Potential or a Pressure Point?

The Soviet past of the Ukrainian state was continuously associated with a well-established heavy industry branch. Having been a material and technical pillar for extensive growth during the communist era, the country’s industrial facilities, located mainly in the Eastern and Southern regions of the country, encompass the mining and, partially, the processing sectors.

The current stage of economic history of the Ukrainian state demonstrates that metallurgy and the chemical industry have become core export items and predominantly determine the country’s economic growth. Nevertheless, when the demand for Ukrainian metallurgy has fallen, the recession again proved the pitfalls of economic misbalances and revealed the need for export diversification.

Another warning notice for the industry is its extremely high level of energy intensity. Over the last couple of years energy prices became a unique political tool. It is a paradoxical situation, when only in isolated and ideal conditions is heavy industry able to be a source of economic growth. It goes without saying that hothouse conditions don’t solve existing sectoral problems.

As we shall discover in the current issue of the UJBL, Ukrainian heavy industry is structured into industrial and financial groups. Hence, we can only assume and consider “carrots” for industry’s modernization, ways of implementing it and business perception.

Happy reading,
Olga Usenko