d+Government+in+Economy

​​ //note: all highlighting not part of original documents// ​

Ecomonic 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. Shortly after independence 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. Ukraine's dependence on Russia for energy supplies and the lack of significant structural reform have made the Ukrainian economy vulnerable to external shocks. Ukraine depends on imports to meet about three-fourths of its annual oil and natural gas requirements and 100% of its nuclear fuel needs. After a two-week dispute that saw gas supplies cutoff to Europe, Ukraine agreed to ten-year gas supply and transit contracts with Russia in January 2009 that brought gas prices to "world" levels. The strict terms of the contracts have further hobbled Ukraine's cash-strapped state gas company, Naftohaz. 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. Ukraine's economy was buoyant despite political turmoil between the prime minister and president until mid-2008. Real GDP growth exceeded 7% in 2006-07, fueled by high global prices for steel - Ukraine's top export - and by strong domestic consumption, spurred by rising pensions and wages. The drop in steel prices and Ukraine's exposure to the global financial crisis due to aggressive foreign borrowing lowered growth in 2008 and the economy contracted more than 14% in 2009, among the worst economic performances in the world. Ukraine reached an agreement with the IMF for a $16.4 billion Stand-By Arrangement in November 2008 to deal with the economic crisis, but the Ukrainian Government's lack of progress in implementing reforms has twice delayed the release of IMF assistance funds. Political turmoil in Ukraine as well as deteriorating external conditions are likely to hamper efforts for economic recovery. Outside institutions - particularly the IMF - have encouraged Ukraine to quicken the pace and scope of reforms. || GDP (purchasing power parity): ||  || $294.3 billion (2009 est.) $342.6 billion (2008 est.) $335.5 billion (2007 est.) //note:// data are in 2009 US dollars || GDP (official exchange rate): ||  || $117.1 billion (2009 est.) || GDP - real growth rate: ||  || -14.1% (2009 est.) 2.1% (2008 est.) 7.9% (2007 est.) || GDP - per capita (PPP): ||  || $6,400 (2009 est.) $7,400 (2008 est.) $7,200 (2007 est.) //note:// data are in 2009 US dollars || GDP - composition by sector: ||  || agriculture: 10% industry: 31.2% services: 58.8% (2009 est.) || Labor force: ||  || 20.4 million (2009 est.) || Labor force - by occupation: ||  || agriculture: 15.8% industry: 18.5% services: 65.7% (2008) || Unemployment rate: ||  || 4.8% (2009 est.) 2.3% (2007 est.) //note:// officially registered; large number of unregistered or underemployed workers || Population below poverty line: ||  || 35% (2009) || Household income or consumption by percentage share: ||  || lowest 10%: 3.4% highest 10%: 25.7% (2006) || Distribution of family income - Gini index: ||  || 31 (2006) 29 (1999) || Investment (gross fixed): ||  || 24.9% of GDP (2009 est.) || Budget: ||  || revenues: $26.35 billion expenditures: $34.37 billion //note:// this is the planned, consolidated budget (2009 est.) || Public debt: ||  || 30% of GDP (2009 est.) 20.1% of GDP (2008 est.) || Inflation rate (consumer prices): ||  || 12.3% (2009) 22.3% (2008 ) || Central bank discount rate: ||  || 10.25% (31 December 2009) 12% (31 December 2008 ) || Commercial bank prime lending rate: ||  || 19.6% (31 December 2009) 17.49% (31 December 2008) || Stock of money: ||  || $24.7 billion (31 December 2009) $29.24 billion (31 December 2008) || Stock of quasi money: ||  || $41.5 billion (31 December 2009) $45.3 billion (31 December 2008) || Stock of domestic credit: ||  || $90.6 billion (31 December 2009) $101.1 billion (31 December 2008) || Market value of publicly traded shares: ||  || $18.4 billion (31 December 2009) $24.36 billion (31 December 2008) $111.8 billion (31 December 2007) || Agriculture - products: ||  || grain, sugar beets, sunflower seeds, vegetables, beef, milk || Industries: ||  || coal, electric power, ferrous and nonferrous metals, machinery and transport equipment, chemicals, food processing || Industrial production growth rate: ||  || -21.9% (2009 est.) || Electricity - production: ||  || 172.9 billion kWh (2009 est.) || Electricity - consumption: ||  || 134.6 billion kWh (2009 est.) || Electricity - exports: ||  || 4 billion kWh (2009 est.) || Electricity - imports: ||  || 0 kWh (2009 est.) || Oil - production: ||  || 81,210 bbl/day (2009 est.) || Oil - consumption: ||  || 199,000 bbl/day (2009 est.) || Oil - exports: ||  || 154,400 bbl/day (2009 est.) || Oil - imports: ||  || 147,600 bbl/day (2009 est.) || Oil - proved reserves: ||  || 395 million bbl (1 January 2009 est.) || Natural gas - production: ||  || 21.2 billion cu m (2009 est.) || Natural gas - consumption: ||  || 52 billion cu m (2009 est.) || Natural gas - exports: ||  || 5 billion cu m (2009 est.) || Natural gas - imports: ||  || 26.83 billion cu m (2009 est.) || Natural gas - proved reserves: ||  || 1.104 trillion cu m (1 January 2009 est.) || Current account balance: ||  || -$1.9 billion (2009 est.) -$12.76 billion (2008 ) || Exports: ||  || $41.49 billion (2009 est.) $78.7 billion (2008 est.) || Exports - commodities: ||  || ferrous and nonferrous metals, fuel and petroleum products, chemicals, machinery and transport equipment, food products || Exports - partners: ||  || Russia 21.1%, Turkey 5.3%, China 3.8% (2009 est.) || Imports: ||  || $45.58 billion (2009 est.) $92 billion (2008 est.) || Imports - commodities: ||  || energy, machinery and equipment, chemicals || Imports - partners: ||  || Russia 28%, Germany 8.6%, China 6.1%, Kazakhstan 4.9%, Poland 4.9% (2009 est.) || Reserves of foreign exchange and gold: ||  || $26.5 billion (31 December 2009 est.) $31.54 billion (31 December 2008) || Debt - external: ||  || $104 billion (31 December 2009 est.) $101.7 billion (31 December 2008 ) || Stock of direct foreign investment - at home: ||  || $38.59 billion (30 October 2009 est.) $35.52 billion (31 December 2008 est.) || Stock of direct foreign investment - abroad: ||  || $2.155 billion (31 December 2009 est.) $1.905 billion (31 December 2008 est.) || Exchange rates: ||  || hryvnia (UAH) per US dollar - 7.7856 (2009), 4.9523 (2008), 5.05 (2007), 5.05 (2006), 5.1247 (2005) || Information found at: []
 * According to the CIA World Factbook:**


 * According to the U.S. Department of State:**

With rich farmlands, a well-developed industrial base, highly trained labor, and a good education system, Ukraine has the potential to become a major European economy. After a robust expansion beginning in 2000, Ukraine’s economy experienced a sharp slowdown in late 2008, continuing into 2009. Real GDP growth dropped from 7.7% in 2007 to 2.1% in 2008, and the economy is expected to contract significantly in 2009. Ukraine’s economy remains burdened by excessive government regulation, corruption, and lack of law enforcement, and while the government has taken steps against corruption and small and medium enterprises have been largely privatized, much remains to be done to restructure and privatize key sectors such as energy and telecommunications and to allow the free sale of farmland. Ukraine encourages foreign trade and investment. Foreigners have the right to purchase businesses and property, to repatriate revenue and profits, and to receive compensation in the event that property were to be nationalized by a future government. However, complex laws and regulations, poor corporate governance, weak enforcement of contract law by courts and particularly corruption have discouraged broad foreign direct investment in Ukraine. While there is a functioning stock market, the lack of protection for minority shareholder rights severely restricts portfolio investment from abroad. In 2008 the parliament adopted a new Joint Stock Company Law that, if implemented properly, should greatly strengthen corporate governance in Ukraine. Ukraine abounds in natural resources and industrial production capacity. Although proven onshore and offshore oil and natural gas reserves are small, there is now petroleum exploration interest in the Ukrainian portion of the Black Sea. The country has important energy sources, such as coal, and large mineral deposits, and is one of the world's leading energy transit countries, providing transportation of Russian and Caspian oil and gas across its territory. Ukraine imports almost 80% of its oil and 77% of its natural gas. Russia ranks as Ukraine's principal supplier of oil and Russian firms now own and/or operate the majority of Ukraine's refining capacity. Natural gas imports currently come from Russia, Turkmenistan, Kazakhstan, and Uzbekistan, which deliver the gas to Ukraine's border through a pipeline system owned and controlled by Gazprom, Russia's state-owned gas monopoly. Ukraine owns and operates the gas pipelines on its territory that are also used to transit Russian gas to Western Europe. Ukraine's constitution forbids the sale of the gas pipeline network. The complex relationship between supplier, transporter, and consumer has led to intermittent bilateral tensions, including Russia's decision to significantly reduce gas supplies in March 2008, and almost completely cut them off for approximately three weeks in January 2009. While countries of the former Soviet Union remain important trading partners, especially Russia and Turkmenistan for energy imports, Ukraine's trade is becoming more diversified. The EU accounts for about 30% of Ukraine's trade, while CIS countries account for about 40%. Steel constitutes nearly 40% of exports. Ukraine has a major ferrous metal industry, producing cast iron, steel, and steel pipe, and its chemical industry produces coke, mineral fertilizers, and sulfuric acid. World demand for steel and chemicals, which make up about 40% of Ukraine’s exports, dropped sharply in the second half of 2008. Manufactured goods include airplanes, turbines, metallurgical equipment, diesel locomotives, and tractors. Ukraine is also a major producer of grain, sunflower seeds, and beet sugar and has a broad industrial base, including much of the former U.S.S.R.'s space and rocket industry. In response to the sharp economic downturn in the country in late 2008, the International Monetary Fund (IMF) approved a $16.4 billion Stand-By Arrangement (SBA) in November 2008, conditioned on reforms in the banking sector, as well as adjustments in fiscal and monetary policy. The World Bank has committed more than $5 billion to Ukraine since the country joined the Bank in 1992. Several projects are currently in the works, including a $750 million development policy loan, depending on continued commitment to the IMF program. Ukraine is a member of the European Bank for Reconstruction and Development (EBRD) and joined the World Trade Organization (WTO) in May 2008. In 2008 Ukraine and the European Union launched negotiations on a free trade agreement. During the 12th EU-Ukraine Summit, held in Paris in September 2008, the EU presented Ukraine with an enhanced association agreement, including chapters on both political and trade relations. Some chapters, including trade, remain under negotiation.

Information found at: []


 * According to the Web-portal of the Ukraine Government:**

National Bank of Ukraine:

History

 Bank system of independent Ukraine and correspondingly Nation Bank of Ukraine has been created in 1991. It was connected with decomposition of the soviet bank system. On 20 March 1991, the resolution of the Verkhovna Rada of the Ukrainian SSR was adopted entitled «On Procedure of Enactment of the Law of Ukrainian SSR "On Banks and Banking Activity"», pursuant to which this Law took effect on 1 May 1991. Said resolution declared ownership by Ukrainian SSR of the Ukrainian Republican Bank of the State Bank of the USSR, the Ukrainian Republican Bank (affiliate) of the State Commercial Industrial-constructional Bank « UkrPromBudBank », the Ukrainian Republican Bank of the Savings bank of the USSR, and the Ukrainian Republican Bank of the ForeignEconomBank of the USSR together with their network, computing centers, all assets, liabilities, as well as the Ukrainian Republican Department of Encashment of the State Bank of the USSR with the network of establishments and organizations subordinated to it. The National Bank of Ukraine was resolved to be created on the basis of the Ukrainian Republican Bank of the State Bank of the USSR.

The highest management body of the National Bank is the Council of the National Bank of Ukraine. The governing body of the National Bank is the Board of the National Bank of Ukraine. The Council of the National Bank shall consist of fourteen persons. The President of Ukraine shall appoint seven members of the Council of the National Bank, including the Governor of the National Bank due to his/her official capacity. The members of the Council of the National Bank shall be appointed by the Verkhovna Rada of Ukraine by means of the adoption of a relevant Resolution. The Governor of the National Bank shall be appointed by the Verkhovna Rada of Ukraine, subject to the submission by the President of Ukraine by the majority of the constitutional complement of the Verkhovna Rada of Ukraine for the period of five years.
 * Leadership** ||
 * Leadership** ||

Structure

Structure of the National Bank of Ukraine is organized according to centralization principle with vertical subordination.

The highest management body of the National Bank is the Council of the National Bank of Ukraine. The governing body of the National Bank is the Board of the National Bank of Ukraine. The Council of the National Bank shall consist of fourteen persons. The President of Ukraine shall appoint seven members of the Council of the National Bank, including the Governor of the National Bank due to his/her official capacity. The members of the Council of the National Bank shall be appointed by the Verkhovna Rada of Ukraine by means of the adoption of a relevant Resolution. The Governor of the National Bank shall be appointed by the Verkhovna Rada of Ukraine, subject to the submission by the President of Ukraine by the majority of the constitutional complement of the Verkhovna Rada of Ukraine for the period of five years.
 * <span style="color: #000000; font-family: Verdana,Geneva,sans-serif; font-size: 8pt;">Tasks ** ||
 * <span style="color: #000000; font-family: Verdana,Geneva,sans-serif; font-size: 8pt;">Tasks ** ||

Legal basis || Legal status, principles of organization and activity of the National bank of Ukraine are determined by Constitution of Ukraine and the Law of Ukraine “On National Bank Of Ukraine”.

Information found at: []