Page 29 - UKRRptSept23

Goods exported from Ukraine amounted to $21.8bn. The top recipients were Poland with $3bn, Romania with $2.2bn and China with $1.7bn. Food products topped the list of exports at $13bn, followed by metals and metal products at $2.4bn and machines, equipment and transport at $1.9bn.
Russia’s full-scale invasion has significantly affected Ukraine’s trade, as its Black Sea ports remain blocked, causing freight traffic last year to drop by 42.7%, passenger traffic by 50.4% and retail trade (turnover) by 21.4%. Although three ports were allowed to operate under the grain corridor, Russia’s decision to pull out in July has negatively affected agricultural trade, with Ukraine and its allies attempting to find alternative routes.
Ukraine increased foreign trade turnover of goods by 3%. For the first seven months of the year, Ukraine's merchandise turnover amounted to $57.5B, 3% more than in 2022, the State Customs Service reported. During this period, Ukraine imported goods worth $35.7B and exported $21.8B. At the same time, taxed imports amounted to $29B, 81% of the total volume of imported goods.
Ukraine imported the most goods from China - $5.6B, Poland - $3.8B, and Turkey - $ 2.8 B. At the same time, Ukraine exported the most goods to Poland - $3B, Romania - $2.2B, and China - $1.7B.
Ukraine buys machines, equipment, and transport the most (66%), accounting for $10.6B, fuel and energy products - $6.4B, and chemical industry products - $6.4B. The export leaders are food products - $13B, metals and their products - $2.4B, and machines, equipment, and transport - $ 1.9 B.
5.2.1 Import/export dynamics
Ukraine will not make concessions in the grain conflict with Poland. The Ukrainian government is firm in its demands that the EU cancel the unilateral restrictions on Ukrainian exports. It believes Brussels should find a solution with Poland, said Deputy Prime Minister for Euro-Atlantic Integration Olga Stefanishyna. The European Commission does not intend to continue the restrictions after they expire on September 15. However, there are intentions to introduce restrictions by several countries unilaterally, but this would violate the EU's basic rules. According to Stefanishyna, further negotiations between the member states and the European Commission are necessary. In addition, the EU has tools to help Poland and other countries. "Several EU countries inspire this crisis - the main one is Poland. But Poland tripled the receipt from the European budget to support the relevant sectors. Ukraine did not receive additional funds," Stefanishyna noted. Meanwhile, the European Commission stated it is too early to discuss the need to extend restrictions on food imports from Ukraine after September 15.
Polish infrastructure is not ready for the volume of Ukrainian exports.
The total volume of exports through Polish ports decreased by 1% due to the infrastructure's unpreparedness: the country cannot handle cargo both at the border and in the ports, and the infrastructure is designed for imports, not exports, said Dmytro Nikolayenko, the top manager of Metinvest. He said that due to the blockade of the Black and Azov seas, the company had to look for new types of transport for export. Still, alternative routes to Poland's northern ports and Romania's southern ports are challenging. As Nikolayenko
29 UKRAINE Country Report September 2023 www.intellinews.com