Ukraine's economy

Ukraine, with a population of over 45 million people and area of 603,628 square kilometres, is the largest country in Europe. Despite the recent population decrease, Ukraine offers significant human resources to the economy of the European Union. The total employable population is more than 22 million people. Ukraine has a unique land bank consisting approximately 60% of fertile black soils. In the South, Ukraine borders the Black Sea and the Sea of Azov; it has an extended network of watercourses and unique recreational areas – the Crimea, the Carpathian Mountains, and so on. The total length of navigable river waterways amounts to 1,672 kilometres. The Dnieper and Danube rivers are important international cargo transportation routes. It shares borders with seven countries and is the main transfer hub for Russian energy resources consumed by Europe.

Ukraine is part of the industrial-agrarian economies. Since 1992, a total de-industrialisation has taken place, the reasons for which can be traced back to the dissolution of the Soviet Union. Highly technological industries and machine-building have been the most affected, however, the arrival of private owners and the privatisation of State-owned property made many industries competitive in the global and European markets. The metal, energy, chemical and mining industries are especially important. Recently, the economy of Ukraine is focused on resuming high value-added production, responding to global challenges and international market requirements.

Ukraine is gradually becoming less dependent on imported energy resources, developing its own hydrocarbon production and implementing energy efficiency and green technology projects. The country has vast biofuel reserves that can replace expensive energy carriers.

Ukraine expends significant efforts to attract foreign investors. Agreements with major international companies have been signed within the framework of projects for the extraction of traditional and shale gas.

Smart-Holding believes in Ukraine’s potential. The largest share of its investments are channelled into the metals and energy sectors of the Ukrainian economy. It also actively develops agricultural projects. We believe in the revival of industries such as complex machine-building and shipbuilding. More detailed information on our investments may be viewed here.