Sergii Marchenko on the development of Ukraine’s international trade in times of war at the Conference for Emerging Markets in Saudi Arabia

During the working visit to Al-Ula, the Kingdom of Saudi Arabia, Minister of Finance of Ukraine Sergii Marchenko took part in a panel discussion at the AlUla Conference for Emerging Market Economies.

This is an annual conference on economic policy. The event was organized by the Ministry of Finance of the Kingdom of Saudi Arabia and the IMF’s Riyadh Regional Office.

The panel discussion covered the issue of overcoming trade tensions in the world. Other participants were Minister of Economy and Finance of the Kingdom of Morocco Nadia Fettah, and Minister of Finance of Nigeria Adebayo Olawale Edun.

The parties discussed:

• geo-economic fragmentation and geopolitical risks affecting trade and investment in the world and in developing countries
• how developing countries can adapt to these changes and mitigate risks;
• policies that promote trade and investment;
• what changes need to be made to the current global trading system to meet the needs of emerging market economies.

Sergii Marchenko emphasized that the main challenge for Ukraine’s international trade is the aggression of the russian federation. russia’s full-scale invasion of Ukraine in 2022 caused significant obstacles to exports. Ports and shipping routes were blocked, and a significant number of Ukrainian enterprises were destroyed or ended up in the temporarily occupied territories.

At the beginning of russia’s full-scale war against Ukraine, exports to countries that depend on imports of Ukrainian grain and food decreased tenfold. The Minister of Finance of Ukraine emphasized that effective measures taken by the Government, business and international support allow for a systematic increase in exports. Ukrainian agricultural exports play a crucial role in ensuring the supply of staple foods to a number of developing countries.

“Ukraine is taking a number of steps to help increase its foreign trade even in the face of significant challenges caused by russia’s invasion of Ukraine. This includes military efforts that allowed, in particular, to restore the export route in the Black Sea, support for enterprises, implementation of reforms to develop a favorable business environment, as well as expanding opportunities for attracting foreign direct investment,” the Minister of Finance of Ukraine said.

Ukrainian entrepreneurs have demonstrated resilience in the face of a full-scale war and continue to invest in the development of their businesses, stimulating the growth of the country’s economy. The Government and international partners are creating opportunities to support the efforts of enterprises: access to concessional financing, grants, incentive programs for domestic producers.

Thanks to the resilience of Ukrainian businesses, effective Government policies, and the assistance of international partners, the economy is recovering: in 2023, growth was 5.3%, and in 2024, it was about 3.6%.

In the context of attracting foreign investment, Sergii Marchenko emphasized that the Government is working to attract international capital. In cooperation with international partners, Ukraine has already launched a war risk insurance system.

Sergii Marchenko called on international partners to support Ukrainian business, which already has ready-made investment projects in key sectors of the economy.