Ukraine

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

Ukraine - In Short.

Overview of Ukraine

Ukraine was the center of the first eastern Slavic state, Kyivan Rus, which during the 10th and 11th centuries was the largest and most powerful state in Europe. Weakened by internecine quarrels and Mongol invasions, Kyivan Rus was incorporated into the Grand Duchy of Lithuania and eventually into the Polish-Lithuanian Commonwealth. The cultural and religious legacy of Kyivan Rus laid the foundation for Ukrainian nationalism through subsequent centuries. A new Ukrainian state, the Cossack Hetmanate, was established during the mid-17th century after an uprising against the Poles. Despite continuous Muscovite pressure, the Hetmanate managed to remain autonomous for well over 100 years. During the latter part of the 18th century, most Ukrainian ethnographic territory was absorbed by the Russian Empire. Following the collapse of czarist Russia in 1917, Ukraine achieved a short-lived period of independence (1917-20), but was reconquered and endured a brutal Soviet rule that engineered two forced famines (1921-22 and 1932-33) in which over 8 million died. In World War II, German and Soviet armies were responsible for 7 to 8 million more deaths. Although Ukraine achieved independence in 1991 with the dissolution of the USSR, democracy and prosperity remained elusive as the legacy of state control and endemic corruption stalled efforts at economic reform, privatization, and civil liberties. A peaceful mass protest referred to as the “Orange Revolution” in the closing months of 2004 forced the authorities to overturn a rigged presidential election and to allow a new internationally monitored vote that swept into power a reformist slate under Viktor YUSHCHENKO. Subsequent internal squabbles in the YUSHCHENKO camp allowed his rival Viktor YANUKOVYCH to stage a comeback in parliamentary (Rada) elections, become prime minister in August 2006, and be elected president in February 2010. In October 2012, Ukraine held Rada elections, widely criticized by Western observers as flawed due to use of government resources to favor ruling party candidates, interference with media access, and harassment of opposition candidates. President YANUKOVYCH’s backtracking on a trade and cooperation agreement with the EU in November 2013 – in favor of closer economic ties with Russia – and subsequent use of force against students, civil society activists, and other civilians in favor of the agreement led to a three-month protest occupation of Kyiv’s central square. The government’s use of violence to break up the protest camp in February 2014 led to all out pitched battles, scores of deaths, international condemnation, a failed political deal, and the president’s abrupt departure for Russia. New elections in the spring allowed pro-West president Petro POROSHENKO to assume office in June 2014; he was succeeded by Volodymyr ZELENSKY in May 2019. Shortly after YANUKOVYCH’s departure in late February 2014, Russian President PUTIN ordered the invasion of Ukraine’s Crimean Peninsula falsely claiming the action was to protect ethnic Russians living there. Two weeks later, a “referendum” was held regarding the integration of Crimea into the Russian Federation. The “referendum” was condemned as illegitimate by the Ukrainian Government, the EU, the US, and the UN General Assembly (UNGA). In response to Russia’s illegal annexation of Crimea, 100 members of the UN passed UNGA resolution 68/262, rejecting the “referendum” as baseless and invalid and confirming the sovereignty, political independence, unity, and territorial integrity of Ukraine. In mid-2014, Russia began supplying proxies in two of Ukraine’s eastern provinces with manpower, funding, and materiel driving an armed conflict with the Ukrainian Government that continues to this day. Representatives from Ukraine, Russia, and the unrecognized Russian proxy republics signed the Minsk Protocol and Memorandum in September 2014 to end the conflict. However, this agreement failed to stop the fighting or find a political solution. In a renewed attempt to alleviate ongoing clashes, leaders of Ukraine, Russia, France, and Germany negotiated a follow-on Package of Measures in February 2015 to implement the Minsk agreements. Representatives from Ukraine, Russia, the unrecognized Russian proxy republics, and the Organization for Security and Cooperation in Europe also meet regularly to facilitate implementation of the peace deal. More than 14,000 civilians have been killed or wounded as a result of the Russian intervention in eastern Ukraine.    
Value
Country Full Name
Ukraine
Country Code
UKR
Region
Europe & Central Asia
Income Group
Lower middle income
Currency Unit
GDP
1.55E+11
Population
44134693
Land Area
579400
Net National Income Per Capita
3297.048651
GDP per Capita (PPP)
13054.76099

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

Ukraine - Economic

Economy of Ukraine

After Russia, the Ukrainian Republic was the most important economic component of the former Soviet Union, producing about four times the output of the next-ranking republic. Its fertile black soil accounted for more than one fourth of Soviet agricultural output, and its farms provided substantial quantities of meat, milk, grain, and vegetables to other republics. Likewise, its diversified heavy industry supplied unique equipment such as large diameter pipes and vertical drilling apparatus, and raw materials to industrial and mining sites in other regions of the former USSR.   Shortly after independence in August 1991, the Ukrainian Government liberalized most prices and erected a legal framework for privatization, but widespread resistance to reform within the government and the legislature soon stalled reform efforts and led to some backtracking. Output by 1999 had fallen to less than 40% of the 1991 level. Outside institutions – particularly the IMF encouraged Ukraine to quicken the pace and scope of reforms to foster economic growth. Ukrainian Government officials eliminated most tax and customs privileges in a March 2005 budget law, bringing more economic activity out of Ukraine’s large shadow economy. From 2000 until mid-2008, Ukraine’s economy was buoyant despite political turmoil between the prime minister and president. The economy contracted nearly 15% in 2009, among the worst economic performances in the world. In April 2010, Ukraine negotiated a price discount on Russian gas imports in exchange for extending Russia’s lease on its naval base in Crimea.   Ukraine’s oligarch-dominated economy grew slowly from 2010 to 2013 but remained behind peers in the region and among Europe’s poorest. After former President YANUKOVYCH fled the country during the Revolution of Dignity, Ukraine’s economy fell into crisis because of Russia’s annexation of Crimea, military conflict in the eastern part of the country, and a trade war with Russia, resulting in a 17% decline in GDP, inflation at nearly 60%, and dwindling foreign currency reserves. The international community began efforts to stabilize the Ukrainian economy, including a March 2014 IMF assistance package of $17.5 billion, of which Ukraine has received four disbursements, most recently in April 2017, bringing the total disbursed as of that date to approximately $8.4 billion. Ukraine has made progress on reforms designed to make the country prosperous, democratic, and transparent, including creation of a national anti-corruption agency, overhaul of the banking sector, establishment of a transparent VAT refund system, and increased transparency in government procurement. But more improvements are needed, including fighting corruption, developing capital markets, improving the business environment to attract foreign investment, privatizing state-owned enterprises, and land reform. The fifth tranche of the IMF program, valued at $1.9 billion, was delayed in mid-2017 due to lack of progress on outstanding reforms, including adjustment of gas tariffs to import parity levels and adoption of legislation establishing an independent anti-corruption court.   Russia’s occupation of Crimea in March 2014 and ongoing Russian aggression in eastern Ukraine have hurt economic growth. With the loss of a major portion of Ukraine’s heavy industry in Donbas and ongoing violence, the economy contracted by 6.6% in 2014 and by 9.8% in 2015, but it returned to low growth in in 2016 and 2017, reaching 2.3% and 2.0%, respectively, as key reforms took hold. Ukraine also redirected trade activity towards the EU following the implementation of a bilateral Deep and Comprehensive Free Trade Agreement, displacing Russia as its largest trading partner. A prohibition on commercial trade with separatist-controlled territories in early 2017 has not impacted Ukraine’s key industrial sectors as much as expected, largely because of favorable external conditions. Ukraine returned to international debt markets in September 2017, issuing a $3 billion sovereign bond.

Unemployment Rate

Inflation Rate

Ukraine - GDP Composition

GDP Composiiton & Value Added of Ukraine

Last Updated: Jan, 2021, Updated For 2020.

Ukraine - GDP, Value Added

Demographics of Ukraine

densest settlement in the eastern (Donbas) and western regions; noteable concentrations in and around major urban areas of Kyiv, Kharkiv, Donets’k, Dnipropetrovs’k, and Odesa
Geographic Location

Eastern Europe, bordering the Black Sea, between Poland, Romania, and Moldova in the west and Russia in the east

Races

Ukrainian 77.8%, Russian 17.3%, Belarusian 0.6%, Moldovan 0.5%, Crimean Tatar 0.5%, Bulgarian 0.4%, Hungarian 0.3%, Romanian 0.3%, Polish 0.3%, Jewish 0.2%, other 1.8% (2001 est.)

Languages

Ukrainian (official) 67.5%, Russian (regional language) 29.6%, other (includes small Crimean Tatar-, Moldovan/Romanian-, and Hungarian-speaking minorities) 2.9% (2001 est.); note - in February 2018, the Constitutional Court ruled that 2012 language legislation entitling a language spoken by at least 10% of an oblast's population to be given the status of "regional language" - allowing for its use in courts, schools, and other government institutions - was unconstitutional, thus making the law invalid; Ukrainian remains the country's only official nationwide languagemajor-language

Religion

Orthodox (includes the Orthodox Church of Ukraine (OCU), Ukrainian Autocephalous Orthodox Church (UAOC), and the Ukrainian Orthodox - Moscow Patriarchate (UOC-MP)), Ukrainian Greek Catholic, Roman Catholic, Protestant, Muslim, Jewish (2013 est.)note: Ukraine's population is overwhelmingly Christian; the vast majority - up to two thirds - identify themselves as Orthodox, but many do not specify a particular branch; the OCU and the UOC-MP each represent less than a quarter of the country's population, the Ukrainian Greek Catholic Church accounts for 8-10%, and the UAOC accounts for 1-2%; Muslim and Jewish adherents each compose less than 1% of the total population

Dependency & Expectancy of Ukraine

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

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Ukraine - Social Media Briefing

Ukraine - Social Media & Social Commerce

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Politics & Policies of Ukraine

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

Australia Group, BSEC, CBSS (observer), CD, CE, CEI, CICA (observer), CIS (participating member, has not signed the 1993 CIS charter), EAEC (observer), EAPC, EBRD, FAO, GCTU, GUAM, IAEA, IBRD, ICAO, ICC (national committees), ICRM, IDA, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITU, ITUC (NGOs), LAIA (observer), MIGA, MONUSCO, NAM (observer), NSG, OAS (observer), OIF (observer), OPCW, OSCE, PCA, PFP, SELEC (observer), UN, UNCTAD, UNESCO, UNFICYP, UNIDO, UNISFA, UNMIL, UNMISS, UNOCI, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO, ZC

Import of Ukraine

Export of Ukraine

Import Destination

Export Destination