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Ukrainian League of Industrialists and Entrepreneurs - ULIE
€
November 14, 2016
Ukraine: open for business
About ULIE Established in 1992
The biggest business association in Ukraine - our members produce 80% of the country’s GDP
Members: sectorial associations, regional business organizations, major national enterprises and SMEs (13,000)
In Ukraine: 28 regional offices, 73 subsidiaries, 22 representative offices and 34 sectorial commissions
Globally: offices in 22 countries, including Representative Office in the EU (in Brussels since 2015)
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ULIE key priorities in the EU
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Trade and investment: build viable B2B platform for the Ukrainian and the European entrepreneurs
Policy and lobbying: represent the Ukrainian private sector with the EU institutions and at the member-state level
PR: promote Ukraine as a reliable business partner and attractive investment destination
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Ukraine: geography
The largest country within Europe
Gateway to key markets of the region: Europe, CIS, Asia, Middle East
Multiple logistic solutions: max 2 truck days to EU border, developed railways system, major seaports
Full energy mix: fossil fuels, nuclear, renewables
40m+ consumer market
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Ukraine: FTA agreements
EU (28 member-states, in force)
EFTA (CHE, ISL, NOR, LIE, in force)
CIS (in force, except Russia)
Montenegro (in force)
Canada (ratification)
Turkey (negotiations)
Israel (negotiations)
PAN-EURO-MED (42 countries, analisys)
Source:MinistryofEconomicDevelopmentandTradeofUkraine,2016data
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EU-Ukraine DCFTA 97% of duties abolished
Reduction of an average tariff on the Ukrainian exports from 7,6% to 0,5%
Trade liberalization for goods and services
Opening of public procurement market
Legislative approximation and economic integration with the EU
EU GSP to be applied for the Ukrainian goods until 2018
EUR.1 Certificate to be provided for free by the State Fiscal Service of Ukraine - 38 000 certificates issued in Jan-Sep 2016
Source:MinistryofEconomicDevelopmentandTradeofUkraine,November2016data
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Ukraine on the New Silk Road
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Ukraine: GDP dynamicsG
DP
grow
th %
-16
-12
-8
-4
0
4
8
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E
2-9.9-6.8
00.2
5.24.1
-14.82.1
7.9
Source:MinistryofEconomicDevelopmentandTradeofUkraine,2016data
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Ukraine: GDP dynamicsEvents behind Ukraine’s GDP fluctuations:
2009: Ukraine hit by the global financial crisis 2008
2012-2013: flat GDP growth as economy stifled by ineffective governance system and continuous slide of global commodity prices
2014 - ‘Ideal Storm’: the Revolution of Dignity, annexation of Crimea, war on Donbas, wiped-out sate budget, further decline of commodity prices
2015: global trade demonstrated the sharpest contraction since 2009, which again affected commodity prices critical for the Ukrainian economy: iron ore -45,6%, black metal roll -15,4% and fertilisers -9,6%
©Sources:NetherlandsBureauforEconomicPolicyAnalysis,CPBWorldTradeMonitor
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Ukraine: GDP dynamicsEvents behind Ukraine’s GDP fluctuations:
Before 2014 Donbas accounted for 15% of GDP, 25% of export and 18% of industrial output
©Sources:MinistryofEconomicDevelopmentandTradeofUkraine,DW,Segodnyanewspaper
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Ukraine: macroeconomics Public finance deficit down from 10,1% in 2014 to 2,1% in 2015 $18bn of sovereign debt restructured FDI growth from $-0,5bn in 2014 to $3,1bn in 2015 IMF 4-year EFF worth $17,5bn: $5bn forwarded in March 2015,
$1,7bn - August 2015, third tranche approved in Q3 2016 EU macro-financial assistance: €2,2bn approved in 2014 and €1,6bn approved in 2015, €600m dispatched
EU grant to private sector development in Ukraine: around €260m which is expected to generate €2-3bn of loans (credit lines opened with EBRD and EIB)
IFIs, EFIs and EDFIs in Ukraine: IMF, WB/IFC, EIB, EBRD, KfW/DEG, FMO, IFU. Also investment insurance mechanisms: MIGA, OPIC
Source:MinistryofEconomicDevelopmentandTradeofUkraine
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Ukraine: trade geographyUkraine’s top 10 trade partners in 2015, USD billion:
©Sources:MinistryofEconomyandTradeofUkraine
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Ukraine: export geography
©Sources:MinistryofEconomyandTradeofUkraine,June2016
Ukraine’s top 6 export destinations, as of Q2 2016, %:
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Ukraine: export structure
©Sources:MinistryofEconomyandTradeofUkraine,June2016
MetallurgyAgro/foodMachinery/Equipment
Ukraine’s top 3 export categories, as of Q2 2016, %:
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Ukraine: export to the EU
©Sources:MinistryofAgrarianPolicyandFoodofUkraine,October2016
Increase in export quotas to the EU preliminary approved by the Commission until 2020, thousand tonnes:
16©Sources:MinistryofAgrarianPolicyandFoodofUkraine,October2016
Main importers of agricultural and food products from Ukraine in the EU:
33,9%EU share in Ukraine’s agro/food exports
3,1%UK 14,6%
Netherlands
2,1%Belgium
8,8%France
16,6%Spain
9,8%Portugal
12,6%Poland
9,4%Germany
2,2%Hungary
13,5%Italy
2,4%Romania
2,2%Greece
Ukraine: export to the EU
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Ukraine: import geography
©Sources:MinistryofEconomyandTradeofUkraine,June2016
Top 6 importers to Ukraine, as of Q2 2016, %:
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Ukraine: import structure
©Sources:MinistryofEconomyandTradeofUkraine,June2016
MetallurgyChemical productsMineral products
Ukraine’s top 3 import categories, as of Q2 2016, %:
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Ukraine: cost efficiency
©Sources:ULIE,2016
Average hourly wages in manufacturing, USD:
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Ukraine: cost efficiency
©Sources:MinistryofEconomyandTradeofUkraine,June2016
Natural gas and electricity cost:
Country Naturalgas,EUR/1000m3
Poland 366
Slovakia 369
Belarus 165
Romania 317
Hungary 381
Ukraine 268
Country Electricity,EUR/kWh
Poland 0,08Slovakia 0,11Belarus 0,09Romania 0,08Hungary 0,08
Ukraine 0,05
Naturalgas
Electricity
2012 2013 20142015
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Ukraine’s ranking rise in Ease of Doing Business:
Ukraine: open for business
open4business.com.ua Fully in English
Daily economic news on Ukraine: trade statistics, market data, sectors overview, M&As, corporate news, regulatory framework review and analysis
Free biweekly e-digest in HTML and PDF
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Ukraine: open for business
Nicholas Tymoshchuk
Director
Avenue de Cortenbergh 168, 3rd F/L
B-1000 Brussels, Belgium
T: +32 2 736 72 13
F: +32 2 735 16 01
uspp.ua/en
ULIE Representative Office in the EU
