The total Ukrainian exports decreased by almost half compared to the pre-war period

In August 2022, Ukrainian exports to the countries of the European Union almost reached the pre-war level, and in January-September 2022, it even exceeded the pre-war indicators. This was announced by the Deputy Minister of Economy Taras Kachka, reports Ministry of Economy.

“Today, trade between Ukraine and the European Union has actually resumed. In August, exports to the EU were 90% of the exports level recorded in August 2021. And in the three quarters of 2022, despite the war, we exported to the EU even several percent more than in the I-III quarters of 2021,” he noted.

The trade activity of Ukrainian exporters was facilitated by a number of steps taken by the governments of the EU countries and Ukraine, in particular, the cancellation of quotas and customs tariffs by the European Union, the launch of the «solidarity line» and the strengthening of the customs infrastructure capacity.

Also, from October 1, 2022, the «customs visa-free» will work. Thanks to this, goods will be able to cross the borders between Ukraine and EU countries even faster.

At the same time, according to Taras Kachka, the total Ukrainian exports decreased by almost half compared to the pre-war period.

“If in January-February 2022, Ukraine exported monthly at the level of $6 billion or more, then now we are reaching the level of $3.4 billion – approximately this will be the result in September. Exports to the countries of North Africa and Asia decreased the most. And now it is being restored only in the context of the grain initiative and the opening of ports. Also, trade with the Russian Federation and the Republic of Belarus has been completely stopped,” said the Deputy Minister of Economy.

As GMK Center reported earlier, Ukrainian mining companies, in January-August 2022, sent 20.01 million tons of iron ore abroad. This is 32.8% less compared to the same period in 2021. The revenue of companies from the iron ore export for 8 months of 2022 decreased by 53.8% – to $2.53 billion.

After the invasion of Russia on the territory of Ukraine, domestic steel companies reduced the export of products to a minimum due to the blockade of sea ports. Steelmakers are looking for ways to ship their products through the railway infrastructure, but due to the influx of cargo, Ukrzaliznytsia and border crossings are unable to cope. In addition, this method of cargo delivery is unprofitable due to the two-fold increase in costs.

Problems with logistics are superimposed on unfavorable market conditions – iron ore prices are falling. As a result, Ukrainian mining and processing plants are forced to completely stop or reduce the iron ore production.