Part[3]
Economy
In 2021, agriculture was the largest sector of Ukraine’s economy, with the country being one of the world’s top wheat exporters. Despite this, Ukraine remains one of the poorest countries in Europe, with the lowest nominal GDP per capita. Corruption is a significant obstacle to joining the EU, as Ukraine was ranked 104th out of 180 countries in the Corruption Perceptions Index for 2023. In 2021, Ukraine’s GDP per capita by purchasing power parity was just over $14,000. The IMF expected the economy to shrink by 35% in 2022 due to Russia’s invasion, with post-war reconstruction costs estimated to reach half a trillion dollars.
In 2021, the average salary in Ukraine reached nearly ₴14,300 (US$525) per month. About 1% of Ukrainians lived below the national poverty line in 2019, and the unemployment rate was 4.5%. Between 5-15% of the population was categorized as middle class in 2019. In 2020, Ukraine’s government debt was roughly 50% of its nominal GDP.
Mineral commodities and light industry were also important sectors in 2021. Ukraine produces nearly all types of vehicles and spacecraft, with Antonov airplanes and KrAZ trucks being exported to many countries. The European Union is Ukraine’s main trade partner and remittances from Ukrainians working abroad are significant to the economy.
Agriculture
Ukraine is among the world’s top agricultural producers and exporters, often referred to as the “breadbasket of Europe.” During the 2020/21 international wheat marketing season (July–June), Ukraine was the sixth-largest wheat exporter, accounting for nine percent of the global wheat trade. The country is also a major global exporter of maize, barley, and rapeseed. In 2020/21, Ukraine accounted for 12 percent of global trade in maize and barley and 14 percent of world rapeseed exports. Its trade share in the sunflower oil sector is even more significant, with the country accounting for about 50 percent of world exports in 2020/21.
According to the Food and Agriculture Organization of the United Nations (FAO), the Russo-Ukrainian War has caused significant disruptions in Ukraine’s grain and oilseed sectors, jeopardizing the food security of many countries that depend on Ukraine and Russia for their food and fertilizer imports. Several of these countries fall into the Least Developed Country (LDC) group, while many others belong to the group of Low-Income Food-Deficit Countries (LIFDCs). For example, Eritrea sourced 47 percent of its wheat imports in 2021 from Ukraine. Overall, more than 30 nations, particularly in North Africa and Western and Central Asia, rely on Ukraine and the Russian Federation for over 30 percent of their wheat import needs.
Tourism
Before the Russo-Ukrainian War, Ukraine was the eighth most-visited country in Europe, according to World Tourism Organization rankings. Ukraine boasts numerous tourist attractions, including mountain ranges ideal for skiing, hiking, and fishing, as well as the Black Sea coastline, which is a popular summer destination. The country also features diverse nature reserves and ecosystems, along with churches, castle ruins, and other architectural and park landmarks.
Kyiv, Lviv, Odesa, and Kamianets-Podilskyi are principal tourist centers in Ukraine, each offering numerous historical landmarks and extensive hospitality infrastructure. The Seven Wonders of Ukraine and Seven Natural Wonders of Ukraine are selections of the most significant landmarks in the country, chosen by Ukrainian experts and through an Internet-based public vote.
Tourism was a vital part of Crimea’s economy, but visitor numbers dropped significantly following the Russian annexation in 2014.
Transport
Many roads and bridges were destroyed, and international maritime travel was blocked by the 2022 Russian invasion of Ukraine. Before the invasion, international maritime travel was mainly through the Port of Odesa, from where ferries regularly sailed to Istanbul, Varna, and Haifa. The largest ferry company operating these routes was Ukrferry. Ukraine has over 1,600 km (1,000 mi) of navigable waterways on seven rivers, primarily the Danube, Dnieper, and Pripyat. However, all of Ukraine’s rivers freeze over in winter, limiting navigation.
The Ukrainian rail network connects all major urban areas, port facilities, and industrial centers with neighboring countries. The heaviest concentration of railway tracks is in the Donbas region. Although rail freight transport decreased in the 1990s, Ukraine remains one of the world’s highest rail users.
Ukraine International Airlines is the flag carrier and largest airline, with its head office in Kyiv and its main hub at Kyiv’s Boryspil International Airport. It operated domestic and international passenger flights and cargo services to Europe, the Middle East, the United States, Canada, and Asia.
Energy
Energy in Ukraine primarily comes from gas and coal, followed by nuclear and oil. The coal industry has been significantly disrupted by the ongoing conflict. Most gas and oil are imported, but since 2015, energy policy has prioritized diversifying energy supply sources.
About half of Ukraine’s electricity generation is nuclear, and a quarter comes from coal. The largest nuclear power plant in Europe, the Zaporizhzhia Nuclear Power Plant, is located in Ukraine. In 2019, fossil fuel subsidies amounted to US$2.2 billion. Until the 2010s, all of Ukraine’s nuclear fuel was sourced from Russia, but now the majority comes from other sources.
Some of Ukraine’s energy infrastructure was destroyed during the 2022 Russian invasion. The contract for transiting Russian gas through Ukraine is set to expire at the end of 2024.
In early 2022, Ukraine and Moldova decoupled their electricity grids from the Integrated Power Systems of Russia and Belarus. They subsequently synchronized their grids with the European Network of Transmission System Operators for Electricity, connecting with continental Europe.
Information Technology
The IT industry in Ukraine plays a significant role in the country’s economy. In 2021, it contributed nearly 5% to Ukraine’s GDP. Despite challenges, the IT sector continued to operate both within Ukraine and abroad in 2022. Key officials may use Starlink as a backup to ensure continuous connectivity.
Demographics
Before the 2022 Russian invasion, Ukraine had an estimated population of over 41 million people, making it the eighth-most populous country in Europe. It is heavily urbanized, with approximately 67% of the population living in urban areas. The industrial regions in the east and southeast are the most densely populated. At that time, Ukraine had a population density of 69.5 inhabitants per square kilometer (180 inhabitants/sq mi), and the overall life expectancy at birth was 73 years (68 years for males and 77.8 years for females).
Following the dissolution of the Soviet Union, Ukraine’s population peaked at roughly 52 million in 1993. However, due to a death rate exceeding the birth rate, mass emigration, poor living conditions, and low-quality healthcare, the total population decreased by 6.6 million, or 12.8%, from 1993 to 2014.
According to the 2001 census, ethnic Ukrainians made up roughly 78% of the population, while Russians were the largest minority at 17.3%. Other minority populations included Belarusians (0.6%), Moldovans (0.5%), Crimean Tatars (0.5%), Bulgarians (0.4%), Hungarians (0.3%), Romanians (0.3%), Poles (0.3%), Jews (0.3%), Armenians (0.2%), Greeks (0.2%), and Tatars (0.2%). It was estimated that there were about 10,000–40,000 Koreans in Ukraine, mostly in the south, belonging to the historical Koryo-saram group, as well as about 47,600 Roma, though the Council of Europe estimates a higher number of about 260,000.
Outside the former Soviet Union, the largest source of immigrants in Ukraine’s post-independence period was from four Asian countries: China, India, Pakistan, and Afghanistan. In the late 2010s, 1.4 million Ukrainians were internally displaced due to the war in Donbas. In early 2022, over 4.1 million fled the country in the aftermath of the Russian invasion.
Language
According to Ukraine’s constitution, the state language is Ukrainian. Russian is widely spoken in the country, particularly in eastern and southern Ukraine. Most native Ukrainian speakers know Russian as a second language. While Russian was the de facto dominant language of the Soviet Union, Ukrainian also held official status in the republic, and learning Ukrainian was mandatory in the schools of the Ukrainian SSR.
In August 2012, a new law on regional languages allowed any local language spoken by at least a 10 percent minority to be declared official within that area. Consequently, Russian was declared a regional language in several southern and eastern oblasts (provinces) and cities, enabling its use in administrative work and documents in those regions.
Following the 2014 Revolution of Dignity, the Ukrainian Parliament voted to repeal the law on regional languages, aiming to make Ukrainian the sole state language at all levels. However, this repeal was not signed by acting President Turchynov or by President Poroshenko. In 2019, the law allowing for the official use of regional languages was found unconstitutional. According to the Council of Europe, this act fails to fairly protect the linguistic rights of minorities.
Ukrainian is the primary language used in the vast majority of Ukraine. Approximately 67% of Ukrainians speak Ukrainian as their primary language, while 30% speak Russian as their primary language. In eastern and southern Ukraine, Russian is the primary language in some cities, while Ukrainian is used in rural areas. Hungarian is spoken in Zakarpattia Oblast. There is no consensus among scholars on whether Rusyn, also spoken in Zakarpattia, is a distinct language or a dialect of Ukrainian. The Ukrainian government does not recognize Rusyn and Rusyns as a distinct language and people.
For much of the Soviet era, the number of Ukrainian speakers declined from generation to generation, and by the mid-1980s, the usage of the Ukrainian language in public life had significantly decreased. Following independence, the Ukrainian government began restoring the use of the Ukrainian language in schools and government through a policy of Ukrainisation. Today, most foreign films and TV programs, including Russian ones, are subtitled or dubbed in Ukrainian. Ukraine’s 2017 education law bars primary education in public schools from grade five and up in any language other than Ukrainian.
Diaspora
The Ukrainian diaspora comprises Ukrainians and their descendants living outside Ukraine, especially those maintaining connections to their ancestral homeland and preserving their Ukrainian national identity within their local communities. The Ukrainian diaspora is widespread, with significant populations in post-Soviet states, Canada, Poland, the United States, the UK, Brazil, and other countries.
The 2022 Russian invasion of Ukraine prompted millions of Ukrainian civilians to move to neighboring countries. Most crossed into Poland, Slovakia, and the Czech Republic, while others temporarily settled in Hungary, Moldova, Germany, Austria, Romania, and other European nations.
Religion
Ukraine is home to the world’s second-largest Eastern Orthodox population, following Russia. According to a 2021 survey by the Kyiv International Institute of Sociology (KIIS), 82% of Ukrainians identified themselves as religious, with 7% stating they were atheists, and 11% finding it difficult to answer the question of religious affiliation.
The level of religiosity varies across Ukraine, with the highest reported in Western Ukraine (91%), and the lowest in the Donbas (57%) and Eastern Ukraine (56%).
As of 2019, Christianity was the predominant religion in Ukraine, encompassing 82% of the population. Within Christianity, 72.7% identified as Eastern Orthodox, 8.8% as Ukrainian Greek Catholics, 2.3% as Protestants, and 0.9% as Latin Church Catholics. Other Christian denominations constituted 2.3% of the population. Judaism, Islam, and Hinduism each represented 0.2% of the population.
The survey indicated that approximately 58.3% of Ukrainian Orthodox Christians were members of the Orthodox Church of Ukraine, while 25.4% belonged to the Ukrainian Orthodox Church (Moscow Patriarchate).
Protestants constitute a growing community in Ukraine, making up 1.9% of the population in 2016 and increasing to 2.2% in 2018.
Health
Ukraine’s healthcare system operates under a state-subsidized model, providing free access to healthcare services for all Ukrainian citizens and registered residents. While treatment in state-run hospitals is not compulsory, private medical complexes also exist nationwide.
The majority of healthcare professionals work in the public sector, and those employed by private medical centers often maintain dual roles, obligated to provide care at public health facilities regularly.
Oversight and administration of Ukraine’s medical services and hospitals fall under the Ministry of Healthcare, which is responsible for regulating medical practices and ensuring operational standards. Despite this oversight, there have been concerns about declining standards of hygiene and patient care.
Ukraine faces significant public health challenges and is experiencing a demographic crisis characterized by a high death rate, low birth rate, and significant emigration. Contributing factors to the high mortality rate include preventable causes such as alcohol poisoning and smoking, particularly among working-age males.
The healthcare system has undergone active reform efforts, notably following the appointment of Ulana Suprun as the head of the Ministry of Healthcare. With the assistance of Deputy Pavlo Kovtoniuk, Suprun implemented reforms aimed at restructuring the financial distribution within healthcare, ensuring that funds follow the patient. Patients now have the option to choose their general practitioner for basic care, and emergency medical services are fully funded by the state.
Additionally, reforms have targeted emergency medicine and provided free or low-cost medication to patients suffering from chronic diseases, which contribute significantly to disability and mortality rates in Ukraine.
Education
In Ukraine, access to free education is guaranteed to all citizens according to the Ukrainian constitution. General secondary education is compulsory and primarily provided by state schools. Higher education in state and communal educational institutions is also offered free of charge on a competitive basis.
Ukraine boasts a high literacy rate, estimated at 99.4%, a legacy of the Soviet Union’s commitment to universal education, which continues to shape educational policies today. Since 2005, Ukraine has transitioned from an eleven-year to a twelve-year school program: primary education spans four years (starting at age six), middle education (secondary) lasts for five years, followed by three years of upper secondary education. Students in the 12th grade take Government tests, also known as school-leaving exams, which play a crucial role in university admissions.
Among Ukraine’s oldest universities is Lviv University, founded in 1661. The establishment of higher education institutions gained momentum in the 19th century, with universities in Kharkiv (1805), Kyiv (1834), Odesa (1865), and Chernivtsi (1875), alongside professional higher education institutions such as the Nizhyn Historical and Philological Institute and various technical institutes.
During the Soviet era, the Ukrainian higher education system expanded rapidly, reaching 146 institutions and over 850,000 students by 1988. Today, Ukraine’s higher education system comprises institutions under national, municipal, and self-governing bodies responsible for education. It follows the structure defined by UNESCO and the UN, similar to higher education systems in developed countries worldwide.
Ukraine ranks fourth in Europe for the number of post-secondary graduates despite being seventh in population size. Higher education can be state-funded or private, with most universities offering subsidized housing for students from outside the city. University libraries typically provide required books for all registered students.
Degrees conferred by Ukrainian universities include the bachelor’s degree (4 years), master’s degree (5-6 years under the Bologna process), and historically, the Specialist degree (usually 5 years), which was the sole degree awarded during Soviet times.
In 2023, Ukraine was ranked 55th in the Global Innovation Index, reflecting its ongoing commitment to educational excellence and innovation.
Regional Differences
Ukraine exhibits distinct regional differences in language use, cultural attitudes, and political orientations, reflecting its diverse historical and demographic landscapes.
Language and Education:
Ukrainian serves as the predominant language in Western Ukraine and Central Ukraine. In contrast, Russia holds dominance in the urban centers of Eastern Ukraine and Southern Ukraine. During the Ukrainian SSR era, Russian was compulsory in schools, but today, Ukrainian-language schools offer classes in Russian and other minority languages.
Cultural and Political Attitudes:
Opinions regarding Russian language, Soviet influence, and Ukrainian nationalism vary significantly across regions. Western Ukraine tends to strongly identify with Ukrainian nationalism and the Ukrainian Greek Catholic Church. In contrast, Eastern and Southern Ukraine often hold pro-Russian sentiments and favor aspects of the Soviet era. Central Ukraine typically demonstrates more moderate attitudes on these issues.
Social Identification and Political Leanings:
Historical divisions are also evident in social identification and political preferences. Cities like Lviv in Western Ukraine align more with Ukrainian nationalism, whereas Donetsk in Eastern Ukraine leans towards Russian orientation and nostalgia for the Soviet period. Central and southern regions, including Kyiv, exhibit less polarization, with more neutral attitudes towards regional differences.
Unity and Shared Identity:
Despite these divisions, Ukrainians share an overarching national identity shaped by common economic challenges. Cultural and political differences often stem from historical legacies and contemporary political orientations rather than demographic disparities.
Electoral Behavior:
During elections, voting patterns reflect regional preferences. Western and Central Ukrainian provinces typically support parties and candidates advocating for pro-Western policies and state reforms. In contrast, Southern and Eastern provinces historically favor parties and candidates promoting pro-Russian agendas and maintaining the status quo. However, these geographical voting trends have shown signs of decreasing in recent years.
Overall, Ukraine’s regional diversity underscores a complex interplay of historical, cultural, and political factors that continue to shape its societal dynamics and national identity.
