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Introduction: Why you should
be interested in Ukraine
Almost 14 years after separating from Russia, Ukraine
is slowly transforming itself into an emerging market
economy with 47 million people. Compared to the ten new member nations
of the EU, Ukraine's foreign direct investment remains
very low, almost one-twentieth of Poland's. The U.S.
remains the largest investor with slightly over one
billion dollars since independence. Much of this initial
foreign investment has gone into food processing,
construction, and consumer industries. With better
corporate governance and with its new EU neighbors,
Ukraine's share of FDI will likely increase because
of its diversified economy, its crossroads locations
between Eurasia and Central Europe, and its role as
the breadbasket of this part of the world with more
fertile black topsoil than any other country in the
world. Ukraine also benefits from high educational
standards, 100% literacy, and a well-trained workforce
willing to make the transition from Soviet-style economics
to market-driven management. Most recently, Ukraine
adopted a flat personal income rate of 13% to encourage
companies and employees to rely less on grey market
economics. Improvements in infrastructure are materializing,
especially in the major urban areas, and Kyiv, Ukraine's
capital, is beginning to reveal itself as a beautiful
and unknown tourist destination.
Doing Business in Ukraine:
Many companies are represented in Ukraine
and these companies were careful to perform due diligence
before beginning operations in this new market. Old-to-market and new U.S. and european entrants alike
carefully explore and develop local market channels
for sales, joint ventures, and investments. U.S. and european companies
are quick to explain the benefits of working
in this new economy.
Because of its diversified economy, ranging from a
strong agricultural sector to manufacturing facilities
for IT products, and because of its stable currency
with no restrictions on repatriation of foreign profits,
Ukraine is likely to sustain future improvements in
FDI, GDP, wages, and overall population lifestyle
and welfare.
Ukraine at a Glance:
| Population |
Over 48 million (48,055,439)….as of July
'03.
Population growth rate (-.69%)
|
| Government
Type |
Republic. Gained independence from the then
Soviet Union on August 24, 1991.
Constitution adopted August 24, 1991.
President Viktor A. Yuschenko
|
| Capital |
Kyiv |
| Literacy |
99.7% of total population |
| Total
Area |
603,700 square miles (slightly smaller
than Texas)
|
| Borders |
Belarus, Hungary, Moldova, Poland,
Romania (in the South and the West), Russia, and
Slovakia
Also borders the Black Sea and Sea of Azov
|
| Languages |
Ukrainian, Russian, Romanian, Polish,
and Hungarian |
| Resources |
Iron ore, coal, manganese, natural gas, oil,
salt, sulfur, graphite, titanium, magnesium,
kaolin, nickel, mercury, timber and fertile,
arable land
|
| Location
|
Strategic location between Europe
and Asia….2nd largest country in Europe |
| Economy |
Next to Russia, it was the second
most important economy of the former Soviet Union.
"Produces 4 times more than the output of
the next-ranking Republic" |
| Industries |
Coal, electric power, ferrous and
nonferrous metals, machinery and transport equipment,
chemicals, food processing (especially sugar) |
| Main
Export Partners (2002) |
Russia (18.6%)
Italy (7.4%)
Turkey (5.6%)
Germany (4.1%)
China (4.1%)
|
| Export
Totals |
$18.1 billion |
| Export
Commodities |
Ferrous and nonferrous metals, fuel
and petroleum products, chemicals, machinery and
transport equipment, food products |
|
Main Import Partners (2002) |
Russia (32.3%)
Germany (11.7%)
Turkmenistan (7.4%)
Poland (6%)
Italy (4%)
|
| Import
Commodities |
Energy, machinery and equipment,
chemicals |
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