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and in the direction of western land crossings, it is 661,000 tons (20%). In addition, in January, UZ transported 146,300 tons of sunflower oil for export. Of this volume, 5,110 tons went to the ports, and 140,900 tons (95%) went to the western border crossings.
State banks have begun to insure vessels that export goods through the sea corridor. State-owned Ukreximbank and Ukrgasbank, at the request of the Export Credit Agency, issued letters of credit for $10M each in favor of a pool of 14 British insurance companies to reduce the cost of insurance for ships moving through the Black Sea corridor. It is noted that the mechanism of using letters of credit lowers the financial risks for British insurers, which allows for lower policy prices for shipowners. Thus, this practice makes the sea route more accessible to many exporters. The mechanism was developed through cooperation between the Ukrainian and British governments to provide shipowners with the opportunity to obtain affordable insurance coverage for the transportation of grain and other goods exported from Ukraine by sea. The need for this arose after Russia withdrew from the UN-brokered grain agreement in July 2023, which increased danger to ships and, therefore, the insurance cost.
Ukraine will become the eastern customs border of the EU and is already implementing the necessary reforms. As part of a reform of customs policy, the National Revenue Strategy plans to implement essential steps for customs transformation into the eastern customs of the EU. This goal is part of a broader strategy aimed at the comprehensive restructuring of customs authorities, the active fight against smuggling, and the harmonization of Ukrainian customs legislation with EU norms. It is noted that the reform includes a series of initiatives aimed at improving the Ukrainian customs system. This includes the transition of customs formalities in Ukraine to follow the EU standards. One of the key elements is the introduction of Ukraine's new Customs Code, which will be based on the EU Customs Code. Considerable attention is also being paid to strengthening legal regulations. This includes imposing criminal liability for smuggling, false customs declaration, and other unlawful activities at border crossings.
● Partners & regions
Which countries imported the most Ukrainian agricultural products? Last year, Romania topped the ranking of the largest importers of Ukrainian farm products for the first time, buying $2.87B of them. This coutnry’s share in the domestic export of agricultural products was 13%. China took second place and, in terms of value, increased its purchase of Ukrainian agricultural products.
In 2022, the value of supplies sent from Ukraine to China amounted to $1.8B, then in 2023, it increased by 18% to $2.2B. China's share was 10% last year.
By importing $1.99B worth of agricultural products from Ukraine, Turkey retained third place in this ranking with a share of 9%.
The consequences of the restrictions on the import of agricultural products from Ukraine introduced by Poland in the spring of last year not only lost Poland its status as the main buyer of Ukrainian produce but also resulted in a decrease in the value of imports from its side by 33% to $1.79B.
At the same time, we note that last year, flour exports to the EU exceeded 50% of the total volume sold for the first time.
45 UKRAINE Country Report February 2024 www.intellinews.com