Ukraine

Under communism, the Ukrainian economy was the second largest in the Soviet Union, being an important industrial and agricultural part of that country’s planned economy. With the collapse of the Soviet system, the country made steps toward adopting market-lead reforms, but the journey towards a fully reformed, developed market economy has been somewhat longer and more painful than expected.

Currently, the Ukrainian economy is a typical example of a post-soviet-era developing economy. Significant issues preventing more rapid economic growth include an underdeveloped infrastructure and transportation system, endemic corruption and bureaucracy, and the lack of a modern managerial class, needed to transform companies and bring Ukraine up to date.

Yet, there is no doubting Ukraine’s potential. A technically-skilled low-cost workforce and continuing reforms hope to propel Ukraine towards better ties with Russia and the EU, while economic developments, increasing FDI and a maturing consumer market provide considerable possibilities for investors.