Business news from Ukraine

Business news from Ukraine

Ukraine in 2022 reduced export of agricultural products to Russia by 15 times – UAE

9 February , 2023  

The export of agro-processing products from Ukraine to Russia in 2022 decreased by 15.3 times in comparison with 2021 – down to $ 3 million from $ 46 million, while the supply of similar products to Belarus decreased by 7.5 times, to $ 69 million from $ 520 million.
According to the website of the Ukrainian Agrarian Export Association (UAAE), Ukrainian exporting companies are no longer planning to supply food products to the Belarusian and Russian markets, given the military aggression of Russia against Ukraine and the successful reorientation of its export to the European Union.
According to UAAE, in particular, the export of cocoa paste to Russia stopped in 2022, although in 2021, Russia was its largest buyer with the share of 60% of Ukrainian imports of these products and the volume of $20 million.
Ukraine also stopped supplying ice cream to Russia last year, although in 2021 it was the 3rd largest exporter of this Ukrainian product after Moldova and Israel. In 2022 Germany was added to its main markets instead.
Also in 2022, deliveries to Belarus, in particular the Ukrainian bakery confectionery decreased by 8.5 times – down to $ 2 million, whereas in 2021 it was the 3rd largest importer in this segment with an indicator of $ 17 million. Similarly, the supply of Ukrainian frozen beef – to $0.3 million in 2022 against $ 13 million a year earlier, and canned fruit products – by 6.7 times, to $1.5 million from $10 million.
According to the association, if in 2021, Belarus was the main importer of Ukrainian potatoes with the share of exports at 80% by $3 million, in 2022, it took the second place with 23% and $1 million respectively (a 3-fold decrease). Also, the supply of Ukrainian tomatoes, onions, cabbage, carrots, where in 2021, Belarus was among the top destinations for the purchase of these commodities, has decreased significantly or ceased. In addition, last year the Republic of Belarus from the position of the leader of importers of cooked unfrozen vegetables from Ukraine, where it took first place in 2021, “displaced” Moldova, Georgia and Hungary.
“With actually unchanged rates of export of jams, jellies and marmalades in 2022, their main buyers were Poland, Moldova and the Czech Republic (in 2021 – Poland, Belarus, Israel),” the association stressed in the report.
UAEA specified that in the segment of frozen vegetables last year Ukraine generally increased the volume of exports, while its geographical structure changed compared to 2021: Germany moved up to the second position instead of Belarus, which was ousted from the top three, and Turkey took the honourable “bronze”. Poland remained the leader here, as it was the year before last.
“The reciprocal embargoes with Russia, imposed since 2016, significantly reduced mutual trade even earlier. In particular, exports of frozen beef, fresh and processed vegetables, and confectionery products to Belarus dropped significantly. Last year, supplies of cocoa paste and ice cream to the Russian market were also reduced to zero,” the organization summarized in its report.

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