How the war affected export markets

The beginning and subsequent course of a full-scale war became a test for Ukraine that touched all spheres. It affected the economy almost the most. The export of Ukrainian goods looks like one of the ways to overcome the crisis, but at the same time it requires endurance, flexibility of thinking and adaptability from entrepreneurs. Blockade of ports, destruction of infrastructure, restructuring of supply chains – this is far from a complete list of what Ukrainian companies are facing.

What do the figures say

According to the results contained in the “New Monthly Survey of Enterprises” from June 29, 2023, the trends are as follows:

• Many enterprises that worked before the war in the direction of export activity find it difficult to resume work. 19% of companies are those who have not managed to do this in the last year.
• Most of the companies look at the nearest dynamics quite pessimistically. Thus, 59% of respondents do not expect positive changes to take place in the export sector in the near future.
  Nevertheless, 37% of respondents have a more optimistic forecast. Regarding the key complications that hinder Ukrainian exports, there are queues at the western borders of our country, blockade of ports, lack of wagons and customs formalities. 68%, 44%, 33% and 33% of respondents spoke about these phenomena, respectively.
  What conclusion can be drawn from the listed numbers? First, the vast majority of Ukrainian exporting companies continue their work, despite the unprecedented level of difficulties. Secondly, almost a fifth of the companies did not manage to resume their activities, and this is also a lot. Third, there are a number of artificially created systemic problems that hinder the work of enterprises that are already struggling to withstand all the pressures of war-related circumstances. For example, the work of customs is the factor that slows down the clearance of cargo.
  There are certain positive developments such as visa-free customs, but, at the same time, their implementation is slow enough. Another plus is the functioning of the system”Shlyakh” (Path). These factors make it possible to see that there are changes, but the objective reality requires that all market participants join forces and adapt it to new conditions.

What areas of enterprise activity are favorable for export

Based on the data of the already mentioned Survey, it is worth noting that the enterprises that are involved in the spheres of metallurgy and metalworking work for export most often, and the least – those that work in the construction industry.
When we talk about the recovery of exports, it is important to analyze its real dynamics. If in May 2022, about 47% of exporters failed to resume their activities, then in February of this year, the indicator was much more optimistic.
Also interesting is the fact that enterprises in different industries recover at different rates. For example, it is most difficult for companies involved in construction to resume export activities, while companies working in the woodworking and chemical industries succeed the fastest.

Company scale and export activity

The fastest and easiest way to resume export activities is for large enterprises, and it is the most difficult for micro-businesses. This trend is obvious. At the same time, large companies have greater export potential, and the scaling of activities can also involve an export component. Therefore, when we talk about the export of Ukrainian goods, it is important to note that it is not only about its restoration, but also about the development of this direction by companies that had not previously worked in it.
Entering export markets is not easy. This requires a lot of interdisciplinary knowledge – in marketing, management of foreign economic activity, peculiarities of the regulatory and legal framework of the countries in which the company plans to work. And this is far from a complete list of necessary knowledge. It is worth studying the experience of successful companies that managed to achieve this goal. Last but not least, it is necessary to get to know the mentality of consumers of those countries where the company is going to export goods. The manner in which the communication policy should be built depends on this factor.
In view of all that has been said, the activity of companies that specialize in supporting the opening of export directions in the work of client enterprises is gaining great demand.

The ban on Ukrainian imports in Europe: an analysis of the facts

On April 15, a government decree banning the import of Ukrainian agricultural products entered into legal force in Poland, and the other day an initiative to ban the import of frozen berries was discussed.
Ukrainian business tries to survive by exporting goods to other countries. But there it competes with the products of local producers, which leads to dumping and tensions. On the one hand, it creates complications. However, on the other hand, many areas of export activity continue to remain open.
Logistics chains are functioning, through which products go from Ukrainian ports on the Danube to Romanian Constanta, Bulgarian Varna and Polish Gdańsk. The field of intermodal transportation is improving, and Ukrainian manufacturers are finding new sales markets. He who thinks innovatively and looks for non-standard solutions and approaches survives.

What can be predicted for the future

In conditions of full-scale war and uncertainty, planning always involves taking into account various options and scenarios of the development of events. However, the demand for export activity is obvious. Entrepreneurs strive to sell their products in stable, safe and secured markets with predictable development dynamics. Therefore, in the future, the export direction has grounds for strengthening – albeit gradual, but convincing.