The entry of Ukrainian exporters to new markets is hindered by the lengthy and capital-intensive process of bringing Ukrainian products into compliance with European standards, according to NBU’s review.
In 2017, the economic relationships between Ukraine and Europe significantly strengthened, mainly through export. After a multi-year interval, Europe became the main trading partner of Ukraine again.
“In spite of the positive developments, the sustainable deficit is still preserved in the commodity trade of Ukraine and Europe due to the high share of value added goods in the import”, the National Bank adds.
As per the results of 2017, the goods export to European countries increased by 31%, up to USD 14.4 bln, and its volumes exceeded the pre-crisis level of 2013. Europe’s share in the export reached 36% and was the largest one since 2004. The significant increase in export to Europe in 2017 was provided by both physical volumes and favorable prices.
NBU adds that though Ukrainian companies increased supplies to Europe, first of all, through traditional assortment of raw material goods (grain, oilseeds, metals and ores), in the meantime, they continued to enter to new goods markets. As it is evidenced by the rapid increase of penetration indices on almost all goods groups, machinery products, industrial products (penetration indices show the ratio of the number of countries, to which certain national goods are exported, to the number of all countries, which import these goods).