Rating of import and export of Ukraine

Studying the statistics for 2022 provided by the customs service of Ukraine, one can draw a disappointing conclusion that the export of goods in terms of volume decreased by almost 39%. In monetary terms, it decreased by 35%. About 100 million tons of various types of products worth 45 billion US dollars were shipped.

Undoubtedly, for normal pre-war conditions, such figures would rightfully be considered catastrophic. But in the realities of martial law, against the backdrop of regular attacks on the transport and energy infrastructure and the blockade of seaports, such a result can be safely called a success. Specialists had to establish new logistics schemes, develop suitable transport routes. Business – to build trade and economic relations with new partners. Both the first and the second coped with the task.

If the volume of exports decreased by about a third compared with the pre-war period, then the volume of deliveries from abroad decreased only by a quarter. In general, the trade turnover between import and export in 2022 amounted to about 98 billion US dollars. At the same time, the difference between imported and exported goods in monetary terms is 12 billion US dollars.

The impact of the war on the situation

After the beginning of the military escalation on the part of the Russian Federation, the previous trade and economic relations with Russian companies and enterprises were terminated. Ukrainian business rather quickly reoriented its products to the market of the European Union and other countries of the world. Due to the temporarily lost territories in the east and southeast of the country, the enterprises located on them, there was a change of leaders – both exporters and importers.

For example, for the first time, Poland took the first place in terms of exports from Ukraine in 2022, having bought products worth about 6 billion US dollars. If back in 2021 China ranked first as an exporting country, then in 2022 it was in fourth position, behind Romania and Turkey. Ukraine’s exports to countries such as Hungary, Moldova, Slovakia and Bulgaria have grown significantly. For a number of objective reasons, Ukrainian business has significantly reduced exports to India, Italy and Egypt.

Export

Despite certain difficulties associated with the disruption of production and transport links, in 2022 Ukraine managed to ensure the export of the following groups of goods, which are the main source of foreign exchange earnings from export operations:

• Grain crops provided more than 18% of export earnings. This was also facilitated by a sharp rise in the price of this food group on the world market.
• Products of ferrous metallurgy. Compared to the previous (2021) year, foreign exchange earnings from sales decreased by 8% and account for just over 12% of export earnings in 2022. Considering the temporary loss of metallurgy enterprises by Ukraine, it is easy to predict that this trend will continue until victory.
• Vegetable oil. For many years, sunflower oil supplied for export provides more than 10% of the total annual foreign exchange earnings.
• Ore and slag. The products of mining and processing plants of Ukraine are very tightly integrated into the technological processes of a number of European and Asian metallurgical companies. But due to the blocking of Ukrainian ports, timely shipment of ore and slag has become problematic. Although the total volume of deliveries has decreased, due to the rise in the cost of the mining and processing plant’s products, the amount of export earnings has not practically changed and is about 10%.
• Electrical machinery and equipment – transformers, cable and wire products, components for telecommunications devices, household appliances. The share of export sales of this group of goods amounted to 6.4%.
• Rape, soy and sunflower. Export sales of oil seeds doubled in 2022 and accounted for 5.9% of total export earnings.
• Commercial timber and lumber. The total share in export earnings remained at the same level and amounted to 4.7%.
• Finished products from ferrous metals. Compared to 2021, export sales revenue increased to 2.4%. A positive factor is the fact that we are talking about products with high added value.
• Feed and waste from the food industry. The share of export earnings from the sale of feed for livestock was 2.4%.
• Mineral fuel. Although the export of these products slightly decreased to 624.4 million US dollars, nevertheless, this is about 2.2% in the share of export earnings.
• Meat and offal. Basically, we are talking about poultry products. The share of revenue is 2.1%.
• Furniture, mattresses, lamps and bedding. Ukrainian goods in the world market from this group are in growing demand. More than 550 million US dollars worth of products were sent for export, which is 1.9% of the annual foreign exchange earnings.

Import

The list of countries providing Ukrainian imports in 2022 is headed by:

• China, with US$7.6 billion worth of merchandise deliveries.
• Poland, which supplied products worth US$5 billion.
• Germany, which supplied just over $4 billion worth of goods.
• Imported products in Ukraine supplied in 2022 can be divided into the following groups:
• Vehicles, machinery and equipment. Delivered more than 14 billion US dollars. An interesting fact is that only autonomous gasoline and diesel generators with a capacity of 1.5-7.5 kW were imported for 360 million US dollars (more than 354 thousand pieces).
• Fuel and energy products (gasoline and diesel fuel). In 2022, fuel and lubricants were imported for 11.7 billion US dollars. Romania became the main supplier.
• Products of the chemical industry. Plastics, fertilizers, pharmaceuticals and more. Their cost is approximately equal to 8.7 billion US dollars.

The import of products to Ukraine does not take into account regular deliveries of humanitarian aid, the amount of which, according to experts, is several hundred million US dollars.

Prospects

The growing export of products from Ukraine to the EU countries became possible not only thanks to state support for enterprises and companies that produce high-quality products that meet international and European standards. The measures taken by our foreign partners helped a lot in this. Namely, the opening of the EU internal market for Ukrainian products. We are talking not only about trade liberalization, but also about transport, economic and customs visa-free travel.

The state budget of Ukraine provides for a general increase in exports of goods and services in 2023 by 7.2%. Agreements were reached on the expansion of overland transport routes by Ukraine for the export of goods to European markets. This will make it possible to create a new transport and logistics infrastructure that provides export-import operations, which will be less dependent on sea freight.