Ukraine Overview Country Overview Ukraine is bordered by the Russian Federation, Belarus, Poland, the Slovak Republic, Hungary, Romania and Moldova. It is a varied country with mountains in the west, plains in the centre and breathtaking Black Sea views in the south. Kyiv is the capital of Ukraine and the third-largest city in the CIS. It is also the cradle of Russian civilisation, the origin of the Kyiv Rus State founded in the eighth and ninth centuries. The Caves Monastery in the city centre is the focal point of the early Orthodox church. The Golden Gate of Kyiv is the last remnant of the tenth-century walls built to defend the city. The Crimea was once a summer playground for Kremlin leaders. Hotels and services are relatively cheap for Westerners. It is Yalta, the ‘Pearl of the Crimea’, which draws visitors. The region’s vineyards produce good-quality wine. Specialities include borshch (beetroot soup) and holubtsi (cabbage rolls). Opera is performed in the ornate theatres of Kyiv, Lvov and Odessa. Ukrainians have a deep-rooted musical tradition and singing is very popular. General Information Area: 603,700 sq km (233,090 sq miles). Population: 49,711,000 (official estimate 1999). Population Density: 82.3 per sq km. Capital: Kyiv. Population: 2,620,900 (1998). GEOGRAPHY: Ukraine is bordered by the Russian Federation to the north and east; Belarus to the north; Poland, the Slovak Republic and Hungary to the west; and Romania and Moldova to the southwest. It is a varied country with mountains in the west, plains in the centre and the Black Sea views to the south. The north of the state is dominated by forests. Its other two main features are wooded steppe with beech and oak forests and the treeless steppe. The River Dnieper divides Ukraine roughly in half, and flows into the Black Sea. Government: Republic. Gained independence from the Soviet Union in 1991. Head of State: President Leonid D Kuchma since 1994. Head of Government: Prime Minister Viktor Yanukovych since 2002. Language: Ukrainian is the sole official state language. A member of the eastern Slav languages and similar to Russian, it was discouraged for centuries by Tsarist and Soviet authorities. It is still widely spoken in western and central Ukraine, although Russian is spoken by virtually everyone. Russian is the main language spoken in Kyiv, eastern Ukraine and Crimea. The present Government uses every opportunity to promote the revival of Ukrainian, particularly in schools. There are 12 million ethnic Russians in Ukraine, 500,000 Jews and more than 250,000 Crimean Tatars. Religion: There are about 35 million Ukrainian Orthodox faithful, although the church is divided into a traditional pro-Moscow and a breakaway pro-Kyiv faction. Five million Eastern-rite (Uniate) Catholics, subservient to Rome, are concentrated in western Ukraine and it is now several years since a Stalin-era ban on their church was lifted. There are also Protestant and Muslim minorities. Mass emigration has reduced the numbers of Jews, concentrated in Kyiv, Lviv and Odessa. Time: GMT + 2 (GMT + 3 from last Sunday in March to Saturday before last Sunday in October). Electricity: 220 volts AC, 50Hz. Communications:   Telephone Ukraine has reliable communications with the West, and most major cities provide IDD facilities and can be dialled from abroad. Country code: 380. Outgoing international code: 810. Telephone counters in the central post offices of city centres are usually open 24 hours. Mobile telephone GSM 900/1800. Operators include Ukrainian Mobile Comms (website: www.umc.com.ua), Ukranian Radio Systems (website: www.welcome2well.com) and Kyivstar (website: www.kyivstar.net). Coverage is limited to Kyiv and other main urban areas. Fax Facilities are good and are available in most offices and hotels. Telegram These can be sent from central post offices in large cities 24 hours a day. Internet ISPs include UANet (website: www.ua.net) and Ukraine Intercom (website: www.ukrcom.net.ua). E-mail can be accessed from Internet cafes in Kyiv, Odessa, Lyiv and Cherkassy. Post Services are erratic. Letters to Western Europe can take two weeks or more. The main post office in Kyiv is located at Khreshchatik 22 and it is open 24 hours. Post office hours: Generally 0800-1700. Press Widely read are the twice-weekly liberal Nezavisimost and the parliamentary daily Holos Ukrainy. The Russian press is also widely available. News from Ukraine is published in English and available in 70 other countries. Western newspapers are now available in Kyiv, but not in other parts of the country. BBC World Service and Voice of America frequencies: From time to time these change. BBC (website: www.bbc.co.uk/worldservice): MHz 17.64 12.10 9.410 6.195 Voice of America (website: www.voa.gov): MHz 15.21 11.82 9.760 1.197 Passport/Visa   Passport Required? Visa Required? Return Ticket Required? British Yes Yes No Australian Yes Yes No Canadian Yes Yes No USA Yes Yes No OtherEU Yes Yes No Japanese Yes Yes No Note: (a) If in transit between Ukraine and other CIS countries, several visas must be held. Travellers who enter the Russian Federation from Ukraine without a Russian Federation visa are charged a penalty of US$250 for illegal entry. Ukrainian visas are not valid in the Russian Federation, and Russian Federation visas are not valid in Ukraine. (b) As a general rule, visitors should apply for a visa before travelling. PASSPORTS: Passport valid for at least one month beyond return date required by all. VISAS: Required by all except the following: (a) nationals of all CIS countries except Moldova, Tajikistan and Turkmenistan; (b) nationals of Hungary, Mongolia, Poland and Romania. Types of visa and cost: Tourist: £25 (Single-entry); £40 (Double-entry). Business/Private: £30 (Single-entry); £50 (Double-entry); £120 (Multiple-entry). Group Tourist (available to travel agents only). Transit: £15 (Double-entry); £60 (Mulitple-entry, business only). Normal processing time is ten working days. Note: A handling charge of £10 is also required from the embassy for each application. Validity: Single-entry: Three months from date of issue; Double-entry/Multiple-entry: Six months; Transit: Three days for each entry. Visas must be stamped inside the passport. Application to: Consulate (or Consular section at Embassy); see Contact Addresses section. Application requirements: (a) Valid passport/travel document with at least one blank page. (b) One completed application form. (c) Two passport-size photos. (d) Fee (cheque or postal order). Separate cheques should be sent for the visa fee and the handling charge (see above). (e) A contact telephone number. (f) Recorded, registered, self-addressed envelope for postal applications. Tourism: (a)-(f) and, (g) *Tourist voucher with confirmation of hotel booking. Business: (a)-(f) and, (g) *Letter of invitation from Ukrainian company or organisation stating purpose of the visit. (h) *For Multiple-entry visas, detailed letters from Ukrainian company and company in home country explaining necessity for Multiple-entry visa. (i) Copy of registration certificate of company or office in Ukraine. Private: (a)-(f) and, (g) *Letter of invitation from Ukraine (faxed copy is acceptable) issued by the Passport and Immigration Department of a local Police Station in the Ukraine. Transit: (a)-(f) and, (g) Photocopy of the visa (if required) of the country of destination. Note: *Nationals of EU countries, Canada, Japan, Slovak Republic, Switzerland, Turkey and the USA applying for business or private visas do not require a letter of invitation. Working days required: Ten. Applications for visas from nationals of EU countries, Canada, Japan, Slovak Republic, Switzerland, Turkey and the USA can be processed within three working days (unless submitted by post); see above under Types of visa and cost for details. Money Currency: Hryvnya (UAH) = 100 kopiyok (singular: kopiyka). Notes are in denominations of UAH200, 100, 50, 20, 10, 5, 2 and 1. Coins are in denominations of 50, 25, 10, 5, 2 and 1 kopiyok. Currency exchange: Money should only be changed at currency booths on the street or in banks. It is advisable to keep receipts showing money changed. Changing money with black-market traders is not recommended and can be dangerous. Credit & debit cards: Not readily accepted. Only a few restaurants and hotels will accept them. Travellers cheques: Not generally advised. If taken, they should be made out in US Dollars. Currency restrictions: The import of local currency is up to the amount declared on the Ukrainian Exit Customs Declaration. The export of local currency is limited to UAH85. The import of foreign currency is limited to US$10,000 and any amounts exceeding US$1000 require a special customs form. The export of foreign currency is limited to US$1000. Any higher amounts can be exported with special permission from the National Bank of Ukraine. Exchange rate indicators The following figures are a guide to the movements of the Hryvnya against Sterling and the US Dollar: Date Feb ’02 May ’02 Nov ’02 Feb ’03 £1.00= 7.61 7.77 8.43 8.49 $1.00= 5.32 5.33 5.33 5.33 Banking hours: Mon-Fri 0930-1730. Duty Free The following items may be imported into Ukraine without incurring customs duty: 200 cigarettes or 200g of cigars or tobacco; 1l of spirits and 2l of wine (persons over 20 years of age only); goods for personal use (toiletries and personal effects); gifts up to the value of €200. Public Holidays Jan 1 2003 New Year’s Day. Jan 7 Orthodox Christmas Day. Mar 8 International Women’s Day. Apr 25 Orthodox Good Friday. May 1-2 Labour Days. May 9 Victory Day. Jun 15 Holy Trinity. Jun 28 Constitution Day. Aug 24 Ukrainian Independence Day. Jan 1 2004 New Year’s Day. Jan 7 Orthodox Christmas Day. Mar 8 International Women’s Day. Apr 9 Orthodox Good Friday. May 1-2 Labour Days. May 9 Victory Day. May 30 Holy Trinity. Jun 28 Constitution Day. Aug 24 Ukrainian Independence Day. Health   Special Precautions Certificate Required Yellow Fever No No Cholera No No Typhoid and Polio 1 N/A Malaria No N/A 1: Typhoid may occur in rural areas. Food & drink: All water should be regarded as a potential health risk. Water used for drinking, brushing teeth or making ice should have first been boiled or otherwise sterilised. Milk is pasteurised and dairy products are safe for consumption. Only eat well-cooked meat and fish, preferably served hot. Pork, salad and mayonnaise may carry increased risk. Vegetables should be cooked and fruit peeled. Other risks: Widespread outbreaks of diphtheria have been reported in recent years. Tick-borne encephalitis occurs in forested areas. Visitors are advised to seek medical advice about immunisation and precautionary measures. Good personal hygiene and care with water and food supplies are essential. Hepatitis A may occur and precautions should be taken. Health care: The health service does, in theory, provide free medical treatment for all citizens and travellers who become ill. However, as in most parts of the former Soviet Union, health care is a serious problem. For minor difficulties, visitors are advised to ask the management at their hotels for help. For major problems, visitors are well advised to seek help outside the country. Travel insurance is, in fact, compulsory for all travellers. It is advisable to take a supply of those medicines that are likely to be required (but check first that they may be legally imported) as medicines can prove difficult to obtain. Travellers are advised to contact their Embassy, in the first instance, for advice on where to get medical help. Travel - International AIR: Ukraine International Airlines (PS), a Ukrainian alliance with Austrian Airlines/Swiss and Aer Fi Group, links Kyiv with Amsterdam, Barcelona, Berlin, Brussels, Copenhagen, Frankfurt/M, London, Paris, Rome, Vienna, Zürich and most recently Milan. Air Ukraine (6U) serves a smaller number of European points, as well as Moscow and other Russian cities aboard aircraft reclaimed from the former Soviet airline Aeroflot (SU). Flights are also available from Lviv to Warsaw, New York and Washington, from Simferopol to Turkey and from Ivano-Frankivsk to the UK (summer only). Approximate flight times: From Kyiv to London is 3 hours 30 minutes, to Moscow is 1 hour 15 minutes and to Vienna is 2 hours. International airports: Kyiv (IEV) – Borispol International (KBP) is approximately 34km (21 miles) from central Kyiv. The airport has undergone extensive renovation. Facilities currently include 24-hour banks/bureaux de change, duty-free shops, restaurants, child facilities, 24-hour post office, left luggage and pharmacy. The bus terminal is located at Ploshcha Peremohy where an airport bus operates services to the city centre every 60 minutes (0500-2130). The bus fare is around US$4. A train also runs to the centre (travel time – 60 minutes). Taxis usually cost about US$30-40. Departure tax: None. SEA/RIVER: The main ports are Odessa and Izmail on the River Danube. Services are available to the Russian Federation ports of Novorossiysk and Sochi, Batumi and Sukhumi in Georgia, as well as to a number of cities on the Black Sea and the Mediterranean. A ferry service connects Sevastopol and Istanbul, Turkey. The republic’s most important internal waterway is the River Dnieper. Black Sea cruises around the Crimean peninsula are available and well recommended. Most cruises leave from Turkey, Bulgaria or Romania and stop over in Yalta, although there are a few cruises which leave from Yalta. RAIL: The 22,730km (14,207 miles) of railway track link most towns and cities within the republic and further links extend from Kyiv to all other CIS member states. The main stations are Kyiv and Lyiv. Regular daily services connect these stations with Moscow. There are direct lines to Warsaw in Poland, Budapest in Hungary, Bucharest in Romania, Berlin in Germany and Brest in Belarus. Ukrainian trains are slow. Journeys can range from pleasant to terribly uncomfortable if, for instance, the heating is not working. Security can also be a problem, as many muggings have been reported. If travelling by overnight train, do not leave the compartment unattended. Buying tickets locally can be difficult and it is easier to pre-book through Intourist Travel Ltd before departure (see Contact Addresses section). From Kyiv to Moscow takes 16 hours and to St Petersburg is about 36 hours. ROAD: Of the 172,315km (107,074 miles) of road network, 29,227km (18,161 miles) are main or national roads. Ukrainian roads tend to be in reasonable condition. Border points are at Mostiska, Uzhgorod and Chop. It is recommended to carry a visa to enable a smooth border crossing. Private car-repair garages have recently become available, along with state-owned ones; however, spare parts are still scarce. The biggest problem is availability of suitable petrol (for instance, unleaded petrol is not available). Never set out on a journey without several cans of petrol. Insurance cover can be difficult to arrange. See Travel – Internal for information on traffic regulations and documentation. Coach: Eurolines, departing from Victoria Coach Station in London, serves destinations in the Ukraine. For further information, contact Eurolines (4 Cardiff Road, Luton, Bedfordshire, L41 1PP; tel: (08705) 143 219; fax: (01582) 400 694; website: www.eurolines.com or www.gobycoach.com). Bus: A few buses run daily services from Karkiv to Moscow. Travel - Internal AIR: Fuel shortages used to result in sharp reductions in flights within Ukraine and erratic timetables. However, the situation has improved recently. Air Ukraine’s repainted Aeroflot aircraft are far from comfortable and buying tickets is extremely difficult and almost guaranteed to involve complicated negotiations with the local travel agencies. Pre-booking through Intourist Travel Ltd in London is advised (see Contact Addresses section). Winter weather frequently grounds aircraft. The most reliable flights are from Kyiv to Lviv, Donetsk and Odessa. RIVER: Cruises between Kyiv, Sevastopol and Odessa are very popular and can be booked through various tour operators. RAIL: Again, pre-booking through Intourist Travel Ltd in London is advised, as buying tickets is a difficult undertaking. Journeys are slow, though trains are more reliable than air travel in winter. ROAD: Bus: There are services to most cities and towns although they are not always recommended due to overcrowding and uncleanliness. Taxi: Hiring a driver for a long-distance destination is a realistic option, costing about US$200 from Kyiv to Odessa or a similar journey. Car hire: Not recommended. Self-drive hire cars are, so far, extremely rare. Traffic regulations: Speed limits are 60kph (37mph) in built-up areas, 90kph (55mph) in outside areas and 110kph (69mph) on the motorways. Traffic drives on the right; righthand-drive cars are prohibited. Drinking and driving is strictly prohibited. Heavy fines are imposed if traffic police smell alcohol on a driver’s breath. Documentation: An International Driving Permit is necessary. URBAN: Kyiv and Kharkiv have clean, efficient and cheap metro systems, where tickets can be purchased at vending machines inside the stations. Buses and trolleybuses are extremely crowded and are best avoided. Taxis are easy to find in the cities. State-owned taxis have yellow and black signs on the roof and are metered. Fares should be negotiated in advance for private taxis. Some shared taxis and minibuses exist on fixed routes. Hitchhiking is very common, although not recommended. Travellers can indicate the need for a lift and the driver will take them to their destination cheaply by Western standards, but prices should be agreed in advance. There are no public transport services from 0100-0500. Accommodation HOTELS: Standards are lower than in countries where the tourist industry is more developed. The best hotels are in Kyiv, Odessa and the seaside resort Yalta. PRIVATE ROOMS: A room in a private home is an excellent accommodation option in Ukraine as the people are friendly and hospitable, and prices tend to be far more reasonable. However, there is no organisation as such that arranges rooms in private homes. Visitors can, however, ask around, as the savings and greater comfort may be well worth the effort (as long as due caution is observed). CAMPING/CARAVANNING: Campsites are available on the outskirts of cities. Introduction KYIV: The capital of Ukraine is the third-largest city in the CIS. It is also the cradle of Russian civilisation, the origin of the Kyiv Rus State founded in the eighth and ninth centuries and the city from which the Orthodox faith spread throughout Eastern Europe. Even though many of its buildings were destroyed in World War II, Kyiv still has much to offer. The Caves Monastery in the city centre is the focal point of the early Orthodox church. Visitors have to carry candles to see the church relics which are set in a maze of catacombs. It is the headquarters of the pro-Russian Orthodox church. The 11th-century St Sofia Cathedral contains splendid icons and frescoes and is situated in beautiful grounds. The Golden Gate of Kyiv is the last remnant of the tenth-century walls built to defend the city. Other attractions include the Cathedral of St Vladimir (the headquarters of the rival pro-Ukrainian church), the Opera House, the Museum of Ukrainian Art (with its collection of the work of regional artists from the 16th century to the present) and the Historical Museum of Ukraine. Andreyev Hill is a restored cobbled street in central Kyiv now used by artists to sell their wares. There are a lot of cafes and restaurants in this area. Khreshchatik Street and Independence Square are Kyiv’s main thoroughfares. The square is particularly elegant with its chestnut trees and fountains. Martinsky Palace and Parliament is the official residence of Ukraine’s President. The nearby Park of Glory is a war memorial, with a vast and controversial monument of a woman with a sword and shield overlooking the river. Locals go swimming in summer in the Dnieper River and climb onto its ice in winter to fish. It is possible to take boat trips on the river. There is a park and a beach on Trukhaniv Island. LVIV: A city of striking Baroque and Renaissance architecture, Lviv is the focal point of Ukrainian national culture. It was the centre of Ukrainian nationalist ambition at the beginning of the Soviet era. The City Castle was the first building to fly Ukraine’s blue-and-yellow national flag. Lviv is also the headquarters of Ukraine’s Greek Orthodox church. Located by the foothills of the picturesque Carpathians, it is one of the oldest and most unusual cities in Europe. Lviv is ‘the city of lions’ – the heart and soul of Western Ukraine with a population of over 900,000. Lviv was mentioned in the Volyn chronicle in 1256 when Galycian King Danylo Galytsky founded the city and named it after his son Leo. Thanks to its advantageous location, many important trades and cultures meet in Lviv. Busy trade led to a dramatic increase in prosperity. Secular and religious gentry, rich merchants, artisans and craftspeople lived within the narrow ring of the city walls. As early as the 15th century, the city had its own mint, water supply system and regular international post. The streets were paved with cobbled stones and many new houses were built. As the centuries passed, the varied heritage led to a wide variety of museum artefacts. The National Museum, Museum of History, Art Gallery, Antique Armoury (City Arsenal) and Museum of Ethnography and Crafts are famous for their collections. Development of the pharmaceutical trade in Ukraine is represented by the collection of the Pharmaceutical Museum – the oldest functioning pharmacy of Lviv (established in 1735). The interiors of these fabulous buildings evoke the atmosphere of times past. The city itself is often called ‘the open-air museum’. The highlight of its architecture is doubtlessly Market Square, connected for more than 600 years with local history. The Market Square of the old city performed the function of an economic, political and administrative centre up to the end of the 19th century. The area housed members of the urban nobility and wealthy merchant class, building many mansions and commercial properties. Today, Market Square is the core of the historical and architectural preservation area, consisting of 45 buildings. They reflect elements of many architectural traditions, such as Gothic, Baroque, Renaissance and Rococo. Several theatre companies perform in Lviv. The Opera House of Ivan Franko is a source of great pride to locals. Extravagantly built, with richly decorated façade and interior, its architecture leads Lviv Opera to be classed among the best theatres in Europe. ODESSA: Odessa is the site of the famous 192 steps of the Potemkin stairway from Sergei Eisenstein’s film Battleship Potemkin. In addition, Odessa is also a centre of renewal of Jewish culture, with a community of 45,000. There is a vast Opera House – one of the world’s largest. The ceiling is decorated with scenes from the plays of Shakespeare. Also worth visiting is the Statue of the Duke of Richelieu, the Vorontsov Palace on the waterfront and the Archaeological Museum with exhibits from the Black Sea area and Egypt. THE CRIMEA: This was once a summer playground for Kremlin leaders. Hotels and services are relatively cheap for Westerners, and the place is a favourite with German tourists. The region’s dusty capital of Simferopol has few tourist sights. It is Yalta, the ‘Pearl of the Crimea’, which draws visitors. Former Communist Party spas have now been turned into resort centres. The region’s vineyards produce good-quality wine which can be tasted locally quite cheaply. The Wine Tasting Hall in Yalta is as good a place as any. The Vorontsov Palace was designed by Edward Blore, one of the architects of Buckingham Palace. Nikitsky Gardens, just outside of Yalta, is a good afternoon’s excursion. Industry is centred on Massandra, above Yalta. Livada is where Roosevelt, Churchill and Stalin met in the Livada Palace in 1945. Foros is where Gorbachev was held for three days during the 1991 coup. Sport & Activities Ukrainians go skiing in the Carpathian Mountains in the west, where top resorts are in Yeremcha and Vorokhta near the Romanian border, and Slavsko, close to the Slovak Republic. The most popular spectator sport is football, although successes in the international arena for Oksana Baiul, Andrei Medvedev and Sergei Bubka have attracted many to figure skating, tennis and athletics. Social Profile Food & Drink: Specialities include borshch (beetroot soup), varenniki (dough containing cheese, meat or fruit) and holubtsi (cabbage rolls). Chicken Kiev exists but is better known in the West. Restaurants still tend to be fairly expensive (around US$40 for a two- to three-course meal), but visitors now have a wider choice of cuisines (including Japanese, Thai, French, Italian or Indian), particularly in Kyiv. Crimean wines are excellent, especially dessert wines such as Krasny Kamen (‘Red Stone’). For those who prefer dry wine, Abrau and Miskhako are excellent brands of cabernet. Also outstanding are Artyomov champagne (bottled in eastern Ukraine) and fortified wines from Massandra, particularly one named ‘Black Doctor’. Nightlife: Opera is performed in the ornate theatres of Kyiv, Lviv and Odessa. Ukrainians have a deep-rooted musical tradition and singing is very popular. Most cities also have good musical comedy, puppet-theatre and troupes performing theatrical works in Ukrainian and Russian. Tickets are cheap by Western standards and readily available on the day of performance at the box offices. Post-Soviet economics unfortunately mean that many performances are badly attended. Prominent visiting artists most often perform in Kyiv’s vast Ukraine Theatre, where prices are higher. Shopping: Artwork is the best buy. Top-quality paintings, ceramics and jewellery may be purchased quite cheaply at galleries or direct from artists on the street. Avoid the state shops, which have dull merchandise. Shopping hours: Large state or department stores tend to open Mon-Fri 0800-1900, whereas small boutiques are generally open 0900-1800. Some shops stay open as late as 2000. Special Events: The following is a selection of events taking place in the Ukraine in 2003: Jan 7 Orthodox Christmas, nationwide. Apr 1 April Fool’s Day (costumes and street dancing), Odessa. May 25-Jul 29 Kiev Summer Musical Evenings. Aug Sarochin Market, central Ukraine. Aug 24 Indepedence Day Celebrations, nationwide. Sep 2-5 International Trade Fair for Food Processing Technology and Packaging, Kiev. Social Conventions: Ukrainian people are warm and particularly friendly to visitors. It is not at all uncommon for Ukrainians to invite strangers into their own homes. People on the street are friendly despite the rigours of post-Soviet life. Formal attire is rarely required, though people dress smartly for the theatre. Visitors should avoid ostentatious displays of wealth in public places. Tipping: Tips and, if appropriate, small gifts are appreciated. Service is sometimes included in first-class restaurants and hotel bills. Business Profile Economy: Ukraine has large areas of very fertile land, which gave it its reputation as the ‘bread basket’ of the former Soviet Union. Grain, sugar beet and vegetables are the main crops; a high proportion of agricultural land is devoted to livestock farming. The country is also blessed with mineral resources, particularly coal in the huge Donbass fields, as well as iron ore, manganese and titanium. There are a few reserves of gas and oil but Ukraine has to import over three quarters of its requirements of these products from elsewhere, mainly from the Russian Federation and Turkmenistan. Much of this is still needed to fuel the heavy industries that dominate the country’s manufacturing economy. Metalworking, engineering products (especially machinery and transport equipment) and chemicals are the most important of these. A large proportion of industry was previously devoted to military production but this has sharply declined since the demise of the Soviet Union and drastic cuts in defence budgets. After some initial reluctance, Ukraine began to dismantle its highly centralised command economy in 1992 and introduce market mechanisms under the guidance of the IMF, which the country joined, along with the World Bank, in the same year. Ukraine also belongs to the European Bank for Reconstruction and Development as a ‘Country of Operation’. Key elements of the programme were privatisation, price reform, trade liberalisation and, as a necessary adjunct, the introduction of a fully convertible currency – the Hryvnya – which came into use in 1995. During the early and mid-1990s, the Ukrainian economy suffered from rapid contraction of about 12 per cent per year, and very high inflation which occasionally touched 400 per cent. Overall, the reform programme has made slow progress due to opposition from entrenched interests and disagreements amongst the pro-reformers over the pace of change. Relations with the IMF and World Bank are not good; the government is presently debating whether to forego further financial support rather than subscribe to IMF diktats. The imminent entry of several of Ukraine’s neighbours into the European Union is another important consideration. Nevertheless, the economy has made some progress: annual GDP growth during the last four years has been between four and six per cent, while inflation has been reduced to a manageable five per cent. Officially, unemployment is four per cent of the workforce, but a large ‘grey’ economy has evolved which some estimates put at half the size of the legitimate economy. Ukraine’s major trading partners are the Russian Federation, China, Belarus, Turkmenistan and Germany. Business: Suits, and ties for men, are required for official business. Exchange of business cards is extremely common and visitors are advised to bring company cards. Office hours: Mon-Fri 0900-1800. Lunch tends to be at least one and a half hours. Commercial Information: The following organisations can offer advice: Chamber of Commerce and Industry, vul. Velyka Zhytomyrska 33, 01601 Kyiv (tel: (44) 212 2911; fax: (44) 212 3353; e-mail: ucci@ucci.org.ua; website: www.ucci.org.ua); or Ministry of Foreign Affairs (see Contact Addresses section); or Ministry of Foreign Economic Relations, Lvovska pl. 8, 254655 Kyiv (tel/fax: (44) 212 5238). Climate Temperate with warm summers; crisp, sunny autumns; and cold, snowy winters. Required clothing: Lightweight clothes needed in summer, light- to mediumweight in the spring and autumn and heavyweight in the winter. History and Government History: Ukraine first came under Russian suzerainty in the 1650s, as an alternative to invasion by the Poles. Although part of Ukraine was annexed by Poland shortly afterwards, the whole of Ukraine was taken over by Russia after the partition of Poland at the end of the 18th century. When the empire of the Tsar collapsed in 1917, Bolshevik forces consolidated their control over Ukraine and the republic was incorporated into the Soviet Union. However, Ukraine became the scene for much of the key fighting during the civil war of the early 1920s and the Soviets subsequently lost some Ukrainian land to Poland, Czechoslovakia and Romania. These lands were recovered after the Soviet victory in World War II, along with the Crimea, which was also attached to Ukraine and is now the subject of an ongoing dispute between Ukraine and the Russian Federation. In the Gorbachev era, Ukrainian politics were substantially affected by the accident at the Chernobyl nuclear plant in northern Ukraine in 1986. The secretive and parsimonious behaviour of the authorities gave a boost to nascent opposition movements in the republic, particularly the Ukrainian People’s Movement for Restructuring, known as Rukh. Elections to the Supreme Soviet in March 1990 gave around one-third of the 450 seats to opposition groups, with the remainder taken by the Communist Party. Under pressure from the opposition – Rukh in particular – the government gradually moved towards sovereignty and independence. In March 1991, a referendum was held at which the independence option attracted 80 per cent support. The failed Moscow coup of August 1991 spelt the end for the USSR; shortly afterwards the Ukrainian Supreme Soviet made a declaration of full independence. Among the new political parties that emerged around this time was the Ukraine National Movement, under the leadership of Leonid Kravchuk. Kravchuk’s record as a politician on the reformist wing of the Communist Party was sufficiently impressive for him to defeat the Rukh candidate, Vyacheslav Chornovil, to win the presidential poll held in December 1991. International recognition of the new state was easily forthcoming, assisted by the historical anomaly that gave Ukraine its own seat at the UN. (Belarus enjoys the same privilege). The future relationship between the Russian Federation and Ukraine was the greatest uncertainty in the dissolution of the USSR, primarily because of the presence of a significant proportion of strategic nuclear systems in Ukraine, the future distribution of which was, in theory, governed by the US-Soviet START treaty. In January 1994, Kravchuk signed an agreement with Presidents Clinton and Yeltsin, agreeing to the destruction and/or transfer to Russia of the country’s nuclear arsenal, in exchange for US$1 billion in compensation and security guarantees. Domestic politics have been dominated by economic reform. While there was universal agreement over the necessity of economic reform, there were sharp disagreements over its pace and nature. This dispute forced the resignation of Ukraine’s first Prime Minister, Vladimir Fokin, in September 1992, followed by much of his cabinet. This marked the first appearance on the national stage of Leonid Kuchma, who replaced Fokin as premier at the head of a government that included members of Rukh and the New Ukraine Bloc. Although the Kuchma government fell after a year, Kuchma then set his sights on the presidency – at the next election, held in March 1994, Kuchma defeated the incumbent Kravchuk and has held the presidency ever since, becoming the dominant figure in Ukrainian politics in the process. Under Kuchma, the balance of power between the three main political forces in the country – the presidency, the cabinet and the Supreme Council (parliament) – has been markedly shifted in favour of the presidency. His dominance has been assisted by the distribution of seats within the Supreme Council. The most recent poll in March 1998 returned the Communist Party as substantially the largest party, however, with just 25 per cent of the vote, far short of an overall majority; Rukh won just under ten per cent and 41 seats and participates in a multiparty administration made up of independents and reformists. The presidential election, which fell in November 1999, was far more clear-cut – Kuchma comfortably won a second term without the need for a run-off. New Prime Minister Viktor Yushchenko won huge popularity by tackling bread-and-butter issues such as salary arrears over the next two years. He also made progress in combating misadministration and widespread corruption. By the spring of 2001, the ‘oligarchs’ who control much of the Ukrainian economy and who are President Kuchma’s most important allies, had had enough of Yushchenko and successfully arranged the demise of his government. In May 2001, he was replaced by Anatoly Kinakh, who is described as a ‘business lobbyist’. Yushchenko gained a measure of revenge in March 2002, however, when his supporters became the largest single bloc in the newly-elected parliament. Kuchma himself has been increasingly prone to autocratic and repressive behaviour and has come under growing domestic and international pressure. Ukraine’s foreign relations are dominated by the Russian Federation. Disputes that initially marred bilateral relations – such as the future of the former Soviet Black Sea fleet and of Ukraine’s nuclear arsenal – have, for the most part, been resolved. Since the accession of Vladimir Putin to the Kremlin, ever closer political and economic ties have developed between the two countries. Further afield, Ukraine has made steady progress in initiating and developing relations with the EU and also Latin American countries, such as Brazil and Argentina, which have sizeable Ukrainian exile communities. However, the policies of the Kuchma government have set this process back significantly. In December 2002, Ukraine’s failure to introduce adequate measures against money laundering put the country on an international blacklist. And Kuchma’s decision to sell a new radar system to Saddam Hussein’s Iraq has attracted the ire of the USA and Great Britain. Government: Legislative power is in the hands of the 450-strong Verkhovna Rada (Supreme Council) of whom half are elected by proportional representation and half directly in single-seat constituencies. Executive power is held by the president, who is directly elected for a five-year term, assisted by the Council of Ministers, which controls the day-to-day operation of the government. The Prime Minister, who heads the Council of Ministers, is a presidential appointee. Copyright © 2003 Columbus Publishing Ltd.