The hryvnia remains under pressure amid the acceleration of inflation, and the international reserves of the National Bank of Ukraine (NBU) will most likely be shrinking until the country borrows its next loan, a Sberbank CIB Investment Research report reads.

"We forecast that the forex rate will be about UAH 14 per U.S. dollar by the end of the year," the report reads.

Sberbank CIB analysts expect that the average annual forex rate of the hryvnia will be about UAH 15 per U.S. dollar next year, and it will hit about UAH 16 per U.S. dollar by the end of 2015.

At the same time, they report that the deficit of the current account January through August 2014 decreased to $2.7 billion from almost $9 billion over the same period last year, and the August deficit was a mere $41 million.

Analysts say that with the annual inflation in September being 17.5% and the central bank's refinancing rate set at 12.5%, real interest rates are far below zero, and one may expect a further increase in NBU rates.

Sberbank CIB analysts point out that domestic demand (consumption and investment) remains to be the main catalyst for boosting economic activity against the backdrop of sluggish exports, but it apparently decreased sharply in the third quarter, though net exports (still being in the negative zone) demonstrated growth due to a significant reduction in imports.

"The fact that the industrial recession has affected all regions in the country suggests that economic recovery in 2015 will be very hard," the report said.

Analysts predict that Ukraine's GDP will decline by 7% in 2014, and it will slow to 1.5% in 2015 with the fact that the Ukrainian authorities will be able to reduce the budget deficit from 7% of GDP this year to 6% of GDP next year.

The current official forex rate is about UAH 12.95 per U.S. dollar.