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International Trade of Ukraine

Submitted to:
Dr. Georgeta Vidican
(Professor, International Econmics 1 course instructor, DEIS, FAU)

Submitted by:
(Name)

(Matricultaion

No)
Kseniya Kuymina

21969355

Mei Han
21953450
Valentyna Lotous
Partha Sarathi Biswas

21895698

Date of submission: 14th Nov, 2014


1. Background
This work is aimed at analyzing of current place of Ukraine in the International trade.
Because of the geographical position of this country, its cultural ties and factors of
production it has been highly engaged in the process of globalization. The history of
Ukraines relationship with other countries has experienced different changes: division
between two empires, uniting Western and Eastern Ukraine in frame of Union of Soviet
Socialist Republics (USSR), obtaining independence in 1991, negotiating the entering
the Commonwealth of Independent States (CIS), negotiating the entering EU, accession
to the World Trade Organization (WTO), European Neighborhood Policy (ENP). The
Ukraine experienced the influence of its economic history over past 20 years:
Magdeburg law in Western Ukraine lacking in Eastern Ukraine, harsh industrialization
and integration of Eastern Ukraine into production chains of former USSR, different
level of density of railway in different parts of country, rich sea transport infrastructure
all are reasons we are going to concentrate on this period of time.
Ukraine is considered as the geographically second-largest country of Europe. The
demographics, culture and history are heavily influenced by its location advantage
because it shares border with Russia, Belarus, Romania, Hungary, Moldova and
Slovakia as well as Turkey via Black Sea which facilitates Ukraine to engage into
international trade. (Cooper, 2007)
Ukraine, surely an emerging free market (independent since 1991) and with a gross
domestic product of $177.4 billion is considered a lower middle income country. (World
Bank) It is indeed an agricultural and industrial country and is endowed with natural
resources which include iron ore, coal, rock salt cement, gypsum uranium, different
metals, newly discovered gas and oil, as well as other natural resources. Ukraine is
considered one of the top ten countries in the area of commercial minerals reserves and
extraction and manufacturing of good quality iron and steel. (Usachev V. A., 17-28 June
2014). Agricultural products are important exports of Ukraine (nearly one third of its land
is used for cultivation), and the major exports includes grains, sugar, legumes, dairy
products and meat. (Cooper, 2007)
The major trading partners are EU, Russia, China, Germany, Poland, and Belarus.
Other key facts include Ukraines unstable political situation and different orientation of

power. (Wikipedia) The share of labor sector in agriculture is 15.8% (contribution in


GDP is 9.9%), in Industry is 18.5% (contribution in GDP is 26.9%), and in services is
65.7% (contribution in GDP is 60.5%). (Factbook, 2013)
However, the most important factor of Ukrainian international trade relationships and
global policy as well as the topic issue of the current conflict in Ukraine is the energy
sector. The pipeline of the natural gas delivery from Russia to EU is exclusively situated
on the Ukrainian territory. The depots of the gas strategic storing of Russia are also
placed in Ukraine as the heritage of Soviet Union. This is a big advantage of Ukraine
making the country an important European player on the field of energy policies. But it is
also disadvantage for the undeveloped country stacking in the permanent crisis making
it to a weak player and fields of display for stronger countries protecting their national
interests.

Bibliography
Bank, W. (n.d.). The World Bank. Retrieved November 24, 2014, from
http://data.worldbank.org/country/ukraine
Cooper, C. W. (2007). Ukraine (second edition). New York : Chelsea House.
Factbook, C. W. (1947). Retrieved November 21, 2014, from The Central Intelligence
Agency: https://www.cia.gov/library/publications/the-world-factbook/fields/2012.html
Usachev V. A., B. A. (17-28 June 2014). ECONOMY OF UKRAINE AS A SINGLE
PERTAINING TO NATIONAL. ODERN PROBLEMS AND WAYS OF THEIR SOLUTION IN
SCIENCE, TRANSPORT, PRODUCTION AND EDUCATION 2014 , 1.
Wikipedia. (n.d.). Wikipedia. Retrieved November 23, 2014, from Economy of
Ukraine: http://en.wikipedia.org/wiki/Economy_of_Ukraine

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