d Highly Indebted Poor Countries (HIPC) debt relief worth
$1.3 billion and Paris Club debt relief worth $145 million. These
amounts combined with the original HIPC debt relief added up to
about $2 billion.

Ukraine
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.
Its fertile black soil generated more than one-fourth of Soviet
agricultural output, and its farms provided substantial quantities
of meat, milk, grain, and vegetables to other republics. Likewise,
its diversified heavy industry supplied the unique equipment (for
example, large diameter pipes) and raw materials to industrial and
mining sites (vertical drilling apparatus) in other regions of the
former USSR. Shortly after independence was ratified in December
1991, the Ukrainian Government liberalized most prices and erected a
legal framework for privatization, but widespread resistance to
reform within the government and the legislature soon stalled reform
efforts and led to some backtracking. Output by 1999 had fallen to
less than 40% of the 1991 level. Ukraine's dependence on Russia for
energy supplies and the lack of significant structural reform have
made the Ukrainian economy vulnerable to external shocks. Ukraine
depends on imports to meet about three-fourths of its annual oil and
natural gas requirements. A dispute with Russia over pricing in late
2005 and early 2006 led to a temporary gas cut-off; Ukraine
concluded a deal with Russia in January 2006 that almost doubled the
price Ukraine pays for Russian gas. Outside institutions -
particularly the IMF - have encouraged Ukraine to quicken the pace
and scope of reforms. Ukrainian Government officials eliminated most
tax and customs privileges in a March 2005 budget law, bringing more
economic activity out of Ukraine's large shadow economy, but more
improvements are needed, including fighting corruption, developing
capital markets, and improving the legislative framework. Ukraine's
economy remains buoyant despite political turmoil between the Prime
Minister and President. Real GDP growth reached about 7% in 2006-07,
fueled by high global prices for steel - Ukraine's top export - and
by strong domestic consumption, spurred by rising pensions and
wages. Although the economy is likely to expand in 200