International organization participation: Australia Group, BSEC, CBSS (observer), CE, CEI, CIS, EAEC (observer), EAPC, EBRD, FAO, GCTU, GUAM, IAEA, IBRD, ICAO, ICC, ICCt (signatory), ICRM, IDA, IFC, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITU, ITUC, LAIA (observer), MIGA, MONUC, NAM (observer), NSG, OAS (observer), OIF (observer), OPCW, OSCE, PCA, PFP, SECI (observer), UN, UNCTAD, UNESCO, UNIDO, UNMEE, UNMIL, UNMIS, UNMOVIC, UNOMIG, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO (observer), ZC
Diplomatic representation in the US:
chief of mission: Ambassador Oleh V. SHAMSHUR
chancery: 3350 M Street NW, Washington, DC 20007
telephone: [1] (202) 333-0606
FAX: [1] (202) 333-0817
consulate(s) general: Chicago, New York, San Francisco
Diplomatic representation from the US:
chief of mission: Ambassador William B. TAYLOR
embassy: 10 Yurii Kotsiubynsky Street, 04053 Kyiv
mailing address: 5850 Kiev Place, Washington, DC 20521-5850
telephone: [380] (44) 490-4000
FAX: [380] (44) 490-4085
Flag description:
two equal horizontal bands of azure (top) and golden yellow
represent grain fields under a blue sky
Economy Ukraine
Economy - overview: 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. Ukraine depends on imports of energy, especially natural gas, to meet some 85% of its annual energy requirements. Shortly after independence was ratified 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 by 1999 had fallen to less than 40% of the 1991 level. Loose monetary policies pushed inflation to hyperinflationary levels in late 1993. Ukraine's dependence on Russia for energy supplies and the lack of significant structural reform have made the Ukrainian economy vulnerable to external shocks. A dispute with Russia over pricing in late 2005 and early 2006 led to a temporary gas cut-off; Ukraine concluded a deal with Russia in January 2006 that almost doubled the price Ukraine pays for Russian gas, and could cost the Ukrainian economy $1.4-2.2 billion. 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 for businesses. Reforms in the more politically sensitive areas of structural reform and land privatization are still lagging. Outside institutions - particularly the IMF - have encouraged Ukraine to quicken the pace and scope of reforms. GDP growth was 6% in 2006, up from 2.4% in 2005 mainly because of high steel prices worldwide and strong demand for Ukrainian goods. The privatization of the Kryvoryzhstal steelworks in late 2005 produced $4.8 billion in windfall revenue for the government. Some of the proceeds were used to finance the budget deficit, some to recapitalize two state banks, some to retire public debt, and the rest may be used to finance future deficits. Although the economy is likely to expand in 2007, long-term growth could be threatened by the government's plans to reinstate tax, trade, and customs privileges and to maintain restrictive grain export quotas.
GDP (purchasing power parity):
$355.8 billion (2006 est.)
GDP (official exchange rate):
$81.53 billion (2006 est.)
GDP - real growth rate:
6% (2006 est.)
GDP - per capita (PPP):
$7,600 (2006 est.)