Agriculture and agricultural trade play a significant role in the Ukrainian economy. The Ukrainian Government considers agriculture to be a strategic sector which needs strong state support. But nine years of mostly Sovietstyle intervention in agricultural have resulted in huge welfare losses for farms and society as a whole.
Gas transit is a sensitive issue, particularly in a crisis-prone region such as the former Soviet Union. Strategic power games and geopolitical issues seem to dominate ‘pure’ economic theory when it comes to determining transit fees, capacities, investment projects, and the like. Privatisation and deregulation become highly sensitive issues as well.
On the micro-economic level international integration means that enterprises should move in a direction which is characteristic of companies participating in a market economy, i.e. they should undertake the necessary restructuring measures and participate in international trade.
East and West options exist. North and South cannot be the primary geopolitical orientations. They can be a useful complement to the European choice of Ukraine. Choosing the right option and transforming it into reality is a vital question for Ukraine.