China ranks among the largest markets for Ukrainian goods, says Gennady Chizhikov, president of the Chamber of Commerce, discussing export and business expectations.
Ukraine is gradually restoring its export. This is crucial for ensuring foreign currency inflows into the state budget, especially amidst uncertainties regarding Western assistance. For the year 2024, Ukraine has exported goods worth $41.627 billion, reflecting a 15% increase in monetary terms and over 30% in weight. If these export rates can be maintained over several years, there is a possibility for a swift return to pre-war levels, according to the Ukrainian Chamber of Commerce and Industry.
However, to achieve this, exporters require government support to ensure logistics, open new markets, and build a strong brand for Ukrainian products. In an interview with UA.News, Hennadiy Chyzhykov, president of the Ukrainian Chamber of Commerce and Industry, discussed trade with the European Union and China, closer ties with Japan, and dialogue with Poland at the level of business associations.
How have export flows changed over the years of war?
Hennadiy Chyzhykov: Firstly, the structure of exports has changed. Before the war, significant exports were driven by metallurgy, machine engineering, and chemical enterprises, mainly located in the eastern part of the country. Currently, more than 60% of exports consist of agricultural products. This means that the metallurgy sector, which used to be the leading exporter, has lost its dominance. It is also important to remember that nearly 20% of our territories are occupied, yet even under these conditions, we have managed to restore export levels to those of 2021.
Secondly, the geography of logistics has changed. We currently have two main export routes for our products. The primary one is a maritime corridor, through which we supply goods to major buyers like China, Egypt, and others. On the European front, Poland, Spain, Germany, the Netherlands, and Italy have emerged as key export destinations. Previously, these countries held a modest position among our markets, with the exception of Poland, which traditionally handles the bulk of Ukrainian goods.
Thirdly, a positive trend has emerged with the rise of small companies among exporters. They are finding specific niches in the market, such as food products. There are cases of companies producing bars, various snacks, and entering markets in Japan and Australia.
Regarding challenges, despite the gradual recovery of exports, businesses are acutely feeling the lack of credit resources and effective risk insurance. Among the main challenges is ensuring logistics. We must seek ways to transport our goods. Although we have opened maritime gates (the ports of Odessa), there is an issue: for ships heading there, insurance is extremely costly—rates are so high that it makes our products uncompetitive. But we have no other option. We are working on resolving these issues.
What other markets are of interest to our exporters?
Hennadiy Chyzhykov: Despite a distance of over 6,000 km, China remains one of the largest importers of Ukrainian goods, primarily agricultural products. A notable working meeting was held with the Chinese ambassador to Ukraine, Ma Shengkui. He spoke about ambitious goals: to nearly double the trade turnover between our countries.
Last year, we also began actively opening the Latin American market for Ukrainian suppliers. This year, together with other partners, we are entering the African market. In April, we will hold major business events there, presenting our export products in Kenya's capital, Nairobi. We are also strengthening cooperation with the Philippines, Brazil, Egypt, and Indonesia