Manufacturing

Ukraine has a large ferrous metallurgical industry. Heavy industries such as metalworking, mechanical engineering, and machinery and chemicals manufacturing also dominate the industrial sector. Light industries producing consumer goods such as household appliances are underdeveloped by Western standards. Between 1990 and 1995, output in major industries such as metallurgy, coal mining, and chemicals manufacturing decreased by nearly 60 percent. Since the collapse of the Soviet Union, Ukraine's industrial sector has been cut off from its traditional markets, and supplies from former republics are no longer easily accessible. Products of relatively poor quality and stiff international competition obstruct entry into the global market, while the increasing cost of the energy needed to power industry makes many items too expensive to produce. Other products, especially those of the large defense sector, are no longer in demand.

Government

Although the collapse of the Soviet Union in 1991 brought Ukraine independence, the rigidly centralized Soviet structure of government remained. The first five years were a tumultuous time of trying to establish democratic institutions and traditions. Ukraine's first direct presidential election was held in 1991. In 1994 an early presidential election took place, as well as elections to the legislature. Ukraine was the last of the former Soviet republics to adopt a new constitution. The delay was caused by a struggle in the legislature between reformers, who wanted to introduce a new, democratic system of government, and conservatives, who wanted to preserve the structures of the former Soviet state. The reformers finally triumphed in June 1996 when the legislature adopted a new constitution that stipulated a democratic form of government. All citizens aged 18 and over are eligible to vote.

Executive

Under the 1996 constitution, the president is head of state. The president is elected by direct, majority vote for a term of five years and may serve no more than two consecutive terms. The president appoints the prime minister and, under the advice of the prime minister, also appoints the Cabinet of Ministers. These appointments are subject to confirmation by the legislature. The prime minister is head of government and is responsible for carrying out its policies.

Legislature

The legislature (Verkhovna Rada, or Supreme Council) consists of a single chamber of 450 deputies elected for four-year terms. The inability of some candidates to win absolute majorities in their constituencies has left a number of these seats unfilled. Among its prerogatives, the legislature has the right to change the constitution, pass laws, confirm the budget, and impeach the president.

Judiciary

The highest court is the Constitutional Court, which is charged with protecting and interpreting the constitution. The president, the legislature, and a conference of judges each appoint six of the court's 18 members. The Supreme Court is the highest appeals court for nonconstitutional issues. A Supreme Judiciary Council, consisting of 20 members, recommends judiciary appointments and deals with the removal of judges.

Local Government

Although Ukraine is a unitary state, its constitution allows for a considerable degree of decentralization. The country is divided into 24 oblasts (districts) and one autonomous republic, Crimea. The cities of Kyiv and Sevastopol' have special status; their governments, which operate independently of oblast authority, are responsible only to the central government in Kyiv. Local councils and executive bodies, elected every four years, are responsible for their jurisdiction's taxes, budgets, schools, roads, utilities, and public health. The Crimean Autonomous Republic enjoys far-ranging autonomy within Ukraine, including its own constitution, legislature, and Cabinet of Ministers. The latter controls Crimea's government and economy, but is restricted from implementing policies that would contradict the constitution of Ukraine.

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