As the second-largest country on the European continent after Russia, Ukraine shares its borders with many neighbors, such as Russia, Belarus, Poland, Slovakia, Hungary, Romania, and Moldova, with a coastline of 2782 kilometers at the Black Sea and the Sea of Azov on the south; Kyiv is the capital city of the country, and it is the 32nd most populous country in the world with a population of about 42 million.
Ukraine is a republic country under mixed semi-parliamentary system with separate legislative, executive, and judicial branches. Official language of the country is Ukrainian. Being a developing country with GDP growth rate of 2.5% in 2017, Ukraine is one of the world’s largest grain exporter because of its fertile farmlands.
Tourism: It has many tourist attractions such as mountains famous for skiing, hiking, and fishing, nature reserves of various ecosystems, churches, castle ruins and other very popular architectural landmarks.
Religion: Eastern Orthodoxy is the predominant religion and is practiced by almost half of its population, with around 46% following Ukrainian Orthodox. Protestantism, Roman Catholicism, Islam, and Judaism are some of the minority religions.
Culture: The country's powerful tradition of folk art enhances its culture. Various writers have contributed to the country's rich literacy history. Nearly all of Ukraine’s key cities have lavish theatres with their unique opera and ballet parties.
The country’s central bank is the National Bank of Ukraine, and there are several commercial banks which provide financial services to companies and individuals. Enactment has been passed since independence which promotes foreign investment, but complex business commands and corruption problems have kept the level of investment comparatively low.
Ukraine has made tremendous growth over the past three years to fix its banking sector, which need to be developed to make its regulatory framework strong and sustainable for a fast growth in the future. The key reforms are to reduce the scope for financial crime in banks including the withdrawal of insolvent banks from the market, disclosure of banks’ ultimate beneficial owners, enhancement of creditor’s rights and passage of legislation to strengthen corporate governance in state-owned banks. A better functioning and more transparent banking sectors are a major accomplishment, which the country’s authorities are proud of.
The National Bank of Ukraine (NBU) will execute the Comprehensive Program of Ukrainian Financial Sector Development until 2020. The authorities are modernizing Ukraine’s financial system to ease up financial markets, create equal competition, overcome the outcomes of the economic crisis, and synchronize markets.
|Agriculture||Grain, Sugar beets, sunflower seeds, vegetables; milk, beef.|
|Manufacture||energy, oil, Aircraft, natural gas, Iron|
|Services (Including financial)||60.5% (2013 estimate)|
|Industrial Union of Donbas||Donetsk|
|ArcelorMittal Kryvyi Rih||Kryvyi Rih|
Ukrainian Stock Exchange was created in 1991, with the help of a $ 5 million grant from the French government. It functions as a closed joint-stock company and was the first stock exchange of the country. It has approximately 106 stockbrokers listed with the USE, working in five branches. Its securities market is self-regulative and is seen as the head in privatization and exchange mechanisms.
In 1996, there was the creation of an electronic trading system called PFTS (First Stock Trading System). The PFTS Stock Trading system is the largest marketplace and self-regulatory body in Ukraine's stock market.
Members of the Stock Exchange were estimated for over 150 companies in 2010. PFTS has a license published by the National Commission on Securities and Stock Market. Market capitalization of the PFTS is estimated at approximately $ 20 billion with 220 companies listed, and the headquarters are located in Kyiv mostly.
Both exchanges give confidence to the economy of Ukraine and its stock market. The most valuable stocks of Ukraine are:
Total market capitalization (000s) $140,000,000 Billions
Total listed companies: 150
Political crisis in Ukraine began with rallies from Kyiv city against Ukrainian President Viktor Yanukovych’s judgment of refusing a deal for greater financial integration with the European Union in November 2013. After a ferocious crackdown by state security forces, an even greater number of activists accidentally participated and worsened the conflict. President Yanukovych escaped the country in February 2014. After that, Petro Poroshenko became the president of Ukraine after an avalanche victory in the impulsive 2014 presidential elections.
Due to loss of Ukraine's largest trading partner, Russia, over the invasion of Crimea in March 2014, and intensification by the War in Donbass started in April 2014, Ukraine’s economy shrank by 6.8% in 2014. Early in February 2014, National Bank of Ukraine changed its currency into a floating currency in struggle to meet IMF constraints, and to maintain a stable price for the currency in the Forex market.
Recently, Ukraine’s economy triumphs over the severe crisis caused by armed conflict in the eastern part of the country. In 2016, the economy expanded by more than 2%.
Ukraine suffered brutally in the economic crisis of 2008, and experienced scarcity in capital flows. The currency which was earlier pegged at a rate of 5:1 to the US dollar was devalued to 8:1 and was alleviated at that ratio for years until the beginning of 2014.
In 2008, Ukraine’s GDP accounted for $ 188 billion USD and a nominal per-capita GDP of $ 3900 USD and fell by 15% in 2009. The unemployment rate at the end of 2008 was about 3%. Eventually, its economy improved in the first quarter of 2010 due to the betterment of the world economy and the growing prices of metals. Ukraine’s GDP growth in 2010 was 4.3 % heading to per-capita PPP GDP of 6700 USD.
The Russian crisis of 1998 led to the unexpected and significant decline in Ukraine’s exports, first to Russia, and second to Western Europe. There was also a capital escape from Ukraine. Foreign investment became limited, which led to increase in interest rates by over 10 percentage points in the 3rd quarter of 1998. Due to budget deficit, Ukraine had to borrow money on the international bond market for the last two years. Treasury notes became due in 1998, leading further towards financial crisis. And there was a decrease in demand for industry and construction as well.At the end of 1999, all negative trends overturned, and the country underwent the first year of economic growth for a long time.
A period of great voyages began with the origin of the Goths from the Baltic region into Ukraine about 200 CE. They evacuated the Sarmatians, but their own authority was shattered around 375 CE by the conquering Huns from the east, who ruled the Bulgars and Avars in the 5th–6th centuries.
In the 9th century, Kiev was the most important political and cultural center in eastern Europe. Kievan Rus arrived at the peak of its power in the 10th century and adopted Byzantine Christianity. Mongol victory in 1240 ended the Kievan governance. From the 13th to the 16th century, Kiev was under control of Poland and western Europe. Cooperation of the Union of Brest-Litovsk in 1596 separated the Ukrainians into Orthodox and Ukrainian Catholic faithful. In 1654, Ukraine asked the tsar of Moscovy for security against Poland, and the Treaty of Pereyasav endorsed that year identified the suzerainty of Moscow. The agreement was inferred by Moscow as an invitation to take over Kiev, and the Ukrainian state was ultimately immersed into the Russian Empire.
After the Russian Revolution, Ukraine declared its independence from Russia on Jan. 28, 1918, and several years of conflict are followed by several groups. The Red Army finally succeeded over Kiev, and in 1920 Ukraine turned into a Soviet republic. In 1922, Ukraine became one of the originators of the Union of Soviet Socialist Republics. In the 1930s, the Soviet government's execution of collectivization met with peasant opposition, which in turn provoked the exclusion of grain from Ukrainian farmers by Soviet authorities; the resulting scarcity took an estimated 5 million lives. Ukraine was one of the extremely distressing Soviet republics after World War II. On Oct. 29, 1991, the Ukrainian parliament voted to shut down the reactor within two years' time and asked for international support in dismantling it.
When President Leonid Kravchuk was elected by the Ukrainian parliament in 1990, he pledged to seek Ukrainian independence. Ukraine proclaimed its independence on Aug. 24, 1991. In Dec. 1991, Ukrainian, Russian, and Belorussian leaders established a new Nation of Autonomous States with the capital to be located in Minsk, Belarus. The new country's government was slow to modernize the Soviet-era state-run economy, which was afflicted by deteriorating production, rising inflation, and widespread unemployment in the years after independence. The U.S. announced in Jan. 1994 that an agreement had been in touch with Russia and Ukraine for the demolition of Ukraine's entire nuclear arsenal. In Oct. 1994, Ukraine began a program of economic liberalization and moved to reinvent central power over Crimea. In 1995, Crimea's separatist leader was removed, and the Crimean constitution withdrew.
In June 1996, the last tactical nuclear missile was eradicated. Also, in that month, parliament passed a new constitution that allowed for the private proprietorship of land. A deal was signed in May 1997 on the prospect of the Black Sea fleet, by which Ukrainian and Russian ships would share the Sevastopol port for 20 years.
In 2013, after the administration of President Viktor Yanukovych decided to append the Ukraine-European Union Association Agreement and hunt for closer economic bonds with Russia, a several-months-long movement of protests and disputes known as the Euromaidan began, which later worsened into the 2014 Ukrainian revolution that suspended Yanukovych and established new government.
(Chairman National Bank of Ukraine)
(First Vice Prime Minister of Ukraine)
The hryvnia is the domestic currency of Ukraine. There are coins of 1, 2, 5, 10, 25, 50 kopecks, and 1 hryvnia and banknotes of 1, 2, 5, 10, 20, 50, 100, 200, and 500 hryvnias. The present exchange rate is in the span of about 25-30 hryvnia per 1 USD.
In several historical moments, the word "hryvnia" meant a copper coin of 2½ kopiyka denomination (monetary unit), later - three kopiykas, and very last, a silver coin of ten kopiyka value was called " hryvnia " (as it is known this tradition had been maintained during the Soviet period).
Declaring the formation of the Ukrainian People's Republic on June 18, 1917, the Central Rada presented a new national currency. Initially, the Ukrainian Karbovanets was the currency. The first banknote of the Ukrainian People's Republic of 100 Karbovanets denomination was released by the Declaration of the Central Rada on December 19, 1917. Heorhii Narbut, an excellent Ukrainian graphic artist created this banknote. "100 Karbovanets" engraving was imprinted on the banknote in the languages of four most various nations, occupying Ukraine: in Ukrainian, Russian, Polish and Jewish.
In 1918 the banknotes of 2, 10, 100,500 1000, and 2000 Hryvnia currencies were put into distribution in Berlin. The design of the first banknote, decorated with a rather simple geometrical ornament, was elaborated by Vasyl Krychevskyi, of the next three by Heorhii Narbut. Narbut's Hryvnia banknotes, as well as the previous one, were astonishing for their superior adornment.
The declaration of Ukrainian independence paved a way for the introduction of the full-value national currency in a young state. The first sample of Ukrainian national currency was produced in Canada in 1992. However, the Ukrainian Karbovanets was put into circulation in Ukraine in 1992 as the temporary currency. This very financial unit turned out to be the victim of inflation, caused by the economic crises of the provisional phase.
The first half of 1996, in precise important holding up of production decrease, exchange rate balance of the Ukrainian Karbovanets against overseas currencies, increase of population incomes created obligatory conditions for the introduction of Hryvnia, now - the fiscal unit of the state in agreement with the Constitution of Ukraine. The Ukrainian President's Rule "On the Monetary Reform in Ukraine" was announced on August 25, 1996.
Karbovanets' securities of households were transformed into Hryvnia deposits according to the exchange rate of 100000 Karbovanets against 1 Hryvnia without any limitations and exclusions. Both Hryvnias and Karbovanets were used in currency distribution for 15 days. The use of Karbovanets was stopped after September 1996 and Hryvnia became the only legitimate currency within Ukraine.
The financial reform in Ukraine was an event of immense significance, as a result of which the national currency, one of the essential parts of statehood, was launched. Foreign analysts saluted the enactment of monetary reform in the state, as the beginning point for an equilibrium of the Ukrainian economy.
|National Song||"Shche ne vmerla Ukrayiny ni slava, ni volya"|
|GDP / GDP Rank||$353.0 Billion USD|
|GDP Growth Rate||-9.9 percent|
|GDP Per Captial||$8305.1 (PPP)|
UTC+3 (EEST) (Summer)
President- Petro Poroshenko
Prime Minister- Volodymyr Groysman
|Website||Go to the web|
|Public Debt||81.2 percent of GDP|
|Unemployment Rate||8.9 percent|
|Labor Force (Occupation)||-|