How has Ukraine’s foreign trade changed in 2020?

How has Ukraine’s foreign trade changed in 2020?

Do you know who Ukraine trades with? Ukraine actively trades with many countries contrary to critical public opinion. This is primarily the European Union, Russia and other countries. But today we can see serious changes in the trade balance. How it will affect Ukrainian economy in the future?

What changes have taken place in Ukrainian trade with other countries?

Russia doesn’t hold leadership positions like Ukrainian trade partner. It is important to note the largest partner became the People’s Republic of China. It  happened against the background of a slowdown in trade with European partners.

The decrease in trade with Russia is not news. This trend has been observed since 2014. Then it accelerated in 2019. New trade restrictions were introduced between countries at this time. The northern neighbor imposed sanctions affected imports from Ukraine from December 2018 for example. The number of goods exceeded 200 pieces. It was added to the remediation list another 140 units of goods six months later. It is necessary to add Russian exports decreased to Ukraine.

Exports to Russia fell by as much as ten percent and imports by as much as thirteen percent as a result. This means the value of trade between countries with strained relations has decreased to 10 billion dollars. It is similar to the level of the early 2000 years. China has become Ukraine’s main partner in exports and imports. China ahead Germany in imports and Poland in exports. China’s role in our trade increased every year. It is not surprising due to the significant increase in economic potential of China.

Experts were surprised China surpassed Poland as the largest export partner for Ukraine. Poland remained the leader in this area when last year began. But the situation is radically different now.

What has changed in trade between our country and the EU in recent years?

The growth of trade between our country and the European Union was resumed in 2016. The driving force for increasing trade between the countries was the free zone trade introduction. The trade development with the EU has been faster with any other partner as a result.

This year has changed the situation. The trade growth with Poland has fallen to 2%. It is a less than the growth in recent years. Such conditions significantly changes a vector of trade development. The situation is exacerbated by Covid-19. European economy is just beginning to emerge from quarantine and will not be fully operational until 2021 year.

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