TPT May 2009

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A Clearer Picture of
T he Ukraine is currently
undergoing a period of
reevaluation of its role within
Eastern Europe and on the
international stage. This phase
follows on from the Ukraine’s entry
into the World Trade Organization
in 2008.
A tricky balancing act, the country
is currently consolidating its
position as a steady business
zone and industrial heavyweight,
balancing on its political see-saw
between the EU and NATO on
one side, and good relations with
Russia on another.
Due to a large Russian-speaking
population, particularly in the
industrial heartlands of the east,
the Ukraine is always going to have
close ties with Russia. The two
countries share a common bond
of history, character and business.
The paradox between Ukraine’s
actions and mentality often leads
to contrasting social and political
decisions.
The Ukrainian gas transmission
network is a main supplier of
gas from Russia to the European
Union. Due to its unique position,
the country has become the
most important transit country for
Russian gas.
This situation has led to a number
of high-profile spats between
the two countries over energy
prices and gas transit – the most
recent in January – and it has
become clear to both countries
that differences should be settled
behind closed doors.
The current economic crisis has
had a big impact on the Ukraine’s
industry and brought home the
need for closer cooperation and
support from all of its partners.
Industry accounts for 31.7 per
cent of the Ukraine’s GDP (which
grew by an estimated 2.1 per cent
in 2008), with steel and metals
a central part of this output.
Some of the country’s largest
A boost is
expected with
the Ukraine’s
staging of the
European football
championship
in 2012 ❱
❱
May 2009 50 ›