Ukraine IT Landscape:
Electronic Commerce

The year 2000 has become somewhat of a milestone for many Ukrainian Internet projects.  This was, in part, due to the issuance of a decree by President Kuchma earlier that summer that supported the creation of a national global information Internet network and ensuring broad access to that network in Ukraine.  The decree specifically addresses e-commerce, and says that the government will "ensure state support for the development of Internet infrastructure and the creation of conditions for the development of e-commerce."  While the decree was an important first step, there are numerous follow-up issues that the government must address in order to benefit from an e-commerce society. Portals A recent random search for Ukraine portals found approximately 75.  The list below includes the top 20 as queried from the search: http://meta-ukraine.com/ Ukrainian searching system. News Spider http://topnews.com.ua/ Collection of headline news from different Internet sources. VOLIA http://www.volia.com/ News on Ukraine.  Travel information. Map of Ukraine.  Ukrainian people, traditions, arts, cuisine. The best of Lviv http://www.lvivbest.com/ Information and search server of Lviv-city. UaPortal http://www.uaportal.com/ Multilevel resource catalogue, search, currency exchange rating, e-shop, news, humor etc. UKROP.com  http://www.ukrop.com/ The latest world and Ukrainian news, news from Diaspora. Avanport http://avanport.com/ Portal of the Ukrainian resources. Gala.Net http://www.gala.net/ Portal "Gala.Net": internet-resources by topics. All Donbass http://indonbass.narod.ru/ The site of the region resources by categories. eZone.com.ua http://ezone.com.ua/ Informational and entertainment portal. 360.com.ua http://www.360.com.ua/ Meta-search in 22 search servers worldwide. UAPort http://uaport.net/ Ukrainian web-resources catalogue. Infobusiness http://infobusiness.com.ua/ Topical search, links to different Internet-systems, business information. Kharkov  http://weblist.kharkov.ua/ Catalogue and links of Kharkov Internet resources Silver Resources  http://www.silver.kiev.ua/ Site contains references to the Ukrainian resources. Kharkov Portal http://portal.kharkov.ua/ Kharkov news, web-catalogue. Poshuk http://www.poshuk.com/ Ukrainian business-portal "Poshuk". E-Payment Services In June, the National Bank of Ukraine (NBU) announced that it developed a project to organize the system of e-commerce in Ukraine. The project, entitled "Requirements for the Organization of E-Commerce in Ukraine", was initiated in response to repeated requests from Ukrainian banks concerning general issues of e-commerce as well as specific issues regarding the organization and provision of on-line banking services.  According to the NBU, it will issue regulations governing the organization of "e-stores", payments for orders with various payment instruments (credit cards, etc.), and the organization of on-line banking services with the use of new technologies. 7  E-Readiness Ukraine has fallen from 45th place one year ago, to 52nd out of 60 countries in the Economist Intelligence Unit/Pyramid Research recent e-readiness rankings. Factors that contributed to this low ranking are:  Low penetration of personal computers and fixed and mobile phones  Low per capita income  Credit-card ownership limited to a tiny elite  Scant regulations in place to regulate e-commerce and payment system; arbitrary application of existing laws or virtual lack of legislation and standards Business culture slow to adopt the Internet  Personal users are distrustful of e-commerce  These obstacles suppress e-commerce to a negligible number.  However, two important factors must be noted.  Ukraine has a high literacy rate:  >99% Ukraine is well known for its availability of workers with technological skills. Thus, with an intelligent workforce capable in technology, e-commerce would likely have support once Ukraine raises its level of connectivity, per capita incomes increase, and the regulatory and political environment is established. 8

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