Ukraine - Industry

Under the Soviet economic system, the Ukrainian industrial infrastructure was based around its rich mineral endowments. Heavy industry and the defense industry were predominant in Ukraine (Ukraine produced almost 25 percent of all Soviet military goods). Sizeable production of steel and pig iron was based on generous supplies of coal and iron ore. Other important heavy industrial products included ferro-alloys, non-ferrous metals, cement, mineral fertilizers, and building materials. Ukraine remains a significant producer of non-ferrous metals, automobiles, and machine tools. With the disappearance of the central command system, the former links between the economic sectors has diminished. The old distribution system has gone and industry cannot rely on regular state subsidies anymore. The Soviet military industrial complex has come to a practical standstill (but is recovering), and links with other former Soviet Republics have diminished. All these factors contributed to a lack of cash in the industrial sector, resulting in a depreciation of the national currency and price inflation.