Ukraine Location : Eastern Europe, bordering the Black Sea, between Poland and Russia Capital City : Kiev (Kyyiv) Curreny : hryvnia (UAH) Languages Spoken : Ukrainian, Russian, Romanian, Polish, Hungarian Climate : temperate continental; Mediterranean only on the southern Crimean coast; precipitation disproportionately distributed, highest in west and north, lesser in east and southeast; winters vary from cool along the Black Sea to cold farther inland; summers are warm across the greater part of the country, hot in the south National Holiday : Independence Day, 24 August (1991) Background Information Richly endowed in natural resources, Ukraine has been fought over and subjugated for centuries; its 20th-century struggle for liberty is not yet complete. A short-lived independence from Russia (1917-1920) was followed by brutal Soviet rule that engineered two artificial famines (1921-22 and 1932-33) in which over 8 million died, and World War II, in which German and Soviet armies were responsible for some 7 million more deaths. Although independence was attained in 1991 with the dissolution of the USSR, true freedom remains elusive as many of the former Soviet elite remain entrenched, stalling efforts at economic reform, privatization, and civil liberties. Geographical Note strategic position at the crossroads between Europe and Asia; second-largest country in Europe Economy 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 in late 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% 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. Now in his second term, President KUCHMA 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. 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 and have threatened to withdraw financial support. GDP in 2000 showed strong export-based growth of 6% - the first growth since independence - and industrial production grew 12.9%. The economy continued to expand in 2001 as real GDP rose 9% and industrial output grew by over 14%. Growth was undergirded by strong domestic demand and growing consumer and investor confidence. Religions Ukrainian Orthodox - Moscow Patriarchate, Ukrainian Orthodox - Kiev Patriarchate, Ukrainian Autocephalous Orthodox, Ukrainian Catholic (Uniate), Protestant, Jewish Ports : Berdyans'k, Feodosiya, Illichivs'k, Izmayil, Kerch, Kherson, Kiev (Kyyiv), Kiliya, Mariupol', Mykolayiv, Odesa, Reni, Sevastopol', Yalta, Yuzhnyy International Disputes - Risks to travellers : Ukraine and Romania have yet to resolve claims over Ukrainian-administered Zmiyinyy (Snake) Island and delimitation of Black Sea maritime boundary, despite 1997 bilateral treaty to find a solution in two years and numerous talks; Russia and Ukraine have successfully delimited land boundary in 2001, but disagree on delimitation of maritime boundary in the Sea of Azov and Black Sea; Moldovan difficulties with break-away Transnistria region inhibit establishment of a joint customs regime with Ukraine to curtail smuggling, arms transfers, and other illegal activities
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Ukraine
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