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Economyoverview: After Russia, the Ukrainian republic was far and away 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 generated 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 equipment and raw materials to industrial and mining sites in other regions of the former USSR. Ukraine depends on imports of energy, especially natural gas. Shortly after the implosion of the USSR in December 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 in 1992-98 fell to less than half the 1991 level. Loose monetary policies pushed inflation to hyperinflationary levels in late 1993. Since his election in July 1994, President KUCHMA has pushed economic reforms, maintained financial discipline, and tried to remove almost all remaining controls over prices and foreign trade. The onset of the financial crisis in Russia dashed Ukraine's hopes for its first year of economic growth in 1998 due to a sharp fall in export revenue and reduced domestic demand. Although administrative currency controls will be lifted in early 1999, they are likely to be reimposed when the hryvnia next comes under pressure. The currency is only likely to collapse further if Ukraine abandons tight monetary policies or threatens default. Despite increasing pressure from the IMF to accelerate reform, significant economic restructuring remains unlikely in 1999.

GDP: purchasing power parity$108.5 billion (1998 est.)

GDPreal growth rate: -1.7% (1998 est.)

GDPper capita: purchasing power parity$2,200 (1998 est.)

GDPcomposition by sector:
agriculture: 14%
industry: 30%
services: 56% (1997 est.)

Population below poverty line: 50% (1997 est.)

Household income or consumption by percentage share:
lowest 10%: 4.1%
highest 10%: 20.8% (1992)

Inflation rate (consumer prices): 20% (yearend 1998 est.)

Labor force: 22.8 million (yearend 1997)

Labor forceby occupation: industry and construction 32%, agriculture and forestry 24%, health, education, and culture 17%, trade and distribution 8%, transport and communication 7%, other 12% (1996)

Unemployment rate: 3.7% officially registered; large number of unregistered or underemployed workers (December 1998)

revenues: $18 billion
expenditures: $21 billion, including capital expenditures of $NA (1997 est.)

Industries: coal, electric power, ferrous and nonferrous metals, machinery and transport equipment, chemicals, food-processing (especially sugar)

Industrial production growth rate: -1.5% (1998 est.)

Electricityproduction: 171.8 billion kWh (1998)

Electricityproduction by source:
fossil fuel: 47%
hydro: 9.2%
nuclear: 43.8%
other: 0% (1998)

Electricityconsumption: 174 billion kWh (1998)

Electricityexports: 5 billion kWh (1998)

Electricityimports: 7 billion kWh (1998)

Agricultureproducts: grain, sugar beets, sunflower seeds, vegetables; beef, milk

Exports: $11.3 billion (1998 est.)

Exportscommodities: ferrous and nonferrous metals, chemicals, machinery and transport equipment, food products

Exportspartners: Russia, China,, Turkey, Germany, Belarus (1998)

Imports: $13.1 billion (1998 est.)

Importscommodities: energy, machinery and parts, transportation equipment, chemicals, plastics and rubber

Importspartners: Russia, Germany, US, Poland, Italy (1998)

Debtexternal: $10.9 billion (October 1998)

Economic aidrecipient: $637.7 million (1995); IMF Extended Funds Facility $2.2 billion (1998)

Currency: 1 hryvna=100 kopiykas

Exchange rates: hryvnia per US$13.4270 (February 1999), 2.4495 (1998), 1.8617 (1997), 1.8295 (1996), 1.4731 (1995), 0.3275 (1994)
note: in August 1998, Ukraine introduced currency controls in an attempt to fend off the impact of the Russian financial crisis; it created an exchange rate corridor for the hryvnia of 2.5-3.5 hryvnia per US$1

Fiscal year: calendar year


Telephones: 12,531,277 (1998)

Telephone system: Ukraine's phone systems are administered through the State Committee for Communications; Ukraine has a telecommunication development plan through 2005; Internet service is available in large cities
domestic: localKiev has a digital loop connected to the national digital backbone; Kiev has several cellular phone companies providing service in the different standards; some companies offer intercity roaming and even limited international roaming; cellular phone service is offered in at least 100 cities nationwide
international: foreign investment in the form of joint business ventures greatly improved the Ukrainian telephone system; Ukraine's two main fiber-optic lines are part of the Trans-Asia-Europe Fiber-Optic Line (TAE); these lines connect Ukraine to worldwide service through Belarus, Hungary, and Poland; Odesa is a landing point for the Italy-Turkey-Ukraine-Russia Undersea Fiber-Optic Cable (ITUR) giving Ukraine an additional fiber-optic link to worldwide service; Ukraine has Intelsat, Inmarsat, and Intersputnik earth stations

Radio broadcast stations: AM NA, FM NA, shortwave NA; noteat least 25 local broadcast stations of NA type (1998)

Radios: 15 million (1990)

Television broadcast stations: at least 33 (in addition 21 repeater stations that relay ORT broadcasts from Russia) (1997)

Televisions: 17.3 million (1992)


total: 23,350 km
broad gauge: 23,350 km 1.524-m gauge (8,600 km electrified)

total: 172,565 km
paved: 163,937 km (including 1,875 km of expressways); notethese roads are said to be hard-surfaced, meaning that some are paved and some are all-weather gravel surfaced
unpaved: 8,628 km (1996 est.)

Waterways: 4,400 km navigable waterways, of which 1,672 km were on the Pryp''yat' and Dnistr (1990)

Pipelines: crude oil 4,000 km (1995); petroleum products 4,500 km (1995); natural gas 34,400 km (1998)

Ports and harbors: Berdyans'k, Illichivs'k, Izmayil, Kerch, Kherson, Kiev (Kyyiv), Mariupol', Mykolayiv, Odesa, Reni

Merchant marine:
total: 181 ships (1,000 GRT or over) totaling 1,022,047 GRT/1,101,278 DWT
ships by type: bulk 9, cargo 117, liquefied gas tanker 1, container 4, multifunction large-load carrier 2, oil tanker 16, passenger 12, passenger-cargo 3, railcar carrier 2, refrigerated cargo 2, roll-on/roll-off cargo 10, short-sea passenger 3 (1998 est.)

Airports: 706 (1994 est.)

Airportswith paved runways:
total: 163
over 3,047 m: 14
2,438 to 3,047 m: 55
1,524 to 2,437 m: 34
914 to 1,523 m: 3
under 914 m: 57 (1994 est.)

Airportswith unpaved runways:
total: 543
over 3,047 m: 7
2,438 to 3,047 m: 7
1,524 to 2,437 m: 16
914 to 1,523 m: 37
under 914 m: 476 (1994 est.)


Military branches: Army, Navy, Air Force, Air Defense Force, Internal Troops, National Guard, Border Troops

Military manpowermilitary age: 18 years of age

Military manpoweravailability:
males age 15-49: 12,434,486 (1999 est.)

Military manpowerfit for military service:
males age 15-49: 9,740,684 (1999 est.)

Military manpowerreaching military age annually:
males: 365,762 (1999 est.)

Military expendituresdollar figure: $414 million (1999)

Military expenditurespercent of GDP: 1.4% (1999)

Transnational Issues