Ukraine is changing exports priorities
According to results of period January-August of 2013, Ukraine had increased export of goods to China for 46.4%, to Turkey for 2.3% and to Italy for 1.8%. At the same time Ukraine reduced export to Egypt for 17.5%, to Russia for 13.8%, to Kazakhstan for 11.1% and to Poland for 8.4%.
Currently, CIS countries are getting 36.1% of all Ukrainian export. But Ukraine wants to diversify its export more in order to reduce its dependency from CIS countries and first of all from Russia. Doing this can take long time. Ukrainian goods need to earn consumers’ trust and sympathy from countries outside the CIS.
At the present moment, Ukraine has fast developing trade relations with China and Turkey. If Ukraine signs the cooperation and trade treaty with China, the volume of export to China should grow minimum 4 times. Ukraine now sells to China mainly minerals, equipment, machines and food products. But due to the trade treaty, it will be possible to increase supplies of not only corn, but meet and milk products to China as well. Also Ukraine will be able to start deliveries of mechanical engineering products, as well as aircraft manufacturing and equipment for Chinese power plants.
Besides China, Ukraine has big expectations for free trade zone with Turkey, which both countries want to establish as well. This will give Ukraine the ability to increase deliveries of metal, machines and equipment to Turkey, as well as products of instrumentation and electrics.
Currently, the export of Ukrainian goods is growing not only to Italy, but to Spain as well. The main goods, which Ukraine is exporting to Italy are metals, to Spain – grains. The association treaty with European Union should increase food products deliveries not only to Spain and Italy, but to other countries as well. And it will be not only grain, but also meet and milk products, and even bakery.
Ukraine also has expectations of increasing sales of metal (first of all, cast iron and steel) to EU countries for 10-12%. Initially, Ukraine will be able to build up supplies of only simple metals to EU countries, which will be converted into the high-quality metalwork.