Ministry Finances

This will be the final update from my recent trip. If you want to ask about anything I failed to cover, feel free to e-mail me.

The biggest shock on this visit was the rapid deterioration of the economy in Ukraine. It all started with a severe drought last summer that caused steep rises in food prices. Then the fall election of a “pro-west” president resulted in punitive price increases and supply reductions for oil and gas from Russia and another round of price increases. Now, the US dollar has weakened to the point that staff, parents and landlords are expecting to be paid in the local currency instead of dollars.

The end result of all of this is that the monthly budget in Ukraine has grown from $12,500 in January to $16,000 for August with more rent increases coming in September. These increases split pretty evenly between ministry growth over the past six months and the economy.

Some local prices have actually reached or exceeded western prices. Gas is over $6 a gallon. A house we rented last year for $600 a month will increase to $1500 this month. Renting a two-room apartment now costs at least $400. And still, the average monthly salary we pay our staff is $260- less than the government established poverty level of $300.

Throughout the country, young adults and families are forced to share housing because salaries are not keeping up. I know of one young family who moved to Belarus because they couldn’t live on the salaries they received- even living rent free with family.

I know I’ve written much about the building program at Dyetski Dom. Completion of that building is critical for our long-term growth and I thank those of you who have made donations. We are closing in on $10,000 in just one month. But right now we are facing some unpleasant ministry cuts unless we get a quick infusion of cash for operations. Increased monthly support would solve the problem, of course. Or, some one-time gifts would buy us time to adjust our budget gradually.

When I started sending these updates, I decided that they would be ministry updates for a relatively small group of Mulberry friends and family instead of appeals. Hopefully, this won’t become a habit.