WT/BOP/S/17  
 
8 April 2015  
(15-1894)  Page: 1/28  
Committee on Balance-of-Payments Restrictions 
   
 
 CONSULTATIONS WITH UKRAINE 
BACKGROUND DOCUMENT BY THE SECRETARIAT 
1.  This document has been prepared in accord ance with paragraph 12 of the Understanding on 
the Balance-of-Payments Provisions of the GATT 1994. 
1  RECENT MACROECONOMIC AND TRADE DEVELOPMENTS  1.1  Real sector and prices 
2.  Ukraine's economy was severely affected by th e global economic crisis, with GDP declining by 
14.8% in 2009. In 2010 and 2011, the economy im proved, with GDP growing at rates above 4%, 
aided by stronger exports and a recovery in inve stment and private consumption. Higher spending 
was fuelled by increasing credit and an incomes policy that redistributed windfall export revenues 
to the population. However, the economy slowed down in 2012, posting growth of just 0.3%, and 
contracted slightly in 2013, mainly on account of the increasingly negative contribution of net exports of goods and services (Table 1).  
3.  In 2014, GDP is estimated to have contracted by 7%; all major GDP components, except 
government expenditure. The decline in investment and household consumption was particularly pronounced, 24.4% and 25.5%, respectively in th e third quarter of 2014 with respect to the same 
period the previous year. This reflects the Central Bank's tighter monetary policy stance, with 
credit contracting after years of substantial gr owth. The resulting overexposure of the banking 
system to private credit, led to bank interventi ons by the National Bank of Ukraine (NBU), and 
finally to the closure of several banks (see below) . Reflecting domestic demand weakness, imports 
of goods and services contracted by some 31.5% over the same period, while exports declined by 
12.1%.
1 Government expenditure, on the other hand, increased by some 4.4% but this was partly 
due to the conflict in the eastern part of the country.  
Table 1 Basic economic indicators, 2009-14 
 
2009 2010 2011 2012 2013 2014 2013 
Jan-
Sept. 2014 
Jan-
Sept. 
Real sector         
Nominal GDP (current 
market prices, billion 
Hryvnias) 913.4 1,082.6 1,302.1 1,411.2 1,454.9 .. 1,046.6 1,116.5 
Nominal GDP (current 
market prices; US$ billion) 117.2 136.4 163.4 176.6 182.0 .. 130.9 101.1 
Real GDP (%age 
change) -14.8 4.1 5.2 0.3 -0.04 -7.0  0.1 -4.4 
Per capita GDP (US$) 2,545 2,974 3,575 3,873 4,002 .. .. .. 
Unemployment rate 
(%) 9.6 8.8 8.6 8.1 7.7 .. 7.6 9.3 
                                               
1 GDP declined by 4.4% in the first three quarters of 2014 with respect to the same period in the 
previous year. A contraction of household consumpt ion and gross capital formation of around 25% was 
partially offset by the positive effect on GDP of ne t exports, triggered by a decline in imports that was 
considerably more pronounced than the decline in exports. WT/BOP/S/17 
 
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2009 2010 2011 2012 2013 2014 2013 
Jan-
Sept. 2014 
Jan-
Sept. 
GDP by expenditure (% of GDP)a 
Final consumption 
expenditure .. 83.2 84.2 86.9 91.2 .. 91.0 90.6 
     including:         
          Households .. 63.0 66.1 67.6 72.0 .. 72.0 71.9 
          Non-profit 
institutions serving households  .. 0.8 0.7 0.6 0.7 .. 0.8 0.8 
          General  
government   .. 19.4 17.4 18.6 18.4 .. 18.3 17.8 
Gross fixed capital 
formation .. 17.0 17.6 19.0 17.7 .. 16.6 13.7 
Change in inventories .. 3.8 4.8 2.7 0.4 .. 1.4 -0.9 
Acquisitions less 
disposals of valuables .. 0.0 0.0 0.1 0.0 .. 0.0 0.1 
Net exports .. -4.0 -6.6 -8.7 -9.3 .. -9.1 -3.4 
     Exports of goods 
and services .. 47.1 49.8 47.7 43.4 .. 44.3 50.2 
     Imports of goods 
and services  .. -51.1 -56.4 -56.4 -52.7 .. -53.4 -53.6 
         
Consolidated government finances (% of GDP) b 
Revenues 29.9 29.1 30.6 31.6 30.4 .. 31.1 29.9 
Expenditures 33.7 34.9 32.0 34.9 34.8 .. 34.3 32.6 
Lending less 
repayments 0.3 0.1 0.4 0.3 0.0 .. 0.1 0.2 
Deficit (–), Surplus (+) -4.1 -6.0 -1.8 -3.6 -4.4 .. -3.2 -2.9 
         
Exchange rate, prices, and interest rates  
Hryvnias/US$ (period 
average) 7.8 7.9 8.0 8.0 8.0 11.9 8.0 11.0 
Real effective exchange 
rate (CPI, Index, 
2010=100) 97.5 100.0 100.4 102.8 99.6 .. 99.9 79.8 
Nominal effective 
exchange rate (CPI, Index, 2010=100) 102.7 100.0 98.1 104.6 105.5 .. 105.4 80.7 
Inflation (CPI, 
percentage change, 
Dec.- Dec.) 12.3 9.1 4.6 –0.2 0.5 24.9 -0.5 17.5 
Inflation (accumulated) 15.9 9.4 8.0 0.6 0.3 12.1 -0.4 8.8 
Deposit rate domestic 
currency 13.8 10.6 7.9 13.0 10.8 .. 10.7 12.5 
Deposit rate foreign 
currency 9.0 7.9 5.5 5.8 5.9 .. 5.8 6.6 
Lending rate domestic 
currency 20.9 15.9 15.9 18.4 16.6 .. 16.9 17.9 
Lending rate foreign 
currency 10.3 10.6 9.3 8.4 9.3 .. 9.5 9.1 
         
Monetary indicators (% growth rate over previous year)  
M0 19.0 17.0 5.5 5.3 16.5 1.5 .. .. 
M1 13.5 18.7 3.9 7.3 24.0 3.8 .. .. 
M2 5.4 17.5 13.1 14.2 23.1 -5.4 .. .. 
M3 5.3 17.6 12.8 14.7 22.7 -5.5 .. .. 
Domestic credit 25.4 16.4 7.1 12.3 6.3 3.9 .. .. 
         
External sector (% of GDP unless otherwise indicated)  
Current account 
balance (% of GDP) -1.5 -2.2 -6.3 -8.1 -9.1 .. -8.8 -3.5 
      Merchandise 
exports (% change) -40.3 29.2 33.0 1.2 -7.5 .. -8.7 -9.3 
      Merchandise 
imports (% change) -46.7 35.5 41.4 4.7 -5.3 .. -5.8 -24.1 
      Service exports (% 
change) -22.6 23.1 13.8 1.9 3.5 .. 3.1 -34.1 WT/BOP/S/17 
 
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2009 2010 2011 2012 2013 2014 2013 
Jan-
Sept. 2014 
Jan-
Sept. 
      Service imports (% 
change) -28.8 10.0 5.3 9.9 9.9 .. 7.6 -18.5 
Gross external debt, 
US$ billions 104.0 117.3 126.2 134.6 142.1 135.8 
(Oct) 137.3 
(Oct.) 135.8 
(Oct) 
Gross external debt, % 
of GDP 88.3 86.0 77.3 76.4 78.1 .. .. 98.6 
(Oct) 
Gross external debt, % 
of exports of goods and 
services 190.6 169.4 142.1 149.5 166.2 .. .. .. 
International reserves (at period end), US$ billions 26.5 34.6 31.8 24.5 20.4 6.7 .. 6.7 Dec. 
International reserves 
in months covering 
future period imports 4.3 4.2 3.7 2.9 3.0 1.8 .. .. 
.. Not available/not applicable. 
a Excluding Crimea and Sevastopol. 
b Since 2004 data are presented including lending less repayments.  
Source: National Bank of Ukraine (online information); and IMF online information, "International Financial 
Statistics". Viewed  at: http://elibrary-data.imf.org/DataExplorer.aspx. 
4.  Due to the past policies of easy credit (see below), Ukraine's economy became increasingly 
dependent on consumption, including imports. Final consumption by households and the 
Government accounted for over 70% of GDP in 2013 and 2014; a large share of this consumption 
was made up of imports. Government spending represented some 17.8% of GDP in 2014. The gross capital formation/GDP ratio, on the other hand, has remained low, shrinking to just 13.7% in 
January-September of 2014. However, despite a sharp contraction in 2014, domestic absorption 
(including imports) has remained high leading to a substantial deficit in the current account of the balance of payments, which has been exacerba ted by lower pipeline transportation income 
(see below). Between 2009 and 2013, the deficit in the current account of the 
balance of payments increased sharply, from 1.5% of GDP to 9.1%, before declining to an estimated 3.5% of GDP in January-September of 2014. 
5.  Insufficient investment has resulted, on the other hand, in a rather morose domestic 
production scenario, which combined with the policy of easy consumption credit have contributed 
to a deterioration in the current account. Considering the evolution of value added by activities, as Table 2 shows, the most affected productive sect ors in recent years have been water, sewerage, 
and waste management; construction; transportation and storage; and manufacturing, while most 
other services activities have performed better. However, some of the better-performing services 
such as real estate and health, are either non-tradable or have a rather small tradable share.  
Table 2 Gross Value Added by Kinds of Economic Activity
 (SNA - 2008)  
(At constant prices of 2010, in % of corresponding period of the previous year)  
 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) 
І Q 2011 0.4 2.3 2.5 1.8 -24.5  -4.9 2.1 -2.6 3.9 2.8 8.1 1.3 -0.8  
ІI Q 
2011 11.4 1.1 0.5 -1.1 -23.6  1.7 3.4 -3.2 6.1 4.5 0.6 6.0 1.1 
ІII Q 
2011 -8.0 0.6 -4.9 2.5 -24.2  -14.3  -0.5 -8.3 6.5 6.7 6.7 8.3 1.1  
ІV Q 
2011 -3.5 -3.1 -6.6 -6.6 -13.3  -18.7  -2.0 -10.5  5.7 5.7 -5.7 8.3 2.8 
2011 -4.0 0.2 -2.3 -1.0 -21.7  -10.1  0.7 -6.3 5.5 5.0 1.9 6.0 1.0  
І Q 2012 5.0 0.3 -9.8 -8.0 -16.1  -15.1  2.5 -0.2 -0.2 2.5 6.5 1.4 0.1 
ІI Q 
2012 21.4 -1.5 -7.9 -1.7 -14.9  -21 0.8 1.7 -0.6 2.0 5.3 1.4 -2.7  
ІII Q 
2012 -2.4 1.1 -9.1 -0.6 -15.2  -13.4  2.6 4.9 -0.1 0.4 2 6.4 -2.7 
ІV Q 
2012 37.0 3.4 -6.5 0.2 -13.6  -9.9 4.9 6.1 -2.9 0.8 5.6 2.8 -3.5  
2012 13.2 0.8 -8.3 -2.8 -14.9  -14.9  2.7 3.2 -0.9 1.4 4.8 3.0 -2.2 WT/BOP/S/17 
 
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   (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) 
І Q 2013 6.0 -1.4 -9.3 -3.3 -0.5  1.4 -3.1 -2.6 2.4 4.1 9.6 2.2 1.4  
ІI Q 
2013 -8.8 -2.6 -8.4 1.9 0.4 -16.9  -9.1 -6.1 -1.1 1.6 2.3 -0.9 5.3 
ІII Q 
2013 25.9 -21.9 -15.2 -14 -25.7  -26.1  -17.8  -7.1 1.1 -0.9 1.2 -8.9 8.3  
ІV Q 
2013 0.4 2.3 2.5 1.8 -24.5  -4.9 2.1 -2.6 3.9 2.8 8.1 1.3 -0.8 
2013  11.4 1.1 0.5 -1.1 -23.6  1.7 3.4 -3.2 6.1 4.5 0.6 6.0 1.1  
І Q 2014  -8.0 0.6 -4.9 2.5 -24.2  -14.3  -0.5 -8.3 6.5 6.7 6.7 8.3 1.1 
ІI Q 
2014 -3.5 -3.1 -6.6 -6.6 -13.3  -18.7  -2.0 -10.5  5.7 5.7 -5.7 8.3 2.8  
ІII Q 
2014 -4.0 0.2 -2.3 -1.0 -21.7  -10.1  0.7 -6.3 5.5 5.0 1.9 6.0 1.0 
(1) Agriculture, forestry an d fishing; (2) Mining and quarrying; (3 ) Manufacturing; (4) Electricity, gas, 
steam; (5) Water; sewerage, waste management; (6) Construction; (7) Wholesale and retail trade; (8) Transportation and storage; (9) Education; (10) Health and social work; (11) Finance and insurance; (12) Real estate; (13) Public administration and defence. 
Source: National Bank of Ukraine, Macroeconomic indicators, Gross Dome stic Product, at: http://www.bank. 
gov.ua/files/GDP_e.xls. 
6.  Inflation fell considerably between 2009 and 2012, from 12.3% to -0.2%, and remained low in 
2013, but accelerated sharply in 2014 as price increa ses were triggered by the depreciation of the 
hryvnia, rising administratively regulated prices and tariffs as a result of pressing economic 
reforms and a deterioration of market expectations. The consumer price index rose by 17.5% 
year-on-year in September 2014, compared to 0.5% in December 2013, and by 24.9% year-on-year by the end of 2014.  
1.2  Fiscal accounts 
7.  Ukraine has run a fiscal deficit in every year during 2009-14. The deficit reached its peak in 
2010, when it was 6% of GDP; it fell subsequently in 2011 and 2012, years of faster economic 
growth. The deficit has deteriorated since then mainly as a result of the conflict which started in 
the eastern part of the country. An important contributor to the overall public sector deficit is the deficit posted by the gas company Naftogaz. Fiscal deficits have also complicated the balance-of-payments situation.  
8.  In an April 2014 Letter of Intent to the IMF, Ukraine announced the introduction of a number of 
fiscal measures, both to reduce spending and to increase revenue. These measures included administrative measures to enhance revenue, such as: fighting tax evasion; limiting the entry 
point of imports to official checkpoints; strengthening control of alcohol sales; enforcing debt 
collection; tightening VAT compliance verification; conducting tax audits; and enhancing efforts to collect utility payments to improve the financial situation of Naftogaz.
2 Other measures to enhance 
revenue introduced in 2014 included: suspending th e application of the zero VAT rate to export 
operations of grain and industrial crops during 1 April–30 September 2014; increasing fees on the 
use of mineral resources and broaden the base; in creasing excise tax rates, and expanding tax 
bases; introducing a reduced 7% VAT rate on pharmaceutical and medical products; and 
improving tax administration. A number of expendit ure-reducing measures were also introduced, 
including: maintaining the level of minimum wage  during 2014 (undoing an approved increase) 
and reducing employment by attrition; maintaining pension levels during 2014; rationalizing social 
assistance spending and capital expenditure; rati onalizing subsidies to enterprises; and enhancing 
the efficiency of public procurement. 
9.  These measures proved, however, insufficient to  lower the deficit substantially. Although they 
led to a contraction in expenditure, tax revenues underperformed due to the contraction of 
economic activity, and their ratio to GDP fell from 30.4% in end-2013 to 29.9% in September 2014. In August 2014, the authorities recalibrated their estimated general government 
                                               
2 IMF (2014), Ukraine - Letter of Intent, Memorandum of Ec onomic and Financial Policies, and Technical 
Memorandum of Understanding , 22 April 2014. Viewed at: 
http://www.imf.org/external/np/loi/2014/ukr/042214.pdf. WT/BOP/S/17 
 
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  deficit in light of the shocks facing the economy and sent a new Letter of Intent to the IMF.3 The 
recalibration aimed at a larger structural fiscal adjustment of 2.6% of GDP during 2014–16, compared with the original programme target of 2% , to compensate for the widening in Naftogaz's 
deficit. This would translate into headline general government deficits of 5.8% of GDP in 2014 
(0.6% higher than initially envisaged), 3.9% of  GDP in 2015 and 2.7% of GDP in 2016. The target 
for the combined deficits of the general government and Naftogaz was revised to 10.1% of GDP in 2014, 5.8% of GDP in 2015, and 4% of GDP in 2016.  
10.  After declining as a share of GDP between 2009 and 2013 (from 88.3% to 78.1%), total gross 
external debt climbed to some 98.6% of GDP by October 2014, on account of the devaluation of 
the hryvnia. This percentage has increased dramatically since the decision to float the hryvnia in early 2015, and by February 2015, the gross external debt/GDP ratio, had climbed to some 225% 
o n  a c c o u n t  o f  t h e  s t r o n g  d e p r e c i a t i o n  o f  t h e  h r y v n i a .  M o s t  o f  t h i s  d e b t  i s  e x t e r n a l  d e b t  o f  t h e  
domestic private sector. 
1.3  Exchange rate  
11.  The exchange rate, which operated as a de facto peg to the US dollar until the end of 2007, 
moved to a managed float in late 2008. However, as depreciation pressures continued, the National Bank of Ukraine increasingly supported the exchange rate through foreign exchange 
market operations accompanied by regulatory changes, including strengthening controls on 
operations of repatriation of foreign investments out of Ukraine. By 2010, the NBU had in practice 
returned to a policy of de facto peg to the US dollar.  
12.  In the 2011-12 period, the NBU kept the exchange rate of the hryvnia to the US dollar pegged 
at the rate of UAH8 to US$1 through large scale foreign exchange market operations. The NBU 
held to a policy of supporting the exchange rate in its quest to maintain price stability, considering the high import content of domestic demand. This policy had, however, a high cost, and became 
unsustainable as the external imbalances resulting from the accumulation of large current account 
deficits in previous years created considerable devaluation pressure and foreign exchange reserves dwindled. This was aggravated in 2013, by social  and political tensions that caused a capital 
outflow from the country and a deposit outflow from the banking system. The NBU felt 
considerably pressured to abandon its defence of the exchange rate and let the currency float. 
13.  In February 2014, the NBU announced its decision to adopt a flexible exchange rate regime. 
This had immediate implications for the hryvnia to dollar interbank exchange rate, which shot from 
UAH8 per US$1 to UAH 13.6058 per US$ in the period January - August 2014. However, since the 
float adopted by the NBU was a managed one, the Bank continued to set the indicative hryvnia exchange rate and held foreign exchange auctio ns to support it. On 5 February 2015, the NBU 
stopped these practices and decided that the exchange rate would be set by banks based on the 
objective parameters of market demand and supply (see below). 
14.  After the introduction of the free float, the exchange rate depreciated considerably, reaching 
UAH 25/US$ in February. This led to a halving of the dollar value of GDP to some US$60 billion, 
leading, as mentioned above, to a substantial increase in the debt/GDP to ratio to an estimated 225%. 
1.4  Monetary and Financial Sector Policy 
15.  During most of the 2009-14 period, the National Bank of Ukraine led an expansionary 
monetary policy, which resulted in strong cred it growth and propped up private and public 
consumption. This was partly a result of the po licy implemented to defend the exchange rate, 
which required selling foreign exchange and creating a hryvnia counterpart. Despite the 
considerable amount of credit made available, lending rates remained high making repayment of debts difficult. The high cost of credit led to increasing defaults, a loss of confidence in the banking 
sector and eventually resulted in bank interv entions and withdrawals of operating licenses. 
                                               
3 IMF (2014), Ukraine - Letter of Intent, Memorandum of Ec onomic and Financial Policies, and Technical 
Memorandum of Understanding , 18 August 2014. Viewed at: 
http://www.imf.org/external/np/loi/2014/ukr/081814.pdf. WT/BOP/S/17 
 
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  16.  Most Ukrainian banks posted net losses in 2014, due to an increase in loan loss provisions, 
which displayed a 3.7-fold increase from the previous year, with their share in total expenses climbing from 16.7% to 39.3%. In many cases, ba nks lost the property pledged as collateral in 
mortgage loans, as well as other assets serving as collateral for other types of loans. This had 
implications for the quality of the loan portfoli o and prompted the need to implement contingency 
measures to deal with this quality loss. Excluding losses by banks that had been declared insolvent and those that had been placed under provisiona l administration by the Deposit Guarantee Fund, 
the banking sector made a loss of UAH33.1 billion  in 2014. The NBU adopted a two-pronged policy 
consisting of purging the banking sector of th ose banks that had undertaken inordinately risky 
activities, on the one hand, and of injecting additi onal capital into sounder and more viable banks, 
on the other. 
17.  In late December 2014, the NBU approved a methodology for determining systemically 
important banks, through NBU Board Resolution No. 863 "On Approval of the Procedure for determination of systemically important banks".
4 It was decided that systemically important banks 
would be designated annually using a mathematical model based on certain criteria including the 
total volume of assets, the liabilities of legal entities and individuals, the volume of interbank lending, and the volume of lending to key sectors of the economy. The Resolution, which came 
into effect on 1 January 2015, designated eight ba nks as systemically important. In accordance 
with Resolution No. 863, the systemic importance of a bank does not create an obligation for the state to participate in its capitalization.
5 The Resolution mandates the NBU to develop specific 
regulations for the supervision of systemically important banks setting, among others, additional 
capital requirements for them. The NBU plans to do this gradually. 
18.  Following its policy of purging the banking sector of banks which have undertaken inordinately 
risky activities, the NBU has been including risky banks in the "insolvent" category in the last 
months of 2014 and first months of 2015. This has been followed in some cases by a decision to 
wind them down. The main rationale behind the de cision to classify a bank as insolvent is the 
insufficient capitalization of the bank, its failure to meet the stress test capital requirements and 
inability to bring its operations in line with applicable Ukrainian laws. The decision is taken after 
the NBU has examined the capitalization terms proposed by the bank shareholders, and has found them inappropriate. In the six months betwee n September 2014 and end-February 2015, some 
16 banks were declared insolvent.
6 Since the beginning of 2014 and in the first two months of 
2015, the NBU adopted a decision to dissolve and revoke the licence of 26 banks7 and decided the 
disposition of all assets and liabilities held by JSCB KYIV PJSC to another state-owned bank. 
19.  Monetary policy was tightened in 2014. The National Bank of Ukraine announced a monetary 
policy framework for 2015 in September 2014, which sets mid-term monetary policy objectives.8 
The stated priority was to achieve and maintain price stability defined as an annual inflation rate, measured as a variation of the CPI, within a 3-5% range in a midterm horizon of 3 to 5 years. The 
goal was to ensure a gradual decline in the inflation rate and to achieve the mid-term inflation 
target by 2018. The policy framework set intermed iate goals for changes in the CPI: 9% by the 
end of 2015, 7% by the end of 2016 and 5% by the end of 2017. The stated main risks to meeting 
short-term monetary policy objectives and benchmarks arise from developments in eastern 
Ukraine. The adoption of an inflation targeting regime, planned for the second half of 2015, is 
expected to contribute to the achieving of the mid-term target. 
                                               
4 The NBU has noted that the regulation was developed considering the relevant guidelines of the 
Financial Stability Board and the Basel Committee on  Banking Supervision providing for importance of 
identifying systemically important banks, use of specific regulation of their activities, in terms of higher capital 
requirements in order to  reduce systemic risk.  See: National Bank of Ukraine (2015), National Bank of Ukraine 
modifies the monetary policy framework whil e tightening the monetary policy stance . Press release, 
5 February 2015. Viewed at: http://www.bank.gov.ua/control/en/publish/article?art_id=14340538&cat_id=76291. 
5 The decision on state participation in capitalizatio n of banks is taken by th e Expert Council on State 
Participation in the Authorized Capital of Ukrainian Banks at the Ministry of Finance of Ukraine. 
6 Green Bank PJSC, Aktabank PJSC , Prime-Bank PJSC, CB "AXIOM" PJSC, InterCreditBank PJSC, Melior 
Bank PJSC, City Commerce Bank PJSC, VAB Bank PJSC , Bank Cambio PJSC, UKRBUSINESSBANK PJSC, Bank of 
Professional Finance PJSC, IMEXBANK JSC, Ukoopspil ka JSB, CB NADRA PJSC, ENERGOBANK PJSC's, and 
ZLATOBANK JSC. 
7 National Bank of Ukraine (2015), Ukrainian banks under liquidation as of 10 February 2015. Viewed 
at: http://www.bank.gov.ua/control/en/publish/article?art_id=88230&cat_id=88210. 
8 National Bank of Ukraine (2014),  Monetary Policy Fundamentals for 2015 . Viewed at: 
http://www.bank.gov.ua/doccatalog/document?id=10885201. WT/BOP/S/17 
 
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  20.  In the process leading to inflation targeting, the NBU decided to start by setting the regulation 
o f  m o n e t a r y  b a s e  a s  o p e r a t i o n a l  m o n e t a r y  p o l i c y  b e n c h m a r k ,  w i t h  a  g o a l  o f  2 0 %  g r o w t h  f o r  2015.
9 Other targets included monetary performanc e criteria and recommended net international 
reserves levels. The effectiveness of monetary policy tools would be enhanced by maintaining a 
flexible exchange rate, allowing, however, for the possibility of interventions in the foreign 
exchange market.10  
21.  On 5 February 2015, the NBU announced that, as  part of the run-up to the adoption of the 
inflation-targeting regime, its Board had adopted a decision to modify the operational framework 
for monetary policy implementation and enhance mo netary policy efficiency and transparency for 
market participants. The main changes introduced included:  
22.  making the discount rate more instrumental as the benchmark monetary policy rate; 
 stopping, effective from 5 February 2015, the practices of holding foreign exchange auctions 
and setting the indicative hryvnia exchange rate. The exchange rate is to be determined now by market forces.  
 
23.  The NBU considers that strengthening the role of the discount rate as the benchmark monetary policy rate will help eliminate uncertain ty, enhance the effectiveness of the price-setting 
mechanism for lending resources and making foreign exchange available in the interbank market, 
and make monetary policy more effective.  
24.  At the same time, the NBU decided to tighte n the monetary policy stance and, effective from 
6 February 2015 raised the discount rate from 14.0% to 19.5% per annum, adjusting also interest 
rates on NBU's liquidity-providing and liquidity-absorbing operations.
11 The Ukrainian authorities 
consider that a tighter monetary policy will help stabilize the money market and contribute to price 
stability, paving the way to bring inflation down to single digits in 2016. According to the NBU's 
forecasts, CPI inflation will stand at 17.2% at the end of 2015. In its decision, the NBU also 
considered that higher interest rates would have little impact on business activity in the real economic sector, as bank lending activity remained considerably subdued. The NBU considers that 
actual GDP could reach potential GDP (currently th ere is an 8-9 percentage point gap) in the mid-
term only if macro-financial stabilization is achieved, and that a more rigid monetary policy would play a key role in it.
12 
25.  Mainly due to an increase in the rate of inflation, following the flotation and subsequent 
depreciation of the hryvnia, on 2 March 2015, the NBU announced (Resolution No. 154 of the 
NBU Board of 2 March 2015) that it was increasing its discount rate from 19.5% to 30% per annum as of 4 March. The NBU also increased, as  of 10 March, reserve requirements for banks to 
reduce the spare liquidity in the banking system  and help curb deprecation pressures. The NBU 
also announced that it would actively use sterilization instruments to absorb the excess liquidity generated in the banking system due to the provis ion of resources to the Deposit Guarantee Fund 
for the compensation of depositors of liquidated banks and for any financial support to Naftogaz 
and to the state budget, which would, however, be minimized.
13 
                                               
9 The money base would be influenced by modifying the amount of liquid funds available to banks, 
mainly through weekly refinancing tenders and regular tenders for the allocation of deposit certificates. 
Long-term mechanisms (reserve requirements) and one -time operations (purchase or sale of government 
securities) would be mainly employed  to address liquidity mismatches. Th e demand for, and supply of, liquid 
funds would be managed by using interest rates to contro l the cost of funds. The discount rate would be used 
for most main refinancing loans and an interest rate ba nd for overnight standing fa cilities would be imposed. 
The rate on overnight certificates of deposit would be set as the bottom of the interest rate band, while the 
rate on overnight refinancing loans would be set as the top of the band. 
10 National Bank of Ukraine (2014), Monetary Policy Fundamentals for 2015 . Viewed at: 
http://www.bank.gov.ua/doccatalog/document?id=10885201. 
11 The discount rate had been previously changed on 12 November 2014.  
12 National Bank of Ukraine (2015), National Bank of Ukraine modifies the monetary policy framework 
while tightening the monetary policy stance . Press release, 5 February 2015. Viewed at: 
http://www.bank.gov.ua/control/en/publish/article?art_id=14340538&cat_id=76291. 
13 National Bank of Ukraine (2015), National Bank of Ukraine Board has approved a series of decisions 
aimed at stabilization of the moneta ry market on the basis of recomme ndations by the Monetary Policy 
Committee . Press Release, 3 March 2015. WT/BOP/S/17 
 
- 8 - 
 
  1.5  Balance of Payments  
26.  Ukraine's current account of the balance of  payments showed increasing deficits between 
2009 and 2013. In this last year, the deficit increased to a record level of US$16.5 billion, equivalent to 8.7% of GDP (Table 3). The growing deficit reflected mainly a sharp increase in 
imports of goods and services (of around 80% in value in US dollars) amidst a more moderate 
increase in exports (57%). In 2014, both export s and imports shrank considerably: exports by 
some 20% and imports by some 27%. This resulted in a contraction of the current account deficit 
in US dollars terms, to US$5.3 billion, or 4% of GDP.
14 However, this was accompanied by a shift 
in the position of the capital and financial account from surplus to deficit (see below). 
27.  According to balance-of-payments data, merchandise exports decreased by 15% in 2014, to 
US$55.3 billion, due to the effect of a decline of exports to the Russian Federation, lower prices for 
Ukraine's major exported goods, such as grains, an d a decline in exports of metallurgical products 
driven by lower metal prices in the wake of depressed global demand. Exports to the Russian Federation dropped by 34.7% (see below) , while exports to the EU increased by some 
2%. Exports of all categories of goods as defined by Ukraine contracted: agricultural products by 
2%, minerals by 19.1%; chemicals by 26.1% (influenced by a halt in production in factories in the conflict area and a shortage of gas supply); timb er and wood products by 5.9%, industrial goods 
by 7.7%; ferrous and nonferrous metals by 13.2% (mainly due to decrease in export prices for 
ferrous metals) machinery and equipment by 29.2% (mainly due to lower exports of railway locomotives to the Russian Federation).
15 
28.  Merchandise imports contracted by 28% to US$61.3 billion in 2014. The decline of non-energy 
imports was influenced by the depreciation of  the hryvnia and weak domestic demand, while 
energy imports dropped (by 40.5%) driven by lo wer prices and volumes of imported gas. All 
import categories contracted in 2014: agricultural products (-26.1%); mineral products (-28.2%); 
chemicals (-20.2%); timber and wood (-31.6%) industrial products (-28.6%), ferrous and 
nonferrous metals (-33.4%); and machinery and equipment (-38.0%). Imports from the Russian Federation declined by 44.7%, primarily due to lower gas imports (-63.1%); imports from 
the EU declined by over 20%.
16  
29.  Ukraine traditionally runs a services balance surplus due mainly to its surplus in transportation 
and some professional services. This has helped offset the structural merchandise trade deficit. The surplus in transportation (some US$4 billion in 2013) is primarily due to pipeline transport 
(surplus of US$3.3 billion in 2013). Since the beginni ng of the conflict in the Eastern part of the 
country, this surplus has been shrinking considerably due to infrastructure destruction in eastern Ukraine and economic activity decline: in the firs t half of 2014 it fell by some 20%. This surplus 
declined further in the second half of the year, resulting in a sharp contraction of the services 
balance surplus, from US$4,383 mi llion in 2013, to US$687 million in 2014 (Table 2). The deficit in 
the income balance contracted to US$1.3 billion in 2014 (compared with US$3 billion in 2013) due 
to lower dividend payments for foreign direct investment (by 69.1%). The surplus in transfers 
decreased to US$1.5 billion in 2014 (from US$2.1 billion in 2013). 
Table 3 Balance of Payments, 2009-14 
(US$ million) 
 2009 2010 2011 2012 2013 2013  
Q1-Q3 2014 
Q1-Q3 a 2014 
Q4a, b 2014a, b 
 Current 
account  -1,732 -3,018 -10,245  -14,315  -16,478  -11,472  -3,793 -1,480 -5,273  
   Balance of 
goods and 
services   -1,953 -3,984 -10,157  -14,326  -15,594  -10,742  -3,563 -1,720 -5,283  
                                               
14 National Bank of Ukraine (2015), Balance of payments of Ukraine, 2014-2015, January 2015. Viewed 
at: http://www.bank.gov.ua/doccatalog/document?id=78604. 
15 National Bank of Ukraine (2015), Merchandise Trade , December 2014. Viewed at: 
http://www.bank.gov.ua/doccatalog/document?id=82747, and National Bank of Ukraine (2015), Balance of 
Payments, Annual 2014 (preliminary data). Viewed at: http://www.bank.gov.ua/doccatalog/document?id=67273. 
16 National Bank of Ukraine (2015), Merchandise Trade , December 2014. Viewed at: 
http://www.bank.gov.ua/doccatalog/document?id=82747, and National Bank of Ukraine (2015), Balance of 
Payments, Annual 2014 (preliminary data). Viewed at: http://www.bank.gov.ua/doccatalog/document?id=67273. WT/BOP/S/17 
 
- 9 - 
 
   2009 2010 2011 2012 2013 2013  
Q1-Q3 2014 
Q1-Q3 a 2014 
Q4a, b 2014a, b 
    Exports of 
goods and services  54,253 69,255 88,844
 90,035  85,482  63,183  53,020 15,465 68,485  
    Imports 
of goods and 
services  -56,206 -73,239 -99,001  -104,361  -101,076  -73,925  -56,583 -17,185 -73,768  
   Goods 
(balance)  -4,307 -8,388 -16,252  -19,478  -19,977  -14,603  -4,041 -2,024 -6,065  
    Exports of 
goods  40,394 52,191 69,418  70,236  64,997  47,533  42,867 12,392 55,259  
    Imports 
of goods  -44,701 -60,579 -85,670  -89,714  -84,974  -62,136  -46,908 -14,416 -61,324  
   Services 
(balance)  2,354 4,404 6,095  5,152  4,383  3,861  478 304 782 
    Exports of 
services  13,859 17,064 19,426  19,799  20,485  15,650  10,153 3,073 13,226  
   Imports of 
services  -11,505 -12,660 -13,331  -14,647  -16,102  -11,789  -9,675 -2,769 -12,444  
   Income 
(balance)  -2,440 -2,009 -3,796  -2,965  -3,033  -2,332  -1,271  -260 -1,531  
   Current 
transfers 
(balance)  2,661 2,975 3,708  2,976  2,149  1,602  1,041 500 1,541  
 Capital and 
financial 
account  -11,994 8,049 7,790  10,140  18,501  13,018  -1,154 -6,880 -8,034  
   Capital 
account  595 187 98 38 -83 -6 366  2 368 
   Financial 
account  -12,589 7,862 7,692  10,102  18,584  13,024  -1,520  -6,882 -8,402  
    Direct 
investment 
(net) 4,654 5,759 7,015  7,195  4,079  3,088  -259  558 299 
    Portfolio 
investment (equity securities) 99 294 511
 493 1,191  1,948  -373 -17 -390  
    Loans and 
bonds (net)  -9,137 6,762 2,598  6,035  7,349  2,737  1,136 -3,378 -2,242  
    Other 
capital -8,205 -4,953 -2,432  -3,621  5,965  5,251  -2,024 -4,045 -6,069  
 Balance  -13,726 5,031 -2,455  -4,175  2,023  1,546  -4,947 -8,360 -13,307  
          
 Financing  13,726 -5,031 2,455  4,175  -2,023  -1,546  4,947 8,360 13,307  
Note: Analytical presentation. 
a Excluding Crimea and Sevastopol from Q2/2014. 
b Preliminary data. 
Source: Central Bank of Ukraine online information. 
30.  The financial and capital account deficit registered in 2014 (US$8.0 billion) was caused 
primarily by repayments on arrears for gas by NJSC  "Naftogas of Ukraine", by a shrinking inflow of 
investment and loans in Ukraine. This compared to a US$18.5 billion surplus in 2013. Net payments on loans and bonds amounted to US$2.2 billion in 2014, while in 2013 there were inflows of US$7.3.6 billion. The rollover of privat e sector external liabilities (loans and deposits) 
amounted to 86%. 
31.  International reserves continued to decline rapidly in the last months of 2014 and the first 
months of 2015 (Table 4). As of 1 December 2014, international reserves declined to 
US$10 billion, covering 1.8 months of future imports. As of 1 February 2015, preliminary data 
show that the stock of international reserves stood at US$6.42 billion, equivalent to less than a month of imports.
17 This result was influenced by the settlement of the Government's foreign debt 
obligations in January 2015 (US$624 million), together with declining exports at a faster pace than 
                                               
17 National Bank of Ukraine (2015), International reserves dynamics in January 2015, Press Release 
5 February 2015. Viewed at: http://www.bank.gov.ua/control/en/publish/article?art_id=14347717&cat_id=76291. WT/BOP/S/17 
 
- 10 - 
 
  imports and foreign exchange interventions to support the hryvnia (US$518 million).18 Given the 
impossibility to continue intervening in the market to support the exchange rate, the NBU 
announced on 5 February the decision to stop the auction of foreign exchange and a switch to a purely market determined float. Foreig n exchange auctions were stopped.  
Table 4 International reserves (end of period), 2009-15 
(US$ Million) 
 2009 2010 2011 2012 2013 2014 2015 Jan. 
Official 
reserve 
assets 26,505.11  34,576.4 31,794.61  24,546.19  20,415.71  7,533.33 6,419.73  
Foreign 
currency 
reserves 25,493.33 33,319.44 30,391.38 22,646.62 18,759.52 6,618.47 5,433.3 
IMF 
reserve position 0.03 0.03 0.03 0.03 0.03 0.03 0.03 
SDRs 63.57 7.96 17.91 9.18 16.01 3.74 19.15 
Gold 948.18  1,248.97 1,385.29 1,890.36 1,640.15 911.09 967.25 
Other 
reserve 
assets - - - - - - - 
Source:  Central Bank of Ukraine. 
2  AGREEMENTS WITH THE IMF 
32.  Between 2008 and early 2015, Ukraine conc luded three Stand-By Agreements and one 
Extended Facility Agreement with the International Monetary Fund (IMF) to help restore financial 
stability. 
33.  The Executive Board of the IMF approved in November 2008 a two-year 
Stand-By Arrangement (SBA) for SDR 11 billion (about US$16.4 billion) to help the authorities restore financial and economic stability and strengthen confidence. The authorities' programme 
aimed at restoring confidence in Ukraine's macroeconomic and financial stability; its key measures 
were: 
 Implementation of a flexible exchange rate regi me, to help Ukraine absorb external shocks.  
 Monetary policy tightening, with base money as the near-term anchor to help achieve an 
inflation objective of 17% in 2009. 
 Strengthening the independence of the NBU. 
 Eliminating exchange rate controls as soon as possible. 
 Recapitalization of viable banks, and strengthening of monitoring. 
 Adoption of a prudent fiscal stance with the deficit not exceeding 1% of GDP in 2008, and 
attaining balance in 2009 (excluding bank recapitalization costs).
19 
 
34.  In June 2010, the Executive Board of the International Monetary Fund (IMF) approved a 
29-month SDR 10 billion (about US$15.15 billion) SBA for Ukraine in support of the authorities' economic adjustment and reform programme. The SBA approved in November 2008 
was cancelled. Some of the main points of the new programme were: 
 Reducing the general government deficit to 3.5% of GDP in 2011 and 2.5% in 2012. 
 Setting public debt firmly on a downward path below 35% by 2015.  
 Initiating reforms to modernize the gas sector and eliminate Naftogaz's deficit starting from 
2011, including through gas tariff increases an d the unbundling of production, transit, and 
distribution to end-users. 
 Restoring and safeguarding banks’ soundness through completion of recapitalization plans 
by end-2010 and strengthened supervision. 
                                               
18 In January 2015, the National Bank of Ukraine ca rried out foreign exchange interventions amounting 
to US$518 million, of which US$464 million were sold to support Naftogazof Ukraine NJSC's payments for 
imported natural gas, and the remaining amount  was sold through foreign exchange auctions. 
19 IMF (2008), IMF Approves US$16.4 Billion Stand-By Arrangement for Ukraine . Press Release 
No. 08/271, 5 November 2008. Viewed at: http://www.imf.org/external/np/sec/pr/2008/pr08271.htm. WT/BOP/S/17 
 
- 11 - 
 
   Developing a monetary policy framework focused on domestic price stability under a flexible 
exchange rate regime.20 
35.  In April 2014, the Executive Board of the IM F approved a two-year Stand-By Arrangement for 
Ukraine for SDR 10.976 billion (about US$17.01 billion, 800% of quota) under the Fund's 
exceptional access policy. The authorities’ economic programme set the following specific targets: 
 Focusing monetary policy on domestic price stability while maintaining a flexible exchange 
rate regime by initially adopting a money-ba sed monetary framework and adopting inflation 
targeting by mid-2015. 
 Implementing financial sector reforms to maintain confidence in the financial system and 
strengthen the infrastructure for financial regulation and supervision. The NBU would ensure that banks strengthen their balance sheets,  upgrade the regulatory and supervisory 
framework, and take steps to facilitate the restructuring of non-performing loans (NPLs). 
 Introducing measures to reduce gradually the fiscal deficit by stabilizing revenue, while 
engaging in a medium-term expenditure adjustment process. The process of fiscal 
adjustment would be expected to proceed at a pace matching the economy's speed of 
recovery, aiming to reduce the fiscal deficit to about 3% of GDP by 2016. 
 Focusing energy sector reforms on reducing the sector's fiscal drag and enhancing efficiency 
and transparency. Naftogaz's deficit to be brought to zero by 2018. 
 Implementing capacity building measures to reform public procurement and tax 
administration, strengthen anti-money laundering activities, and fight corruption.
21 
 
36.  On 12 February 2015, Ukraine reached a staff- level agreement with the IMF, on an economic 
reform programme, which can be supported by a fo ur-year Extended Fund Facility (EFF), in the 
amount of SDR 12.35 billion (about US$17.5 billion), as well as, by additional resources from the 
international community. The staff agreement is subject to approval by IMF Management and the 
Executive Board.22 The approval of the EFF enables the immediate disbursement of 
SDR 2.058 billion (about US$3.19 billion), with SDR 1.29 billio n (about US$2 billion) being 
allocated to budget support. The second and third disbursements will be based on bi-monthly 
reviews and performance criteria, and the remainder of the programme period will be subject to standard quarterly reviews and performance criteria. On 11 March 2015, the Executive Board of the IMF approved the Extended Fund Facility for Ukraine.
23 
37.  The economic reform programme focuses on immediate macroeconomic stabilization as well 
as broad and deep structural reforms to provid e the basis for strong and sustainable economic 
growth over the medium term. More specifica lly, the programme focuses on: (i) maintaining a 
flexible exchange rate to restore competitiveness; (ii) stabilizing the financial system; 
(iii) gradually reducing the fiscal deficit; (iv) eliminating losses in the energy sector; and (v) reforming governance. The following policy measures have been defined: 
 An expenditure-led adjustment to strengthen public finances within the availability of 
resources supported by revenue reforms, including increasing the progressivity of the personal income tax, widening the tax base and streamlining the tax system.  
 Fiscal consolidation to continue over the coming years. 
 Medium term reforms of the civil service and health and education aiming to improve quality 
and efficiency, as well as improving customs and tax administration.  
 Reform of the energy sector, including devising  a strategy to foster energy efficiency and 
independence, increase domestic gas production, and restructure Naftogaz and improve its 
corporate governance.  
 Implementation of gas and heating price adjustments aiming to reach full cost recovery by 
April 2017, while revamping social protection schemes.  
                                               
20 IMF (2010), IMF Executive Board Approves US$15.15 Billion Stand-By Arrangement for Ukraine.  Press 
Release No. 10/305, 28 July 2010. Viewed at: ht tp://www.imf.org/external/np/sec/pr/2010/pr10305.htm. 
21 IMF (2014), IMF Executive Board Approves 2-Year US $17.01 Billion Stand-By Arrangement for 
Ukraine, US$3.19 Billion fo r immediate Disbursement. Press Release No. 14/189. 30 April 2014. Viewed at: 
http://www.imf.org/external/np/sec/pr/2014/pr14189.htm. 
22 IMF (2015), IMF Announces Staff Level Agreement with Ukraine on a New US$17.5 Billion Extended 
Fund Facility Arrangement . Press Release No. 15/51, 12 February 2015. Viewed at: http://www.imf.org/ 
external/np/sec/pr/2015/pr1551.htm. 
23 IMF (2015), IMF Executive Board Approves 4-Year US$17.5 Billion Extended Fund Facility for Ukraine, 
US$5 Billion for Immediate Disbursement. Press Release No. 15/107, 11 March 2015. Viewed at: http://www.imf.org/external/np/sec/pr/2015/pr15107.htm. WT/BOP/S/17 
 
- 12 - 
 
   Gearing monetary policy toward returning inflation to single digits in 2016 within a flexible 
exchange rate regime. 
 Rehabilitation of the banking system, by upgrading its regulatory and supervisory 
framework, strengthening banks' balance sheets and adopting measures to enhance asset 
recovery and resolution of bad loans.   
 Advancing efforts toward deregulation and judicial reform and implementation of 
anti-corruption measures. Reforming state-owned enterprise to minimize fiscal risks, 
improve corporate governance structures and foster de-monopolization. 
3  DEVELOPMENTS IN TRADE 
38.  According to the latest available Ukraine customs data (which may differ from BOP data), 
merchandise exports (f.o.b.) in 2014 totaled US$53.9 billion24, a decline of 14.5% compared to the 
same period in 2013, while merchandise imports (c.i.f.) reached US$54.4 billion in 201425, a 
corresponding decline of 29.4%. 
3.1  Composition of Trade26 
39.  Steel has traditionally been Ukraine's main  export product accounting for 30.9% of total 
exports in 2010, but declining to 25.5% in 2013.27 Exports of agricultural products exceeded steel 
exports for the first time in 2012 and continued gr owing to reach 28.1% of total exports in 2013.  
40.  The average share of manufactures in total exports declined from 63.7% in 2010 to 57.4% in 
2013.28 The main manufactured export products (oth er than iron and steel) are machinery and 
transport equipment, and chemicals. Mining produc ts accounted for 13.5% of total export products 
in 2013 (down from 15.2% in 2010).29 The main agricultural export products include sunflower 
seeds and oil, maize, wheat, rapeseed, colza, mustard seeds and oil cake. 
41.  In 2013, some 57.5% of imports were manufactured goods, up from 52.9% in 2010. The 
main categories of imports in 2013 were chemicals, non-electrical machinery and automotive 
products. Imports of fuels and mining products accounted for 30% of total imports in 2013, down 
from 35.8% in 2010, while imports of agricultural products accounted for 11.3%, up from 10.3% in 2010. 
42.  Chart 1 shows the product composition of merchandise trade by HS Section. 
3.2  Geographical distribution of trade 43.  Ukraine's merchandise exports are relatively concentrated with its top four trading partners 
accounting for some 60.6% of total exports in 2013.
30 EU (28) was the main destination for 
Ukraine's exports in 2013, accounting for 26.5% of the total, followed by the Russian Federation 
(23.8%), Turkey (6%), and China (4.3%) (Chart 2). The CIS countries accounted for 35.7% of total exports in 2013, followed by Europe (3 3.2%) and Asia (11.9%). Trade figures for 2014
31 
show a redirection of merchandise trade exports towards Europe and Asia (with Europe accounting 
for 38.9% of total exports, and Asia for 12.5%), while shares to the CIS fell to 28.5%. EU (28) 
remains the main export destination for Ukraine's merchandise products accounting for 31.5% of 
the total, followed by the Russian Federation  (18.2%), Turkey (6.6%), and China (5%). 
44.  Ukraine's merchandise imports are more geographically concentrated than exports, with the 
four main providers accounting for some 80.3% of total imports in 2013. The main sources of imports that year were EU (28) (35.1%), the Russian Federation (30.2%), China (10.3%), and 
Belarus (4.7%). Europe accounted for 39.6% of Ukraine's total merchandise imports in 2013, 
followed by the CIS (36.6%) and Asia (16.2%).  In 2014 Europe's share of Ukraine's imports 
                                               
24 The figure for 2013 was US$63.3 billion. 
25 The corresponding figure for 2013 was US$77 billion. 
26 The figures in this section are customs-based, as provided by the State Statistics Service of Ukraine. 
They differ from the balance of pa yments figures provided before. 
27 COMTRADE figures using SITC classification. 
28 COMTRADE figures. 
29 UN COMTRADE using SITC classification. 
30 State Statistics Service of Ukraine. 
31 According to official statistics, trade fi gures for 2014 exclude Crimea and Sevastopol. WT/BOP/S/17 
 
- 13 - 
 
  increased to 43.6%, while those from the CIS dropped to 32% and Asia to 16.1%. EU (28) 
remains Ukraine's main import source, accounting for 38.7% of total merchandise imports, followed by the Russian Fe deration (23.3%), China (9.9%), and Belarus (7.3%).  
Chart 1 Product composition of merchandise trade by HS Section, 2013 and 2014
a 
2013 2014
(a)    Exports (f.o.b.)
Prepared 
food (IV)
5.7%
Minerals (V)
11.3%Base metals (XV)
28.3%
Chemicals (VI)
5.7%
Machinery 
(XVI)
10.5%Other 
15.2%
Vegetables (II)
16.2%Animal or 
vegetable fats 
and oils (III)
7.1%
Total:   US$63. 3 billion Total:  US$53.9 billion
(b)    Imports (c.i.f.)
Base metals (XV)
6.5%Prepared 
foodstuffs and 
beverages (IV)
4.2%
Chemicals (VI)
11.0%Machinery (XVI)
16.2%Minerals (V)
29.1%Vegetables (II)
3.5%Other
16.0%
Transport 
equipment
(XVII)
7.7%Minerals (V)
29.5%
Machinery (XVI)
16.0%
Chemicals (VI)
12.5%Transport 
equipment (XVII)
4.9%
Base metals (XV)
6.1%
Plastics and 
rubber (VII)
6.7%Prepared 
foodstuffs and 
beverages  (IV)
4.8%Vegetables (II)
3.7%Other
15.8%
Total:   US$77.0 billion Total:   US$54.4 billionPrepared 
food (IV)
5.6%
Minerals (V)
11.8%Base metals (XV)
27.8%
Pastics and rubber 
(VII)
6.0%Chemicals (VI)
6.8%
Machinery 
(XVI)
11.0%Other 
17.4%
Vegetables (II)
14.0%Animal or 
vegetable fats 
and oils (III)
5.5%
 
a Excluding Crimea and Sevastopol. 
Source: State Statistics Se rvice of Ukraine, based on the data of  the State Customs Service of Ukraine. WT/BOP/S/17 
 
- 14 - 
 
  Chart 2 Direction of merchandise trade, 2013 and 2014a 
2013 2014
(a)    Exports (f.o.b.)
Europe
38.9%Asia
12.5%
EU (28)
31.5%Other Asia 
4.1%
Americas
2.5%Other CIS
7.3%Africa
9.5%
Other 
Europe
0.7%Russian 
Federation
18.2%Middle East
6.7%
Turkey 
6.6%CIS
28.5%Belarus
3.0%
India 3.4%China 5.0%
Other 1.4%
Total:   US$63.3 billion Total:  US$53.9 billion
(b)    Imports (c.i.f.)
Other  2.0%Russian 
Federation
30.2%
EU (28)
35.1%Other Europe
2.7%Americas
5.6% Europe
39.6%Other CIS
1.7%
China 10.3%
b
Europe
43.6%Asia
16.1%Other CIS
1.4%Belarus
7.3%
Russian 
Federation
23.3%
EU (28)
38.7%EFTA 2.1%Other Europe
2.8%CIS
32.0%
Americas
5.5%China 9.9%
Other Asia   
6.2%
Other  2.7%b
Total:   US$77.0 billionTotal:   US$54.4 billionEurope
33.2%Asia
11.9%
CIS
36.6%Belarus
4.7%EU (28)
26.5%Other Asia 4.5%
Americas
3.4%
Other Asia   
6.0%Other CIS
8.8%Africa
8.1%
EFTA 1.8%Asia
16.2%Other Europe
0.7%Russian 
Federation
23.8%Middle East
7.6%
Turkey
6.0%CIS
35.7%Belarus
3.1%
India 3.1%China 4.3%
bb
 
a Excluding Crimea and Sevastopol. 
b Commonwealth of Indepe ndent States (CIS). 
Source: State Statistics Se rvice of Ukraine, based on the data of  the State Customs Service of Ukraine. WT/BOP/S/17 
 
- 15 - 
 
  4  TRADE POLICY FEATURES AND DEVELOPMENTS 
4.1  Trade Policy Framework 45.  Ukraine acceded to the WTO in May 2008. Since its accession, Ukraine has participated in 
three disputes as complainant
32, two as respondent33, and eight as third party. 
46.  In March 2009, Ukraine notified the WTO of the introduction, as of 10 March 2009, of 
an import surcharge of 13%, applied to imports of certain products.34 This import surcharge was 
justified by the authorities as a measure applied for balance of payments purposes (import duty 
surcharge), under Article XII of the GATT 1994 and under paragraph 9 of the Understanding on 
the Balance-of-Payments Provisions of GATT 1994. The surcharge applied to imports from all sources except from Ukraine's preferential trade partners, namely CIS partners, the Former Yugoslav Republic of Macedonia, and Singapor e. As of 28 March 2009 the Cabinet of Ministers 
suspended the 13% surcharge except for refrigerators (HS 8418) and motor vehicles (HS 8703); 
this was notified to the WTO in May 2009. The remaining measures were imposed for a period of six months, until 7 September 2009. The Balance-of-Payments Committee held consultations with 
Ukraine on 23 and 25 June 2009 and concluded that the measures taken by Ukraine were not 
justified by its balance-of-payments situation and had not been applied in a manner consistent with the requirements set forth in Article XII of GATT 1994 and the Understanding. Ukraine 
committed to eliminate the measures no later than 7 September 2009. On 8 September 2009, 
Ukraine notified the Committee that the measures taken for balance-of-payments purposes had been discontinued as of 7 September 2009.
35 
47.  Ukraine is a signatory to a number of regional trade agreements (RTAs). It has notified 
17 RTAs to the WTO, 14 covering goods only and three covering both goods and services.36 It is a 
member of the new Commonwealth of Independent States (CIS) FTA (which entered into force in September 2012) which links Armenia, Belarus, Kazakhstan, Kyrgyz Republic, Moldova, the 
Russian Federation and Tajikistan. Ukraine has individual bilateral FTAs with all members of the 
CIS and is a member of the Common Economic Zone, a free trade area with Belarus, Kazakhstan and The Russian Federation. Ukraine also has RTAs with Georgia, Azerbaijan, the 
Former Yugoslav Republic of Macedonia, Monten egro, Uzbekistan, Turkmenistan, the EFTA States 
and the EU.
37 In general, tariffs have been eliminated on most tariff lines in these RTAs.38 
4.2  Tariffs and other duties 48.  When it acceded to the WTO, Ukraine bound 10 0% of its tariff lines; bindings are contained in 
Schedule CLXII, and range from 0 to 50% (excluding specific rates). The average bound rate was 
initially 6.0% at the national tariff line level ( 10-digits) and was scheduled to be lowered to 5.9% 
upon final implementation in 2013. Bindings were done at relatively low levels: some 87% of tariff 
lines were bound at 10% or less. While agricultural  goods were bound at levels ranging from 0 to 
50%, the average bound rate for agricultural goods is 11.0%, with the lowest bound rates applying to grains and the highest to sugar. The average bound rate for non-agricultural goods is 
4.8%, with the lowest rates applying to product groups including wood, pulp paper and furniture 
                                               
32 Dispute DS411 Armenia — Measures Affecting the Importation and Internal Sale of Cigarettes and 
Alcoholic Beverages; Dispute DS421 Moldova — Measures Affecting the Importation and Internal Sale of Goods; and Dispute DS434 Australia — Certain Measures Concerning Trademarks and Other Plain Packaging Requirements Applicable to Tobacco Products and Packag ing. All cases are still ongoing as of February 2015. 
Viewed at: http://www.wto.org/english/thewto_e/countries_e/ukraine_e.htm.  
33 Dispute DS423 Ukraine — Taxes on Distilled Spirits; and  Dispute DS468 Ukraine — Definitive 
Safeguard Measures on Certain Passenger Cars. The two cases were still ongoing as of February 2015. Viewed at: http://www.wto.org/english/thewto_e/countries_e/ukraine_e.htm. 
34 Ukraine State Customs Service, Order N° 213 of 10 March 2009, "On Interim Provisions of Procedure 
of Imposing by Customs Authorities of  Interim Surcharge to Applied Import  Tariffs Rates". The list included 
products under HS chapters 02, 05, 08, 16, 17, 22, 27, 42, 43, 57, 60, 61, 62, 63, 64, 65, 68, 69, 72, 73, 84, 85, and 87. 
35 WTO document WT/BOP/N/71, 9 September 2009. 
36 The RTAs with a services component are EFTA-Ukraine, EU-Ukraine, and Ukraine-Montenegro. 
37 In the context of the EU-Ukraine FTA, the EU info rmed the Secretariat that it began application of 
tariff concessions on 23 April 2014. Recent press reports suggest that the entry into force of the 
EU-Ukraine FTA has been delayed until early 2016. 
38 The EFTA-Ukraine FTA is to be implemented over a ten year transition period ending in 2022. WT/BOP/S/17 
 
- 16 - 
 
  and the highest to individual products such as reception apparatus for radio broadcast, catgut and 
conveyor or transmission belts. 
49.  Ukraine's MFN applied tariff for 2015 comprises 10,460 HS 10-digit lines, 99% of which are 
subject to ad valorem  duties. Specific rates are applied on 1% of tariff lines. The average tariff 
calculated by the WTO for 2015 is 4.8% (4.9% if AVEs are included). The average tariff for 
non-agricultural products is 3.6%, while that for agricultural goods (WTO definition) is 9.4% (9.6% 
if AVEs are included) (Table 5). Ukraine applies seasonal duties on 13 products including roses, 
carnations, orchids, gladioli, chrysanthemums, lilie s, foliage, melons (including watermelons), 
apples, pears and quinces. The differential seasonal duty on these items ranges from 5% to 20%.  
50.  At the beginning of 2015, Ukraine introduced import measures taken for balance-of-payments 
reasons, consisting of a temporary import surcharge of 5% for goods classified in groups 25-97 in 
the UKTZED and 10% for goods classified in groups 1-24 of the UKTZED (see section 5). After the 
tariff surcharge is taken into account on applicable goods, the average tariff is 10.8% (10.9% if AVEs are included). The average tariff for non- agricultural products is 8.7% and 19.1% for 
agricultural goods (19.3% if AVEs are included).
39 
Table 5 Ukraine, MFN applied rates, 2015  
Description Number 
of lines Share/% 
including 
AVEs Share/% 
excluding 
AVEs Share/% 
including the 
tariff surcharge 
and AVEs Share/% 
including the 
tariff surcharge 
and excluding 
AVEs 
Simple average tariff 
rate 10,460 4.9 4.8 10.9 10.8 
   WTO agriculture 2,193 9.6 9.4 19.3 19.1 
   WTO non-agriculture  8,267 3.6 3.6 8.7 8.7 
   HS 01-24 2,610 8.5 8.3 18.5 18.3 
   HS 24-97 7,850 3.7 3.7 8.4 8.4 
   ISIC 1 678 5.3 5.3 14.9 14.9 
   ISIC 2 121 3.4 3.4 8.1 8.1 
   ISIC 3 9,660 4.9 4.8 10.7 10.6 
   First stage of 
processing 1,279 4.1 4.1 12.6 12.6 
   Semi-processed 2,978 2.9 2.9 8.1 8.1 
   Fully processed 6,203 6.0 5.9 11.9 11.8 
Duty-free lines 3,960 37.9 37.9 2.0 2.0 
Non-ad valorem  tariff 105 1.0 1.0 1.0 1.0 
Non-ad valorem  tariff 
with no AVEs 16 0.2 1.0 0.2 1.0 
Lines subject to quota 4 0.04 0.04 0.04 0.04 
Domestic peaksa 641c 6.1 6.0 0.2 0.1 
International peaksb 327c 3.1 3.0 17.7 17.1 
Overall standard 
deviation 10,460 6.0 5.3 7.2 6.6 
Note: The 2015 tariff is based on HS12 nomenclature consisting of 10,460 tariff lines (at 10-digit tariff line 
level). 
 Calculations include AVEs (based on 2014 imports), as available, provided by the Ukraine 
authorities. 
a Domestic tariff peaks are defined as those exceed ing three times the overall simple average applied 
rate. 
b International tariff peaks are defined as those exceeding 15%. 
c The number of lines only refers to  applied tariff rates including AVEs.  
Source: WTO calculations, based on IDB data  provided by the Ukraine authorities.  
                                               
39 The calculation of the tariff surcharge is applied to all lines except those 10-digit tariff lines identified 
in Ukraine's notification as exceptions (WT/BOP/N/78). WT/BOP/S/17 
 
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  51.  Imports are subject to a value added tax (VAT) at a rate of 20%, with exceptions. Ukraine 
had plans to reduce this rate to 17% by 1 Janua ry 2015, and legislation to this end was passed. 
However, Parliament reversed in 2014 the already in troduced VAT rate reduction and kept the rate 
at 20%. It was also decided to lower the scope for exemptions; for example, a reduced 7% VAT 
rate would be applied to supplies of pharmaceutical and medical products, which were previously 
exempt from VAT. The corporate income tax is 18% as of 1 January 2014 (it was lowered from 19%). A 15% withholding tax is applied on dividends, interest and royalties received by 
non-residents. 
4.3  Import Restrictions and Licensing  52.  Ukraine's import licensing regime has been notified to the WTO and has its legal foundation in 
Article 16 of the Law of Ukraine "On foreign ec onomic activities" of 16 April 1991 #959-XII, as 
amended. Through its import licensing regime, Ukraine controls and restricts the import of 
weapons, narcotics, chemical and hazardous substances, and certain pharmaceutical and communications-related products. The Cabinet of Mi nisters of Ukraine adopts the licensing regime 
applying to imports of goods based on a submission  of the Ministry of Economy of Ukraine. The list 
of goods subject to licensing in 2014 was approved by Resolution of the Cabinet of Ministers of 
Ukraine No. 950 of 25 December 2013 and notified to the WTO in August 2014.
40 Import licensing 
procedures apply to all imports regardless of origin. Licenses can be either automatic or 
non-automatic. They are not transferable betw een importers. No penalties are imposed for a 
failure to use a license or part of a license.  
53.  Resolution of the Cabinet of Ministers of  Ukraine No. 950 of 25 December 2013 specifies the 
goods falling under both automatic and non-automatic licensing regimes, as well as the 
administrative bodies responsible for issuing approvals to obtain a non-automatic license. The Resolution covers licensing requirements for both imports and exports, and provides a list of: 
(i) goods subject to import licensing requirements, such as insecticides, fungicides, herbicides, 
plant growth regulators, and rodenticides (listed in Annex 5); (ii) the volumes of export quotas for commodities subject to licensing, such as silver, gold, precious metals scrap, crude oil of Ukrainian 
origin, etc. (Annex 1)
41; (iii) goods subject to both export and import licensing requirements, such 
as printing inks, not-enamel paper etc. (Annex 2); (iv) ozone-depleting substances for which both exports and imports are subject to licensing, such as carbon tetrachloride, methyl bromide etc. (Annex 3); (v) goods that can contain ozone-depleting substances, for which exports and imports 
are subject to licensing, such as medical products synthetic organic colorants, paints and lacquers 
based on synthetic polymers etc. (Annex 4); (vi) goods with content of alloyed black metals, coloured metals and their alloys the export of which is subject to licensing (Annex 6); and goods, 
imported from the Former Yugoslav Republic of Macedonia (FYROM), subject to licensing for the 
granting of preferential tariff quotas in accordan ce with the provisions of the FTA between Ukraine 
and FYROM, such as lamb, dried vegetables, confectionery, chocolate, etc. (Annex 7).
42 
54.  Goods subject to non-automatic licensing include: coking coal (UKTZED 2701 12 10 00); 
bituminous coal (UKTZED 2701 12 90 00); other coal (UKTZED 2701 19 00 00); coke and semi-coke of coal for the manufacture of electrodes (UKTZED 2704 00 11 00); other coke and semi-coke of coal (UKTZED 2704 00 19 00); coke and semi-coke of lignite (UKTZED 
2704 00 30 00); and coke and semi-coke of peat, whether or not agglomerated (UKTZED 
2704 00 90 00). In this case, licenses are issued by the Ministry of Economic Development and 
Trade in accordance with the decision of the Interagency Commission for Quota Allocation for 
goods subject to import licensing. 
55.  The process for the allocation of quotas is  as follows: the Interagency Commission prepares 
recommendations for quota allocation for goods subject to import licensing in a specified year, 
based on the application and supporting documents submitted by business entities to the Ministry 
of Economic Development and Trade and considering the information about entity activities during the last three years (volume of imports, production, consumption of Ukrainian domestically produced coking coal, and production of cast iron). The Commission reviews the applications 
submitted by the Ministry of Economic Developmen t and Trade within seven working days after the 
receipt of the applications and submits proposals and recommendations. 
                                               
40 WTO document G/LIC/N/3/UKR/7, 28 August 2014. 
41 Available in original language only (Market Access Division). 
42 WTO document G/LIC/N/3/UKR/7, 28 August 2014. WT/BOP/S/17 
 
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  56.  In January 2015, Ukraine notified the Committee on Agriculture that no in-quota imports had 
taken place in 2014 with respect to its tariff rate quota of 267,800 tons on raw cane sugar (HS 1701.11).
43 Imports of raw cane sugar imported from Ukraine's RTA partners are not counted 
towards the quota.  
4.4  Contingency Measures 
4.4.1  Anti-dumping and countervailing measures 57.  As of 31 December 2014, Ukraine had 17 definitive anti-dumping measures in force for 
products from Belarus, Bulgaria, China, Poland, the Russian Federation, and Turkey.
44 One new 
measure was imposed during 2014 and two were extended. Seven measures on imports from China (3), Germany, Republic of Korea, Spain and the United Kingdom, were terminated in the second half of 2014. As of 31 December 2014, Ukraine had price undertakings on fibreboard from 
Belarus. There were two investigation initiations in 2014. 
58.  Ukraine did not have any countervailing measure in place as of 31 December 2014. However, 
in September 2014, it initiated a countervailing duty investigation with respect to cars (UKTZED 
code 8703) from the Russian Federation.
45 
4.4.2  Safeguard measures 59.  Since 2008, Ukraine has introduced four safeguard measures on imports. During the same 
period, it has initiated six investigations that resulted in no imposition of measures.
46 
60.  The Interdepartmental Commission on International Trade applied safeguard measures in 
July 2008 with respect to imports of casing and pump-compressor seamless steel pipes regardless of country of origin.
47 The safeguard measure consisted in the introduction of import quotas for 
three years, from 1 October 2008 to 30 September 2011. The annual special import quota fixed 
amounted to 14,504 tons in the first year of the three-year period. There were also gradual liberalization measures applied by increasing th e annual special quota by 5% to 15,230 tons for 
the second year, and by 10% to 15,955 tons in the third year.
48 Import quotas were administered 
through the issuance of special licenses by th e Ministry of Economic Development and Trade. 
61.  On 30 September 2011 the Commission extended the application of the measures for 
three years with a gradual liberalization of import quotas from 16,753 tons 
(4 October 2011-30 September 2012) to 17,591 tons (1 October 2012–30 September 2013) and 18,471 tons (1 October 2013–30 September 2014).
49 The measures ceased to apply for 
                                               
43 WTO document G/AG/N/UKR/20, 21 January 2015. 
44 WTO document G/ADP/N/265/UKR, 17 February 2015. Products subject to anti-dumping measures 
are: fibreboard; float glass (sheet glass thermally polished); citric acid; seamless steel pipes; electric incandescent lamps; medical glass containers with capacity not exceeding 0.15 litres; cables, ropes, wires and other like articles from steel or iron; pointworks; corrugated cement-asbestos board; methanol (methyl 
alcohol) and ammonium nitrate.  
45 WTO document G/SCM/N/281/UKR, 17 February 2015. 
46 WTO documents G/SG/N/9/UKR/1, 29 September 2008, G/SG/N/9/UKR/2, 12 January 2010, 
G/SG/N/9/UKR/3, 12 February 2011, G/SG/N/9/UKR/4, 13 April 2011, G/SG/N/9/UKR/5, 13 May 2011, and G/SG/N/9/UKR/6, 9 January 2012. The investigations were on the following products: PVC sections for windows and doors (UKTZED code 3916201090); liquid chlorine (2801100000); mineral or chemical fertilisers (3105201000); refrigerators, freezers and other refrigerating or freezing equipment (8418); ferro manganese containing by weight more than 2%  of carbon (except in ferro manganese granule size not more than 5 mm 
and the mass fraction of manganese over 65%) an d ferro silico manganese (7202118000, 7202300000); and 
certain products of crude oil processing, classified under HS codes 2710, 2711, and 2713.  
47 The measures were applied to imports of goods to  Ukraine of the following description: casing and 
pump-compressor seamless steel pipes with the outer diameter not exceeding 406.4 mm, classified under the UKTZED code 7304 29 11 00. Following subsequent nomenclature changes the goods are currently classified under UKTZED codes 7304 29 10 00 and 7304 29 30 00. UKTZED is the Ukrainian Foreign Economic Activity Commodity Classification: The original measure was based on the Harmonized System 2002 in that time. Since 
2014 it is based on HS2012. 
48 WTO documents G/SG/N/6/UKR/1, G/SG/N/8/UKR/1, G/SG/N/10/UKR/1, 22 August 2008. 
49 WTO documents G/SG/N/8/UKR/1/Suppl.1, G/SG/N/14/UKR/1, 31 October 2011 and 
G/SG/N/8/UKR/1/Suppl.2, G/SG/N/14/UKR/1/Suppl.1, 30 July 2013, G/SG/N/8/UKR/1/Suppl.2/Corr.1, G/SG/N/14/UKR/1/Suppl.1/Corr.1, 8 August 2013. WT/BOP/S/17 
 
- 19 - 
 
  two months, from 1 August 2013 until 30 September 2013.50 On 29 September 2014, following 
the initiation of a review, the Commission decided to extend their application for the period of review (six months), until 31 March 2015. The period of investigation was determined as from 1 October 2010 to 30 September 2013. The import quotas for the six-month extension period 
amounted to 9,328 tons. The special quota was allocated as follows: the Russian Federation 
6,631 tons, Austria 1,367 tons, Poland 614 tons, Romania 117 tons, Slovak Republic 95 tons, India 40 tons, China 27 tons, other 437 tons.
51 
62.  In October 2009, Ukraine announced the imposition of safeguard measures on matches 
(UKTZED code 3605000000) from any source. On 29 of November 2008, a safeguards investigatory process was initiated and notified to the WTO.
52 The investigation concluded that the 
domestic industry suffered material injury during the period 1 July 2005 until 30 June 2008. It was 
determined that the price at which matches were imported to Ukraine was lower than the domestic 
selling price of similar matches and below its cost and had led to a displacement effect of domestic production for imports and to a reduction in domestic production due to an increase in the volume 
of imports. It was decided to introduce a special duty at the rate of 11.3% from 6 November 2009 
for three years.
53  
63.  On 21 March 2013, Ukraine notified to the WTO that it had found injury and was applying a 
safeguard on the importation of motor cars.54 The investigation had been initiated in July 2011 and 
notified to the WTO.55 It resulted in the imposition of final safeguard measures applied in the form 
of a special duty of 6.46% for motor cars of a cylinder capacity exceeding 1 000 cm3 but not 
exceeding 1 500 cm3; and of 12.95% for those of a cylinder capacity exceeding 1 500 cm3 but not 
exceeding 2 200 cm3. The measures were effective as of 13 April 2013 and expected to be in force 
for three years. The major exporting WTO Members of the product involved are China, the EU, Japan, the Republic of Korea, the Russian Federa tion, and Turkey. The measures do not apply to 
least developed countries.
56 In May 2013, Ukraine announced to the WTO the suspension of the 
measures from 20 April 2013 until 28 February 2014.57 In March 2014, Ukraine announced the 
reinstatement of the measure, but at lower rates: 4.31% for the first 12 months and 2.15% for 
the following 12 months for cars classified under UKTZED code 8703 22 10 00; and 8.63% and 
4.32%, respectively for cars classified under UKTZED1 code 8703 23 19 10.58 
64.  On 25 April 2014, Ukraine notified to the WTO the imposition of safeguard measures on 
imports of tableware and kitchenware of porcel ain classified under UKTZED code 6911100000. 
Ukraine had initiated an investigation in May 2013 on imports of these products regardless of 
country of origin and export.59 Ukraine notified to the WTO its determination of serious injury or 
threat thereof caused by increased imports in March 2014.60 On 4 April 2014 the 
Interdepartmental Commission on International Trade took Decision № SP-309/2014/4421-06 on 
the application of safeguard measures on impo rts of tableware and kitchenware of porcelain 
regardless of their country of origin and export. The safeguard measure was applied in the form of 
a special duty of 35.6% on imports into Ukrain e of certain goods subject to the measure. The 
measures came into effect on 23 May 2014 for three years. A schedule of liberalization by reduction of the duty rates was established as follo ws: 12 months from the date of application, to 
                                               
50 Decision No. SP-297/2013/4423-06 was published in Uryadovyi Currier No. 117 of 4 July 2013. 
Notified to the WTO in WTO document G/SG/N/8/UKR/1/Suppl.2, G/SG/N/14/UKR/1/Suppl.1, 30 July 2013. 
51 WTO document G/SG/N/8/UKR/1/Suppl.3, G/SG/N/14/UKR/1/Suppl.2, 6 October 2014. 
52 WTO document G/SG/N/6/UKR/2, 18 December 2008. 
53 WTO document G/SG/N/8/UKR/2, G/SG/N/10/UKR/2, 23 October 2009. 
54 Motor cars and other motor vehicles principally de signed for the transport of persons (other than 
those of heading 8702), including station wagons and raci ng cars with spark-ignition internal combustion 
engine and crank gear of a cylinder capacity exceeding 1000 cm3 but not exceeding 1500 cm3, classified under UKTZED code 8703 22 10 00; and motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars with spark-ignition internal combustion engine and crank gear of a cy linder capacity exceeding 1500 cm3 but not exceeding 
2200 cm3, new classified under UKTZED code 8703 19 10 00.  
55 WTO document G/SG/N/6/UKR/9, 15 July 2011. 
56 WTO document G/SG/N/8/UKR/3, G/SG/N/10/UKR/3, G/SG/N/11/UKR/1, 25 March 2013. 
57 WTO document G/SG/N/10/UKR/3/Suppl.1, 22 May 2013. 
58 WTO document G/SG/N/8/UKR/3/Suppl.1, G/SG/N/10/UKR/3/Suppl.2, G/SG/N/11/UKR/1/Suppl.1, 
31 March 2014. 
59 WTO document G/SG/N/6/UKR/10, 30 May 2013. 
60 WTO document G/SG/N/8/UKR/4, G/SG/N/10/UKR/4, 26 March 2014. WT/BOP/S/17 
 
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  32%; 24 months from the date of application, to 28.8%.61 Imports from Iceland, Liechtenstein, 
Norway and Switzerland, and Armenia, Kazakh stan, Moldova, the Kyrgyz Republic and the 
Russian Federation were deemed not prejudicial and/or threatening to cause injury to domestic industry, and were excluded from the application of the safeguard measures.
62 The volume of 
import to Ukraine of goods excluded from the ap plication of safeguard measures is estimated at 
0.1% of total imports, and therefore was consider ed to not affect the main conclusions of the 
investigation authority regarding the fact of the growth in imports causing serious injury to 
domestic industry. Imports from a group of developing countries, amounting to a negligible level 
of imports, individually and collectively, were also excluded.63  
4.5  Article XXVIII negotiations 65.  In August 2012 Ukraine notified the WTO of its intention to modify certain concessions 
included in its Schedule CLXII under GATT Article XXVIII:5.
64 These modifications involved some 
371 tariff lines covering both agricultural and industrial products in 14 HS Chapters.65 A number of 
Members raised concerns about these modifications in meetings of the General Council, the 
Committee on Market Access and the Committee on Agriculture. In the General Council meeting of 
21 October 2014, Ukraine announced the withdr awal of its Article XXVIII communication, 
concerning negotiations and consultations for modification of certain concessions included in 
Schedule CLXII, citing changing economic and political conditions.66 
4.6  Preferential Access to Third Markets 66.  Ukraine benefits from the Generalized System of Preferences (GSP) schemes of Canada, the 
European Union, Japan, Turkey and the United States. 
5  THE TRADE MEASURES APPLIED AND THEIR POSSIBLE EFFECT 
67.  On 20 January 2015, Ukraine notified on the basis of Paragraph 9 of the Understanding on the 
Balance-of-Payments Provisions of GATT 1994 the introduction of import measures taken for 
balance-of-payments reasons.
67 The measures consist of a temporary import surcharge of 5% for 
goods classified in groups 25-97 in the UKTZED an d 10% for goods classified in groups 1-24 of the 
UKTZED.68 Imports by nationals (citizens or private persons) of goods into Ukraine in accordance 
with Article 374 of the Customs Code of Ukrain e are charged at 10%. The legal basis for these 
measures are the Laws "on measures concerning stabilization of the balance of payments of Ukraine in compliance with Article XII of the General Agreement on Tariffs and Trade 1994" of 28 December 2014 No. 73-VIII and the Law of Ukraine "On Amending the Customs Code of 
Ukraine (concerning stabilization of the balance of payments)" of 28 December 2014 No. 74-VIII.  
68.  The import surcharge is levied on all goods imported into the customs territory of Ukraine 
regardless of country of origin, except for essential goods which include oil, natural gas, 
non-irradiated fuel elements, electrical energy, co al, gasoline, mazout, diesel fuel, medical devices 
for hemodialysis and treatment of cancer patients , goods granted free of charge to Ukraine by 
other countries' governments or international organizations under international agreements 
(ratified by Ukraine's Parliament), and certain other goods such as pharmaceutical equipment, 
                                               
61 It was estimated that China was the origin of 94.19% of imports; Poland, of 2.30%; the 
Czech Republic of 0.62%; Turkey of 0.52%; Belarus of 0.50%. WTO document G/SG/N/8/UKR/4, G/SG/N/10/UKR/4, 26 March 2014. 
62 In the case of the first four countries, pursuant to the FTA between the EFTA States and Ukraine of 
24 June 2010 and taking into consideration the provisions of paragraph 8 of Article XXIV of the GATT 1994; in the second case, pursuant to the FTA of the Commonwealth of Independent States of 18 October 2011 and taking into consideration provisions of paragraph 8 of Article XXIV of the GATT 1994.
 WTO document 
G/SG/N/8/UKR/4, G/SG/N/10/UKR/4, 26 March 2014. 
63 Angola; Bangladesh; Benin; Burkina Faso; Burundi; Cambodia; Chad; Democratic Republic of the 
Congo; Central African Republic; Djibouti; The Gambia; Guinea; Guinea-Bissau; Haiti; Lao, the People's Democratic Republic; Lesotho; Madagascar; Malawi; Mali; Maurit ania; Mozambique; Myanmar; Nepal; Niger; 
Rwanda; Samoa; Senegal; Sierra Leone; Solomon Is lands; Tanzania; Togo, Uganda; Vanuatu and Zambia. 
64 WTO document G/SECRET/34, 12 September 2012. 
65 HS Chapters 2, 6, 7, 8, 16, 28, 39, 63, 83-85, 87, 90, and 94. 
66 WTO document WT/GC/M/153, 2 December 2014. 
67 WTO document WT/BOP/N/78, 21 January 2015 
68 UKTZED - Ukrainian Classification of Goods for Foreign Economic Activity, based on HS 2012. WT/BOP/S/17 
 
- 21 - 
 
  machinery and equipment intended for private use by intelligence agencies, and weapons. The 
surcharge applies in addition to the customs value of the goods, before payment of internal taxes 
if any (e.g. VAT, excise duties); thus, for example, if the MFN tariff is 10% and the product is subject to an import surcharge of 5%, the total duty paid on the import including the surcharge 
will amount to 15%.  
69.  According to the notification submitted by Ukraine "the temporary import surcharge will be 
effected from the date of publication of the Deci sion of the Cabinet of Ministers of Ukraine on 
completion of consultations with international financial institutions". Ukraine's law specifies that 
the import surcharge will be imposed temporarily fo r a period of 12 months and will be levied on 
goods imported to the customs territory of Ukraine "according to the import customs regime regardless of country of origin and signed agreements (treaties) of Ukraine on free trade". Thus 
imports from Ukraine's preferential partners are subject to the measures. 
70.  On 26 March 2015, Ukraine notified that the measures taken for balance-of-payments 
purposes had come into force on 25 February 2015.
69 Included in the notification is Ukraine's 2015 
schedule showing the corresponding import surcharge on a tariff-line basis. A total of 379 lines are 
excluded from the application of the import surcharge (Table 6).   
Table 6 Product groups exempted from temporary measures 
HS2 Product descriptions Number of TLs 
(10 digit level) 
90 Optical, photographic, cinemato graphic, measuring, checking, 
precision, medical or surgical instruments and apparatus;  parts and accessories thereof 69 
27 Mineral fuels, mineral oils and pr oducts of their distillation;  
bituminous substances;  mineral waxes 68 
29 Organic chemicals 53 
93 Arms and ammunition;  parts and accessories thereof 52 
30 Pharmaceutical products 30 
84 Nuclear reactors, boilers, machinery and mechanical appliances;  
parts thereof 28 
38 Miscellaneous chemical products 27 
87 Vehicles other than railway or tramway rolling-stock, and parts 
and accessories thereof 9 
94 Furniture;  bedding, mattresses, mattress supports, cushions and 
similar stuffed furnis hings;  lamps and lighting fittings, not 
elsewhere specified or included;  illuminated signs, illuminated 
name-plates 7 
70 Glass and glassware 5 
39 Plastics and articles thereof 4 
28 Inorganic chemicals;  organic or inorganic compounds of precious 
metals, of rare-earth metals, of  radioactive elements or of 
isotopes 4 
40 Rubber and articles thereof 3 
37 Photographic or cinematographic goods 3 
73 Articles of iron or steel 3 
62 Articles of apparel and clothing  accessories, not knitted or 
crocheted 2 
34 Soap, organic surface-active agents, washing preparations, 
lubricating preparations, artifi cial waxes, prepared waxes, 
polishing or scouring preparations, candles and similar articles, modelling pastes, dental waxes an d dental preparations with a 
basis 2 
61 Articles of apparel and clothing accessories, knitted or crocheted 2 
52 Cotton 1 
69 Ceramic products 1 
65 Headgear and parts thereof 1 
78 Lead and articles thereof 1 
33 Essential oils and resinoids;  perfumery, cosmet ic or toilet 
preparations 1 
                                               
69 WTO document WT/BOP/N/78/Add.1, 31 March 2014. WT/BOP/S/17 
 
- 22 - 
 
  HS2 Product descriptions Number of TLs 
(10 digit level) 
54 Man-made filaments 1 
86 Railway or tramway locomotives, rolling-stock and parts thereof;  
railway or tramway track fixtures and fittings and parts thereof;  
mechanical (including  electro-mechanical) traffic signalling 
equipment of all kinds 1 
56 Wadding, felt and nonwovens;  sp ecial yarns;  twine, cordage, 
ropes and cables and articles thereof 1 
Grand Total 379 
Source: WTO calculations, based on data provided by the Ukrainian authorities. 
71.  The share of Ukraine's tariff lines subject to the import surcharge is 96.4%. Such items 
accounted for 63.4% of Ukraine's total imports in 2014.70 
72.  A comparison of average bound duties, applie d tariff rates and applied tariff rates including 
the import surcharge, by WTO product categories is shown in Chart 3.  
Chart 3 Average tariff rates, by WTO product categories, 2015 
(%) 
051015202530
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 241 WTO Agriculture
2 Animals and products3 Dairy products
4 Fruit, vegetables, and 
plants5 Coffee and tea6 Cereals and preparations7 Oil seeds, fats and oils and their products      8 Sugars and confectionary
9 Beverages, spirits, and tobacco
10 Cotton
11 Other agricultural products12 WTO non-agriculture13 Fish and fishery products14 Minerals and metals15 Chemicals and 
photographic supplies16 Wood, pulp, paper, and 
furniture
17 Textiles18 Clothing19 Leather, rubber, 
footwear, and travel goods20 Non-electric machinery
21 Electric machinery
22 Transport equipment23 Non-agricultural products24 PetroleumApplied tariff rates + 
import surchage
Bound tariff ratesApplied tariff rates
 
Note: Calculations include AVEs, as available, provided by the Ukrainian authorities. 
Source: WTO calculations, based on IDB data provided by the Ukrainian authorities. 
73.  After the imposition of the import surcharge, applied tariffs exceed bound levels for 83.6% of 
all tariff lines. In the case of products falling  under WTO agriculture definition, bound rates are 
exceeded for 93.1% of the lines, as is the case for 81% of non-agriculture products, including 
petroleum. Bindings are exceeded across all WTO product categories ranging from 40.4% 
(petroleum) to 100% of tariff lines of each prod uct group (Table 7). Product categories in which 
                                               
70 UN COMTRADE. WT/BOP/S/17 
 
- 23 - 
 
  bound rates are exceeded across 100% of tariff lines are dairy products, coffee and tea, sugars 
and confectionary, and cotton. 
Table 7 Ukraine: Applied tariffs vs bound tariffs  
 No of 
tariff 
lines  Applied 
tariffsa 
(%) Applied 
tariffs with 
import 
surchargea 
(%) Bound 
tariffsb 
(%) Lines where bound rates are 
exceeded due to the surcharge 
No of 
tariff 
lines 
(10 digit 
level) % of total 
lines of 
applied 
tariffs 
2015a % of 
total 
lines of 
each 
product 
group 
Total  10,460  4.9 10.9 6.1 8,741  83.6 83.6 
WTO Agriculture 2,193  9.6 19.3 10.8 2,042  19.5 93.1 
Animals and 
 products thereof 363 11.5 21.5 13.2 331 3.2 91.2 
Dairy products 153 10.0 20.0 10.0 153 1.5 100.0 
Fruit, vegetables and plants  536 10.8 20.8 12.8 483 4.6 90.1 
Coffee and tea 55 7.6 17.6 7.6 55 0.5 100.0 
Cereals and preparations 234 11.8 21.8 11.9 233 2.2 99.6 
Oil seeds, fats and oils and 
 their Products 199 8.6 18.4 10.6 171 1.6 85.9 
Sugars and  confectionary  44 15.8 25.8 15.7 44 0.4 100.0 
Beverages, spirits and 
 tobacco 334 6.7 16.7 7.0 318 3.0 95.2 
Cotton 6 1.2 6.2 1.2 6 0.1 100.0 
Other agricultural 
 products n.e.s. 269 6.0 13.9 7.6 248 2.4 92.2 
WTO Non-agriculture (incl. 
petroleum) 8,267  3.6 8.7 4.9 6,699  64.0 81.0 
Fish and fishery 
 products 541 2.9 12.9 3.9 506 4.8 93.5 
Minerals and metals 1,588 2.9 7.9 4.1 1,335 12.8 84.1 
Chemicals and 
 photographic supplies 1,385 3.2 7.8 5.2 935 8.9 67.5 
Wood, pulp, paper and 
 furniture 447 0.6 5.5 0.7 437 4.2 97.8 
Textiles 928 3.9 8.8 4.3 896 8.6 96.6 
Clothing 348 11.4 16.4 11.5 344 3.3 98.9 
Leather, rubber, 
 footwear and travel goods 288 6.2 11.2 7.4 246 2.4 85.4 
Non-electric 
 machinery 991 2.2 7.0 3.9 745 7.1 75.2 
Electric machinery 597 3.6 8.6 5.2 471 4.5 78.9 
Transport equipment 336 5.3 10.2 7.3 246 2.4 73.2 
Non-agriculture articles 
 n.e.s. 719 4.9 9.0 6.0 498 4.8 69.3 
Petroleum 99 1.9 4.1 3.9 40 0.4 40.4 
Note: The number of lines where bound rates are exceeded is estimated using 2015 applied tariff schedule 
(HS 2012) and the bound tariff schedule (HS 2007) using WCO correlation tables between HS 2007 and HS 2012.  
a The 2015 tariff is based on HS12 nomenclature consisting of 10,460 tariff lines (at 10-digit tariff line 
level). 
b Final bound rates are aligned to 2015 applied tariff schedule (HS12 nomenclature) by the 
Secretariat.  
Source: WTO calculations, based on ID B data provided by the Ukrainian authorities; and WTO CTS database. 
74.  The measures applied by Ukraine affect a volume of trade of US$34.5 billion (2014), 
equivalent to 63.4% of its total 2014 c.i.f. imports.  
75.  Table 8 identifies the effect of the import surcharge on Ukraine's top trading partners per 
WTO product category, based on 2014 trade figures. In 2014, 44.5% of Ukraine's imports of 
agriculture products (WTO definition) came from  EU (28), followed by the Russian Federation 
(10.6%) and Turkey (7.2%). The EU (28) is the lead ing source of Ukraine's imports for nine of the WT/BOP/S/17 
 
- 24 - 
 
  10 categories71 of agriculture products (under WTO definition), providing from 28% to 81.6% of 
Ukraine's total imports for these product categori es. For the remaining product category - cotton - 
Turkey provided 56.9% of Ukraine's imports.  Other major sources of Ukraine's imports of 
agricultural products include the Russian Federation which accounts for 10.6% of total imports 
(including 11.7% of dairy products, 21.5% of co ffee and tea, 14.2% of cereals and preparations, 
31.9% of sugars and confectionary, and 17.5% of beverages, spirits and tobacco), Brazil (10.3% of animals and products), New Zealand (15.8% of  dairy products), Turkey (25.3% of fruit and 
vegetables), Ecuador (16.4% of fruit and vegetables), Côte d'Ivoire (10.1% of coffee and tea), 
Indonesia (27.8% of oil seeds and fats), the United States (10% of oil seeds and fats), Uzbekistan (25.1% of cotton) and Kazakhstan (14% of cotton). 
76.  For non-agriculture products (WTO definition), 38.1% of Ukraine's 2014 imports came from 
the EU (28), followed by the Russian Federation (24.8%), and China (10.9%). The EU (28) is the 
leading source of Ukraine's imports for eight of the 12 categories
72 of non-agriculture products, 
providing from 30.8% to 57.6% of Ukraine's total imports for these product categories. For the 
other four product categories: 30.5% of Ukraine' s 2014 imports of fish and fishery products were 
sourced from Norway; the Russian Federation (51. 2% of minerals and metals); China (42.6% of 
clothing); and Belarus (45.4% of petroleum). Other leading sources of Ukraine's imports of 
non-agriculture products include the United States  (11.7% of fish and fishery products, and 11.2% 
of transport equipment); the Russian Federation (12.6% of chemicals and photographic supplies, 
19.2% of wood, pulp, paper and furniture, 13.3% of  leather, rubber, footwear and travel goods, 
18.9% of non-electrical machinery, 13.3% of el ectrical machinery, and 19.8% of petroleum), 
China (25.4% of textiles, 29.8% of leather, rubber, footwear and travel goods, 15.6% of 
non-electrical machinery, 29.7% of electrical machinery, and 32.1% of non-agriculture articles n.e.s.), Turkey (14.3% of clothing), and Japan (12.4% of transport equipment). 
Table 8 Ukraine's top 10 origins of imports per WTO product category, 2014
 
 Value 
(US$1,000) Share 
(%)  Value 
(US$1,000) Share  
(%) 
WTO agriculture   WTO non-agriculture    
     World 5,459,861  100.0       World  48,564,055 100.0  
     1. EU28 2,427,248  44.5      1. EU28  18,492,078 38.1  
          Germany 500,082  9.2           Germany  4,846,402 10.0 
          Poland 341,526  6.3           Poland  2,703,798 5.6  
          France 225,452  4.1           Italy  1,342,400 2.8 
     2. Russian Federation 579,310  10.6      2. Russian Federation  12,068,152 24.8  
     3. Turkey 393,226  7.2      3. China  5,281,056 10.9 
     4. Ecuado r 207,073  3.8      4. Belarus  3,932,176 8.1  
     5. USA 201,723  3.7      5. USA  1,717,563 3.5 
     6. Indonesia 176,686  3.2      6. Turkey  884,625 1.8  
     7. Brazil 173,416  3.2      7. Japan  608,691 1.3 
     8. India 129,325  2.4      8. Norway  577,639 1.2  
     9. China 125,583  2.3      9. India  526,918 1.1 
     10. Georgia 85,860  1.6      10. Switzerland  488,052 1.0  
 Animals and products Fish and fishery products  
     World 336,749  100.0       World  685,868 100.0  
     1. EU28 274,807  81.6      1. Norway  209,493 30.5 
          Germany 88,193  26.2      2. EU28  112,998 16.5  
          Poland 67,342  20.0           United Kingdom  32,179 4.7 
          Hungary 28,095  8.3           Spain  25,282 3.7  
     2. Brazil 34,818  10.3           Estonia  18,479 2.7 
     3. USA 13,651  4.1      3. USA  80,564 11.7  
     4. Canada 5,043  1.5      4. Iceland  39,639 5.8 
                                               
71 Animals and products; dairy products; fruit, vege tables and plants; coffee and tea; cereals and 
preparations; oil seed s and fats; sugars and confectionary; beverages, spirits and tobacco; and other 
agricultural products n.e.s. 
72 Chemicals and photographic supp lies; wood, pulp, paper and furnit ure; textiles; leather, rubber, 
footwear and travel goods;  non-electrical machinery; electrical machinery; transport equipment; and 
non-agriculture articles n.e.s. WT/BOP/S/17 
 
- 25 - 
 
   Value 
(US$1,000) Share 
(%)  Value 
(US$1,000) Share  
(%) 
     5. Norway 4,268  1.3      5. China  37,504 5.5  
     6. Australia 3,016  0.9      6. Viet Nam  33,550 4.9 
     7. Russian Federation 349  0.1      7. Argentina  23,028 3.4  
     8. Belarus 210 0.1      8. Canada  22,578 3.3 
     9. Kyrgyzstan 165  0.0      9. Russian Federation  21,160 3.1  
     10. China 86 0.0      10. Faeroe Islands  15,490 2.3 
Dairy products Minerals and metals  
     World 148,935  100.0       World  14,132,217 100.0  
     1. EU28 76,650  51.5      1. Russian Federation  7,231,578 51.2  
          Poland 25,065  16.8      2. EU28  3,343,630 23.7 
          Germany 12,298  8.3           Germany  1,319,340 9.3  
          France 12,196  8.2           Poland  573,999 4.1 
     2. New Zealand 23,467  15.8           Hungary  473,641 3.4  
     3. Russian Federation 17,372  11.7      3. China  807,038 5.7 
     4. USA 14,717  9.9      4. USA  412,107 2.9  
     5. Belarus 13,615  9.1      5. Norway  346,989 2.5 
     6. Brazil 1,577  1.1      6. Belarus  343,013 2.4  
     7. Serbia 976 0.7      7. Kazakhstan  290,258 2.1 
     8. Switzerland 227  0.2      8. Switzerland  168,118 1.2  
     9. Turkmenistan 73 0.0      9. Turkey  155,307 1.1 
     10. Uzbekistan 46  0.0      10. Australia  121,742 0.9  
Fruit, vegetables and plants  Chemicals and photographic supplies 
     World 1,250,891  100.0       World  8,850,308 100.0  
     1. EU28 387,119  30.9      1. EU28  5,096,267 57.6 
          Spain 120,338  9.6           Germany  1,294,483 14.6  
          Poland 85,254  6.8           France  587,696 6.6 
          Netherlands 58,516  4.7           Poland  532,484 6.0  
     2. Turkey 316,039  25.3      2. Russian Federation  1,115,292 12.6 
     3. Ecuado r 204,669  16.4      3. China  750,382 8.5  
     4. Egypt 44,889  3.6      4. USA  346,379 3.9 
     5. China 41,515  3.3      5. India  288,255 3.3  
     6. Iran 27,446  2.2      6. Saudi Arabia  202,401 2.3 
     7. Pakistan 22,294  1.8      7. Switzerland  198,115 2.2  
     8. Costa Rica 21,900  1.8      8. Turkey  180,921 2.0 
     9. South Africa 21,318  1.7      9. Belarus  119,378 1.3  
     10. USA 20,290  1.6      10. Rep. of Korea  64,175 0.7 
Coffee and tea Wood, pulp, paper and furniture 
     World 777,864  100.0       World  2,044,161 100.0  
     1. EU28 279,407  35.9      1. EU28  1,301,530 63.7  
          Germany 129,513  16.6           Poland  346,006 16.9 
          Netherlands 41,281  5.3           Germany  223,910 11.0  
          Poland 39,469  5.1           Finland  149,811 7.3 
     2. Russian Federation 167,411  21.5      2. Russian Federation  393,467 19.2  
     3. C ôte d'Ivoire 78,579  10.1      3. China  177,149 8.7 
     4. Ghana 44,088  5.7      4. Turkey  40,979 2.0  
     5. Brazil 40,571  5.2      5. Belarus  30,231 1.5 
     6. Sri Lanka 37,017  4.8      6. Serbia  18,935 0.9  
     7. India 31,771  4.1      7. Indonesia  15,963 0.8 
     8. United Arab Emirates 14,876  1.9      8. Rep. of Korea  12,104 0.6  
     9. China 12,097  1.6      9. USA  8,901 0.4 
     10. Malaysia 12,066  1.6      10. Malaysia  7,861 0.4  
Cereals and preparations Textiles  
     World 940,120  100.0       World  1,607,554 100.0  
     1. EU28 619,274  65.9      1. EU28  672,827 41.9 
          Romania 115,131  12.2           Germany  162,820 10.1  WT/BOP/S/17 
 
- 26 - 
 
   Value 
(US$1,000) Share 
(%)  Value 
(US$1,000) Share  
(%) 
          Germany 98,028  10.4           Poland  121,126 7.5 
          Hungary 90,860  9.7           Italy  96,587 6.0  
     2. Russian Federation 133,312  14.2      2. China  407,964 25.4 
     3. USA 47,417  5.0      3. Turkey  157,200 9.8  
     4. Serbia 28,836  3.1      4. Russian Federation  61,163 3.8 
     5. Pakistan 17,479  1.9      5. USA  58,264 3.6  
     6. India 17,119  1.8      6. Belarus  47,519 3.0 
     7. Switzerland 13,506  1.4      7. Pakistan  37,569 2.3  
     8. China 10,214  1.1      8. India  26,042 1.6 
     9. Turkey 6,980  0.7      9. Rep. of Korea  26,014 1.6  
     10. Viet Nam 6,701  0.7      10. Japan  25,331 1.6 
Oil seeds, fats and oils and their Products Clothing  
     World 556,431  100.0       World  547,426 100.0  
     1. EU28 155,890  28.0      1. China  233,153 42.6  
          Sweden 26,281  4.7      2. Turkey  78,033 14.3 
          France 24,158  4.3      3. EU28  63,398 11.6  
          Germany 23,979  4.3           Italy  14,262 2.6 
     2. Indonesia 154,799  27.8           Poland  9,865 1.8  
     3. USA 55,760  10.0           Germany  8,858 1.6 
     4. Turkey 43,840  7.9      4. Bangladesh  50,711 9.3  
     5. Malaysia 43,735  7.9      5. Belarus  21,069 3.8 
     6. Russian Federation 28,036  5.0      6. Viet Nam  19,198 3.5  
     7. India 23,920  4.3      7. India  17,056 3.1 
     8. Argentina 18,838  3.4      8. Cambodia  10,781 2.0  
     9. Serbia 9,157  1.6      9. Pakistan  9,252 1.7 
     10. Chile 8,031  1.4      10. Morocco  7,712 1.4  
Sugars and confectionary Leather, rubber, footwear and travel goods 
     World 59,328  100.0       World  1,237,416 100.0  
     1. EU28 24,129  40.7      1. EU28  381,660 30.8 
          Germany 7,088  11.9           Italy  83,150 6.7  
          Poland 6,550  11.0           Poland  78,313 6.3 
          France 1,759  3.0           Germany  63,672 5.1  
     2. Russian Federation 18,905  31.9      2. China  369,286 29.8 
     3. Turkey 5,134  8.7      3. Russian Federation  164,435 13.3  
     4. China 4,972  8.4      4. Belarus  57,898 4.7 
     5. India 2,036  3.4      5. Japan  38,772 3.1  
     6. USA 964 1.6      6. Viet Nam  32,059 2.6 
     7. Israel 530  0.9      7. Turkey  29,320 2.4  
     8. Belarus 380 0.6      8. Rep. of Korea  25,451 2.1 
     9. Pakistan 354  0.6      9. Thailand  24,650 2.0  
     10. Rep. of Moldova 333 0.6      10. India  18,774 1.5 
Beverages, spirits and tobacco Non-electric machinery  
     World 951,510  100.0       World  4,951,829 100.0  
     1. EU28 326,552  34.3      1. EU28  2,303,180 46.5  
          Germany 66,092  6.9           Germany  730,066 14.7 
          Italy 45,303  4.8           Italy  341,176 6.9  
          United Kingdom 35,953  3.8           Poland  263,721 5.3 
     2. Russian Federation 166,919  17.5      2. Russian Federation  935,997 18.9  
     3. Brazil 82,906  8.7      3. China  773,988 15.6 
     4. Georgia 72,390  7.6      4. USA  343,385 6.9  
     5. India 38,660  4.1      5. Turkey  114,181 2.3 
     6. USA 30,301  3.2      6. Belarus  75,035 1.5  
     7. Areas, nes 29,878  3.1      7. Rep. of Korea  68,710 1.4 
     8. Rep. of Moldova 27,377  2.9      8. Japan  65,247 1.3  
     9. Malawi 23,010  2.4      9. Switzerland  39,931 0.8 WT/BOP/S/17 
 
- 27 - 
 
   Value 
(US$1,000) Share 
(%)  Value 
(US$1,000) Share  
(%) 
     10. Turkey 15,225  1.6      10. Viet Nam  34,240 0.7  
Cotton Electric machinery  
     World 7,479  100.0       World  3,816,563 100.0  
     1. Turkey 4,259  56.9      1. EU28  1,409,641 36.9 
     2. Uzbekistan 1,877  25.1           Germany  378,943 9.9  
     3. Kazakhstan 1,050  14.0           Poland  314,779 8.2 
     4. Turkmenistan 217  2.9           Hungary  222,498 5.8  
     5. Rep. of Moldova 63 0.8      2. China  1,131,647 29.7 
     6. Azerbaijan 5  0.1      3. Russian Federation  506,377 13.3  
     7. Pakistan 5 0.1      4. Rep. of Korea  112,071 2.9 
     8. India 3  0.0      5. Viet Nam  109,244 2.9  
        6. Other Asia, nes  73,258 1.9 
        7. Malaysia  64,329 1.7  
        8. USA  61,774 1.6 
        9. Japan  59,632 1.6  
        10. Turkey  41,719 1.1 
Other agricultural products n.e.s. Transport equipment  
     World 430,553  100.0       World  2,634,296 100.0  
     1. EU28 283,421  65.8      1. EU28  1,244,191 47.2  
          Germany 63,414  14.7           Germany  478,506 18.2 
          Poland 46,513  10.8           France  120,837 4.6  
          France 46,296  10.8           United Kingdom  112,992 4.3 
     2. China 43,794  10.2      2. Japan  326,412 12.4  
     3. Russian Federation 28,039  6.5      3. USA  295,194 11.2 
     4. USA 17,786  4.1      4. China  199,076 7.6  
     5. Viet Nam 13,652  3.2      5. Russian Federation  171,729 6.5 
     6. B razil 8,274  1.9      6. Rep. of Korea  108,885 4.1  
     7. Indonesia 7,425  1.7      7. Belarus  95,324 3.6 
     8. Canada 4,179  1.0      8. Turkey  65,053 2.5  
     9. India 4,029  0.9      9. Georgia  31,103 1.2 
     10. Chile 1,844  0.4      10. Thailand  21,226 0.8  
   Non-agriculture articles n.e.s. 
        World  1,224,716 100.0  
        1. EU28  443,949 36.2 
             Germany  138,439 11.3  
             Italy  46,041 3.8 
             Poland  43,542 3.6  
        2. China  393,102 32.1 
        3. Russian Federation  109,361 8.9  
        4. USA  89,306 7.3 
        5. Japan  27,894 2.3  
        6. Switzerland  21,074 1.7 
        7. Other Asia, nes  15,800 1.3  
        8. Rep. of Korea  13,300 1.1 
        9. Turkey  13,023 1.1  
        10. Belarus  11,414 0.9 
   Petroleum  
        World  6,831,701 100.0  
        1. Belarus  3,103,034 45.4  
        2. EU28  2,118,806 31.0 
             Lithuania  888,863 13.0  
             Romania  408,309 6.0 
             Poland  320,158 4.7  
        3. Russian Federation  1,351,807 19.8 
        4. Israel  197,595 2.9  WT/BOP/S/17 
 
- 28 - 
 
   Value 
(US$1,000) Share 
(%)  Value 
(US$1,000) Share  
(%) 
        5. Kazakhstan  15,562 0.2 
        6. Turkmenistan  10,577 0.2  
        7. Azerbaijan  9,250 0.1 
        8. Uzbekistan  6,033 0.1  
        9. Rep. of Korea  4,481 0.1 
        10. Turkey  4,198 0.1  
Source: UN COMTRADE. 
 
__________