Analysis of the monopolization level of raw material exports of Ukraine


Keywords: agricultural products, export, monopolization, iron industry

Abstract

The formation of a competitive national economy of Ukraine is hindered by a weak system of monopoly control. The activities of oligarchic clans stimulated political lobbying, illegal influence on the management of independent enterprises, their raider capture, which led to a slowdown in Ukraine’s technical progress, an increase in the hidden economy and a decrease in its efficiency. The current trend of increasing exports of raw materials and the monopolization of major export industries makes Ukraine’s economy even more dependent on the activities of several monopolists. The aim of this work was to analyze the level of monopolization of the main Ukrainian export categories – agricultural and iron industry production. Methods of this study were based on analysis of literature of the national authors, systematization and generalization of data of the State Statistics Service of Ukraine, the Antimonopoly Committee of Ukraine and other open sources. The study found that the agricultural sector of the Ukrainian economy has a dual structure – corporate (agricultural holdings) and individual farms (family farms and households), which are characterized by different directions of development. The analysis of the regional presence of agricultural holdings showed that the largest landowners cultivate land plots in almost all regions of Ukraine. At present time in the agro-industrial sector of Ukraine corporate landowners control 18.4% of arable land, exist in the form of vertically integrated holdings specializing in the cultivation of export-oriented crops. The study found that specific location of minerals explains the geographical location of iron industry enterprises in Dnipro, Donetsk, Poltava and Zaporizhia regions. However, the geography of the place of registration of these holdings or their parent companies includes Cyprus, the United Kingdom, the Netherlands and Switzerland. The group of companies Metinvest occupies an informal monopoly position in the market of ore mining and steel production in Ukraine. Thus, the main items of Ukraine’s exports are under control or are significantly influenced by a small number of vertically integrated holdings, which may indicate a low level of competition. In these circumstances, one of the most important functions of the state in this area is to maintain a competitive environment and limit monopolies. At the same time, the lack of quality legislation does not allow the state to fully regulate and influence the real situation in the country.

Author Biography

Petro O. Makarenko
Institute of Geography of NAS of Ukraine, Kyiv

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Published
2021-07-18
How to Cite
Makarenko, P. (2021). Analysis of the monopolization level of raw material exports of Ukraine. Journal of Geology, Geography and Geoecology, 30(2), 326-333. https://doi.org/https://doi.org/10.15421/112129