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exports last year by 18% y/y, to a record $22.2bn,​ reports the Ukrainian Club of Agricultural Business. Last year, food accounted by 44% of all of Ukraine’s exports, up from 39% in 2018. Of total food exports, processed foods increased by 7%, to $3.1bn.
Exports of vegetables, fruits, berries and nuts, grew by 9.4% last year,
hitting a record $339mn, reports EastFruit, the analytical website. Walnuts, berries and apples grew to account for 70% of Ukraine’s exports last year. Although Ukraine has recovered from Russia’s trade embargos in this sector, Ukraine is not among the world’s top 50 exporters of fruits and vegetables. Poland, for example, exports $2.6bn – almost eight times Ukraine’s volume.
5.2.3​ Gross international reserves
Ukraine’s gross international reserves jumped 3.9% m/m to $26.3bn in January​, the National Bank of Ukraine (NBU) reported on February 5. The surge was driven by a Eurobond placement, the central bank’s operations at Ukraine’s ForEx and the payment by Russia’s Gazprom of a $2.6bn fine.
The government’s operations on state debt management in January included the placement of Eurobonds for €1,250mn. At the same time, the government spent $656mn (in the equivalent) on redeeming and servicing the state debt denominated in foreign currency. In particular, local Eurobond obligations in January amounted to $602mn.
The NBU’s net purchase of foreign currency at Ukraine’s ForEx during the month amounted to $98mn. The NBU also reported a $170.6mn rise in the value of its securities portfolio.
As of December 1, Ukraine’s gross reserves amounted to 3.9 months of imports, the NBU said.
The favourable situation at the global financial markets prompted Ukraine’s government to start fulfilling its plans on external borrowing in the very beginning of the year. MinFin has no plans for new placements of local Eurobonds in 1Q20, so the receipts from the placement of international Eurobonds in January should provide comfort in making payments related to redemption and servicing of foreign currency debt.
Foreign currency outlays in January include $399mn for the redemption and servicing of local Eurobonds. February gross reserves will depend on the NBU’s operations at Ukraine’s ForEx during the month. If appreciation pressure on the national currency intensifies, the central bank’s net currency purchases might offset outlays.
Assuming the IMF deal is finalized in the spring, Ukraine’s foreign reserves could grow by another 22%, to $32bn in 2020,​ predicts the National Bank of Ukraine. Last year, reserves grew by 22%, to 25.3bn. During January, they grew another $1bn, to $26.3bn. With $32bn, Ukraine would have enough money to cover five months of imports.
30​ UKRAINE Country Report​ March 2020 ​ ​www.intellinews.com