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world trade in honey has grown by 18%, reaching 690,000 tons last year, with a total value of $2.4bn. For Ukraine to add value to its exports, it needs to move from bulk to creating a brand and exporting bottled honey.
Ice cream production growing, exports up 23.1%. In January-May 2018 the production of ice cream in Ukraine increased by 1.7% y/y to 42,800 tonnes, and 2,900 tonnes were exported, a growth of 23.1%. Ice cream exports to the EU amounted to 232 tonnes, or 8% of the total export. Ice cream is exported from Ukraine to more than 50 countries. Over the past three years, ice cream consumption in Ukraine has increased whilst consumption per capita still remains level, Interfax-Ukraine reports.
5.2.2 Gross international reserves
Ukraine's foreign exchange reserves declined by 1.6% month-on-month to $18.12bn in May , according to the National Bank of Ukraine (NBU).
The result was mainly attributed to the nation's repayments on state debt. Specifically, $455.1mn was paid to the International Monetary Fund (IMF), $214.4mn to service and pay the government's debt in foreign currency, including $126.2mn on government domestic loan bonds and $18.5mn on sovereign bonds.
At the same time, the NBU was able to support the reserves by the purchase of foreign currency on the interbank market. High prices for Ukrainian exports - specifically, metals, ore and grain - contributed to stable FX inflows.
In late May, the National Bank of Ukraine (NBU)'s governor Yakiv Smolii said that the regulator is going to tighten its monetary policy and introduce some currency restrictions if the inflationary pressure worsens and if Ukraine fails to receive the new tranche from the IMF.
"If the inflation pressure grows, of course, the NBU would strengthen monetary tools to curb inflation. We will introduce some restrictions for preventing the possible removal of capital," Smolii underlined. He added that the issue of possible scenarios if no money from the IMF arrives was discussed at a meeting of the NBU monetary policy committee.
Ukraine has received $8.4bn from the IMF so far under the lender's programme. However, the allocation of more tranches stalled in 2017 due to lack of progress in Ukrainian reforms, specifically, over establishing of an independent anti-corruption court .
Meanwhile, Evgeniya Akhtyrko at Kyiv-based brokerage Concorde Capital believes that Ukraine will encounter difficulty with maintaining international reserves in June, given increased payments on FCY-denominated debt (around $166mn to the IMF and $546mn on a local Eurobond redemption and coupon payment).
"To avoid reserves losses, this outflow might be compensated by receipts from a local bond placement (around $500mn) and a currency purchase on the ForEx (around $200mn)," she wrote in a note on June 6. "Most probably, international reserves in June will be close to the level of the previous month."
30 UKRAINE Country Report July 2018 www.intellinews.com