KIEV: New figures show that the Ukraine has been hit by an export slump of 17% in the first half of 2015 fuelled by a combination of political instability and a lack of confidence in future development.
The latest freight traffic analysis report by Informall also demonstrates that a key factor in the slump has been local currency depreciation and most experts agree that the current situation will not improve until its fundamental cause has been addressed.
In the first half of 2015, exports amounted to 78,342 containers which is 16.7% less compared to the second half of 2014, when Ukraine exported 91,392 containers.
While growth was shown in several commodities including mineral ore and ferrous metal goods, huge reductions were seen in the export of seeds and mineral fuels – 78.5% and 67% respectively.
It is these consumer goods together with light industry which has a tendency to decline against the background of a sharp devaluation in local currency.
In the first half of 2015, the TOP-5 container terminals of Ukraine by export container volume handled were: HPC Ukraine (65,430 teu) and Brooklyn Kiev Port (26,741 teu). Third place belonged to the CTI terminal (17,063 teu), while TIS terminal took fourth place (12,828 teu) and the Ilyichevsk Fish Port terminal was in fifth (8,237 teu).
Key issues affecting export volumes included the restrictive trade measures between Ukraine and Russia, with the volume of Ukrainian export to Russia decreasing by more than US$5bn from US$15 down to US$9.8bn. This took a further nosedive in the first half of 2015 by 65%.
Because of this issue, the Ukraine has tried to compensate through increasing exports to the EU but its not met its target. The export volume of the Ukraine to the EU in the first half of 2015 was down by 38%, not helped by the substantial quota allocation.
The issue of raising exports while reducing imports is fundamental to the Ukraine’s economic recovery. The report makes for grim reading as it projects export volumes to be just as low in the second half of 2015 due to the continued attempt to stabilise the local economy.
