Ukrainian exports in January-June 2022 decreased by 23.7% compared to the first half of 2021 and amounted to $22.8 billion, Deputy Economy Minister – Trade Representative of Ukraine Taras Kachka said.
“Over the first half of this year, exports from Ukraine decreased by 23.7% compared to the first half of 2021 and amounted to $22.8 billion. At the same time, export volumes in the second quarter amounted to $8.782 billion, which is 37.4% less than in first quarter of 2022,” Kachka wrote on Facebook.
Compared to the second quarter of last year, the reduction in exports in the second quarter of this year was even more than 45.8% (-$7.42 billion), he noted.
At the same time, in physical volumes, the decrease in quarterly exports was even more significant – 55.6%, that is, by 20.8 million tons. In the second quarter, we exported 16.6 million tons of cargo,” Taras Kachka said.
He added that the main reason for the fall in exports is the blocking of Ukraine’s seaports by Russia.
“The reduction in shipping by sea in the second quarter compared to the first amounted to 86.5% (minus 21.6 million tons). At the same time, it is important to note that the situation with exports has stabilized and even improved by months,” the trade representative emphasized.
Exports resumed growth in May and June after a sharp fall in March. At the same time, exports grew both in terms of value and volume, according to data from the Ministry of Economy. So, in June, Ukraine exported 5.8 million tons of cargo worth $3.177 billion.
“At the same time, one should pay attention to the fact that in June there was a significant decrease in the export of iron ore – 1.75 million tons against 2.27 million tons in May. At the same time, exports of sunflower seeds increased significantly to 537 thousand tons in June. At the same time, oil remains the most profitable export item – $437 million,” Kachka said.
According to him, the top 10 export commodity positions of Ukraine in June included: oil, corn, sunflower seeds, ore, steel (semi-finished products), wires, poultry meat, pipes, cast iron, soybeans.
“Trade remains diversified. Exports of 223 items at the four-digit level exceeded $1 million during the month. Geographically, exports are fully focused on the EU. 78% of our exports in the second quarter of 2022 were to the EU. The total value of exports to the EU in the second quarter is $6 .86 billion, up 6.4% from the second quarter of last year,” the sales representative wrote.
However, he noted that trade with other countries of the world decreased in April-June compared to the second quarter of 2021 by 80%.
Wheat and its mixture with rye (meslin) are excluded from the list of goods whose export is subject to licensing, the Cabinet of Ministers made the corresponding decision at a meeting on Friday, Taras Melnychuk, a government representative in parliament, said.
“The commodity items “Oats” and “Mineral or chemical, nitrogen fertilizers” have been excluded from the volume of quotas of goods whose export is subject to licensing. These items are included in the List of goods whose export is subject to licensing,” he added in his telegram message.
As reported, on March 7, the Government of Ukraine expanded the list of goods the Ministry of Economy will issue export permits for: wheat, corn, poultry meat, chicken eggs and sunflower oil were included in the list of licensed exports.
Already in March, corn and sunflower oil were excluded from this list, but wheat remained, despite the requests of market participants.
As for oats, on March 5, a ban was introduced on its export in the form of a zero quota.
Nitrogen fertilizers were also banned for export at first, but at the end of March the government allowed their export within the quarterly quota of 210,000 tons, or 70,000 tons per month.
In June this year, Ukraine managed to increase grain exports by 23% by May – up to 1.4 million tons. In terms of crops, corn accounted for 86%, wheat – 10%, barley – 3%.
Exports of goods in % to the previous period in 2021 and 2022
SSC of Ukraine
In January-June 2022, Zaporizhstal reduced output of rolled products by 46.6% compared to the same period last year, to 839,400 tonnes.
According to the enterprise on Friday, steel production decreased by 53.6% over six months of 2022, to 922,300 tonnes, and cast iron – by 48.1%, to 1.134 million tonnes.
In June of this year, the steel plant produced 146,900 tonnes of cast iron (43.1% compared to June 2021), 69,600 tonnes of steel (21.2%), 83,000 tonnes of rolled metal (50.2%).
“The decline in production compared to the same period last year is associated with a shortage of raw materials and logical problems caused by full-scale hostilities on the territory of Ukraine,” the press release explains.
At the same time, it is recalled that in connection with the aggravation of hostilities in the region since the beginning of March, Metinvest Group has transferred part of the equipment of Zaporizhstal to the hot conservation mode. At the end of March, Zaporizhstal partially resumed the work of the cold rolling shop for production and shipment of cold rolled coils to the European consumer. A month after the forced shutdown, the plant took the equipment out of conservation and partially resumed production. Since April 2022, the plant has been operating at an average of 50% of its capacity.
It is also reported that the Ukrainian defenders received another batch of ammunition and drones from Zaporizhstal of Metinvest Group. So, over the past two weeks, Zaporizhstal has handed over 2,100 body armor, 1,000 Kevlar helmets, as well as three reconnaissance drones to the servicemen of the National Guard of Ukraine and the territorial defense, who protect Zaporozhia and Dnipropetrovsk regions.
Zaporizhstal is one of the largest industrial enterprises in Ukraine, whose products are in great demand among consumers both in the domestic market and in many countries of the world.
The preparation of three Bayraktar Tb2 aircraft for free delivery to Ukraine within the framework of the People’s Bayraktar campaign is being completed, Ukrainian Ambassador to Turkey Vasyl Bodnar said.
“Words do not differ from deeds – the preparation of three Bayraktar Tb2 aircraft for free delivery to Ukraine within the framework of the People’s Bayraktar campaign is being completed. I personally thanked Haluk Bayraktar, Selcuk Bayraktar and Baykar Company for this incredible support,” Bodnar wrote on Twitter on Friday.
The Republic of Korea and the United Nations Development Program (UNDP) have announced a new partnership to support the government of Ukraine in its efforts to respond to the war.
“With this announcement the ROK will underpin emergency livelihoods and community recovery in Ukraine with a flexible contribution of $3 million, which will allow UNDP to adapt its operations to reach those most in need and enhance the response to the ongoing war,” the press service of the UNDP in Ukraine said on Friday.
UNDP’s acting Resident Representative in Ukraine Manal Fouani said the Republic of Korea’s investment in the humanitarian development nexus action for Ukraine comes at a critical time for continuing to strengthen the Ukrainian government’s ability to serve its people while planning for recovery.
“The complex humanitarian, development, and peace challenges now emerging in Ukraine underscore the importance of programming that responds to the multiple dimensions of the war,” she said. “The ROK strategic investment in further enhancing a decentralized approach for crisis coordination capacities, restoring basic infrastructure, and keeping Ukrainian businesses of all sizes up and running is just a demonstration of how investment in institutions and services can reduce the impact of a humanitarian catastrophe,” Fouani said.
To ensure resilience interventions have the maximum impact, leaving no one behind, the project will focus on the following four areas. In particular, Sustaining and increasing government crisis coordination capacities in areas impacted by the war and in locations hosting displaced people, taking into consideration the needs of people with disabilities and mine victims. In addition, supporting the restoration of basic infrastructure and essential utilities to mitigate physical harm to civilians and civilian infrastructure, and to facilitate the safe return of displaced people; mitigating the displacement of human capital and the dislocation of markets and productive capacities due to the war; supporting authorities and civil society in assessing and sustaining social service provision for vulnerable populations – especially in war-affected regions.
According to UNDP preliminary estimates, by the end of 2022, up to 90% of the population of Ukraine may face poverty and be vulnerable to poverty. There is a danger that eighteen years of social and economic achievements will be brought to naught.
