Photo from UNIAN
Russian market accounted for 2% in the exports of Ukrainian agricultural products in H1 of 2015, versus 8% in the same period of last year, evidencing the fact that food trade volumes between Ukraine and Russia have reached a record low, the press service of the Ministry of Agrarian Policy and Food reported with reference to Agrarian Minister Oleksiy Pavlenko.
In absolute terms, exports to Russia amounted to $125 million in H1 of 2015, down by 80% year-over-year, according to the report. The total volume of exports of the Ukrainian products in the reported period amounted to $6.5 billion. In addition, the volume of food trade with Russia decreased by 40% during 2010-2014.
The minister noted that the Russian market is losing its significance for Ukrainian farmers, with the latter refocusing on the markets in Europe, Africa, Asia and America.
Read alsoSearching for trade partners"The strategic importance of the Russian market for Ukraine is a 'Soviet atavism.' In view of the unpredictability, artificial restrictions, meat and dairy trade wars, ban on our confectionery products, Ukrainian manufacturers have long begun focusing on the European, Asian, African and American markets. Successful diversification has enabled largely to compensate for lost profits on Russia exports," the press service quoted Pavlenko as saying.
Read alsoRussia has ‘salt crisis’ because of cut in imports from Ukraine
The report notes that in order to reduce the negative impact of the Russian embargo against Ukrainian dairy sector, manufacturers have adjusted production volumes and channels of raw materials usage. The minister stressed that since the beginning of 2016, Ukrainian producers will carry on their business activity in the framework of a full economic association with the European Union. At the same time, Russia cannot seriously affect the export of Ukrainian products.
"Russia cannot seriously affect the export of our products, even if it applies sanctions that are currently in force in respect of European and American products. It will be more of an incentive for technical and technological re-equipment of our food industry, and the opening of new world markets for Ukrainian high-quality goods," Pavlenko said.
At the same time, the report notes that the imports of Russian foodstuff plays an unsignificant role in the Ukrainian market, therefore its reduction or a total ban would not affect the country’s food security.
As UNIAN reported earlier, the State Statistics Service of Ukraine reported that the volume of exports to the Russian Federation decreased by 59.4% to $2.3 billion in the first half of this year, compared with the same period last year. The volume of imports during this period decreased by 56% amounting to $2.9 billion. The surplus of Ukraine’s foreign trade amounted to $1.25 billion in January-June 2015, three times more compared to the same period last year.
In addition to the Russian annexation of Crimea and aggression of the pro-Russian militants in the eastern regions of Ukraine, Russian agricultural watchdog Rosselkhoznadzor and the Russian Federal Supervision Agency for Customer Protection and Human Welfare (Rospotrebnadzor) have increased pressure on the Ukrainian exporters. Russia has introduced temporary restrictions on deliveries of dairy products, meat, vegetables from Ukraine to Russia.