Page 33 - UKRRptAug18

Ukraine’s exports to Canada rose 74.4% in 2017 (or $21.5mn) and amounted to $50.4mn, the press service of the Economic Development and Trade Ministry reports. The free trade agreement between Canada and Ukraine was signed in July 2016 and cancelled 98% of tariffs for Ukrainian goods to be sold to Canada. 72% of tariffs were cancelled for Canadian goods, and in the next seven years duty free exports will grow to 98%, Ukrinform reports.
Parliament limits timber exploitation and exports. The Verkhovna Rada has approved amendments to the legislation concerning the preservation of Ukrainian forests and prevention of illegal export of unprocessed timber. Domestic consumption of raw timber has been limited to 25mn cubic metres per year and administrative and criminal liability for illegal logging and export has been significantly strengthened
5.2.2 Capital flight dynamics
Private money transfers to Ukraine jumped by 34% during the first quarter, compared to the same January-March period last year, according to Novoe Vremya news site. Transfers from Poland jumped by 45% to $865, almost triple the $300mn sent from Russia, the historic destination for Ukrainian labour. While transfers from Russia were down 8%, transfers from the US jumped by 30% to $192mn, the news site said, citing National Bank of Ukraine figures. Reflecting Ukraine’s westward turn, remittances from EU countries were up 44%, to $1.6bn, while remittances from former Soviet countries were down 6%, to $340mn.
5.2.3 Gross international reserves
Ukraine's foreign exchange reserves declines by 1.1% month-on-month to $17.978 in June , according to the National Bank of Ukraine (NBU), falling below $18bn for the first time since the end of last year.
The result was mainly attributed to state debt repayments - Kyiv spent $562.4mn on servicing and repaying the national debt in foreign currency, of which $552.5mn was for government local loan bonds denominated in foreign currency. Ukraine also repaid 4162mn to the International Monetary Fund (IMF).
At the same time, the main source of replenishment of reserves was income from the placement of government domestic loan bonds denominated in foreign currency in the amount of $539.4mn.
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.
33 UKRAINE Country Report August 2018 www.intellinews.com