Route to Ukraine: Energy and Natural Resources

Originally published January 2010

Ukraine, an attractive emerging market, has significant economic potential as a result of its well educated labor force, large domestic market, and access to a variety of resources including some of Europe's best agricultural land, significant coal and some oil and gas reserves, and a strategic location connecting Europe, Russia and Asian markets.

Its economy has been growing steadily, with gross domestic product increasing an average of more than 7% per year. Strong growth has been spurred by increasing domestic demand, improved productivity in the private sector, low unemployment, and rising wages.

Ukraine's maturing private sector that is becoming increasingly globalized and transparent, the country's relatively inexpensive and well-educated workforce and Ukraine's entry into the WTO have all contributed to the country's growth. Indeed, direct foreign investment was $6.9 billion, up 170% from the same period in 2007,