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Economy of Ukraine

On August 24, 1991 the Verkhovna Rada declared the formation of the Independent Ukrainian State and on December 1991, a nation-wide referendum confirmed the formation of a new large European state. As to its territory Ukraine is the second largest country in Europe. As to its industrial potential, this is one of the most developed republics of the former Soviet Union with highly developed metallurgy, machine-building, chemical production and agriculture. The economy of the Soviet Union was functioning for decades as an aggregate national economic system linked by united management, co-operated links and applied technologies. This has predetermined the inherited dependence of Ukraine on economic ties with republics of the former Soviet Union. It will suffice to point out that 2/3 of the country’s gross domestic product did not have a closed productive cycle in Ukraine. Clearly the emergence of political and economic borders in a formerly united economy, the emergence of the national monetary-credit and financial systems, breaking of the system of traditional economic links have brought the economy of the country to a crisis. Almost all the indices of the economic development have negative dynamics. But the rates of decrease of production are slown down and first signs of stabilization appear in a number of branches of economy.

One of the main reasons of inflation are prices for power carriers imported from Russia. These prices have increased by hundreds times during the last years. The government of Ukraine sees the way out of the crisis in realization of the programme of economic reforms which would make it possible to reorganize the economy, to change its structure, to carry out privatization and to restore stimuli to a highly effective work.

Words and word combinations:

co-operated links: отільні зв’язки

inherited dependence: успадкована залежність

gross domestic product: внутрішній валовий продукт

closed productive cycle: замкнутий виробничий цикл

emergence: поява

national monetary-credit and financial systems: національна грошово-кредитна та фінансова системи

rates of decrease of production are slown down: темпи зниження

виробництва уповільнюються

power carriers: енергоносії

to carry out: проводити

agriculture: сільське господарство

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