. /.RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/UKR/67/Add.1
19 April 2000
(00-1593)
Working Party on the
Accession of UkraineOriginal:  English
ACCESSION OF UKRAINE
Memorandum on State Trading Enterprises
Addendum
The following information concerning the state trading enterprises of Ukraine has been
received from the Governmental Commission on Ukraine's Accession to the WTO.
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Since 1996, a specific share of state-owned industrial enterprises in the total number of
manufacturing enterprises and their share in the total output experienced a steady downward trend. In
1996, the share of state-owned enterprises in the total number of enterprises was 28.8 per cent, in
1997 it was 24.3 per cent, in 1998 16.3 per cent, and in 1999 15.3 per cent. In fact, the share of state-
owned industrial enterprises as a percentage of the total number of manufacturing enterprisesdecreased by 47 per cent in comparison with 1996. As to the output, the share of state-owned
enterprises was 40.6 per cent in 1996, in 1997 34.7 per cent, in 1998 30.5 per cent, and in 1999
29.3 per cent.
The number of state-owned enterprises-exporters in 1996 was 1,500 (7 per cent of the total
number of exporters). In 1997 it fell to 1,200 enterprises (7.4 per cent), in 1998 – 1,100 enterprises
(7.3 per cent), and in 1999 – 1,000 enterprises (6.7 per cent). Exports of goods by state-ownedenterprises constituted 17 per cent of the country’s total volume of exports in 1996 and 1997, and
18.6 per cent and 17.5 per cent in 1998 and 1999 respectively. It should be pointed out that this
increase is caused not by the growth of trade by stat e-owned enterprises in absolute terms, but due to a
general decrease in the export of goods.
The number of state-owned enterprises-importers was 8 per cent of the total number of
enterprises engaged in commodity import operations over in 1996 – 1998, reaching 8.4 per cent in
1999. In this regard, the share of commodities imported by state-owned enterprises in relation to the
country’s total volume of imports fell from 20 per cent in 1996 to almost 10 per cent in 1997 and
1998, and further to 9.l per cent in 1999.
Over the last four years, more than 99 per cent of enterprises engaged in foreign trade sales of
goods operations conducted transactions which accounted for at most 3 per cent of the total export-
import of goods. Since 1996, the OJSC Mariupol Metallurgical Complex named after Yllych, the
OJSC Zaporizhzhya Metallurgical Complex “Zaporizhstal” named after S. Ordzhynykydze, theSubsidiary “Aktiv” LLC “API” – Ltd. and NJSC “Naf togaz Ukrainy” (all collectively owned), and the
Kryvorizhzhya State Mining and Metallurgical Complex “Kryvorizhstal” (state-owned) accounted for
3-10 per cent of the country’s total volume of foreign trade operations in commodities.
In 1999, significant progress was achieved in restricting monopolization in the  commodities
market by a joint effort of the state privatization agencies, the Antimonopoly Committee, and other
government agencies at all levels aimed at the reorganization of businesses established on the basis ofWT/ACC/UKR/67/Add.1
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state ownership in the course of their preparation for privatization, division of state monopolistic
entities, and liquidation of state organizational structures of monopolistic nature.
In result of measures aimed at structural demonopolization of respective national and regional
markets, the process of demonopolization of monopolistic entities and organizational structures of amonopolistic nature has been practically completed.
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