Business news from Ukraine

8% OF EXPORTERS AND 19% OF IMPORTERS IN UKRAINE FACE OBSTACLES IN ACTIVITIES – SURVEY

Some 7.9% of Ukrainian exporting enterprises face obstacles in their activities, according to a survey by the Institute for Economic Research and Policy Consulting.
The rate in 2020 is the lowest since 2016, according to the study. In 2018, some 23.6% of exporters faced obstacles, while 19.3% in 2017 and 26.9% in 2016.
Large and small businesses (10.4% and 10.7%) more often report impediments to export compared to micro (8.1%) and medium (4.1%). Most often, they deal with obstacles in the implementation of exports by enterprises in the service sector (22.6%).
In Chernivtsi, Ternopil, Zhytomyr, Donetsk regions, there are no complaints about the presence of obstacles. Most often, such are reported by exporters from Rivne (22.2%), Ivano-Frankivsk (20%), Kirovohrad (20%), Sumy (20%), Poltava (18.8%) regions.
The main obstacles to export are the absence of simplified rules for determining the origin of goods (20.4%), a long wait for export clearance at customs (20.4%).
Among importers, 18.9% of the surveyed enterprises stated that they faced obstacles to their activities. This figure is also the lowest in all waves of the study since 2016. Some 28.4% of importers faced obstacles in 2018, some 29.3% in 2017 and 35.2% in 2016.
Cherkasy region is the only region where there are no complaints about import obstacles. Enterprises in Mykolaiv region most often point to impediments to imports (35.7%, every third respondent).
According to the respondents, the main obstacle to import is a lack of transparency in determining the customs value of goods that are imported (38.7%). Almost a third complain about the complexity of customs and tax legislation (32.4%). The third place in the rating of obstacles is taken by high rates of customs payments (27.5%).
The survey was conducted in 2020 by the civil society initiative “For Fair and Transparent Customs” with the support of the European Union, the International Renaissance Foundation and Atlas Network. More than 1,000 representatives of enterprises were interviewed: from micro-enterprises to large enterprises engaged in export and/or import. Most of the respondents are micro and small enterprises, representatives of industry and trade.

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UKRAINE IS THE SECOND MAJOR IMPORTER OF GEORGIA’S WINE

Georgia exported 78 million bottles of wine from grapes (0.75-liter bottles) in January-November 2018, 11% more than in the same period last year, the Agriculture Ministry’s National Wine Agency reported. Exports in 11M are 1.7% higher than the total for 2017 as a whole, which was the highest annual mark in 30 years.
Georgia exported wine to 53 countries in 11M 2018. Revenue from the exports rose 19% to $184.1 million.
Russia was the leading importer of Georgian wine in the period, boosting imports 10.7% to 48.588 million bottles or 62.3% of the total. Other major importers included Ukraine – 9.5 million bottles, China – 6.3 million, Kazakhstan 3.4 million and Poland 3 million. Exports increased significantly to countries outside traditional markets: Japan, UK, Romania, Czech Republic, Netherlands, France, Germany, Canada and elsewhere. Georgia also exported 17.8 million bottles of brandy (0.5-liter bottles), 9% more than in 11M 2017, to 25 countries. Revenue rose 3% to $36.4 million.
Overall exports of wine, brandy and other products – chacha, other alcoholic beverages, wine materials and brandy spirits – were worth $281 million, 10% more.
Georgia exported 76.7 million bottles of wine from grapes in 2017, 50% more than in 2016. Exports to Russia rose 76% to 47.779 million bottles or 62.3% of the total.

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UKRAINE THE SECOND LEADING IMPORTER OF GEORGIAN WINE

Georgia exported around 60 million bottles of wine from grapes (0.75-liter bottles) in January-September 2018, 13% more than in 2017, the Agriculture Ministry’s National Wine Agency reported. Georgia exported wine to 53 countries in 9M 2018, up from 45 in the same period last year. Revenue from the exports rose 22% to $142 million. Russia was the leading importer of Georgian wine in the period, boosting imports 11.5% to 37.065 million bottles or 61.8% of the total.
Other major importers included Ukraine – 6.747 million bottles (11.2% of the total), China – 4.822 million (8%), Kazakhstan – 2.658 million (4.4%) and Poland 2.466 million (4.1%).
Georgia also exported 13.5 million bottles of brandy (0.5-liter bottles), 19% more than in 9M 2017, to 22 countries. Revenue rose 10% to $27.6 million.
Overall exports of wine, brandy and other products – chacha, other alcoholic beverages, wine materials and brandy spirits – were worth $222.7 million, 15% more.
Georgia exported 76.7 million bottles of grape wine in 2017, a 50% increase on the previous year. Exports to Russia were up 76% to 47.779 million bottles, accounting for 62.3% of exports. Russia banned imports of Georgian wine in 2006 due to quality complaints. Exports of Georgian wine to Russia were resumed in June 2013.

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EXPORT OF FRUITS AND BERRIES FROM UKRAINE CONSTRAINED BY NON-COORDINATION OF BIOSECURITY MEASURES WITH IMPORTERS

The inconsistency of Ukraine’s biosecurity measures with those of the importing countries hinders exports of fruits and berries from Ukraine, the Ukrsadprom association has stated.
According to a press release of the association, today, unlike the main exporting countries, Ukraine demonstrates sharp fluctuations in the volume of exports and instability of supplies.
“For comparison, in recent years exports of fruits and berries from Poland exceed $1 billion, while for Ukraine this volume reaches $150-200 million, so Ukraine exports six times less fruit and berry products than its European neighbor,” the report says.
The association is convinced that the coordination of mutual recognition of biosecurity measures will allow establishing trade, ensuring the social and economic development of Ukraine, stimulating the development of the horticulture and berry-growing sector in Ukraine and help attract investments in long-term agricultural and infrastructure projects.
To solve the problem of biosecurity measures inconsistency, Ukrsadprom appealed to First Deputy Prime Minister, Minister of Economic Development and Trade Stepan Kubiv with the request to instruct his ministry, the Ministry of Foreign Affairs, the State Service of Ukraine for Food Safety and Consumers’ Rights Protection to coordinate the mutual recognition of biosecurity measures with the potential importing countries for exports of fruits, berries, as wells as planting stock.

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MAIN IMPORTER OF UKRAINIAN SMALL ARMS IS USA

Ukraine exported conventional weapons to six countries under contracts in 2017, the Ukrainian State Service of Export Control said in a report detailing international transfers of individual types of Ukrainian armaments last year. The figures published by the Ukrainian State Service of Export Control since 2004 are a key to the annual United Nations Register of Conventional Arms.
According to the latest report, in 2017 Ukraine exported 16 units of armored military hardware, namely 16 Oplot main battle tanks to Thailand, and also more than 17,000 small arms and over 800 light weapons to the United States, Uzbekistan, Jordan, Mongolia, and Turkey.
According to the figures, the main importer of Ukrainian small arms and light weapons in 2017 was the United States, which bought 15,040 automatic weapons and submachine guns, and also 790 portable anti-tank rifles and grenade launchers. Uzbekistan purchased 2,000 automatic weapons and submachine guns from Ukraine last year. A total of 22 portable anti-tank rifles and grenade launchers, two hand-held under-barrel and mounted grenade launchers, and one revolver were exported to Jordan, ten rifles were delivered to Mongolia, and three trigger mechanisms for anti-aircraft guns were exported to Turkey.

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