Ukraine

Ukraine was the center of the first eastern Slavic state, Kyivan Rus, which during the 10th and 11th centuries was the largest and most powerful state in Europe. Weakened by internecine quarrels and Mongol invasions, Kyivan Rus was incorporated into the Grand Duchy of Lithuania and eventually into the Polish-Lithuanian Commonwealth. The cultural and religious legacy of Kyivan Rus laid the foundation for Ukrainian nationalism through subsequent centuries.

A new Ukrainian state, the Cossack Hetmanate, was established during the mid-17th century after an uprising against the Poles. Despite continuous Muscovite pressure, the Hetmanate managed to remain autonomous for well over 100 years. During the latter part of the 18th century, most Ukrainian ethnographic territory was absorbed by the Russian Empire. Following the collapse of czarist Russia in 1917, Ukraine was able to bring about a short-lived period of independence (1917-20), but was reconquered and forced to endure a brutal Soviet rule that engineered two artificial famines (1921-22 and 1932-33) in which over 8 million died.

In World War II, German and Soviet armies were responsible for some 7 to 8 million more deaths. Although final independence for Ukraine was achieved in 1991 with the dissolution of the USSR, democracy remained elusive as the legacy of state control and endemic corruption stalled efforts at economic reform, privatization, and civil liberties. A peaceful mass protest "Orange Revolution" in the closing months of 2004 forced the authorities to overturn a rigged presidential election and to allow a new internationally monitored vote that swept into power a reformist slate under Viktor YUSHCHENKO. Subsequent internal squabbles in the YUSHCHENKO camp allowed his rival Viktor YANUKOVYCH to stage a comeback in parliamentary elections and become prime minister in August of 2006.

party to:

Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Sulfur 85, Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Wetlands

signed, but not ratified:

Air Pollution-Persistent Organic Pollutants, Air Pollution-Sulfur 94, Air Pollution-Volatile Organic Compounds

chief of state:

President Viktor A. YUSHCHENKO (since 23 January 2005)

head of government:

Prime Minister Viktor YANUKOVYCH (since 4 August 2006); First Deputy Prime Minister - Mykola AZAROV (since 5 August 2006)

cabinet:

Cabinet of Ministers selected by the prime minister; the only exceptions are the foreign and defense ministers, who are chosen by the president

note: there is also a National Security and Defense Council or NSDC originally created in 1992 as the National Security Council; the NSDC staff is tasked with developing national security policy on domestic and international matters and advising the president;

a Presidential Secretariat helps draft presidential edicts and provides policy support to the president

elections:

• president elected by popular vote for a five-year term (eligible for a second term);
• note - a special repeat runoff presidential election between Viktor YUSHCHENKO and Viktor YANUKOVYCH took place on 26 December 2004 after the earlier 21 November 2004 contest - won by Mr. YANUKOVYCH - was invalidated by the Ukrainian Supreme Court because of widespread and significant violations;
• under constitutional reforms that went into effect 1 January 2006, the majority in parliament takes the lead in naming the prime minister

election results:

Viktor YUSHCHENKO elected president; percent of vote - Viktor YUSHCHENKO 51.99%, Viktor YANUKOVYCH 44.2%

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 led to a temporary gas cut-off; Ukraine concluded a deal with Russia in January 2006, which almost doubled the price Ukraine pays for Russian gas, and could cost the Ukrainian economy $1.4-2.2 billion and cause GDP growth to fall 3-4%. 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 2.4% in 2005, down from 12.4% in 2004. The current account surplus reached $2.2 billion in 2005.

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.

total:

202 ships (1000 GRT or over) 782,456 GRT/911,201 DWT

by type:

bulk carrier 6, cargo 151, container 4, passenger 6, passenger/cargo 6, petroleum tanker 9, refrigerated cargo 11, roll on/roll off 7, specialized tanker 2

foreign-owned:

1 (Russia 1)

registered in other countries:

160 (Belize 7, Cambodia 17, Comoros 14, Cyprus 4, Dominica 2, Georgia 22, Liberia 16, Malta 24, Moldova 3, Mongolia 1, Panama 8, Russia 11, Saint Kitts and Nevis 3, Saint Vincent and the Grenadines 12, Sierra Leone 4, Slovakia 8, unknown 4) (2006)