Free Pest Analysis Of Ukraine: Political Components Essay Example

The Institutional Affiliation

Ukraine is the largest European country. It is also very resource rich. According to the

Constitution, the State possesses all natural resources within the land borders, including water, land,

subsoil, forests and other natural complexes. Environmental safety is part of Ukrainian national
security program. Processes concerning environmental protection, grants ownership, effective use
of the resources, preventing damage and preserving unique natural heritage are regulated by the
Law. Congress has a right to validate international agreements in this sphere. There are four main
instruments which help to protect Ukrainian natural resources: expertise, monitoring, insurance and
audit. Current scheme of natural resources use in Ukraine operates on economic bases.
operating in other big cities. Individuals and organizations pay both state and local taxes as well as
additional fees and customs (all approved by the State Fiscal Service). State taxes divide into 12
types (including taxes for individual, organizations, environmental and import tax, state customs
tax).There are two local taxes. State collects additional fees for special use of water, forests and
other resources, one time fee for registering a vehicle and four other fees. Local fees which include
fees for particular businesses, parking fees and tourist fees. Customs include five different types of
fees. Currently the tax system is being reformed, therefore, the number and list of taxes and their
regulation can change in the nearest future.

Ukraine exports metals, chemicals, agricultural goods such as grain, sunflower, particular

vehicles and weapon. It imports energy, chemicals, tools and machines, raw. In 2011 Ukrainian
export markets overcame crisis and exported the most goods since 2008. One of the lowest exports
is export of high-tech products. European and East European countries remain Ukraine's main
partners. International Trade Regulations rely on state laws, local norms and international
agreements. In Ukraine foreign businesses are granted rights and follow rules same as national
companies. They are also granted benefits and preferences same as any other foreign business with
such status. Non residents can invest in any business (ex.: activities that need special permission).

Main tolls that guarantee contract enforcement are: penalty, deposit, pledge, warrant,

reinforcement. Some of these methods must be approved by the state when it comes to their
application. Penalty can refer to set amount of money or other property such as estate, goods, etc.

There is no penalty interest in Ukraine. Parties can also negotiate on the fine (except fixed penalties

granted in the Constitution). Paying penalty, however, doesn't cancel the original contract.

Wages in Ukraine are the lowest in Europe. Employee cannot be paid less that the minimum

wage fixed by the Sate which is currently $48.72 ($0.33 per hour) (State Statistics Service, n.d.).

Unemployment rate is very high, in some regions number of people that apply for one available

position exceeds 30, however, the average number of applicants is 10.Unemployment rate in
Ukraine is 8.1% (in comparison to 7.5% in 2013) (State Statistics Service, n.d.). Factual
unemployment situation and living standards which dropped abruptly during the last year show that
the statistics can be inaccurate. One has a right to start working once they turn 16 and retire in age
of 60 (both women and men).Employment laws are under state of reform.

Ukrainian government consists of three branches: Legislative, Executive and Judicial.

Congress consist of one House which include 450 members. Ukraine is a democratic republic with
market economy. It is characterized by high level of corruption – 2.2 out of 10 (0 - the highest;10 -
the lowest corruption level indicators). Law enforcement system under reformation. President is a
commander in chief and can influence all three branches of government. Ministry Cabinet is the
main executive authority and consists of 16 Departments (2014) responsible for different spheres
(Financial, Economical, Fiscal Service, Internal Affairs and other Departments). Prime Minister
regulates and control activity of all Ministries. Judiciary is extremely corrupt and is undergoing
significant reforms. The branch consist of Supreme Court, Inferior and Appellate courts and local
courts. Ukraine is a parliamentary presidential republic, member of the European Council, OSCE
and UN.

Law of Ukraine prevents organizations conducting their activity on the territory from illegal

use of business name, obstacles created in unconstitutional ways, penalties and fees not authorized
faces additional regulations. Two, three and four largest businesses cannot own more than 44, 54
and 64% respectfully, (Verkhovna Rada, 2013). Development of small businesses and favorable
economic conditions are main competition regulators. Government intervention in business is too intense.

Political situation in the country is unstable. Ukraine overcame two revolutions since 1991

when it became independent. Revolution of 2004 overthrow the existing president and his office,
however, did not lead to any significant reforms. Revolution of 2014 resulted in early presidential
election, new President and Congress members came to power, however, war on the East of Ukraine
caused economical and political crisis. Ukraine is under state of reforms in economic, politic,
military, judicial sectors. The country recently received couple of loans from IMF and is currently
trying to arrange another one to save the economy which is in a state of fall.

Laws that regulate the protection guarantee customers' rights defense, quality of products

and services provided, safety of goods, accurate information, reimbursement for damage caused by
illegal actions of the manufacturer. Manufacturer is not responsible for damage caused as a result of
the consumer's fault (disregarding warnings, etc.). Manufacturer is obliged to provide documents
that prove quality of the product on the consumer's request. Importing a product requires documents
which prove its correspondence to the quality standards of the country. Producer should provide
functioning and replace shoddy good free of charge within the warranty period. Consumer also has
a right to have partial or full refund. Consumer protection processes lack control from the State and
are often ineffective.

Reference Page

Ukraine-Insight (2008). Interesting Facts About Ukraine. Ukraine-Insight Website. Retrieved March 3, 2015, from http://www.ukraine-insight.com.ua/index.html
Verkhovna Rada of Ukraine (1996, June 28; 2011, Feb 1; 2013, Sep 12). Constitution of Ukraine. Retrieved March 4, 2015, from www.ccu.gov.ua/doccatalog/document?id=12084