Page 38 - UKRRptOct23

5.0 External Sector & Trade 5.1 External sector overview
5.2 Balance of payments
In August, Ukraine managed to reduce the foreign trade deficit. As reported in the customs committee of the parliament, this indicator amounted to $2.77B against $2.83B in July. Despite the shelling of the port infrastructure, it is noted that the export of agricultural products increased to $1.55B. The volume of exports of metallurgical products remained constant at $0.3B. It should be noted that, according to the data from the customs service, for eight months of the year, exports to EU countries amounted to $15.7B, 63.6% of all exports. Imports from EU countries are $21.1B, which is 51.3% of all imports. Compared to the same period last year, imports from the EU increased by 26% (+$4.4B). It is also reported that 44% of all exported goods went to Poland - $3.4B, Romania - $2B, China - $1.8B, Turkey - $1.8B, and Germany - $ 1.3 B. At the same time, 47% of all imported goods came from China - $6.5B, Poland - $4.4B, Turkey - $3.4B, Germany - $3.2B, and the US - $1.8B.
5.2.1 Import/export dynamics
● Partners & regions
Poland still wants to ban imports from Ukraine but will consider Ukraine's plan for grain export. Polish Prime Minister Mateusz Morawiecki emphasized that he has given an ultimatum to the President of the European Commission regarding the extension of the ban on importing Ukrainian grain after September 15. And since Brussels did not do this, Warsaw introduced the ban unilaterally. "Until a cooperation mechanism is developed, we will act like this with all products from the east because the interests of Polish farmers are in our national interests," he emphasized. Morawiecki is convinced that Russia, not Polish agriculture, should pay for the consequences of the war. At the same time, on September 27, Ukraine and Poland's agricultural ministers negotiated regarding the licensing procedure for Ukrainian agricultural products. So far, there is no progress, judging by the reports from both ministries. The Polish government is ready to study the Ukrainian proposal, but Robert Telus insists: "The most important thing is that the grain does not flow to Poland at this time.
Baltic and Polish ports can pass 10 million tons of Ukrainian grain annually, but exports continue through Croatian ports. Lithuanian President Gitanas Nauseda believes that after the development of the port corridors of the Baltic Sea, it will be possible to transit up to 10 million tons of Ukrainian grain annually. As he noted after the Three Seas Initiative summit in Bucharest, it is impossible to export as much grain through the ports of the Baltic countries and Poland as Ukraine exports through the main transit routes, and the total contribution of Poland, Lithuania, Latvia, and Estonia can be significant. At the same time, Nauseda emphasized that the EU countries should "do everything possible" so that Ukrainian grain could enter international markets without hindrance. Meanwhile, the Ministry of Economy reported that Ukrainian grain has already been exported through Croatian
38 UKRAINE Country Report October 2023 www.intellinews.com