Economic Life of Ukraine

Economic Life of Ukraine

Geographically and economically Ukraine is an autonomous country. The extent of its lands occupies the basins of the rivers which flow into the Black Sea, with which it is closely connected. It is universally known that this “Black Earth” district is one of the great natural resources and that it is the principal granary of Europe. Taking into consideration the nine governments of Ukraine, without counting Galicia, but including the Kuban, which is ethnographically a part of Ukraine, we see that the average annual quantity of the cereals throughout the years 1911-1915 was 275,000,0000 quintals (quintal equals 220 lb.), to which must be added beet, more than 100,000,000 quintals, and potatoes, some 60,000,000 quintals. In the same period, The Girl In Kherson Ukraine had produced 65,000,000 kilograms (kilogram equals 2.2 lb.) of tobacco, of which 22,000,000 kilograms were of superior quality. Each year the production of oleaginous seeds attained to 6,000,000 quintals, while that of hemp attained to 1,000,000 quintals, and that of flax to 600,000 quintals. The South of Ukraine gave an average of 1,000,000 quintals of grapes, which produced nearly 500,000 hectoliters (hectoliter equals 22 gallons) of wine.

Cattle-breeding in Ukraine is also of great importance. There were at the beginning of the war 8,100,000 horses, including 27,600,000 horned cattle, sheep and goats, and 6,300,000 pigs.

Ukraine possesses vast coal measures and the greater part of the anthracite mines of the Donetz. Her production from the mines does not fall far short of that of France.

Ukraine has also important iron mines (Krivoirog and Kerch), which give each year five to seven million tons of ore. It takes third place (after the Caucasus and the Indies) for its production of manganese. It also contains rich-bearing petroleum wells in Eastern Galicia (from 10,000,000 to 17,000,000 quintals annually) and in the Kuban (from 12,000,000 to 17,000,000 quintals).

All this wealth shows that Ukraine is capable of forming a State and of developing its strength. Through coal and iron, a considerable industry has already been developed. But the Russian policy has so far favored the industry of the North and neglected that of Ukraine. Also, the textile industry hardly exists in Ukraine (not a tenth of the production of Old Russia has been reached.) But other industries, such as the sugar and flour industries, and also the metallurgic and ceramic industries, are, in spite of everything, more developed in Ukraine than in the rest of the former Empire. Concerning, for example, metallurgy, Ukraine has some. 20 factories, and more than 50 furnaces, from which 3,000,000 tons of cast iron are passed out; she possesses three large factories for the manufacture of locomotives, which suffice the needs of the railways in the country. At Ekaterinoslav and at Nicholaieff (naval construction) factories are numerous. For agricultural implements there exists in Ukraine some 80 factories of both large and medium size, which produce implements to the value of about £6,000,000.

But the principal industry of Ukraine is the sugar industry. Ukraine supplied 85 percent of the total sugar production of Russia. In 1915 Ukraine possessed 222 sugar factories against the 265 possessed by Russia. The soil in Ukraine is particularly propitious to the culture of the beet. This latter is of a sweeter kind than in any other country. Ukraine occupies second place, after Germany, for the production of beet sugar. This industry progresses without cessation. In 10 years (from 1905 to 1915) it has increased 100 percent. During the season of 1914-1915, it has produced 17,000,000 quintals of beet sugar.

As to milling, Ukraine has more than 50,000 small mills and more than 800 large mills. That is to say that it has an important flour trade, although the greater part of the cereals of the country are exported in their natural state.

The alcoholic industry is fairly well developed in Ukraine. It furnished a quarter of the alcohol of former Russia. In 1912-1913 it produced 1,000,000 hectoliters of alcohol.

The ceramic industry is more flourishing in Ukraine than in any of the other States of the former Empire. Ukraine has 12 earthenware factories, 30 glass works, and 12 cement factories. But the natural conditions are so favorable that these industries are bound to play a still greater part.

As to the chemical industry, although it is not fully developed as yet, it has during the last war made great progress, especially with regard to the derivatives of coke—benzol, naphthaline, ammonia, etc. One can also say that Ukraine, when she is ready to do so, can cease being dependent on Germany regarding these last products.

The preceding shows that Ukraine, in consolidating its State and in attracting foreign capital, is bound to have a great economic future. Both French and Belgian capital is already placed in the principal Ukrainian enterprises, but the greatest field still remains open. Besides these industrial enterprises, there still remains new railways to be built, quays and canals to be constructed, and the rivers have to be rendered more navigable.

One often hears that Ukraine is economically tied to Russia. Certainly, two neighboring countries have always had more or less relations between each other. But the economic relations of Ukraine and Northern Russia have never been very great.

What has Russia given to Ukraine? Thanks to the protectionist policy of the Russian Empire, Ukraine had to consume the products of the Northern industry, but the products of this industry were very inferior to the products of France, England, and America, also they were much dearer.

On the other hand, Russia did not constitute an important market for Ukraine. The exportation of cereals to Russia never reached a very high figure (less than 15 percent of the exportation of Ukrainian corn). Besides, Russia herself possesses great resources upon which she has not drawn sufficiently. Taking into consideration the corn, she has the huge plains of the Volga, which should be sufficient for her own supply and allow even for exportation. It is only since the Bolshevik anarchy, the lands remaining uncultivated, that Russia has lacked the corn.

It is also said that the whole of the basin of the Donetz is necessary for the supply of Russia. Now more than three-quarters of the productions of this basin have always remained in Ukraine. The Ukrainian Metallurgical Industry alone requires more than 30 percent of the total production of the Donetz. Northern Russia chiefly consumes the coal from Germany and England. The Moscow industry also uses the naphtha of Baku, and the wood and coal which we find in the environs of Moscow.

However, the Ukrainian Republic ought always to seek to effect economic arrangements with Russia. The Ukrainian Government will be obliged to take into account the needs of national industry and if it (the mines of Donetz, for example) requires a market in Russia for a part of its production, it will be necessary to settle this question. It must take into consideration the interests of Russia herself so as to avoid any political conflicts with the northern neighbor.

Ukraine and Northern Russia, although two agricultural countries, totally differ in their social and economic life. Russia is more directly connected with Asia and is interested in the exploitation of its immense wealth. Ukraine, on the other hand, is a country attached to the West. From the agricultural point of view, the two countries are also very different. In Russia, the Commune (the Mir) plays a considerable part. In Ukraine, the small private ownership occupies the principal place, and in this respect she resembles France. There still remain in Ukraine some large estates which are more or less artificial, but the tendency is to partition them, and the question, when it arises, will be definitely settled in the sense of “the land for the people.”

The economic forces of Ukraine, which have developed in spite of all the hindrances brought about by the Tsarist regime, constitute the best guarantee that Ukraine, in re-appearing again on the world’s stage as a free State, will not renounce the rank to which she has the right.

Her population is industrious and capable of progressing very quickly. The enormous development which has taken place in Ukraine through the cooperative societies formed by the peasants themselves during the last few years shows it in a very striking manner.