Exports to the EU have already exceeded pre-war figures

The total volume of Ukrainian exports decreased by almost half compared to the pre-war level. However, some indicators exceeded most forecasts.

In August, Ukrainian exports to the countries of the European Union almost reached the pre-war level, and according to the results of January-September, they will even exceed the corresponding pre-war indicators. This was stated by Deputy Minister of Economy Taras Kachka.

“Today, the trade between Ukraine and the European Union has actually resumed. In August, exports to the EU compiled 90% of the level of exports recorded in August 2021. And in the three quarters of 2022, despite the war, we exported to the EU even several percent more than in the I-III quarters of 2021,” he said.

The trade activity of Ukrainian exporters was facilitated by a number of steps taken by the governments of the EU countries and Ukraine, in particular, the cancellation of quotas and customs tariffs by the European Union, the launch of the “line of solidarity” and the strengthening of the capacity of the customs infrastructure.

Also, since October 1, 2022, the “customs visa-free” will work. Thanks to it, goods will be able to cross the borders between Ukraine and EU countries even faster.

At the same time, according to Taras Kachka, the total volume of Ukrainian exports decreased by almost half compared to the pre-war period.

“If in January-February 2022, Ukraine exported monthly at the level of $6 billion or more, then now we are reaching the level of $3.4 billion – approximately this will be the result in September.

Exports to the countries of North Africa and Asia decreased the most. And now it is being restored only in the context of the grain initiative and the opening of ports. Trade with the Russian Federation and the Republic of Belarus has also been completely stopped,” Kachka said.

The Ministry of Economy calls on banks to support Ukrainian exports through ECA mechanisms.

The Ministry, together with the National Bank, has developed a mechanism that allows issuing affordable loans for the performance of export contracts without collateral under insurance coverage of the ECA.

In June 2022, the agency launched the mechanism of portfolio insurance of loans issued for the fulfillment of export contracts. Today, Oshchadbank, Ukrgasbank and Ukreximbank provide financial support to export-oriented businesses in this way. As First Vice Prime Minister – Minister of Economy Yuliya Svyridenko noted, they have already financed the insurance of 24 credit contracts worth UAH 70 million, which made it possible to export UAH 323.5 million.