After Russia, the Ukrainian republic was far and away the most important economic component of the former Soviet Union, producing about four times the output of the next-ranking republic. Ukraine depends on imports of energy, especially natural gas, to meet some 85% of its annual energy requirements. Shortly after independence in late 1991, the Ukrainian Government liberalized most prices and erected a legal framework for privatization, but there was also widespread resistance to reform within the government and reform efforts were limited. Output in 1992-99 fell to less than 40% of the 1991 level. Inflation rose to hyperinflationary levels in late 1993. Outside institutions - particularly the IMF - have encouraged Ukraine to quicken the pace and scope of reforms. GDP per capita in 2000 was estimated at $3,850. 20
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