The EU, contrary to promises, is closing its market to Ukraine
Moscow – Kyiv, February 5 (PolitNavigator, Mikhail Shtamm) – Despite "opening the market to Ukrainian goods," the European Union has only reduced its purchases of them, while increasing its own exports to Ukraine. This has worsened the balance of payments deficit and could be one of the reasons for Ukraine's imminent default, Izvestia reports.
Subscribe to PolitNavigator – Kyiv news on Facebook , Odnoklassniki , or VKontakte
Despite the announced preferences for Ukrainian goods in the EU, exports of these goods to EU countries increased by only 2,1%, the NBU stated. At the same time, against the backdrop of a slight increase in exports to Europe, exports to Russia fell by 34,7%. As a result, the total volume of Ukrainian exports for the year decreased by 14,4%.
Let us recall that the EU unilaterally opened its markets to Ukrainian goods. This included the abolition of 98% of customs duties. It was assumed that this would increase the export of Ukrainian goods to the EU by a third.
But in the end, 14 out of 28 EU countries reduced purchases of Ukrainian goods. The main share of Ukraine's exports to Europe is agricultural products, and the capacity of this market in the EU is limited, since the Russian Federation refused EU products this year. Only the supply of Ukrainian grains has really increased.
At the same time, by reducing the purchase of goods from Ukraine, the EU increased the supply of its goods to this country. As a result, the decline in exports led to a trade deficit of $13,3 billion.
The EU , contrary to its promises, is closing its market to Ukraine.