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- Ukraine – A Trade Link of – Former Soviet Union and Europe
Ukraine – A Trade Link of – Former Soviet Union and Europe
- By Oil and Gas Author
- Published 09/7/2006
- Oil and Natural Gas Prices , Environment and Pollution , Liquefied Natural Gas LNG , Exploration and Discoveries , Natural Gas Petroleum , Crude Oil Petroleum , Offshore Drilling , Petroleum Pipeline
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View all articles by Oil and Gas AuthorReorienting trade towards Europe and Asia has resulted in an improved macroeconomic environment and an increased level of public trust in market institutions. Privatized companies have greatly contributed to the broad-based improvements in manufacturing, retail trade, agriculture, and construction. Following the so-called Orange Revolution in November 2004, then-Prime Minister Yulia Tymoshenko pledged to review around 3,000 privatization deals that had occurred during the previous presidents term. The review added to investor uncertainty and dampened the high rates of economic growth seen during 2004. With lower agricultural and manufacturing revenues, investors had less incentive to invest in upgrading their production capacity. President Yushchenko has continued to review the Soviet era privatizations and has approved the resale of the Kryvorizhstal steel complex, one of the largest privatization deals in the Former Soviet Union, for $4.8 billion to a Netherlands-based Mittal Steel Co.
During 2005, lower commodity prices and political uncertainty hindered the investment climate in Ukraine. Economic growth stabilized during the final months of 2005, but domestic political tensions linger and may become more amplified as the country moves closer to parliamentary elections in late March 2006. The Ukrainian Parliament, or Rada, gave the current cabinet, led by Prime Minister Yuri Yekhanurov, a vote of no confidence on January 10, 2005. The cabinet is remaining in place in a caretaker status until after the March 26 elections.
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