Page 27 - UKRRptOct22

The EU wants to boost Ukraine’s economy with single market access.
The head of the European Union, Ursula von der Leyen, pledged to work to guarantee access for Ukraine to the bloc’s massive single market to help its war-torn economy. The EU president plans to make her third trip to Ukraine since the invasion to discuss the plan with President Volodymyr Zelenskiyy. “Europe’s solidarity with Ukraine will remain unshakable,” said the president of the European Commission during her speech in Strasbourg. She added, “Our single market is one of Europe’s greatest success stories. We know the power that lies in the single market, so now it is time to make it a success story for our Ukrainian friends, too.”
Zelenskiyy has taken the last step toward transport visa-free status with the EU. President Volodymyr Zelenskiyi signed a decree approving the transport visa-free agreement between Ukraine and the EU. The agreement cancels the mandatory obtaining of transport permits by Ukrainian carriers in European countries. This greatly facilitates exports and avoids its stoppage. Recognition of driver's licenses is also simplified. From now on, Ukrainian drivers in the EU do not need to have an international license. The Transport visa-free agreement will be valid for one year with a possibility for extension.
Ukrainian Exports exceeded $1B for the first time since the beginning of the war. In August, all Ukrainian exports, industrial and agricultural, increased by 37% and exceeded $1B for the first time since the beginning of the war. According to the trade representative of Ukraine, Taras Kachka, the main reason for the increase was the unblocking of Ukrainian seaports. According to his data, in August, Ukraine sent 880,900 tons of wheat by all modes of transport and through all logistic routes. This product has been shipped to Turkey, Romania, Sudan, Egypt, Lebanon, Hungary, Poland, Greece, Germany, Italy, Moldova, Slovakia, Albania, the USA, and Bulgaria.
Ukraine's earnings from ferrous metals export decreased by 58%. For the first eight months of 2022, the foreign exchange earnings of Ukraine’s metallurgical enterprises from the export of ferrous metals fell by 58% compared to the same period last year, from $8.92B to $3.72B. According to the State Customs Service, ferrous metals during this period accounted for 12.86% of the total revenue from the export of goods. During the same period last year, ferrous metals accounted for 21.34% of export revenues. In January-August 2022, the export of metal products also decreased by 8.9%, to $703.13M. In monetary terms, the export of pig iron for eight months of the year fell by 57.8%, to $475.53M. Ukraine supplied pig iron mainly to the US, with 40.42% of the supply in monetary terms, Poland (33.23%), and Turkey (9.3%).
In August, exports of Ukrainian goods increased by 14%. In August 2022, Ukrainian exports increased by 13.9% to $3.36B. This is the largest amount since the beginning of the war, but it is 44% less than in January ($6B), the Ministry of Economy said. Export volumes for July increased by 25% and amounted to 7.29mn tons, but the volume is half as much as in January (14.56mn tons). Sea transportation in August increased by 85% and amounted to almost 2.9mn tons. Ukraine exported more than 3mn tons of goods by rail and 1.36mn tons over roads. Through these efforts, exporters received the largest profit from goods exported by road, $1.48B, by sea, $995M, and by rail, $788M. At the same time, imports in August decreased by 2.3%, to $4.42B. As a result, the negative balance of foreign trade in August dropped to $1.05B
27 UKRAINE Country Report October 2022 www.intellinews.com