Ukraine and its goods are not welcome in Europe – NBU analysis
The NBU has published preliminary data on Ukraine’s foreign trade for January–April 2015. They show that in Europe no one is waiting for Ukraine with its goods. And since there are no compelling economic grounds for developing cooperation, any political agreements are very ephemeral.
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About it its leader Viktor Medvedchuk wrote in his blog on the website of the Ukrainian Choice movement.
Medvedchuk recalled that the NBU published preliminary data on Ukraine’s foreign trade for January – April 2015. The rate of decline in Ukrainian exports is impressive: in just four months it decreased by 34,5% (compared to January–April 2014) to $3,2 billion.
It is significant, according to the politician, that Ukrainian exports to EU countries decreased by more than a third – by 34,4%. Such a drop in domestic exports to Europe means only one thing - a complete failure of the European integration policy, the politician emphasizes.
“What unbiased politicians and experts have long warned about has been confirmed: no one in Europe is waiting for Ukraine with its goods. And since there are no compelling economic grounds for developing cooperation, then any political agreements are very ephemeral,” Medvedchuk noted.
According to him, the inevitable consequence of the unbalanced foreign policy of the Ukrainian government was a decrease in export volumes to Russia - by 2,5 times compared to January - April 2014.
Accordingly, the commodity structure of Ukrainian exports has changed:
− export of mineral products (including ore) - 2,7 times;
− exports of metallurgical products decreased by 40,1%;
− export of food products - by 22,5%.
“Perhaps the most severe loss for Ukrainian exports is a twofold reduction in supplies of mechanical engineering products. Behind these figures is a significant reduction in the technological potential of the domestic industry, the loss of Ukraine’s ability to produce modern high-tech products, and the country’s transformation into a raw materials appendage of the EU countries,” wrote the head of “Ukrainian Choice.”
The politician noted that he cannot but worry about the situation with the export of Ukrainian metallurgy products, the main (for now) source of foreign exchange earnings in the domestic economy.
And, according to the politician, the general prospects and trends in the development of Ukrainian export potential do not look at all rosy. In April 2015, compared to March, the decrease in export volumes was already 39,1%, that is, the rate of decline continues to grow. And this means a reduction in orders for Ukrainian enterprises, mass layoffs, long unpaid leaves, and poverty for the families of workers and engineers.
“Obviously, the time has come to objectively assess economic realities and adjust the country’s foreign policy course. Otherwise, by the end of the year, with such a rate of decline in exports, it may stop altogether,” concluded Viktor Medvedchuk.
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