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PESTLE ANALYSIS OF UKRAINE

BY AVINASH CHETHAN

DARSHAN
ARIF ANSARI

ABOUT UKRAINE

Ukraine is located in Eastern Europe and shares its borders with seven countries, including Russia. It is partially bounded by two bodies of water most notably, the Black Sea. Ukraine gained its independence in 1991 as a newly independent country. Kiev is the capital of Ukraine and the largest city, followed by Kharkiv, Dnipropetrovsk, and Odessa. One of the most famous cites in Ukraine is Yalta where the historic Yalta Conference was held in 1945.

CONTD

The national currency of Ukraine is Hryvna. Modern Ukraine culture has a lot in common with Russian and Belarusian cultures. It is quite understandable as all three nations have their historical roots and origins from Kievan Rus, but during the 13th century they began developing as the individual nations they are now. Numerous faiths are practiced in Ukraine. Over 97% of the religious communities registered in Ukraine are Christian. Ukraine is the member of EBRD and joined WTO in may 2008. They are also the member of EU.

PESTLE ANALYSIS OF UKRAINE


Political Environment:

Ukraine is a republic ruled in accordance with the constitution originally adopted in 1996. The country is under a semi-presidential system where the president is the chief of the state and shares power with the parliament. The current President is Mr. Viktor Yushchenko who was elected in late 2004.

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Ukraine government encourages foreign trade and investment they have signed European unions partnership and cooperation agreement. Ukrainian Government officials eliminated most tax and customs privileges in a March 2005 budget law, bringing more economic activity out of Ukraine's large shadow economy

Economic Environment

Ukraine is heavily dependent on its Exports, which make up about 40% of its GDP. Ukraine is granted a market economy status by the EU and USA. The country has a well developed scientific and productive basis with good industrial potentials. Ukraine is known for producing Heavy machinery, diesel locomotives, oil refinery equipment. Ukraine is very powerful in energy

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Ukraine's 2010 GDP(PPP), as calculated by the CIA is estimated at $306.3 billion. Its GDP per capita in 2010 according to the CIA was $6700. Inflation rate is at 9.8% (2010). The GDP of various sectors in 2010 are Agriculture- 9.8% Industry- 32.3% Services- 57.9%

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The drop in steel prices and Ukraine's exposure to the global financial crisis due to aggressive foreign borrowing lowered growth in 2008 and the economy contracted more than 15% in 2009, among the worst economic performances in the world; growth resumed in 2010, buoyed by exports. External conditions are likely to hamper efforts for economic recovery in 201.

Social Environment

Ukraine has been in a demographic crisis since the 1980s because of its high death rate and a low birth rate. Rapid urbanization is a demographical challenge for Ukraine. Current population 45,134,707 (July 2011 est.) Education is compulsory between the ages of 6 and 15.

Technological Environment

The development of Science and technology in Ukraine has its beginning in the 18th century, when the Kyiv Mohyla Academy became a noted research centre. Ukraine is one of the largest energy consumers with the largest nuclear plant in Europe. Ukraine companies have strong R&D which not only develops scientific research but also software development. The majority of software developing companies

Cont..

The basis of countrys scientific and technological development is in the following branches of Ukraine economy:
Aircraft Industries Missile and Tank engineering Bio Technologie s

Radio Electronics

Communication & Telecommunica ti-ons

Legal Environment

The judicial system of Ukraine is outlined in the 1996 Constitution of Ukraine. As with any civil law system, Ukraine's system is based on laws adopted by the Supreme Rada (the Parliament), with the Constitution being the fundamental law, followed by various codes (Civil Code, Criminal Code, Labor Code, Subsoil Code, etc.), followed by laws of general nature and laws of special nature.

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Ukraine courts are divided into general court and arbitrage court. In order to carry out business activities as a sole proprietorship, an individual is required to register as an "entrepreneur' with the local authorities. Ukrainian legislation does not provide for the creation of legal entities or partnerships which act as "flow through" entities for tax purposes.

Environmental Factor

The coal-burning industries of eastern Ukraine, which emit high levels of sulfur dioxide, hydrocarbons, and dust, have created severe air pollution throughout the region. The pollution of the nation's water has resulted in large-scale elimination of the fish population. Ukraine has Pollution fee system, which levies tax on Air and Water emissions and also on solid waste disposal.

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