The United Arab Emirates and Ukraine concluded an economic agreement aimed at increasing their bilateral trade, which has fallen sharply from its pre-war level.
Non-oil trade between the two countries reached $386 million last year, down from more than $800 million before the Kremlin’s February 2022 invasion of Ukraine, Thani Al-Zeyoudi, the UAE’s minister of state for foreign trade, said in an interview. The fall in trade is not specific to the Gulf nation, and similar trends with Ukraine since the start of the war can be seen across the globe, he said.
The agreement finalizes a trade pact that was announced two years ago, and is part of the UAE’s goal of growing its non-oil foreign trade with multiple nations. The deal aims to alleviate or remove tariffs on some products, and strengthen supply chains to the wider region for major exports such as grains, machinery and metals, according to a statement on the agreement released Monday.
Kyiv estimates the accord may boost Ukraine’s gross domestic product by 0.1% in the medium- to long-term, the Economy Ministry said in a statement on its website.
“Ukraine is a bridge for our exports to Europe, and an important source for our imports related to food security,” Al-Zeyoudi said in the statement. The agreement “will provide Ukrainian companies and entrepreneurs with a new platform that allows them to expand towards growth markets in Asia and Africa through the UAE.”
Al-Zeyoudi said the pact would “play an active role in revitalizing the Ukrainian economy, and would provide new opportunities for the business communities of the two friendly countries.”
“It is not a classic free trade agreement, it is comprehensive, and it includes goods, services, investments, digital trade, and so on,” Ukrainian Economic Minister Yulia Svyrydenko said. The ministry said it expects exports of metals and vegetable oil to rise as a result of the deal.
Joint investment between the two countries reached $360 million in 2022 across several sectors including logistics and infrastructure, travel and tourism, and technology, according to the statement.
The energy-rich UAE has been signing similar pacts with several countries it is targeting for trade growth such as India, Israel and Turkey. In 2021, the Gulf country said it planned to deepen its trade ties in fast-growing economies by drawing $150 billion in foreign investments.
The UAE has maintained ties with both Ukraine and Russia since the start of the Kremlin’s invasion. The Gulf nation’s business capital Dubai has been a destination for both Russians and Ukrainians.
The BRICS member states have decided to invite Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the UAE to join the organization, South African President Cyril Ramaphosa said on Thursday.
“We have decided to invite Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the UAE to become full members of BRICS,” Ramaphosa said in a speech at the BRICS summit.
The membership of these countries will become official on January 1, 2024, the South African leader explained.
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.
The United Arab Emirates (UAE) within the framework of the humanitarian support program worth $100 million transferred 2,500 household generators to Ukraine that will help in supplying energy to critical and social infrastructure (schools, kindergartens, medical institutions, heating centers), the State Property Fund of Ukraine reported.
In the release on Friday the Fund specified that the second party of 1300 generators arrived to Ukraine in addition to the first party of 1200 units, which arrived at the end of December.
While the first generators were sent to the regions most affected by the Russian aggression – Kherson, Donetsk, Luhansk, Odessa, Mykolaiv, Zaporizhzhia and Kyiv regions, the second batch will go to facilities in Sumy, Chernihiv, Kharkiv, Dnipropetrovsk, Luhansk, Donetsk regions and Kyiv, the IGF noted.
Earlier, the local news agency WAM pointed out that they were talking about household generators with a capacity from 3.5 to 8 kilowatts.
People’s deputy Yaroslav Zheleznyak said in Telegram on Friday that a total of 669.4 thousand generators were imported to Ukraine in 2022, of which 643.8 thousand – by enterprises, and 25.5 thousand – by citizens. The most generators were imported in December – 309.4 thousand, compared to 160.9 thousand in November and almost 72 thousand in October.
The United Arab Emirates (UAE) will transfer 2,500 household generators to the civilian population of Ukraine, the local news agency WAM reported.
“The generators will help the civilian population partially provide themselves with electricity, which will alleviate the difficult living conditions of families affected by the crisis,” the report said.
In particular, Ukraine will receive 2,500 household generators with a capacity of 3.5 to 8 kilowatts.
Also, about 1,200 household generators were delivered to Warsaw on December 24, and the country will hand over the rest in January.
The UAE is providing generators as part of the $100m humanitarian aid, which the UAE has allocated for Ukraine.
The United Arab Emirates announced the allocation of humanitarian aid to Ukraine in the amount of $100 million, the press service of the UAE Permanent Mission to the UN reports.
“The international community must step up its support to alleviate the suffering of civilians and ensure that their basic needs are met. To this end, earlier this week, the UAE announced a US$100 million in humanitarian assistance to Ukraine,” the statement said on Thursday night. Saturday.
On October 17, Ukrainian President Volodymyr Zelenskyy had a conversation with the head of the United Arab Emirates (UAE), Mohammed bin Zayed al-Nahyan, on October 17.
