The increased trade with EU will not replace the loss of the Russian market – the economist

Увеличение объемов торговли с ЕС не заменит потерю российского рынка - экономист

The increase in exports of Ukrainian products to the European Union allows to keep “afloat” the balance of payments and a stable hryvnia exchange rate, but cannot compensate for the loss of the Russian market.

Comments about this correspondent of ГолосUA said the head of the Committee of economists of Ukraine Andriy Novak.

“A sufficiently large increase in the trade of Ukraine with the European Union by 40% due to the fact that after the signing of the Agreement on the free trade area for Ukrainian products has installed a special quota that was increased,” – said the economist.

Currently, according to A. Novak, it can be expected that the quotas for Ukrainian agricultural products will continue to increase.

“This suggests that the European market has a real need for cheap, but the quality of Ukrainian agricultural products”, – he added.

But at the same time, the increase in exports to the EU can serve as a compensator of the loss of the Russian market that Ukraine has supplied its industrial products.

“At the same time, from the point of view of foreign exchange earnings, the increase in exports to Europe, helps to maintain the balance of payments and relatively stable exchange rate of the hryvnia” – summed up Alexander Novak.

We will remind, earlier, on 2 January, President of Ukraine Petro Poroshenko called the future priorities of Ukraine in the development of trade with the EU.

In particular, the head of state said that we are talking about the strengthening of customs cooperation, conclude agreements on conformity assessment and acceptance of industrial products and the adaptation of legislation in the sphere of sanitary and phytosanitary measures.

According to Poroshenko, the beginning of the application by Ukraine from January 1, the provisions of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin will provide the country with “new momentum”.