Doing Business in Ukraine

Following the collapse of Soviet Union, Ukraine’s economy was in shambles for 10 years, like in most ex-Soviet states. It grew from 2000 to 2008 until the world financial crisis hit. The economy started to grow back in 2010, but from 2013 and since it had been suffering from a recession.

For now, the World Bank forecasts the 1% growth in 2016. If so, this would end the long recession. Today the Ukrainian Government has shown a newfound commitment to pursuing a reform agenda that could lead to an overall improvement in the business climate in Ukraine.

The Ukrainian manufacturing sector is dominated by heavy industries such as iron (Ukraine is the 6th biggest producer of iron in the world), and steel. The heavy industry accounted for 16.9% in 2015. Ukraine takes 6th place in the world ranking by the iron ore production, and 10th in the steel production in 2014.

Other important sectors are power generating, mining, machine-building (airplanes, turbines, tractors, locomotives etc.) However, the industrial production was severely affected by the war in Donbass area, occupation of Crimea and the recession.

The country has a massive high-tech industrial base, including electronics, arms industry and space program.

The agricultural sector has a major role in Ukraine’s economics. It employs around 17% of the population and contributes around 10% to the GDP. Ukraine is a top 10 world producer of several crops such as wheat and corn.

The local peculiarity is discrepancy between the official statistics, data of the international monitoring organizations and everyday life you can watch here. For working out evaluation of Ukrainian business climate we would recommend to rely on the respectable international data resources. You can also consult professionals at British Business Club In Ukraine.

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