REUTERS
The current situation on the market is beneficial for Ukraine's trade balance as the country imports oil and petroleum products. But following oil, other raw materials usually become cheaper as well.
A sharp drop in global oil prices could lead to the cheapening of important components of Ukrainian exports, in particular, agricultural products and metals, while this will reduce foreign currency inflow, says head of the analytical department at Concorde Capital Investment Company, Oleksandr Parashchiy.
The current situation on the market is beneficial for Ukraine's trade balance as the country imports oil and petroleum products, the analyst told Apostrophe.
But after oil, the expert adds, other raw materials usually become cheaper as well.
"Other commodity markets may follow in oil's steps; prices for agricultural products are highly dependent on oil prices," Parashchiy emphasized.
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If agricultural products and, says, metals, both important components of Ukrainian exports, fall in price, foreign currency flows into the country will weaken and pressure on the hryvnia will increase, the expert says.
The analyst claims that Ukraine is also heavily dependent on financial markets, and therefore the effect of the current developments may turn out to be mixed.
"A lot will depend on the response efforts by our government, which has so far not even formed an economic bloc. And so far, everything looks very ambiguous for our country," said Oleksandr Parashchiy.