“Ukraine is gradually restoring exports. This is important to ensure foreign exchange revenues to the state budget, especially in the light of uncertainty with Western aid. Thus, for 2024, Ukraine sold goods for $ 41.627 billion, which means an increase of 15%in money, in weight dimension – more than 30%. If these export rates can be saved for several years then”, – WRITE ON: ua.news
Ukraine is gradually restoring exports. This is important to ensure foreign exchange revenues to the state budget, especially in the light of uncertainty with Western aid. Thus, for 2024, Ukraine sold goods for $ 41.627 billion, which means an increase of 15%in money, in weight dimension – more than 30%. If these export rates can be saved for several years, it is possible to return to the pre-war level rapidly, according to the Chamber of Commerce and Industry of Ukraine.
However, to achieve this exporters need the state support to ensure logistics, open new markets and build a strong brand of Ukrainian goods. Gennady Chizhikov, President of the Chamber of Commerce and Industry of Ukraine, told about trade with the European Union and China, rapprochement with Japan and dialogue with Poland at the level of business associations in an interview with UA.news.
How much have export flows changed during the war?
Gennady Chizhikov: First, the export structure itself has changed. Before the war, considerable exports were provided by metallurgical, machine -building, chemical enterprises, mostly located in the east of the country. We now have a situation where more than 60% of exports are agricultural products. That is, the metallurgical industry, which was in the first place among exporters, gave way to leadership. It should also be remembered that almost 20% of our territories are occupied, but even under such conditions, we were able to restore exports to 2021.
Secondly, the geography of logistics has changed. We now have two major ways to export our products. First of all, it is a marine corridor through which we supply products for large buyers such as China, Egypt and others. In the European direction, Poland, Spain Germany, the Netherlands, Italy came to export. Earlier, these countries have taken a modest place among our markets, except for Poland, which traditionally follows the main flow of Ukrainian goods.
Third, there was such a positive trend as the appearance of small companies among exporters. They find certain niches in the market, such as foodstuffs. We have cases of companies that produce bars, different snacks and with these products enter the markets of Japan, Australia.
As for the challenges. Despite the gradual recovery of exports, it should be understood that business is acutely lack credit, effective risk insurance. Among the main challenges are logistics. We need to look for ways to transport our goods. Although we have open gates (ports of Odessa), there is a problem: for ships that go there very expensive insurance – interest is so high that it makes our products uncompetitive. But we have no other way out. We are working to solve these problems.
What other markets are interesting for our exporters?
Gennady Chizhikov: Despite the distance of more than 6,000 km, China is one of the largest exporters of Ukrainian goods, especially agricultural products. A working meeting with the Ambassador of China to Ukraine is Matenkun. He told about ambitious goals: to increase the turnover between our countries almost twice.
Last year, we also began to actively open Latin America for Ukrainian suppliers. This year, together with other partners, we open the African market. In April we will hold large business events there, present our export products in the capital of Kenya Nairobi. We also intensify cooperation with the Philippines, Brazil, Egypt, Indonesia to help our companies enter these markets.
According to the Ministry of Economy, we are gradually growing turnover with Japan. How strategic can this partnership be for Ukraine?
Gennady Chizhikov: Japan is our strategic partner. None of the Asia countries provides Ukraine with such significant economic and political support. Thanks to Japan and National Business Associations, we jointly build new relationships, open up the Japanese market for Ukrainian business. It should be granted that Japan is one of the leaders among countries that actively promote themselves in terms of cooperation and support of Ukrainian business.
Japan, as never before, has become a friendly country. This is evidenced by a large number of joint events and visits at the level of delegations. Therefore, our task is to turn this trust and support into specific economic cooperation in a few years.
Reference on the prospects of cooperation with Japan: Ukrainian business is interested in participating in Expo 2025 in Japanese Osaka. Last year, the Chambers of Commerce and Industry of Ukraine and Japan signed a memorandum on strengthening business ties between companies of both countries. The Government of Japan is also funded by UNDP projects (UN development programs) in Ukraine, including a bilateral business dialogue support. The CCI of Ukraine plans an information campaign, which will release an inspection of the Japanese market and conduct trainings for our exporters who want to supply products there. Also important are the opening of the Jetro office in Ukraine, a government organization that promotes Japanese companies abroad. As well as UNIDO (UN specialized agency), which takes place in several stages: Japanese manufacturers receive funding, and Ukrainian companies – equipment of these manufacturers are free of charge as technical support.
To what extent is free access to our products into European markets?
Gennady Chizhikov: The European Union remains our main partner. The European Commission has continued our preferential trade conditions, and we will work to keep these conditions next year. We need to admit that the European market is overloaded, it is difficult to compete there. But we work and have positive examples of how Ukrainian manufacturers enter these markets. For example, our ice cream is sold in Britain, candy, organic products – in Germany, Poland and other countries.
In general, our policy should be aimed at promoting Made in Ukraine. We need to form a global idea of Ukraine not only as a country of bold people and heroes, but also manufacturers of delicious and quality products. This is possible only by the joint efforts of state bodies, our representatives abroad and organizations such as the Chamber of Commerce and other business associations. Only so, in another way, it doesn’t work.
And how is the dialogue about trade with Poland?
Gennady Chizhikov: Poland is an important economic partner of Ukraine. Unfortunately, from time to time our relationship depends on the political situation. We do not pay attention to this and try to communicate with our partners at the business association level. We are absolutely sure that many problems are far -fetched.
It is important to show that Poland can also earn on the X export flows, and Ukraine itself does not view the Polish market among the key to selling its agricultural products. For our exports, countries such as Spain, Italy, Germany are priority. Egypt and China are also very interested in our agricultural products. That is, it is necessary to move away from dubious narratives that inhibit bilateral work. It takes time and communication.