In June 2024, Ukrainian exports fell by 7% compared to the previous year, totaling $2.77 billion, marking the lowest figure of the year, according to the Institute for Economic Research and Policy Consulting (IERPC).
The external trade monitoring by IERPC revealed a 2% decrease in agricultural product exports to $1.60 billion. However, the export volumes of specific crops varied: corn exports increased by 12% (21% in physical terms), while wheat and oil exports fell by 32% and 5%, respectively.
The export of metallurgical products dropped by more than 9% year-on-year to $355 million. IERPC attributes this decline to higher energy costs and changes in export structure, with reduced exports of pig iron and certain types of rolled products, and increased exports of semi-finished products and other types of output.
Mineral product exports, primarily iron ore, rose by 33% but were still lower than the figures for January-April 2024. The recovery of exports from Odessa ports led to an 87% increase in iron ore exports by volume in June, although this was still less than previous months due to energy shortages.
Import figures remained nearly unchanged from May but grew by 12% to $5.63 billion compared to the same period in 2023. Notably, imports of machinery and equipment increased by almost 20% year-on-year, especially for drones, batteries, and generators. However, vehicle imports slightly decreased in dollar terms due to lower prices.
Energy product imports rose by 16% due to increased imports of coke and coal, likely to meet the needs of the metallurgy sector, which saw higher steel production. Conversely, imports of chemical products and food decreased.
The most significant impact came from the increase in imports of other goods, particularly those purchased for the needs of the Armed Forces of Ukraine, with $752 million worth of goods imported under this category in June, compared to $400 million in previous months.
IERPC noted that energy shortages contributed to increased imports of energy – rising from $6 million in June 2023 to $78 million in June 2024 – and batteries, which increased from $18 million last year to $68 million in June 2024.
