The Ukrainian business environment is marked by bureaucracy and corruption. However, there has been recently moderate progress on economic reforms, including land reform, price liberalization, reducing barriers to trade and tax reform.

Buoyant economic conditions and a continuing current account surplus have permitted the external financial situation to improve. Thanks to initiation of tax reforms, fiscal policy has been relatively disciplined with Ukraine emerging from its over-indebted situation. Ukraine’s income tax rate has been lowered to a flat 13 percent and the top corporate tax rate to 25 percent.

2004 Index of Economic Freedom

Source: Heritage Foundation, 2004