The economy of Ukraine is an emerging free market. Like other post-Soviet states, its gross domestic product fell sharply for 10 years following the collapse the Soviet Union in 1991. However, it grew rapidly from 2000 until 2008 when the Great Recession began worldwide and reached Ukraine as the 2008-2009 Ukrainian financial crisis. The economy recovered in 2010, but since 2013 the Ukrainian economy has been suffering from a severe downturn.
The EU and Ukraine have provisionally applied their Deep and Comprehensive Free Trade Agreement (DCFTA) since 1 January 2016. This agreement means both sides will mutually open their markets for goods and services based on predictable and enforceable trade rules.
The EU is Ukraine's largest trading partner, accounting for more than 40% of its trade in 2016. Ukraine accounts for 0.9% of EU's total trade, with a turnover of €29.6bn in 2016. Ukraine exports to the EU amounted to €13.1bn in 2016. The main Ukraine exports are raw materials (iron, steel, mining products, agricultural products), chemical products and machinery. The EU exports to Ukraine amounted to over €16.5bn in 2016. The main EU exports to Ukraine include machinery and transport equipment, chemicals, and manufactured goods.
Industry accounted for 26% of GDP in Ukraine and covers about 20 major industries, namely power generating, fuel, ferrous and non-ferrous metallurgy, chemical and petrochemical and gas, machine-building and metal-working, forest, wood-working and wood pulp and paper, construction materials, light, food and others. The country possesses a massive high-tech industrial base, including electronics, arms industry and space program.
Ukraine is relatively rich in natural resources, particularly in mineral deposits. Although oil and natural gas reserves in the country are largely exhausted, it has other important energy sources, such as coal, hydroelectricity and nuclear fuel raw materials.
Agriculture is also a large part of Ukraine's economy. In 2008 the sector accounted for 8.29% of the country's GDP and by 2012 has grown to 10.43% of the GDP. Main production sectors are sunflower oil, grain, sugar, honey and Ukraine is expected to become a future global player on meat and dairy markets Because Ukraine possesses 30% of the world's richest black soil, its agricultural industry has a huge potential.
To help foster commercial links with the EU, Ukraine benefits from the TAIEX programme since 2006. TAIEX is the Technical Assistance and Information Exchange instrument of the European Commission. It aims to bring the legislation of neighboring countries in line with EU standards and ensuring compliance with EU regulations. All information about the missions that occurred in Ukraine can be found here. Read less.