Vector Value Calculation:

According to the Cabinet of Ministers n 1999 GDP was UAH 127.1 bln (USD 32.37 bln). Counting in Chernobyl-related expenditures we have UAH 4.9 bln or USD 1.25 bln of energy-related investments.

There is no data for the year 1990 available. Ukraine was still a part of the Soviet Union. However, we can expect that relative investments where about the same or slightly higher.

Vector Value

1990 ~ 0.4.

1999 = (1.25/32.37)* 10 = 0.38

In 1990 Ukraine was still part of the Soviet Union. Socialist system implies capital goods to be state property. Thus, any investments made in energy sector were done from the state budget. The situation is similar today. Despite the declared need for energy sector reforms and privatisation, not much have been done.

State controls energy sector and energy utilities, subsidies them and force them to deliver electricity to consumers, who are not able to pay the bills. Thus, general public finally pays for inefficient use of energy by consumers stealing energy or not paying for it. Year 2001 is expected to be the start for privatisation in energy sector. The government plans to sell a number of distribution companies. However, this process is constantly being delayed.

In nineties Ukrainian government investment in energy sector (including capital investments [Ref. 23], maintenance and research) have fallen done dramatically. Ministry of Fuel and Energy was requesting UAH 1,300 m to be allocated in state budget for the year 2000. The ministry announced that it did not receive the entire amount, but had UAH 2,699.9 m of capital investments.

Ukraine is a country where investments to mitigate impacts of the unsustainable energy use was especially high. Today, 15 years after the disaster at Chernobyl nuclear power plant, Ukraine keeps paying to recover. For about ten years 14% of annual state income was directed to deal with consequences of the disaster. Ukrainian state budget has a section devoted to social consequences of the Chernobyl catastrophe and impacts mitigation which in 1999 counted UAH 1.75 bln. Same year budget allocated UAH 30 m for maintenance of Chernobyl reactors out of operation. 

Overall state budget for 1999 counted for UAH 25.13 bln. In 1999 sate budget 1.6 bln hryvnas was allocated for energy and fuel industry, UAH 421 m for the coal sector restructuring, UAH 1.1 bln for the state support of coal mining. Thus, energy related investments counted for UAH 3.1 bln without Chernobyl related expenditures and UAH 4.9 bln with it (19% of the annual budget).