a number of café’s and restaurants are doing deals such as 15% before 2pm and in the time I’ve been going there, then I’ve never seen that before.

[Vinnvinny]

Going back to the original post, no things don’t look so good for the locals but for a foreigner it’s financially a great time to be there.

[kievstar]

Shadow and Mir are 100% correct.  I am there 2 times a month as well and prices have adjusted for most things.

You buy real Italian shoes not going to get a deal - adjusted.  When currency was making a dramatic fall you could take advantage of the situation but things have stabled.  But many stores are going bankrupt so it may appear prices are low but they have to move inventory.  But good stuff is gone.  Your not going to find versace dresses on discount.  Locals are not stupid. 

You will find some restaurants and some apartments as deals.  But $150 usd for an apartment should be a deluxe with 3-4 rooms in city center of Kiev. A 90 usd apartment would be a deluxe with 2 rooms.  So unless your apartments are better than this your not getting a great deal.  I have noticed many apartment owners have increased their prices than offered a discount on it to appear the person is getting a deal.  Nice little trick on tourists.

For my wedding I noticed photographer, dvd man, DJ, and entertainer (4 people in total) - all converted to USD.  Even for the locals. The two limousines and additional cars we rented were in Ukraine but adjusted upwards. 

We did get a good deal on restaurant as we purchased during the big jump in currency and this place fell asleep at the wheel.  But there still getting 250 Ukraine dollars a person but current price is closer to 350 Ukraine per person. 

You can always find deals but there are thousands of people getting very rich in Ukraine right now as there are new ways to make money there.  Reason why the politicians voted for higher import taxes recently and during 2008 many of them bought Ukraine manufacturing plants. 

 

[Vinnvinny]

Your not going to find versace dresses on discount. 

No worries, they never seem to fit me that well anyway.   

[Vinnvinny]

A 90 usd apartment would be a deluxe with 2 rooms. 

Where can we find these apartments kievstar? Many thanks. 

[wxman]

We did get a good deal on restaurant as we purchased during the big jump in currency and this place fell asleep at the wheel.  But there still getting 250 Ukraine dollars a person but current price is closer to 350 Ukraine per person

It still is cheaper based on USD. 250 Ukraine dollars (Hryvnia) at a 5 to 1 rate last year cost $50 USD. Even with a higher cost of 350 Hryvnia based on a 9 to 1 rate today, would only cost you $38 USD today. So in fact, it is cheaper if you have foreign currency.

[kievstar]

wxman, why do people pull one line from several paragraphs to justify their point???? Need to take the full message as it can lose it meaning.

Vinny - let me know when your in Kiev and I can introduce you to the right people.  I stopped doing it over internet as I harmed some of my relationships by referring people I did not know.