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FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT APRIL 2011
UKRAINIAN STOCK EXCHANGE
ECONOMIC AND POLITICAL DEVELOPMENTS
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 the unique
equipment (for example, large diameter pipes)
and raw materials to industrial and mining
sites (vertical drilling apparatus) 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. Ukraine's dependence on
Russia for energy supplies and the lack of
significant structural reform have made the
Ukrainian economy vulnerable to external
shocks. Ukraine depends on imports to meet
about three-fourths of its annual oil and natural
gas requirements and 100% of its nuclear fuel
needs. After a two-week dispute that saw gas
supplies cutoff to Europe, Ukraine agreed to
ten-year gas supply and transit contracts with
Russia in January 2009 that brought gas
prices to "world" levels. The strict terms of the
contracts have further hobbled Ukraine's cashstrapped
state gas company, Naftohaz.
Outside institutions - particularly the IMF -
have encouraged Ukraine to quicken the pace
and scope of reforms. 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, but more
improvements are needed, including fighting
corruption, developing capital markets, and
improving the legislative framework. Ukraine's
economy was buoyant despite political turmoil
between the prime minister and president until
mid-2008. Real GDP growth exceeded 7% in
2006-07, fueled by high global prices for steel
- Ukraine's top export - and by strong
domestic consumption, spurred by rising
pensions and wages. Ukraine reached an
agreement with the IMF for a $16.4 billion
Stand-By Arrangement in November 2008 to
deal with the economic crisis, but the
Ukrainian Government's lack of progress in
implementing reforms has twice delayed the
release of IMF assistance funds. The drop in
steel prices and Ukraine's exposure to the
global financial crisis due to aggressive
foreign borrowing lowered growth in 2008 and
the economy contracted more than 15% in
2009, among the worst economic
performances in the world; growth resumed in
2010, buoyed by exports. External conditions
are likely to hamper efforts for economic
recovery in 2011.
GDP - real growth rate:
4.3% (2010 est.)
country comparison to the world: 70
-15.1% (2009 est.)
2.1% (2008 est.)
[see also: GDP - real growth rate country
ranks ]
GDP - composition by sector:
agriculture: 9.8%
Unemployment rate:
8.4% (2010 est.)
country comparison to the world: 98
8.8% (2009 est.)
note: officially registered; large number of
unregistered or underemployed workers
[see also: Unemployment rate country ranks]
Inflation rate (consumer prices):
9.8% (2010 est.)
country comparison to the world: 198
15.9% (2009 est.)
[see also: Inflation rate (consumer prices)
country ranks]
Oil - imports:
147,600 bbl/day (2009 est.)
country comparison to the world: 55
[see also: Oil - imports country ranks]
Oil - proved reserves:
395 million bbl (1 January 2010 est.)
country comparison to the world: 53
[see also: Oil - proved reserves country ranks]
Current account balance:
$603 million (2010 est.)
country comparison to the world: 49
-$1.732 billion (2009 est.)
[see also: Current account balance country
ranks]
Exports:
$49.71 billion (2010 est.)
country comparison to the world: 53
$40.39 billion (2009 est.)
[see also: Exports country ranks]
Exports - commodities:
ferrous and nonferrous metals, fuel and
petroleum products, chemicals, machinery
and transport equipment, food products
Exports - partners:
Russia 21.1%, Turkey 5.3%, China 3.8% (2009)
Imports:
$53.54 billion (2010 est.)
country comparison to the world: 47
$45.05 billion (2009 est.)
[see also: Imports country ranks]
Imports - commodities:
energy, machinery and equipment, chemicals
Imports - partners:
Russia 28%, Germany 8.6%, China 6.1%,
Kazakhstan 4.9%, Poland 4.9% (2009)
Information obtained from the Exchange.
Key Information Contacts
Securities and Stock Market State Commission www.ssmsc.gov.ua
Ministry of Finance www.minfin.gov.ua
State Property Fund of Ukraine www.spfu.gov.ua
State Committee of Financial Monitoring www.sdfm.gov.ua
State Commission for Regulation of Financial Services’ Market in Ukraine www.dfp.gov.ua
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