Cookies

This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our Privacy Policy for more information on the cookies we use and how to delete or block them.

Reject
Accept
Menu
Full version of the website is available on the desktop.
Menu
Start Exploring
Close
History of Ukraine
Before exploring numerous investment opportunities in different sectors of post-war Ukraine, we recommend you to touch
thousands of history of Ukraine.
882 - 1240 882 - 1240 882 - 1240 882 - 1240 882 - 1240 882 - 1240

Kyivan Rus

The history of Ukraine dates back to the times of Kyivan Rus, which was one of the largest states in Europe back in the 9th-13th centuries. The capital of this state was Kyiv, while Moscow was not founded until year 1147.

The Medieval history of Ukraine is associated with Kyivan Rus and Kyiv as the capital of a large and prosperous state, spreading from the Carpathian Mountains to the Volha River, and from the Black Sea to the Baltic Sea.

Kyivan Rus, the first state to arise among the Eastern Slavs in the 9th century, took its name from the city of Kyiv, which was founded in 482. From 882, the Rus was ruled by the Riurykide dynasty. The sign of the Riuryk family was a trident, which was then depicted on the first coins, and which is the national symbol and official coat of arms of Ukraine now.

During this time, Kyiv became the capital of the newly-established and rapidly rising state. The apogee of power and territorial expansion that the Kyivan Rus reached during the reign of Volodymyr the Great and his son Yaroslav the Wise in the years 980–1054.

Kyivan Rus: key accomplishments

During the Riuryk dynasty reign Kyivan Rus achieved the most prosperity.

Ruiryk family adopted Christianity across the Kyivan Rus from the Byzantine Empire, thus tightening connections with other European countries; developed a new restructured tribute system that allowed for an increase in state budget income; have made the first attempt to establish relations with Western Europe via diplomatic visits; introduced the first law and regulation document across Kyivan Rus "Ruska Pravda", invested actively in infrastructure, architecture, and education.

However, due to being fragmented and weakened by internal political strife, Kyivan Rus became an easy prey for invaders. In 1237, Mongolians, led by Batu Khan, invaded the Kyivan Rus from the East, and dozens of cities were destroyed or looted. In 1240, Kyiv was captured by the Mongols. By that date, the Kyivan Rus stopped its existence, and the former Rus municipalities became part of the Golden Horde for centuries, marking the new age — the age of Mongol Rule under which Moscow principality gained its power.

1648 - 1764 1648 - 1764 1648 - 1764 1648 - 1764 1648 - 1764 1648 - 1764

Cossack Hetmanate

After the collapse of Kyivan Rus, the Grand Duchy of Moscow developed independently and dreamed of reviving Rus under its patronage. Starting from Cossack times, especially from 1654, when the liberation Cossack movement of Bohdan Khmelnytskyi took place, Russia tried to transform Ukraine into an ‘imperial suburb’ and destroy Ukrainian identity.

Bohdan Khmelnytskyi strengthened in the Zaporozhian Host in Central Ukraine, inhabited by Cossacks, and gave them supreme power in the new Ukrainian state. For over a century, the Zaporozhian Host with Cossacks was a solid political and military force that challenged the authority of Poland-Lithuania, the Ottoman Empire, the Crimean Khanate, and the Tsardom of Russia. After Khmelnytsky’s death in 1687, Ivan Mazepa was elected as a new leader, who tried to unite Ukraine. However, the Battle of Poltava was won by Russia in 1709, and Cossack Hetmanate became an autonomous state of the Tsardom of Russia.

1764 - 1922 1764 - 1922 1764 - 1922 1764 - 1922 1764 - 1922 1764 - 1922

Ukrainian lands under the oppression of the Russian Empire

The general trend for a long time was the destruction by the tsarist regime of any manifestations of Ukrainian individuality and national identity. For three centuries, Moscow went out of their way to destroy Ukraine as a separate nationality, and the attempts are still ongoing.

Firstly, the termination of the Cossack Hetmanate’s existence (1764): Russia liquidated the Hetmanate and incorporated Ukrainian lands into its state.

Secondly, Catherine II destroyed Zaporozhian Host (1775): Russian troops disarmed the Cossacks and confiscated the treasury archives of Cossack kleinods.

Then, during the reigns of Alexander I (1801–1825) and Nicholas I (1825–1855), the Russian centralised administrative system covered all of Ukraine. Even the name "Ukraine" practically ceased to be used: Left-bank Ukraine was called Little Russia, Right-bank - South-Western Territory, and Southern Ukraine – Novorossia.

Lastly, the Emsky degree of Oleksandr II (1876): the ban of the Ukrainian language, liquidation of communities, and dismissal of professors.

In 1922, Ukraine became a part of the Union of Soviet Socialist Republics. As Soviet soldiers gained power in Ukraine, they forcefully integrated Ukrainian territories into it.

1922 - 1991 1922 - 1991 1922 - 1991 1922 - 1991 1922 - 1991 1922 - 1991

Surviving under the totalitarian sway of the USSR

The structures of the totalitarian system were increasingly strengthened, and new waves of repression began. Captured by the bolsheviks, Ukraine experienced an extremely difficult situation: the collapse of industrial production, a drop in productivity, a lack of fuel, food, clothing, shoes, and unemployment became a characteristic feature of economic life.

Totalitarianism in Ukraine means repressions and murders; suppression of centrist or opposition forces; the main incentive to work was fear; free labour through the Gulag system; atmosphere of mutual mistrust and search for enemies.

Holodomor and Executed Renaissance (1932 – 1933) - an artificial famine was organised to suppress the Ukrainian nation. The imprisonment and execution of Ukrainian intellectuals aimed to destroy their identity.

In general, all this created a depressing atmosphere and gave rise to anxious forebodings of a new round of repressions in society. But on March 5, 1953, I. Stalin died. The moral and political climate in the country slowly began to soften.

Next decades of the USSR's authoritarian government

The restructuring processes were still controlled by the state's management units, but the further, the more life diverged from these limited tasks. The politicisation of society grew, the formation of a multi-party system began, the formation of legitimate opposition, the labour movement gradually developed, the actions of students intensified, and a new Ukrainian national and cultural revival began.

However, the old system continued to work by inertia, there was no agreed concept of reform, the circle of reformers in the Central Committee of the Communist Party of the Soviet Union itself wasn’t enough, and the social basis for carrying out reforms did not contribute to their success. Repressions and persecutions was not end.

Arrests and repression of Ukrainian cultural activists (1965 – 1982): repressions against the dissident movement. Ukrainian intellectuals and activists opposed the violation of human rights in the Union of Soviet Socialist Republics.

The dawn of Ukrainian Independence The dawn of Ukrainian Independence The dawn of Ukrainian Independence The dawn of Ukrainian Independence
1991

The dawn of Ukrainian Independence

In 1991, Ukrainians established their independent and sovereign state, aiming to rebuild democracy and freedom as the main priorities.

Since the first years of Ukrainian independence, Ukraine-Russia relations have been gradually deteriorating. From 1991 to 2004, close relationships between the two countries were based on the historical background of Ukraine, which was formed under Russian influence. Everything changed in 2004, when Ukrainians openly demonstrated their intention to be part of a democratic world and resented the victory of a pro-Russian candidate in the rigged presidential election.

The shift of Ukraine from a post-colonial mentality toward European values became the stumbling point in Ukraine-Russia relations and the core reason for the current war. Russia reacted immediately to each step of the Ukrainian European Integration, and the rates edged each time upward.

2004 - 2009 2004 - 2009 2004 - 2009 2004 - 2009 2004 - 2009 2004 - 2009

Orange Revolution and the first steps toward European integrity

At the beginning of the 21st century, Ukraine was challenged with a contradictory political course. The fifth presidential election forced Ukrainians to choose between candidates with opposite programmes: Victor Yanukovych had an openly pro-Russian position, while V. Yushchenko declared intentions to move the country towards the EU and NATO membership. Thus, according to the announced official results, the second round of the 2004 presidential elections was won by the pro-Russian Victor Yanukovych.

That led to mass protests with appeals to cancel the results of the fabricated election. Since the colour of Yushchenko’s election campaign was orange, the Ukrainian revolution was called “Orange”, which ended with re-voting and the victory of pro-Western Victor Yushchenko.

President elections of 2004 and the Orange Revolution in Ukraine were the major determining factors for the pro-European choice of all Ukrainians. It was the first sign of neglecting The Soviet past and movement toward a Western world with its values and respect for all nations and cultures. Ukrainian independence was on the rise together with the Ukrainian language, culture and freedom of speech.

2013 - 2015 2013 - 2015 2013 - 2015 2013 - 2015 2013 - 2015 2013 - 2015

Russia used Ukrainian defense of the freedom and values during the Revolution of Dignity as the reason for aggression

Pro-Kremlin opposition leader Viktor Yanukovych won the presidential elections in 2010 and implemented a pro-Russia policy within his term.

In November 2013, V. Yanukovych decided to suspend the signing of the Association Agreement with the EU. Such decision was a part of the abrupt policy shift from a pro-European to a pro-Russian vector of development and forced the thousands of demonstrators, predominantly young students, to go out on the streets.

On November 30, 2013, the protests were severely suppressed by an authoritarian regime. However, the protest did not stop and led to a thousand new protestors at Independence Square in Kyiv, and the chain of events that are known as Euromaidan, or Revolution of Dignity, started. The rapid and dramatic expansion of the civil resistance was based on people’s extremely critical attitude towards the policies being implemented by the Yanukovych regime, as well as the authoritarian use of power.

Major Goals of the Revolution of Dignity: signing of Association Agreement and Free Trade Agreement with the EU; impeachment of President V. Yanukovych; re-adoption of the 2004 amendments to the Constitution of Ukraine.

The annexation of Crimea and the start of the military aggression of Russia in Eastern Ukraine

Russia started creating economic and political turbulence in Ukraine and dispatched its army to Ukrainian borders for an unexpected military exercise. Militants with no signs on their uniforms captured government buildings in Crimea and took control of the two airports there. In March 2014, Russia formally annexed Crimea.

Despite broad criticism of the annexation in the West as a gross violation of international law, the Russian military forces along with the terrorist forces backed by Russia spread across Eastern Ukraine. For this reason, the Presidential elections did not take place in 25 out of 225 districts of the Luhansk and Donetsk regions, where the Russian forces were trying to ban the election. However, despite this tense situation, 60.3% of the Ukrainians voted in May 2014.

As a result of the annexation of Crimea in 2014 and the beginning of Russian military intervention in Donbas, 20% of the Ukrainian economy was lost at a total cost of 150 billion USD. Moreover, the banking system crisis caused the Ukrainian economy to lose almost 40% of GDP between 2014 and 2016.

Therefore, the government implemented a lot of reforms to make macroeconomic and fiscal policies stable for the nation in order to address the rising inflation and budget deficit.

2014 - 2022 2014 - 2022 2014 - 2022 2014 - 2022 2014 - 2022 2014 - 2022

Frozen conflict and vast reforms

During 2015-2022, Russia has been infringing Minsk Agreement II terms, continuing to capture small increments of Ukrainian territory, using prohibited heavy weapons, violating the ceasefire, and launching cyberattacks. The reasons for the frozen conflict were the denial of the involvement of official Russian forces and the unwillingness to renegotiate key Minsk Agreements II conditions. Despite the Russian aggression, Ukraine continued economic development and made its way toward the EU.

The outbreak of military reforms (2015-2017) - Ukraine presented to NATO four areas of its further army transformation and the USA approved sales of heavy weapons to Ukraine, enhancing the Ukrainian army’s development.

Ukraine’s path to the EU (2017-2018) - the European Parliament adopted the possibility of visa-free travelling for the citizens of Ukraine to the EU; the European Council adopted a decision to conclude the association agreement with Ukraine and entered it into force; the government of Ukraine established the High Anti-Corruption Court as a measure to comply with the European anti-bribery standards.

Full-scale war against Ukraine

In May 2019, Volodymyr Zelenskyy was elected as the 6th President of Ukraine with the support of 73% of electors in the second round. Ukraine President Volodymyr Zelensky approved Ukraine’s National Security Strategy, which ensures the development of a distinctive partnership with NATO and insisted on NATO membership. Nevertheless, Russia continued providing autonomous status to the DNR and LNR, which would allow the blocking of external policy decisions of Ukraine indirectly.

During 2021–2022, the tensions were increasing, as the Russian military capacity was increasing massively along the Ukrainian border, claiming to Western governments and politicians that it would be only for the purpose of military exercises. At the same time, Russia demanded Ukraine to drop its NATO aspirations and limit the deployment of weapons to the country’s eastern flank.

In January 2022, Russia continued concentrating troops and equipment on the border with Ukraine and announced the largest joint military drills with Belarus. Meanwhile, Russian officials issued statements denying any plans to invade Ukraine.

February 24, 2022
On February 24, 2022, Putin declared a so-called ‘Special military operation’ of Russia in Ukraine. Russian troops attacked major Ukrainian cities with jets, artillery, and fighters: Kyiv, Kharkiv, Mariupol, Chernihiv, and others. Ukraine-Russia relations reached its culmination and Russia started a full-scale war against Ukraine.
Ukrainians are courageously fighting to this day to protect Ukrainian land.

What is KYIV RYSING?

KYIV RYSING is a comprehensive study focusing on the business ecosystem of Ukraine, developed by Kyiv Consulting for the purpose of improving the visibility of our country within the global information space.

The name “KYIV RYSING” and particularly the letter “Y”, implies emphasising the real potential of Ukraine and, especially, Kyiv in the context of PAST and PRESENT events, as well as FUTURE plans and opportunities by addressing the conceptual topics: historical prerequisites for the full-scale Russian invasion of Ukraine; the current impact of the war on military, social, economic, and environmental spheres, both in Ukraine and globally; future opportunities and action plans in the development of New Age Ukraine after the victory in the war against Russia.

We believe that Ukraine will offer a variety of business and investment options in the post-war period, as the times of big challenges come with big opportunities. Therefore, the study aims at highlighting the economic potential of our country along with the future global role of strong and democratic Ukraine.

KYIV RYSING study is based on the application of our comprehensive data-driven approach, which allows us to generate and combine insights from different sources. It includes official facts and figures from Ukrainian and international public sources; results of the survey conducted among the Ukrainian population, as well as interviews with opinion leaders, including top business representatives, international politics, and military experts. This approach allows us to evaluate the situation from a 360-degree perspective and share it with our international audience.

Conducted sectoral reforms forced the Ukrainian economic recovery after 2014-2015

The annexation of Crimea in 2014 and the start of the military aggression of Russia in Donbas deprived 20% of the Ukrainian economy, while the total damage amounted to 150 Bn USD. In 2015, real GDP decreased by 9.8% compared to 2014, and during 2014-2016, the Ukrainian economy lost 38% of its GDP because of the banking system crisis. To cope with the growing inflation and budget deficit, the government conducted a number of reforms to stabilise the macroeconomic and fiscal policies. Another disruptive factor impacting the Ukrainian economy was the COVID-19 pandemic that started in 2020, causing a 3.8% decrease in the Ukrainian GDP compared to 2019. But the increased demand for Ukrainian goods, especially metal and agricultural products, revived economic growth in 2021. Before the war, the GDP was forecasted to grow by 3.2% in 2022.

Key reforms and achievements since 2014

1
New Free Trade Agreements with Canada, Türkiye, and Israel
2
Independence of the National Bank of Ukraine
3
Reform of banking System&Development of the financial sector
4
Launch of the transparent public procurement system “Prozorro”
5
Decentralisation aimed to increase the role of the local government
6
Deregulation aimed to create favourable doing business conditions
7
Digitalisation of public services via electronic platform Diia
8
Land market liberalisation via lifted moratorium on agricultural land sales
9
Received EU candidate country status recently

Ukrainian real GDP, Bn USD

112.2
100.9
91.0
93.3
95.5
98.8
101.9
98.1
101.5
pre-war forecast
104.7
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022F

Top-10 industries by share in GDP in 2021

13%
Wholesale & Retail
10%
Agriculture
10%
Manufacturing
7%
Public Administration
7%
Real Estate
6%
Transportation & Storage
5%
ICT
5%
Mining & Quarrying
4%
Education
4%
Finance & Insurance
7%
Real Estate
5%
ICT
4%
Education
6%
Transportation & Storage
5%
Mining & Quarrying
4%
Finance & Insurance

Ukraine in Doing Business ranking

Points in 2014
+ 48 positions
Points in 2020
112
64
During 2014-2021, the Ukrainian government conducted reforms that were focused on improving the business environment, developing the financial sector, and redirecting Ukrainian trade flows from Russia and other CIS countries to Europe. This had a positive impact on the foreign direct investment flows, increased export volumes, diversified trade partners, improved competition, and stimulated business development.
The current frontline regions historically specialise in metallurgy, mining and quarrying, and agriculture. In 2020, there were ~73,000 enterprises, employing almost 4 million people, and the regions generated 20% of Ukrainian GDP, with the Kharkiv region being the largest contributor, with a share of 6%.
These regions have been partially occupied by Russian troops and now they are suffering from intense military actions, decreasing the total output of the Ukrainian economy.
Ukrainian IT industry has shown positive export dynamics, growing to 7 Bn USD in 2021

Since 1991, the IT sector in Ukraine has boosted its development thanks to highly professional IT specialists and the growing interest of global tech companies. Google, Oracle, and Ericsson were among the key global firms that established R&D centres in Ukraine. Despite a relatively small share in GDP in 2021 (2.7%), IT services increased their share in service exports to 37%, with the USA and the UK being the leading export destinations. In recent years, the IT sector generated twice as much export revenue as the gas transmission system or 25% of the agricultural sector’s export revenue.

As of 2021, 5,000 IT companies are operating and over 289 thousand IT specialists are employed in Ukraine. IT firms have grown in both size and number, creating a demand for high-quality office spaces with robust tech infrastructure, hosting over 3,000 tech events, and investing approximately 832 million USD in start-ups.

Export of Ukrainian IT services, Bn USD
2.5
3.2
4.2
5.0
6.8
2017
2018
2019
2020
2021
Development of the IT sector across Ukraine in 2022

Top-10 IT companies in Ukraine, by number of employees

13,860
11,082
7,329
4,000
3,693
3,592
3,249
3,000
2,523
2,122
Epam
SoftServe
GlobalLogic
Luxoft
NIX
Evoplay
Ciklum
DataArt
Intellias
Infopulse
289 thousand
IT specialists employed in Ukraine
Over 5,000
IT companies operate in Ukraine
832 Mn USD
was invested in Ukrainian startups
Over 3,000
Tech events were held
Over 100
R&D centres of global companies
4 unicorns
of Ukrainian origin
Grammarly
13.0 Bn USD

AI-powered writing assistant that reviews spelling and grammar.

Gitlab
8.5 Bn USD

App providing a possibility to develop, secure, and operate software in a single source.

People.ai
13.0 Bn USD

AI-powered revenue intelligence programme.

Bitfury
1.0 Bn USD

Leading full-service blockchain technology company.

People.ai
13.0 Bn USD

AI-powered revenue intelligence programme.

Bitfury
1.0 Bn USD

Leading full-service blockchain technology company.

Did you know that Ukraine is the first country in Europe to enable digital proof of identity?

In 2020, Ukraine launched the Diia application, which enables Ukrainian citizens to use digital documents on their smartphones instead of physical documents for identification and sharing purposes.

17.3
Million Users
15
Types of Digital
Documents
72
Governmental
Services
Despite the Russian invasion, the Ukrainian IT sector is resilient and supports the economy

During the war, the Ukrainian IT sector managed to slightly strengthen its position compared to other industries. In March-May 2022, the IT sector generated 1.7 Bn USD in sales — 6% higher than in the same period in 2021. Such a positive performance was mainly driven by a successfully implemented remote work scheme, active international contracts, and a general trend towards opening offices outside Ukraine to hedge the operating risks. On the other hand, since February 2022, all exporters, including the IT industry, have been obliged to exchange their revenues into foreign currency at a fixed rate, which is about 10% lower than the market rate, hence lowering the IT industry’s profits.

Although IT companies have successfully moved a part of their employee workforce out of Ukraine and continued operations, the invasion has brought new challenges to the IT sector, provoking uncertainty as to the future path and the development of the IT industry in Ukraine.

The impact of Russia’s war against Ukraine on the Ukrainian IT sector
12%
of IT employees want to leave Ukraine, even if it wins the war with Russia
20%
of IT employees, from which 64% were women, were forced to relocate abroad
95%
of clients continued their contracts with Ukrainian IT companies
77%
of IT companies in Ukraine acquired new clients and projects
Support of the Ukrainian Armed Forces
Since February 2022, IT companies in Ukraine have been actively helping to resist Russian aggression, either by donating to the Ukrainian Army and humanitarian funds, such as UNICEF and Red Cross or by joining the Ukrainian Armed Forces orthe Cyber Army.
9%
of all the IT headcount
joined the Cyber Army
of Ukraine
3%
of all the IT workforce
joined the Ukrainian
Armed Forces
~21
Mn USD was donated by
Ukrainian IT companies
to charity funds
The fertility of the Ukrainian soil determines the efficiency of the agricultural sector

The value of Ukrainian land is determined by two main factors, such as fertility and the ability to harvest in local climatic conditions through land reclamation and fertilisation. More than 60% of the territory of Ukraine is covered by ‘chornozem’, a black-coloured soil containing a high percentage of humus, providing a high potential for the agricultural sector. Moreover, Ukraine plays a key role in ensuring global food security, by owning almost 30% of the world’s chornozem. These fertile soils enable the growth of a variety of grains, oil crops, vegetables, and fruits.

In 2021, the agricultural sector in Ukraine had one of the largest shares in the country’s real GDP — 10.3%. In addition, Ukraine has harvested the biggest crop of cereals, legumes, and oilseeds since its independence, thanks to favourable weather conditions and the state aid programme of affordable loans to farmers. As a result, the agricultural export revenue kept growing and reached a record 43.9% of the total Ukrainian exports.

Soil fertility map of Ukraine, as of 2021
The least fertile soil
The most fertile soil
41.3 mn ha
land fund of agricultural
land in Ukraine
2/3
of the territory of Ukraine
is covered by fertile soils
3rd place
in the world by share of arable land
to the total land area — 54%
Key agricultural cultures growing in Ukraine, as of 2020
54%
Cereals and legumes
34%
Oil crops
11%
Vegetables
1%
Fruits, berries, melons

Main products of Ukrainian agricultural export in 2021

41.9
24.5
13%
15.9
33.0
19.4
10%
4.7
9.9
5.3
13%
1.2
5.7
5.2
42%
6.3
5.5
4.1
58%
1.2
3.0
2.3
10%
1.4
Production, mn tonnes
Export volume, mn tonnes
Share in global export volume
Export value, Bn USD
Corn
Wheat
Barley
Sunflower Oil
Sunflower Meal
Rapeseed
Did you know that the yield of corn in Ukraine has increased by 50% since 1991?

Ukrainian main agricultural products, corn, wheat, and sunflower, are grown throughout the country, primarily in the southern, eastern, and northern regions. In 2021, Ukraine exported more than half (59%) of its corn and wheat harvest, as well as 91% of sunflower oil, becoming the world’s largest sunflower producer and sunflower oil exporter.

To accommodate the entire crop of corn grown in Ukraine in one year:

43
olympic stadiums
would be needed
or
3 700
a train about
3,700 km long
The Russian invasion of Ukraine caused the global food price indexes growth to high historical levels, however, despite the war, Ukrainian 108 ships could export grain and food products from Ukraine to more than 20 countries

Ukrainian agricultural production significantly exceeds its domestic consumption, about 70% of all agricultural products are exported. Thus, Ukraine has been participating in ensuring global food security for many years, exporting most of the grain and oil harvest to the countries of Europe, Asia and Africa. From the first days of the Russian war against Ukraine, the Russian military blocked almost all Ukrainian seaports, about 70 ships, the country's main export route, disabling the export of Ukrainian agricultural products, which affected global food security and sharp price increase.

After the blockade of Ukrainian seaports, Ukraine started exporting grain to the EU by railway. Since the launch of grain, sunflower oil, and meal railway export to the EU, Ukraine targets to increase the maximum capacity of transshipment railway stations to about 1.5 million tonnes of grain per month. During March-August 2022, Ukraine exported almost 4.4 million tonnes of grain and about 1 million tonnes of sunflower oil and meal by railroad.

On July 22, Ukraine and Russia signed an agreement, called the Black Sea Grain Initiative, with Türkiye and the United Nations, which enabled to unblock the export of grain and food products from the Ukrainian seaports of Odesa, Chornomorsk, and Pivdenny. As of 9 September, 108 ships left three Ukrainian seaports for grain and food products transportation to more than 20 countries in Asia, Europe, and Africa.

Russia's war against Ukraine also led to fuel and fertiliser price growth worldwide, causing further food shortfalls and price increases. Global food prices rose sharply and reached the highest historical level in March. That was mainly driven by supply shortages of key commodity crops, such as wheat, corn, and oil seeds.

You can explore more about the impact of the Russian invasion of Ukraine on the global market in chapter Present of KYIV RYSING study.

INTERESTING FACTS ABOUT UKRAINE INTERESTING FACTS ABOUT UKRAINE INTERESTING FACTS ABOUT UKRAINE INTERESTING FACTS ABOUT UKRAINE INTERESTING FACTS ABOUT UKRAINE INTERESTING FACTS ABOUT UKRAINE INTERESTING FACTS ABOUT UKRAINE INTERESTING FACTS ABOUT UKRAINE
Did you know that the largest airplane in the world was constructed in Ukraine?

The Antonov An-225 "Mriya", the largest and heaviest airplane ever, was constructed in only one instance in Ukraine in 1988. The cargo plane was built using Ukrainian expertise and resources. The majestic "Mriya" could transport the heaviest of industrial stock, including railway engines, and was big enough to hold 50 cars.

The AN-225 has set over 200 world records, including airlifting the world’s heaviest cargo and the world’s longest cargo. An aircraft held world aviation records for flying heavy payloads. One of them occurred in 2004, when "Mriya" flew a 247-tonne piece of oil pipeline machinery. It has also taken humanitarian aid to disaster scenes as medical supplies and non-lethal military equipment.

Totally, Ukraine had 20 airports with 258 aeroplanes in the park, serviced by 45 operators.

In February 2022 this iconic plane was destroyed by Russian forces during the Russian invasion of Ukraine.
640,000 kg
Weight
18.1 meters
Height
88.4 meters
Wingspan
Ukraine is a leading supplier of wiring harnesses for automotive industry

Since the Russian invasion of Ukraine, automotive industry in Ukraine met challenges: various automotive parts producers have stopped their operations in Ukraine, affecting automotive manufacturing in Europe. Despite Ukraine having a small automotive parts industry, it has been a key supplier of wiring harnesses for Volkswagen, Opel, Mercedes-Benz, BMW, Audi and Lamborghini factories in Europe.​

Steel, heavy manufacturing, semiconductors, automotive, and other industries that rely on supplies from Ukraine are experiencing shortages of resources and taking action to mitigate the evolving supply chain crisis caused by the Russian invasion of Ukraine.

1.6 Bn USD
of Ukraine's revenue was reached by the export of harnesses in 2021
7%
of all automotive industry into the EU are provided by wiring harness produced in Ukraine
Since 2015, Ukraine has taken essential steps in the liberalisation of the gas market

In 2015, the Natural Gas Market Law was passed with the objective of matching the Ukrainian gas sector with the EU doctrines. The law set the regulatory basis for the unbundling of gas storage facilities, LNG terminals, and distribution system operators. It created access to gas transmission, distribution, and supply networks for the private sector, allowing companies to sell gas to any consumer, including households.

In 2019, the Ukrainian gas market switched from monthly to daily balancing, and an online information exchange platform was launched by the Gas Transmission System Operator of Ukraine (GTSOU) to increase transparency. That year, there were already 347 private companies operating in the wholesale gas market, 408 companies in transmission activities, and 449 companies in gas storage. In line with EU market principles, the state-owned enterprise (SOE) Ukrtransgaz became the gas storage facilities operator, and a new SOE GTSOU has been engaged in natural gas transmission since then.

Ukrainian natural gas market indicators in 2021
~20 bcm
production
~3 bcm
imports
42 bcm
transit
14 bcm
pumped into UGS

In 2021, Ukraine was the fourth-largest producer of gas in Europe. The country has one of the largest gas transit infrastructures in the world, with the second-largest storage capacity in Europe.

38,600
kilometers of gas transmission and distribution pipelines
72
compressor stations with a total capacity of 5,443 MW
13 UGS
with an annual storage capacity of 30.9 bcm
143 bcm
annual capacity of the gas transit system
The largest nuclear power plant in Europe is located in Ukraine

The Zaporizhzhia Nuclear Power Plant, which consists of six nuclear power units of 1 million kW each, is the largest nuclear power plant in Europe and the 6th largest in the world.

Ukraine is one of the world’s leading nuclear countries by the number of reactors (15 of them being located at 4 nuclear power plants) and net electrical capacity. In order to ensure the robust and safe operations of all these nuclear installations, the country developed a comprehensive security monitoring system.

According to the Energy Strategy of Ukraine 2035, alternative energy in Ukraine, especially nuclear power, which is regarded as one of the most cost-effective low-carbon energy sources, and its generation volume in the total electricity supply is expected to increase. Apart from NPPs, there are also other nuclear objects in Ukraine, such as radioactive waste storage sites, experimental nuclear centres, facilities for the extraction and processing of uranium ore, etc.

On 4 March 2022, the nuclear power station was captured by Russian forces during the Russian invasion of Ukraine and began to be used as a military base.

Ukraine’s lands are rich in mineral resources

117 types of minerals
found in Ukraine out of 120 known

Ukraine’s land has mineral resources in high concentrations. Due to the unique raw material base of iron and manganese ores, Ukraine is one of the countries with the most developed ferrous metallurgy in the world.

There are now more than 20,000 mineral deposits in Ukraine, representing 117 distinct mineral categories. Coal, natural gas, manganese, salt, oil, graphite, sulfur, kaolin, titanium, nickel, magnesium, timber, mercury, and gallium are some of them. Over 5% of the world’s iron ore reserves are found in Ukraine. Moreover, Ukraine was the 4th largest country in 2021, which exported 45 million tonnes of iron ore. Also, Ukraine has the potential for a larger exploration of non-metallic minerals, which may reduce the dependence on the import of certain types of raw materials.

Ukraine will become an attractive investment destination after the end of the war. Explore the future prospects of investing and join a range of projects in the different sectors of Ukrainian economy

Ukraine can realise investment opportunities in the priority industries of the economy with the competitive advantages

Despite the existing risks and limitations regarding the attraction of resources for the recovery of Ukraine from foreign partners, the country’s economy offers a wide range of competitive advantages for investors. These advantages, combined with the necessary financing, should form the basis for building an economy integrated into global production chains, with a high share of value-added products exported to foreign markets. International investors can highly benefit from leveraging the existing and future opportunities in these sectors, as well as multiplying the number of business opportunities and establishing a long-term business in Ukraine. The ambitious benefits of the economy of Ukraine for investors are high coverage of consumer markets, skilled and competitive labour force, a highly promising IT sector, investment opportunities in various industries, numerous finance incentives schemes, a large base of natural resources and raw materials, a developing ecosystem, favourable geographical location and reasonable cost of living and doing business.

Manufacturing

The country offers a number of investment opportunities in various manufacturing sectors, including machinery and metallurgy, aerospace, fashion, automotive, and pharmaceuticals. A large manufacturing base, as well as access to talent and markets, create favourable conditions for international investors. Opportunities for European investors in the manufacturing sector of Ukraine are a developed R&D network and business ecosystem, cost efficiency, reliable supply, large production capacity and highly skilled experts.

The role of Ukraine in global manufacturing supply chains

Ukraine has already been deeply integrated into the global manufacturing supply chains, especially in semiconductors, steel, heavy manufacturing, automotive and aerospace sectors. However, the majority of exported products from Ukraine are low value added, and represent only primary levels of supply chain. Despite this, Ukraine has the potential to expand the high-value added production, integrate more deeply into supply chains, and become a regional manufacturing hub, especially for the European market.

Key products
Neon gas
Pig iron
Steel products
Titanium ore
Ignition wiring sets
Share in the global trade
45-70%
22%
13%
9%
4%
Most dependent markets
Automotive parts
More than 30 automotive plants located in Ukraine
60 thousands employees
Aerospace
5 engineering and design bureaus
8 manufacturing enterprises located in Ukraine
Fashion industry
More than 15 global fashion brands have production in Ukraine
70 thousands employees
Pharmaceuticals
Market growth at a CAGR of 12% over 2016-2020
110+ licensed pharma manufacturers
Metallurgy
44% in the total export value of manufacturing sector
185 thousands employees