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29 March 2024

News

14.01.2016

Ukrainian exporters might lose up to USD 0.7 bln of revenue due to transit restrictions

Ukrainian exporters might lose up to USD 0.7 bln of revenue due to transit restrictions

In case of a complete ban of transit of Ukrainian goods through the territory of Russian Federation domestic exporters of agricultural products might bear losses amounting to USD 0.7 bln.

During 10 months of 2015 the volume of trade with countries which imported Ukrainian goods through the territory of Russia has decreased by USD 0.1 bln, or 16%, and during the full 2015 year, since the beginning of widespread trade conflict with Russia, the volume of trade has decreased by 25%.

The main importers of Ukrainian goods through the territory of Russian Federation are Azerbaijan, Armenia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. About 4% of total agricultural exports from Ukraine account for these countries. This is mainly processed production (73-81% of the exports, depending on the year).

Restrictions applied by Russian Federation might most probably affect exporters of sugar, as abovementioned markets occupy 59% of Ukrainian exports of this product, 51% of cocoa-free sugar confectionery (including white chocolate), 47% of chocolate and other processed food products containing cocoa and 50% of cereal products, 35% of live animals and 29% of meat and fish products. Given that these goods are mainly exported to CIS countries, search for other markets might be difficult and not always successful, because the products that are supplied generally to the markets of post-Soviet countries are not competitive on the markets of developed countries due to inadequate quality and/or price.

"Exporters of competitive production will be able to find new markets for their goods so there will be no critical losses from the restriction of transit of Ukrainian agricultural production through the territory of Russia. Those who used to supply production mostly to CIS markets will have more difficulties, but the possibility of indirect exports is not excluded. As for the exporters themselves, each company will suffer from inconveniences and losses caused by these restrictions", - the head of the expert group of UCAB Igor Ostapchuk comments.

Association "Ukrainian Agribusiness Club" 

3 floor, 146 Zhylianska Str.

01032 Kyiv, Ukraine

Phone/Fax: +380 44 2362097/79

feschenko@ucab.ua 

Anna Feshchenko

www.ucab.ua

The Association "Ukrainian Agribusiness Club" (UCAB) www.ucab.ua was founded in 2007 to protect the economic and professional interests of players of agribusiness in Ukraine. UCAB is a unique platform in Ukraine for establishing business contacts between the leaders of agribusiness, improvement their work and dialogue with the government. UCAB actively supports Ukrainian producers in establishing and maintaining international business relations. The Association consists of the largest producers and processors of agricultural products in Ukraine.




  • Baker TILLY
  • Agroresurs
  • AMAKO
  • Limagrain
  • Zeppelin
  • Amazone
  • LNZ Group
  •  Agricom Group
  • horsch
  • uahk
  • Сygnet
  • Syngenta
  • Agco
  • Agroregion
  • Eridon
  • MHP
  • Maschionet
  • Maisadour
  • DuPont Pioneer
  • Agroscop
  • Agrimatco
  • NCH Advisors
  • Continental farmers Group
  • credit agricole
  • claas
  • john deer
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