Economy of Ukraine

Before 1917 Geography has long influenced the economy of the Ukrainian lands. Rich fertile soils (such as chernozem areas) made the area a "breadbasket": for ancient Greece as well as for early modern Europe. The maintenance of trade corridors – the route from the Varangians to the Greeks and access through the Straits to the Mediterranean world – became important. Mineral resources encouraged industrialisation – notably in the Donbas – from the 19th century onwards. The lack of secure borders meant repeated interruptions in economic development. Steppe nomads and other conquerors – Cumans, Mongols, Tatars for example, sometimes saw plundering as more important than fostering economic development. In the 16th to 18th centuries, the wastelands of the Wild Fields left much of Ukraine as an area of tentatively militarised outposts, prior to tsarist Russia's extension of its power into the region in the 17th and 18th centuries. Soviet period: 1917 to 1991 1991 to 2000 On 24 August 1991, Ukraine established its independence from the Soviet Union. The new state's economy suffered huge output declines and soaring inflation in the following years. Ukraine saw hyperinflation in the early 1990s because of a lack of access to financial markets and massive monetary expansion to finance government spending, while output declined sharply this was catastrophic for the economy because it undid decades of hard-fought economic progress and people became poorer. The currency remained unstable through the late 1990s, particularly during the 1998 Russian financial crisis. The UN noted that Ukraine had overcome absolute poverty, and that there was only relative poverty in 2009. 2000 to 2014 Ukraine stabilised by the early 2000s. The economy continued to grow thanks to a 50% growth in exports between 2000 and 2008 Ukraine suffered severely in the economic crisis of 2008. Because of it Ukraine experienced a drought in capital flows. In 2008, Ukraine's economy ranked 45th in the world according to GDP (nominal), with a total nominal GDP of US$188 billion, and nominal per capita GDP of US$3,900. There was 3% unemployment at the end of 2008. Over the first 9 months of 2009, unemployment averaged 9.4%. The final official unemployment rates for 2009 and 2010 were 8.8% and 8.4%, due to the recovery of the world economy and increasing prices for metals. Ukraine's real GDP growth in 2010 was 4.3%, leading to a per capita PPP GDP of US$6,700. In 2011, Ukrainian politicians estimated that 40% of Ukraine's economy was a shadow economy. In the summer of 2013, Ukrainian exports to Russia fell substantially due to Russia's stricter customs controls. Moody's downgraded Ukraine's credit rating to Caa1 (poor quality and very high credit risk) in September 2013. At the time, swap markets rated Ukraine's default probability over the next five years at 50%. A Ukrainian government report stated early in February 2016 that Ukraine's economy had shrunk by 10.4% in 2015. For 2015, the National Bank of Ukraine had expected a further decline of 11.6%, and the World Bank anticipated a 12% shrinkage. The World Bank forecast growth of 1% in 2016. Early in February 2014, the National Bank of Ukraine changed the hryvnia into a fluctuating/floating currency in an attempt to meet IMF requirements and to try to enforce a stable price for the currency in the Forex market. In 2014 and 2015, the hryvnia lost about 70% of its value against the U.S. dollar. The IMF agreed to a four-year loan programme worth about $17.5 billion in eight tranches over 2015 and 2016, subject to conditions which involved economic reforms. However, due to lack of progress on reforms, only two tranches worth $6.7 billion were paid in 2015. A third tranche of $1.7 billion was provisionally scheduled in June 2016 subject to the bringing into law of 19 further reform measures. Some western analysts believed that large foreign loans were not encouraging reform, but enabling the corrupt extraction of funds out of the country. Since December 2015, Ukraine has refused to pay and hence de facto defaults on a $3 billion debt payment to Russia that formed part of a December 2013 Ukrainian–Russian action plan. The turnover of retail trade in Ukraine in 2014 shrank by 8.6% (from 2013) and shrank by 20.7% in 2015 (from 2014). Ukraine saw a 30.9% decline in exports in 2015, In 2015, the Ministry of Social Policy of Ukraine rated 20–25% of Ukrainian households as poor. $2.526 billion entered the Ukrainian economy via remittances in 2015, 34.9% less than in 2014. In January 2016, Bloomberg rated Ukraine's economy as the 41st most innovative in the world, down from 33rd in January 2015. In May 2016, the IMF mission chief for Ukraine, Ron van Rood, stated that reduction of corruption was a key test for continued international support. Aivaras Abromavičius, Ukraine's then-Minister of Economy and Trade, resigned in February 2016, citing ingrained corruption. In October of the same year, a survey of potential foreign investors conducted by Dragon Capital identified corruption and lack of trust in the judiciary as the largest obstacles to investment. Late in July 2016, the State Statistics Service of Ukraine reported that, compared with June 2015, real wages had increased by 17.3%. Simultaneously the National Bank of Ukraine reported a $406 million surplus in Ukraine's January–June 2016 balance of payments against a deficit of $1.3 billion in the same period in 2015. According to Ukraine's State Statistics Service, inflation in 2016 came down to 13.9%; while it had stood at 43.3% in 2015 and at 24.9% in 2014. The Economist has compared the severity of Ukraine's recession to that of the Greek recession in 2011–2012 – pointing to Ukraine experiencing an 8–9% decline in GDP from 2014 to 2015 and Greece experiencing an 8.1% decline of GDP in 2011–2012, and noted that not all areas of Ukraine were equally effected by the economic downturn. Donetsk and Luhansk (the conflict zone) saw industrial production falling by 32% and 42% respectively. On the other hand, Lviv, located over 1000 km from the conflict, posted the largest jump in employment in the nation. The economy of Ukraine has overcome the severe crisis caused by armed conflict in the eastern part of country. A 200% devaluation of the hryvnia in 2014–2015 made Ukrainian goods and services cheaper and more competitive. In 2016, for the first time since 2010, the economy grew by more than 2%. A 2017 World Bank statement projected growth of 2% in 2017, of 3.5% in 2018, and of 4% in 2019 and 2020. Inflation in Ukraine in 2017 was 13.7% (12.4% in 2016). Since about 2015, there has been a growing number of Ukrainians working in the European Union, particularly Poland. Eurostat reported that 662,000 Ukrainians received EU residence permits in 2017, with 585,439 issued by Poland. The head of the National Security and Defence Council of Ukraine has estimated that up to 9 million Ukrainians work abroad for some part of the year, and 3.2 million have regular full-time work abroad with most not planning to return. World Bank statistics show that money remittances back to Ukraine have roughly doubled from 2015 to 2018, worth about 4% of GDP. In Q1 2019, China became Ukraine's largest trading partner, replacing Russia. Ukraine made its largest payment on debt in 2019 at $1.1 billion. In 2019, Fitch Ratings, a global leader in credit ratings and research, upgraded Ukraine's Long-Term foreign and National Currency Issuer Default Ratings (IDR) from "B−" to "B" and improved the outlook on the credit rating from stable to positive. Ukraine has demonstrated timely access to fiscal and external financing, improving macroeconomic stability, and declining public indebtedness. Ukraine moved up seven positions in the annual World Bank Doing Business 2020 report. Prudent macroeconomic management helped reduce inflation and interest rates in 2019. Inflation eased to 4.1% at the end of 2019 and 2.4% in February 2020. In 2020, Ukraine's GDP fell by 4.4%, due to the COVID-19 pandemic. On 27 October 2020, the Constitutional Court of Ukraine ruled that anti-corruption legislation, including the mandatory electronic declaration of income, was unconstitutional. President Volodymyr Zelenskyy warned that if the Ukrainian parliament did not restore these anti-corruption laws, foreign aid, loans and visa-free travel to the European Union were at risk. The governor of the National Bank of Ukraine reported that Ukraine will not receive the scheduled $700 million IMF loan before the end of 2020 because of the issue. IMF assessment teams had not visited Kyiv for eight months, which is necessary for further IMF loan tranches to be released. In February 2021, economist Anders Åslund wrote "for months, senior Ukrainian officials have been claiming that the Ukrainian government has done everything the [IMF] could possibly demand" but "this happy talk was always detached from reality", and the relationship with the IMF remains critical. On 21 July 2022, Ukraine devalued the Ukrainian hryvnia by 25% against the U.S. dollar due to the economic impact of ongoing Russian invasion of Ukraine, to eliminate currency speculation and to improve the international competitiveness of business. The previous day it requested a two-year payment freeze on international bonds; in 2020 it had $130 billion of external debt. When the 2022 Russian invasion began, Ukraine's economy was predicted by the IMF to shrink by up to 35%. Despite improvements, as in Moldova corruption in Ukraine remains an obstacle to joining the EU; the country was rated 104th out of 180 in the Corruption Perceptions Index for 2023. Following the onset of the Russian-Ukrainian War in 2022, Ukraine's GDP declined by nearly 30%. Despite economic growth in 2023 and 2024, the economy remains smaller than it was before the war. In 2023, GDP increased by 5.3%, and in 2024 by 3.6%. The International Monetary Fund forecasts that Ukraine's GDP growth will slow to between 2% and 3% in 2025, citing challenges such as labor shortages, damage to energy infrastructure, and the ongoing war. In April 2026, the National Bank of Ukraine forecast that real GDP growth in 2026 would be 1.3% and inflation 9.4%; it kept its bank rate at 15%. ==Economic data==

Ukraine is subdivided into nine economic regions: Carpathian, Northwestern, Podillia, Capital, Central-Ukrainian, Northeastern, Black-Sea-Coastal, Trans-Dnipro, and Donetsk. Those regions were redrawn from the three Soviet economic regions of the Ukrainian SSR: Donetsk-TransDnieper, Southwestern, and Southern. Main economic indicators The following table shows the main economic indicators in 1992–2023. Inflation below 5% is in green. Real GDP per capita growth in 2024 was 2.5%. Trade Until recently, Russia was Ukraine's largest trading partner with 25.7% of exports and 32.4% of imports in 2012. In 2012, 24.9% of exports and 30.9% of imports were to and from the EU. In 2015 the EU became Ukraine's largest trading partner, accounting for more than a third of its trade. In 2015, Ukrainian exports to Russia had fallen to 12.7%. In 2017, 14.5% of Ukraine's imports came from Russia. In 2017, Ukrainian exports to Russia stood at 9%. Overall, Ukraine increased its exports by 20% in 2017. Exports from Ukraine in 2015 decreased by 29.3% to $38.135 billion. Imports were 31.1% down, to $37.502 billion. Ukraine was the leading agricultural goods provider in the Chinese market. Natural gas is Ukraine's biggest import and the main cause of the country's structural trade deficit. Exports of Ukrainian goods in 2024 reached US$41.73 billion. The 2016 Ranking of the Top 500 companies of Central and Eastern Europe by Deloitte has come up with specific features of Ukraine's economy. More than 50% of the biggest Ukrainian companies are therefore owned by local investors whereas for the whole region this number accounts only to 15,4%. Deloitte explains the difference with the low investment attractiveness for foreign investors. Furthermore, the biggest Ukrainian companies feature a considerable higher average headcount (35’600 vs. 6’600 employees) and lower productivity (EUR 47’000 revenue per employee vs. EUR 207’000 for the whole region). Natural resources • Ukraine is relatively rich in natural resources, particularly in mineral deposits. Although oil and natural gas reserves in Ukraine are largely exhausted, Ukrainian economy in graphics File:GDP PPP Poland.svg|GDP (PPP) of Ukraine File:GDP PPP per capita CIS.svg|Ukraine's GDP (PPP) per capita File:Ukr world GNI percapita.PNG|2022 GNI per capita: File:Averagemonthlysalary.png|Average monthly salary in November 2021 (ranks by region) ==Sectors==

Industries , produced by the former Yuzhmash, Ukrainian rocket manufacturer Ukraine is home to companies operating in around 20 major industries, namely power generation, fuel, ferrous and non-ferrous metallurgy, chemical and petrochemical and gas, machine building and metal-working, forest, wood-working and wood pulp and paper, construction materials, light, food, and others. Industry accounted for 26% of GDP in 2012. Ukraine has a massive high-tech industrial base, including electronics, armaments, and space programme. Mining and production • Ukraine is one of the world's most important mineral producing countries, in terms of both the range and size of its reserves. There are nearly 8,000 separate deposits, harboring some 90 different minerals, of which about 20 are economically significant. About half of all the known deposits are under exploitation. Coal reserves in Ukraine amount to 47.1 billion tons. The annual domestic demand for coal as fuel is about 100 million tons, of which 85 percent can be satisfied by domestic production. Ukraine has oil and gas fields that meet 10 percent of its oil and 20 percent of its gas consumption, respectively. Ukraine contains natural gas reserves of , but only about 20 percent of Ukraine's demand is met by domestic production. Deposits of iron ore (estimated at 28 billion tons), manganese ore (3 billion tons), chalk and limestone (1.5 billion tons) are also large in Ukraine. The domestic industrial sector suffers from constant energy shortages and energy supply payment debts totaling about $792 million at the end of 1995. Ukraine increased oil and gas production in 2023 up to 18.7 bcm. In 2019, Ukraine was the 7th largest world producer of iron ore, the world's 8th largest producer of manganese, 6th largest producer of titanium, and 7th largest producer worldwide of graphite. Ukraine was the world's 9th largest producer of uranium in 2018. Before the 2022 escalation of the war with Russia Ukraine supplied about 50% of the world's neon gas and 40% of its krypton, both of which are needed for the production of semiconductors. It is estimated that over 90% of U.S. semiconductor-grade neon supplies were imported from Ukraine. Iron and steel Ukraine is rich in mineral deposits, including iron ore (of which it once produced 50 percent of the entire Soviet output), manganese ore (of which it produced 40 percent of world output during the Soviet era), mercury, titanium, and nickel. Ukraine has a major ferrous metal industry, producing cast iron, steel, and pipes. Among its economy leading companies in that field are Metinvest, Kryvorizhstal, AzovStal, Ilyich Steel & Iron Works, and others. As of 2012, Ukraine is the world's tenth largest steel producer (according to the World Steel Association). Chemical industry • An important branch of the economy of Ukraine is the country's chemical industry, which includes the production of coke, mineral fertilizers, and sulfuric acid. Production of coke dropped tremendously due to the Russo-Ukrainian War. Defence industry , produced by KMDB Ukraine's defence industry is organised around Ukroboronprom, a state-owned conglomerate of over 130 companies. These companies include Soviet era giants such as Ivchenko-Progress aircraft design bureau that was opened in 1945, to newer companies such as RPC Fort which came into existence in the 1990s. Ukraine is among the top 10 arms exporters in the world. The output of Ukrainian defence plants grew 58% in 2009, with largest growth reported by aircraft builders (77%) and ship builders (71%). Fuel and energy complex Due to Ukraine's large population and its significant energy consumption, it is one of the largest energy markets on the European continent. Ukraine's location at the intersection of Europe, Russia, the Black Sea, and the Caspian Sea provides its ample natural resources such as coal, oil, natural gas, as well as significant potential for hydro and biomass energy. Ukraine relies heavily on imports for natural gas and oil products. It is a key transit site for European imports of Russian gas. Ukraine transits more natural gas than any other country. Ukraine has been a key transit point for EU imports of Russian gas, Automotive industry Ukraine automobile manufacturers produce diesel locomotives, tractors, trucks, buses, trolleybuses, own-designed cars and trams. There are 12 automobile manufacturers in Ukraine, including ZAZ, LuAZ, Bogdan, KrAZ, Eurocar, Electron, and LAZ. ZAZ (Zaporizhzhia Automobile Building Plant) is the main automobile-manufacturer of Ukraine, based in the south-eastern city of Zaporizhzhia. Passenger car manufacturing in Ukraine started in 1959. From 1960 to 1994, a total of 3,422,444 Zaporozhets vehicles were manufactured in Zaporizhzhia and engines with air-cooling in Melitopol. In 2011–2012, the Zaporizhzhia Automobile Building Plant started serial full-scale production of two new models of vehicle, the ZAZ Forza (a re-badged Chinese Chery A13) and the ZAZ Vida (a re-badged Daewoo Aveo). The Bogdan Corporation is a leading Ukrainian automobile-manufacturing group, including several car- and bus-makers of Ukraine. Bogdan buses (re-badged Isuzu models) are used as the primary small buses in most Ukrainian cities. LAZ used to be one of the major bus manufacturers in Ukraine. It manufactured city buses, coach buses, trolley buses, and special purpose buses. The company has been defunct since 2014. The Lviv-based company Electrontrans is an enterprise of a full-scale production, specialising in design and production of modern urban electric transport – trams, trolleybuses, electric buses, units, and spare parts. In 2013 Electrontrans started producing low-floor trams, the first Ukrainian 100% low-floor tramways. Aircraft and aerospace industry • Ukraine is one of nine countries with a full cycle of aerospace hardware engineering and production. Besides the design and production of passenger and transportation aircraft, Ukraine has a network of aircraft repair enterprises, including companies involved in the recovery of military planes and helicopters. In March 2007, the Cabinet of Ministers of Ukraine created the state aircraft building concern Aviation of Ukraine (SACAU), which is governed by the Ministry of Industrial Policy. Production of An-148 aircraft is now one of the most prospective projects for the Ukrainian plane manufacturing industry with 35 units manufactured since 2009 (together with Russian production). The aircraft were engineered by the Antonov Scientific and Production Complex Design Office (Antonov ANTK). The largest single airplane in the world, Antonov An-225 Mriya was designed by Antonov ANTK and made in 1988. The gross production of light and ultra light planes in Ukraine does not exceed 200 units per annum. Production of hang-gliders and paragliders of all designs makes nearly 1,000 units each year. Most of produced devices are exported. The main buyers of Ukrainian-made ultra-light aircraft are the United States, Australia, New Zealand, the United Kingdom, France, etc.. Since 2014, aerospace industry revenues have fallen by 80%. In June 2016, the Antonov Corporation merged with the state-owned military conglomerate Ukroboronprom, forming Ukrainian Aircraft Corporation within its structure. This merger was done to boost Antonov profits and the production rate. In 2018, Antonov was working on two cargo planes: the An-178, a cargo version of the An-158, and the An-132D, a redesigned version of the An-32. The An-132 was developed jointly with Saudi's Taqnia Aeronautics Company, featuring western avionics and engines. The roll out and first flight was due at the beginning of January 2017. The space rocket industry in Ukraine has been managed by the State Space Agency of Ukraine since 1992. The agency included 30 enterprises, scientific research institutes, and design offices. Pivdenne Design Bureau was in general responsible for creating the Zenit-3SL carrier rocket. In 2013, The National Space Agency of Ukraine was involved in cooperation with American Rockwell Int., as well as the Sea Launch project. Yuzhnoye SDO was the designer and manufacturer of the initial first stage core of the U.S. Orbital ATK Antares rocket. Shipbuilding − a passenger ship built in Ukraine Ukraine is one of the 10 largest shipbuilding countries in Europe. There are 49 shipbuilding companies registered in Ukraine. They are able to build a wide range of vessel types: powerboats, barges, bulk carriers (dry cargo ship), tankers, liquefied gas carriers, etc. The USSR's collapse put Ukraine's shipbuilding industry into a long-term decline. This lasted until 1999 and was mostly due to a minimum volume of state shipbuilding orders. Between 1992 and 2003, Ukraine's 11 shipyards produced 237 navigation units for a total value of US$1.5 billion. Production facilities are not working near full capacity, and customers are not always timely in paying for services. The shipbuilding industry grew between 2000 and 2006, in line with the wider Ukrainian economic expansion at the time. In 2008, agriculture accounted for 8.29% of Ukraine's GDP and by 2012 had grown to 10.43% of the GDP. Agriculture accounted for $13.98 billion of value added to the economy of Ukraine in 2012. Despite being a top 10 world producer of several crops such as wheat and corn Ukraine still only ranks 24 out of 112 nations measured in terms of overall agricultural production. In 2011, Ukraine was the world's largest producer of sunflower oil, a major global producer of grain and sugar, and a potential global player on meat and dairy markets. It was one of the largest producers of nuts. Ukraine produced more natural honey than any other European country and was one of the world's largest honey producers. An estimated 1.5% of its population was involved in honey production, therefore Ukraine had the highest honey per capita production rate in the world. Because Ukraine possesses 30% of the world's richest black soil, makes its agricultural industry have huge potential. At the beginning of the 21st century, Ukraine's agricultural industry was highly profitable, generating profit margins of 40–60%. Ukraine was the world's 6th largest, 5th if not including the EU as a separate state, producer of corn in the world and the 3rd largest corn exporter in the world. In 2012, Ukraine signed a contract with China, the world's largest importer of corn, to supply China with 3 million tonnes of corn annually at market price. The deal included a $3 billion line of credit extension from China to Ukraine. In 2014, Ukraine's total grain crop was estimated to be a record 64 million metric tons. In 2014, Ukraine lost control over portions of several regions to Russia, followed by the start of the war in Donbas and the annexation of Crimea by the Russian Federation, hence the actual available crop yield was closer to 60.5 million metric tons. Due to the decline of the metallurgy industry, which was previously Ukraine's top export category, agricultural products have become Ukraine's largest export category as a result of the war in Donbas. Since at least 2011, farmland was remaining as the only major asset in Ukraine that was not privatised. In March 2020, the Ukrainian parliament lifted a ban on the sale of farmland. The land market was fully opened for the first time since independence on 1 July 2021. Professionalised, scientific breeding of barley began in 1910 and now supplies improved cultivars to the country. Information technology Ukraine has a long-standing reputation as a major technology region, with a well-developed scientific and educational base. In March 2013, Ukraine ranked 4th in the world in number of certified IT professionals after the United States, India, and Russia. On top of that, experts recognised both the quantitative and qualitative potential of Ukrainian specialists. In 2011, the number of IT specialists working in the industry reached 25,000 people with 20% growth. The volume of the Ukrainian IT market in 2013 was estimated to be up to 3.6 billion U.S. dollars. In 2017, Ukraine emerged as the top outsourcing destination of the year, according to the Global Sourcing Association. By 2017, there were 13 research and development centres of global companies located in Ukraine, including Ericsson Ukraine, in Lviv. As for 2019, the number of IT specialists involved in the IT industry of Ukraine reached 172,000 people. The share of IT industry in Ukraine's GDP is 4%. Infrastructure Maritime . Rail transport is heavily used in Ukraine. About 100,000 Ukrainians regularly work on foreign merchant ships, one of the largest group of Ukrainian labour migrants and the sixth largest number of sailors from any country. They are attracted by the high salaries of more than US$1,000 per month. Five national providers of fixed (DSL, ADSL, XDSL) internet access — Ukrtelecom, Vega Telecom, Datagroup, Ukrnet, Volia, and 3 national operators of mobile internet – Vodafone Ukraine, Kyivstar, lifecell are currently operating in Ukraine. Every regional centre and large district centre has a number of local providers and home networks. 2011 revenues from Internet service providing in Ukraine reached ₴4.75 billion. Over 16 million Ukrainians had Internet access in 2012, growing to 22 million in 2015. In Kyiv, 90% of the population had internet access. The mobile-cellular telephone system's expansion has slowed, largely due to saturation of the market, which has reached 144 mobile phone subscriptions per 100 people. Tourism In 2012, Ukraine was the 8th most popular tourism destination in Europe with 23 million visitors. The country's tourism industry is generally considered to be underdeveloped, but it does provide crucial support for Ukraine's economy. In 2012, the contribution of tourism to the GDP amounted to ₴28.8 billion, or 2.2% of GDP and directly supported 351,500 jobs (1.7% of total employment). Shopping tourism Ukraine's neighbours (Belarusians, Hungarians, Poles, Russians, and Slovaks) are known to come to Ukraine to purchase products (such as food or gasoline) and presents that are cheaper in Ukraine than in their home countries. Recreational tourism and sightseeing Ukraine has impressive landscapes, ruins of ancient castles, historical parks, vineyards where they produce native wines, unique structures such as Saint Sophia Cathedral or Chersonesos. Officially, there are seven World Heritage Sites in Ukraine. The Carpathian Mountains suitable for skiing, hiking, fishing and hunting. Bukovel — is the largest ski resort in Ukraine situated in the Ivano-Frankivsk Oblast (province) of western Ukraine. The 2010–2011 winter season recorded 1,200,000-day visits with foreigners amounting to 8–10% of all visitors. In 2012, the Bukovel was named the fastest growing ski resort worldwide. The coastline on the Black Sea is a popular summer destination for vacationers, especially Odesa. Financing, banking, investments International financial institutions In 1992, Ukraine became a member of the IMF and the World Bank. It is also a member of the European Bank for Reconstruction and Development. In 2008, the country joined the World Trade Organization (WTO). Ukraine applied for WTO membership in 1993, but its accession process was stalled for 15 years. Foreign direct investment To encourage foreign trade and investment, the Ukrainian parliament approved a foreign investment law that would allow foreigners to purchase businesses and property, to repatriate revenue and profits, and to receive compensation if the property is nationalised by a future government. Complex laws and regulations, poor corporate governance, weak enforcement of contract law by courts, and corruption, continued to prevent direct large-scale foreign investment in Ukraine. There is a functioning stock market, but portfolio investment activities have been restricted by a historic lack of protection of shareholders' rights. As of April 2011, total foreign direct investment stock in Ukraine stood at $44.7 billion. Statistics from FDi Magazine show that Ukraine suffered a year on year decline in foreign direct investment between 2010 and 2013. State enterprise InvestUkraine was created under the State Agency for Investment and National Projects (National Projects) to serve as a one-stop stop for investors and to deliver investment consulting services. Ukraine signed a shale gas exploration deal with Royal Dutch Shell on 25 January 2013. Many companies, owned by foreigners, have been successfully operating in Ukraine since its independence. These include companies in agriculture, such as Kyiv-Atlantic Group, founded in 1994 by David Sweere. He sold its business in Minnesota and invested in Ukraine, believing in its huge potential. The company has been operating at a profit since 2002. As a result, he became the fifth richest among the Westerners who made their fortune in Ukraine. In 2016, foreign direct investment in Ukraine's economy amounted to $3.8 billion in 2016, which was almost twice more than in 2015. ==Legal environment and economic support==

Background Since the late 1990s, the Ukrainian government has pledged to reduce the number of government agencies, streamline the regulatory process, create a legal environment to encourage entrepreneurs, and enact a comprehensive tax overhaul. In 2003, the IMF encouraged Ukraine to quicken the pace and scope of reforms, threatening to withdraw financial support. On 24 June 2010, Ukraine's Foreign Minister Kostyantyn Hryshchenko signed a free trade agreement with the European Free Trade Association (EFTA). According to the Global Competitiveness Report of 2012–2013, "the country's most important challenge is the needed overhaul of its institutional framework, which cannot be relied on because it suffers from red tape, lack of transparency, and favouritism." In reports by the Kyiv Post in 2010 and 2011 respectively, a "double taxation avoidance" treaty with Cyprus signed in 1982 by the Soviet Union has cost Ukraine billions of U.S. dollars of tax revenues. The 2014 campaign of lustration in Ukraine was criticised by Mark Varga, writing in The National Interest as it might have adverse economic effects. On 29 May 2014, Ukraine entered into the European Union–Ukraine Association Agreement, that reached its full application on 1 September 2017. Dual citizenship In June 2025, Ukraine legalized dual citizenship. Foreign workers A number of foreign guest workers come to work in Ukraine, mainly in seasonal farm work and construction industry, especially from neighbouring Moldova and Belarus. ==Environmental issues==

Ukraine is interested in cooperating on regional environmental issues. Conservation of natural resources is a stated high priority, although implementation suffers from a lack of financial resources. Ukraine established its first nature preserve, Askania-Nova, in 1921 and has programs to breed endangered species. Ukraine has a Ministry of Environment and has introduced a pollution fee system that levies taxes on air and water emissions and solid waste disposal. The resulting revenues are channelled to environmental protection activities, but enforcement of this pollution fee system is lax. Industrial pollution remains a considerable problem in Ukraine. Significant environmental problems result from the Chernobyl nuclear power plant disaster in 1986. In accordance with its previously announced plans, Ukraine permanently closed the Chernobyl Atomic Energy Station in December 2000. In November 2001, Ukraine withdrew an application it had made to the EBRD for funding to complete two new reactor units to compensate for the energy once produced by Chernobyl. Ukrainian concern over reform conditions attached to the loan – particularly tariff increases needed to ensure loan repayment—led the Ukrainian government to withdraw the application on the day the EBRD Board was to have considered final approval. The Russo-Ukrainian War significantly impacts the environmental situation. Thirty-six thousand tons of waste, including toxic chemicals such as copper and zinc, have entered water bodies, posing dangers to human organs and the nervous system. Three million hectares of forests need to be demined, and forest fires caused by shelling occur in 30% of the country's forest area. The war has released approximately 67,532,788 tons of hazardous emissions, causing respiratory and cardiovascular issues. ==Ukrainian companies==

In 2022, the sector with the highest number of companies registered in Ukraine is Services with 512,393 companies followed by Wholesale Trade and Manufacturing with 288,072 and 93,637 companies respectively. • 1+1 Media Group – Media • 4AGames – Technology • Antonov – Industrials • APEKS-BANK – Financials • ATB-Market – Consumer services • BG Capital – Financials • Bogdan group – Industrials • Chumak – Consumer goods • Ciklum – IT • DTEK – Oil & Gaz, basic materials, utilities • EKTA – Technology • Electron – Industrials • Epicentre K – Consumer services • ESTA Holding – Financials • FED – Aerospace industry • Ferreexpo – Basic materials • FOM-Ukraine – Industrials • Fozzy Group – Consumer services • Galnaftogaz – Oil & Gas • GSC Game World – Technology • Hromadske.ua – Media • Industrial Union of Donbas – Industrials • InvestUkraine – Industrials • Kryukiv Railway Car Building Works – Industrials • Kyivstar – Telecommunications • Kuznia na Rybalskomu – Shipbuilding, arms industry • Lifecell – Telecommunications • METRO Cash&Carry – Consumer services • MHP – Consumer goods • Motor Sich – Industrials • Nemiroff – Consumer goods • Naftogaz – Oil & Gas • Nibulon – Agriculture & Shipbuilding • Obolon – Consumer goods • Oschadbank – Banking • PrivatBank – Banking • Roshen – Consumer goods • SCM Holdings – Financials • SoftServe – IT • Ukraine International Airlines – Consumer services • Ukrainian Automobile Corporation – Consumer goods • Ukrainian Railways – Consumer services, Industrials • Ukrnafta – Oil & gas • Ukroboronprom • Ukrtelecom – Telecommunications • Vodafone Ukraine – Telecommunications • WOG – Oil & gas, consumer services • Pivdenmash – Industrials • Zaporizhstal – Basic materials • ZAZ – Consumer goods ==Facts and figures==

Household income or consumption by percentage share: • lowest 10%: 3.4% (2006) • highest 10%: 25.7% (2006) Industrial production growth rate: 6% (2007 est.), Electricity: • production: 192.1 billion kWh (2006) • consumption: 181.9 billion kWh (2006) • export: 10.07 billion kWh (2005) • import: 20 billion kWh (2006) Electricity – production by source: • fossil fuel: 48.6% • hydro: 7.9% • nuclear: 43.5% • other: 0% (2001) Oil: • production: (2006) • consumption: (2006) • exports: (2004) • imports: (2004) • proved reserves: (1 January 2006 est.) Natural gas: • production: 20.85 billion cubic m (2006 est.) • consumption: 73.94 billion cubic m (2006 est.) • exports: 4 billion cubic m (2006 est.) • imports: 57.09 billion cubic m (2006 est.) • proved reserves: 1.075 trillion cubic m (1 January 2006 est.) Agriculture – exports: grain, sugar beets, sunflower seeds, vegetables, beef, milk, natural honey. Agriculture – imports: seafood, pork, beef, grain. Exchange rates: hryvnia per US$1 – 22 (2015), 7.97 (2009), 5.05 (2007), 5.05 (2006), 5.13 (2005), 5.33 (May 2004), 5.30 (October 2002), 5.59 (February 2000), 5.3811 (January 2000), 4.1304 (1999), 2.4495 (1998), 1.8617 (1997), 1.8295 (1996), 1.4731 (1995) Minimum wage: ₴6,000/ ~$210 per month (from 2021 to 2001–01) Average salary by region ==See also==