OREANDA-NEWS. January 30, 2012. Analyses of the development of foreign trade show the effectiveness of the Ministry of Economic Development and Trade of Ukraine in 2011 towards the formation of foreign policy. This was announced by Deputy Minister of Economic Development and Trade of Ukraine Volodymyr Bandurov during a meeting of the Board of the Ministry.

Volodymyr Bandurov noted that in January-November 2011 growth rate of foreign trade turnover of goods and services was 33.3% compared with January-November 2010, its volume reached 154.3 billion USD, including, exports of goods and services was 74.1 billion USD and increased for 30.7%, respectively imports increased for almost 36% and amounted to 80.2 billion USD.

According to the Deputy Minister, export of goods in January-November 2011 amounted to 62 billion dollars and increased in comparison with January-November 2010 to 34.3%. The largest share in Ukrainian exports is, traditionally, metallurgical products (32.6%). At the same time, a significant share falls on agricultural products (18.4%), machinery (17.3%), mineral products (15.1%) and chemicals (9.2%).

However, the volume of import of goods in January-November 2011 amounted to 74.7 billion USD with the increase over the same period of 2010 for 38.1%. The largest share of total imports in January-November 2011 traditionally occurred in mineral products, which in total occupy 36.6%. At the same time, significant volumes of imports make up the supply of engineering products (24%), chemicals (15.2%), agriculture (7.6%) and metal products (7.0%).

Volodymyr Bandurov noted that although the trade balance was negative at 12.8 billion USD, it was substantially offset by the surplus in services trade of USD 6.7 billion dollars, resulting in a deficit trade balance of goods and services is about USD 6 billion. "According to our calculations the price of energy (oil and gas 41.3% to 19.7%) and increase in imports of natural gas provided 30% increase in the negative balance of trade in mineral products by 4.2 billion dollars" - said he.

Volodymyr Bandurov noted that the results of foreign trade in January-November 2011 were due to favorable price situation on world markets, increase mutual trade with Russia and EU countries, the continuation of the trend towards increased cost of imported energy, primarily natural gas, capacity own production and large export oriented leading industries, improving the financial condition of domestic enterprises, increasing the purchasing power of households.

The Deputy Minister noted that in 2012 the main effort of development and implementation of foreign policy should focus in particular on the implementation plan of priority measures to implement the state program of domestic production in 2012 and, after adoption of the Law of Ukraine "On State financial support for export"- by ensuring the implementation of the law, primarily on the creation of export credit agencies.

In addition, he said, in the current year we should ensure promotion and support of domestic exporters to foreign markets, creating an interactive electronic database export potential regions.
On the agenda of the Ministry is also the issue of significant reduction in energy consumption and diversification of energy supply to the domestic market of Ukraine.

Volodymyr Bandurov noted that this year attention will be given focused on measures to enhance protection of Ukraine's economic interests through the WTO mechanisms through consultations with the competent authorities of foreign countries for the abolition or liberalization of existing restrictive measures for Ukrainian products, creating favorable conditions for exports of goods and services in particular by preparing and signing economically feasible free trade agreements with prospective trade partners of Ukraine; if the President of Ukraine makes a decision on the establishment of trade and economic mission - restore and optimize the structure of trade and economic missions as part of the foreign missions of Ukraine, subordination of them to the Ministry of Economic Development and Trade.

"Implementation of the above areas will create conditions to reduce the negative balance of foreign trade and optimize the structure of domestic exports", - said Volodymyr Bandurov.