Inside this issue
• The internal make-up of the country mirrors its awkward position
between the European Union and Russia
• Thanks to support from the IMF, things are improving
• Investors are looking for stability and deregulation - -
Once again, the old questions are being asked about Ukraine, a nation of 46m with a large economy and strategic position, but whose elite has for centuries struggled to consolidate politically, making it susceptible to preying neighbours:
Government figures show real gross domestic product growing 4.8 per cent year-on-year in the first quarter of 2010, albeit from a very low base. This follows a 15 per cent fall in GDP in the financial crisis.
Since taking over as president in February, Viktor Yanukovich has moved with lightning speed to monopolise political power and make friends with Kiev’s big neighbour, Russia.
Amid all the doom and gloom, one sector in the country’s economy has a bright future and promises high yields.
Is Ukraine drifting toward Russia and away from Europe? Several recent developments suggest it may be.