Ministry of Agrarian Policy of Ukraine: Closure of the market by the Russian Federation won't affect the agricultural sector of Ukraine greatly
"From
January 1, 2016, Russia prohibits the importation of certain agricultural
products, raw materials and food from Ukraine. There will come in effect the
notorious embargo on goods originating from Ukraine. The stance of the Ministry
of Agrarian Policy and Food is unequivocal: the closure of the Russian market
won’t be a disaster for the agricultural sector of Ukraine". Minister of
Agrarian Policy and Food of Ukraine Olexii Pavlenko announced.
"The current
volumes of agricultural exports to Russia account for 2% of the total volume of
exported agricultural products. The loss of these percent is rather
undesirable, but it is hardly a disaster. Higher losses will be felt by
consumers of Ukrainian products in Russia", stressed Olexii
Pavlenko.
According to the
Minister, the trade turnover of agricultural products between the Russian
Federation and Ukraine in the first 10 months of this year has fell by about
70% (by over US $ 1 billion) as compared to the similar period of last year and
amounted US $456.2 million. China, India and some other countries replaced the
Russian Federation in the TOP 10 importers of Ukrainian products.
Olexii Pavlenko also noted that after the introduction of a full
FTA with the EU from 1 January 2016 there would change the competitive
conditions for agriculture business, particularly for food producers.
"The opening
of new markets for agricultural products will prolong for the following year
the important processes of export diversification. Today Ukraine feeds more
than 140 million people on the planet. But we can maintain up to half a billion
people", summed up the Minister of Agriculture.
Reference
Over 10
months of 2015, the share Ukrainian agrarian exports made up to the following
areas:
Asia – 48% (US
$5.5 billion);
the EU – 26% (US
$3.0 billion);
Africa – 13% (US
$1.5 billion);
the CIS – 10% (US
$1.2 billion.);
Other - 3% (US
$0.3 billion).