Ukraine

J

Currency and Banking

In September 1996 Ukraine introduced its new currency, the hryvnia (5.10 hryvni equal U.S.$1, 2005 average). The currency of the Soviet period, the ruble, ceased to be legal tender in 1992 when it was replaced with a temporary coupon currency, the karbovanets. In 1993 already high inflation reached hyperinflationary levels, with an average annual rate of 4,735 percent; however, a strict monetary policy introduced in late 1994 significantly reduced inflation in subsequent years. The country’s bank of issue is the National Bank of Ukraine, founded in 1991 and located in Kyiv.

VI

Government of Ukraine

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 on June 28, 1996, when the legislature adopted a new constitution that stipulated a parliamentary democracy. All citizens aged 18 and over are eligible to vote.

A

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.

B

Legislature

The legislature of Ukraine is the single-chamber Verkhovna Rada (Supreme Council). It has 450 members, half of whom are directly elected in single-member constituencies. The remaining seats are allocated on a proportional basis to parties that gain at least 3 percent of the national vote. All members serve four-year terms. Among its prerogatives, the Verkhovna Rada has the right to amend the constitution, pass laws, confirm the budget, and impeach the president.

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C

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.