Ukraine's export losses are set to reach $800 million for the period June to December this year following the expected end of free access to the European Union market, a central bank deputy governor said yesterday.
Preferential trade with the EU, a major trading partner for Ukraine, expired yesterday. The EU temporarily waived duties and quotas on Ukrainian exports after Russia’s full-scale invasion in February 2022.
Agricultural goods accounted for about 60 per cent of Ukraine’s total exports of $41.6 billion last year, with the European Union buying around 60pc of those goods, worth about $15bn.
Serhiy Nikolaichuk, deputy central bank governor, said Ukraine and the European Union would return to a regime that was agreed as part of the free trade agreement. It envisages about 30 quotas for Ukrainian products, he said.
Exports of wheat, sugar and poultry would be the most affected, analysts said. Ukraine’s economy ministry said in a statement that the EU extended the preferential trade regime for Ukrainian steel and iron products, supporting the sector that was severely hit by the war.
Nikolaichuk hoped that some Ukrainian agricultural producers would be able to continue exports of selected products above the quotas. Despite the war with Russia, Ukraine was able to restore logistics and trade routes via the Black Sea, returning to markets in Africa and Asia, Nikolaichuk said, adding that these markets would help offset some EU market losses.
“Taking everything into account ... net export losses ... during June-December of this year will amount to about $800m,” he said.
&uuid=(email))