OREANDA-NEWS. September 18, 2014. The decreasing trade with the Russian Federation that have been observed in recent times, was the impetus for opening by business structures of new markets, particularly those of the EU, and a number of other, even exotic markets.

This was announced by Deputy Minister of Economic Development and Trade of Ukraine, Sales Representative of Ukraine Valerii Pyatnytsky at a briefing at the Government House.

"Our trade turnover with the Russian Federation and the CIS countries is decreasing, and growing the one, and it is indicative, with the countries of the European Union,” - said Valerii Pyatnytsky, while analyzing the trade of Ukraine in the first half-year. “Moreover, due to intensifying restrictive measures of recent times on the part of the Russian Federation, we began demonstrating growing number of cases of entering the third markets."

Valerii Pyatnytsky said that the business, getting certain experience, and based on the situation on international markets, is beginning to diversify their trade: "Quite often these are exotic markets where a variety of Ukrainian goods are being promoted".

Among non-traditional markets are Sudan, Congo, Kuwait, Mali, South Sudan, Thailand, Somalia, Mozambique, Mauritius, Mongolia, Indonesia, New Guinea and etc. Also very promising for Ukrainian producers are the food markets of China, India.

With regard to the situation on the traditional markets, Valerii Pyatnytsky has informed that total trade in goods and services with Russia decreased significantly. Over the 1st half the total turnover amounted to USD 16 billion 334 million (decreased by 3 billion 861 million, i.e. by 19 %). "Our exports amounted to 7 billion 724 million and decreased by 2 billion 326 million. That is more than 23 %. Imports amounted to 8 billion 610 million, decreased by 1 billion 535 million, or more than 15 %. Our negative balance with Russia amounted to almost 886 million", - informed the Trade Representative of Ukraine.

According to him, export to the Russian Federation contained machinery, production of metallurgical and chemical industries, as well as foods. The lion's share of imports from Russia made up energy carriers (a little over USD 5 billion), as well as products of machine building, chemical, metallurgical industries.

Valerii Pyatnytsky explained that trade turnover practically contains similar group of goods, "that is, among other things, we are often direct competitors."

"We are enhancing our trade turnover with the European Union, exports of goods and services to the EU countries throughout the six months have made up 11 billion 178 million and increased by 1 billion 248 million. Import volumes made up 11 billion 335 million, decreased by 2 billion 636 million", - said Valerii Pyatnytsky. He stressed that the negative balance with the EU is insignificant, "actually we have well balanced trade”, largely due to the autonomous preferences that were granted by the European side.

“These autonomous preferences will be extended for another 15 months, and Ukrainian business will be able to export their products in most cases without payment of duties. Of course, those rules existing in the EU market must be followed, but gradually, adapting more and more to these rules, to reduce the obstacles,” explained Trade Representative of Ukraine. At the same time, he added: "In recent agreement that we reached in the framework of trilateral consultations, there is a point containing that Ukraine and Russia to continue cooperating in the frames of the preferential regime within Free Trade Agreement among the CIS member countries. Hence, today we are actually working to have a real chance to unblock, of course with the good will of our partners, those problem issues that accumulated. I think it will allow to stabilize trade in a certain way and with regard to the CIS”.

Valeriy Piatnytsky noted that "it is significnat to intensify the work in the CIS framework in a number of directions, in particluar, sanitary and phytosanitary management, technical management, customs cooperation: "Meaning absolutely pragmatic things that under any circumstances allow you to talk about the regulatory aspects of cooperation and indeed reducing the regulatory impact on trade”.