However, Ukraine's long-term economic prospects are dependent on acceleration of market reforms. The economy remains burdened by excessive government regulation, and most industries have neither been restructured or privatized. Ukraine encourages foreign trade and investment. The parliament has approved a foreign investment law allowing Westerners to purchase businesses and property, to repatriate revenue and profits, and to receive compensation in the event that property is nationalized by a future government. However, complex laws and regulations and corruption have stymied largescale investment in Ukraine.
Most Ukrainian trade is still with countries of the former Soviet Union, principally Russia.
Ukraine runs a slight trade surplus, but this is largely a result of falling demand for imports and energy arrears rather than external demand for Ukrainian exports. Reform of the inefficient and opaque energy sector is a major objective of the IMF and World Bank programs with Ukraine. The program has been suspended since September 1999 when Ukraine fell off track during the presidential election as a result of increased government spending and slowing progress on structural reforms. Resumed lending has been delayed by allegations of improprieties concerning management and reporting of reserves from 1996-98. The IMF is conducting an investigation, with which the Government of Ukraine has cooperated.