In H1 2021, Ukraine boosted exports by 30% to $29.97 billion y-o-y, 22% up from H1 2019.

These figures were presented by Taras Kachka, Deputy Minister of Economic Development, Trade and Agriculture of Ukraine, Trade Representative of Ukraine, on his Facebook page.

“Most importantly, the negative balance shrank even more than last year. $1.25 billion is 8.36% less than last year. While on 1 July 2019 the negative balance was minus $3.16 billion. So, the negative balance contracted 60% in two years (from $3.16 billion to $1.25 billion)”, says the Deputy Minister.

In H1 2021, exports to the EU increased by 45% to $12.3 billion compared to the same period of the previous year and by 20% compared to H1 2019.

Exports to China rose by 42.4% to $4.28 billion y-o-y. The growth reached 175% compared to H1 2019.

In H1 2021, exports to Turkey increased by 51% to $1.79 billion compared to the same period of the previous year. The reason is the hike in demand for raw materials amid the economic recovery.

“Our neighbor and partner Turkey and us are having a positive balance again. We have plus $460 million in the first half of this year (in the first six months of last year we had an almost zero balance, the surplus was $80 million),” underlines Mr Kachka.

He notes that exports of industrial commodities (categories 84, 85) rose in H1 despite the traditionally negative balance. Exports grew by 32% to $2.4 billion in H1 compared to the same period a year earlier, and by $366 million compared to H1 2019.

“These figures do not mean that we have fixed some core problems in trade (including predominance of commodities, ensuring equal access to the market with key partners and insufficient financial support of exports). They rather show that Ukrainian business is competitive despite the crises and challenges,” summarizes the Trade Representative.

As reported earlier, in Q1 2021 Ukraine’s exports rose by 12% to $13.75 billion y-o-y. The key driver of the growth were ore and ferrous metals.

In 2020, Ukraine’s foreign trade deficit was $4.8 billion. Exports went down by 1.7% to $49.2 billion, imports by 11% to $54.1 billion.

The auction commission for United Mining and Chemical Company JSC (UMCC) scheduled the auction for 31 August 2021 with the opening price of ₴3.7 billion, according to a statement posted by the Head of the State Property Fund (SPF), Dmytro Sennychenko, on his Facebook page.

According to the post, the opening price was set by the privatization advisor based on the results of a comprehensive audit and a full valuation of the company’s plant and equipment.

“A wide range of investors, including a few foreign ones, have submitted their preliminary expression of interest in the asset. We are expecting high competition and a market price of sale at a transparent auction,” said the Head of the SPF.

UMCC started its operations in 2014 when the government of Ukraine transferred the management of Vilnohirsk Mining & Metals Integrated Works and Irshansk Mining & Processing Works to it. In October 2019, the government launched the process of privatization of the company by transferring it into SPF’s ownership.

The UMCC privatization auction was expected to take place in March 2020, but in late March, SPF suspended sales of large assets subject to privatization, pending stabilization of the world markets.

In late February 2021, the Fund presented a new acting CEO of UMCC, Mykhailo Makarov. The new management was charged with conducting an audit of the company and preparing it for privatization.

In April 2021, SPF set an opening price of UMCC in the amount of ₴3.7 billion. The opening price was estimated based on the results of a comprehensive audit and a full valuation of the company’s plant and equipment.

UMCC produces titanium raw material. It comprises two branches: Vilnohirsk Mining & Metals Integrated Works and Irshansk Mining & Processing Works.

In Q1 2021, UMCC’s net profit dropped by 41.3% to ₴144.058 million compared to Q1 2020. Net sales revenues over the quarter was ₴1.186 billion, which is 21.3% more than in the same period of 2020. Retained earnings at the end of March were ₴167.398 million.

The State Statistics Service scaled down its estimate of a drop in the real GDP of Ukraine in Q1 2021 to -2.2% y-o-y. Preliminary assessment of economic decline was -2%, as reported by the State Statistics Service of Ukraine on its website.

Ukraine’s GDP contracted 1.2% against the previous quarter (after seasonal adjustment). Earlier, the agency estimated the GDP fall at -1.1%.

According to the State Statistics Service of Ukraine, nominal GDP amounted to ₴1.9 trillion, or ₴24.28 thousand per capita. The percentage change in the GDP deflator was 20.7%.

As reported earlier, according to the State Statistics Service, a 1.5% drop was recorded in Ukraine’s real GDP in Q1 2020 compared to the same period a year earlier. Real GDP declined by 0.8% against the previous quarter.

In 2020, the State Statistics Service estimated a fall in real GDP at 4% compared to the previous year. Q4 2020 demonstrated a 0.7% contraction in Ukraine’s GDP against Q4 2019.