2006 was marked by three major developments in Ukraine. First on the energy front by the “gas war” with Russia, second on the political front with the presidential election. Lastly, on the agricultural side, the imposition of restrictive grain export quotas alarmed advocates of free market policies. The beginning of 2006 saw the country shivering in the grip of a particularly cold winter.…
Ukraine's information technology sector frequently tends to fly under the radar of international investors. However, the sector has experienced substantial growth for the last three years. Long-term sustainability of this growth will require significant changes in the country's business and policy landscape. According to Ukraine's state statistics committee, the country's software development market…
Last week Ukraine's government relaxed export quotas on feed grains that had been in place since last autumn. Though some believe the move is a step in the right direction, quotas for wheat exports remain in place, and many believe the government should adopt a more consistent approach to agricultural regulation. The government stated it enacted the quotas to protect domestic consumers in an environment…
Ukrainian Foreign Minister Arseniy Yetsenyuk proposed renewing the 1997 Big Treaty with Russia, and urged for a plan of action to improve dialogue between the two countries. The Big Treaty refers to an agreement on friendship, cooperation and partnership signed in 1997 for a ten-year period, which came into effect in 1999. The statement followed a meeting between Yetsenyuk and his Russian counterpart,…
In spite of political instability, Ukraine's economy remains vibrant, led by a real estate market characterised by continued double-digit growth. With several major Ukrainian banks already having been gobbled up by such European banks as Austria' s Raiffeisen Zentralbank, banking sector assets grew by 59.2% in 2006 and by another 11.25% in the first quarter of 2007. Virtually every Ukrainian bank,…
The shake up of the investment market is continuing, with Dubai International Capital, the international investment operation of Dubai Holding, announcing a major restructuring. Under DIC's new structure, announced on July 12, four specialised investment divisions will be created, dedicated to managing specific classes of assets. Of the four, DIC Private Equity will be tasked with managing and expanding…
While the rest of Europe is witnessing the decline of small banks, with most countries dominated by a few large players, the western Ukranian region of Lviv would benefit from maintaining regional specialisation. Traditionally dominated by small-and medium-sized enterprises (SMEs) in textiles, agriculture and tourism, Lviv's proximity to EU members Poland, Romania and Slovakia makes it a focal area…
Five weeks after September's parliamentary elections, the five parties of the new government still have not formed a coalition. Although it is expected that former prime minister Yulia Tymoshenko will once again resume her former post, the emergence of an 'orange' government is not yet set in stone. The Central Election Commission noted last week that the official convocation of the sixth Verkhovna…
In the early hours of November 18 a methane-gas explosion rocked the Zasyadko coal mines in Donetsk, killing at least 89 miners. The death toll signals the worst coal mining disaster in Ukraine's post-Soviet history and a stunning blow to one of the country's most vital industries. Ukraine is considered among the world's most hazardous countries for coal miners. On October 29 four miners were killed…
With the collapse of communism, state-owned drab concrete blocks were sold to residents at little cost. Since 1991, real estate investors in Ukraine took advantage of an undervalued market while construction firms doubled pace to meet soaring demand for European-quality housing. As the banking sector matures, the mortgage market offers plenty of room for growth. On November 30, Ukraine's fourth-largest…
