Post-War Ukraine: The Rebirth of International Trade
Introduction
After the fall of the Soviet Union, newly-independent Ukraine faced a tumultuous rebuilding process. Years of civil strife and conflict have taken their toll, but the nation is gradually working towards creating an environment conducive to economic growth. One major indicator of Ukraine’s successful transition from a war-torn state to an internationally-recognized partner is its burgeoning international trade. This article examines how post-war Ukraine has successfully begun to rebuild its economy through open exchange with the global community.
Revitalizing Ukraine’s Post-War Path to Prosperity
Since the end of the war in 2014, Ukraine has worked tirelessly towards the revitalization of a prosperous economy. This has included supporting local enterprise, regulatory reform, and boosting the foundations of a market economy. With the introduction of a virtual single window to facilitate the exchange of product information over the internet, the government has significantly reduced paperwork and bureaucracy, opening the doors to increased exports. This has helped make Ukraine an increasingly attractive destination for international investors. Another key success has been the opening of industrial free trade zones. These have enabled foreign companies to benefit from lower taxes, streamlined procedures and other incentives. Furthermore, this has allowed for closer collaboration with foreign entrepreneurs, allowing for joint ventures and technology transfers, which in turn further strengthens Ukraine’s global ties. Finally, Ukraine has cultivated a nascent IT industry in the country, creating high-end, high-value jobs and diversifying the economy away from traditional commodities exports. The adoption of the country’s e-commerce laws in 2017 provided a secure platform to allow for businesses to create and develop their digital marketplaces – a key component in the move towards economic progress.
Upward Trend in International Trade Signals Positive Future for Ukraine
Foreign Trade Overview The following figures indicate an upward trend in international trade, which is a positive sign for the future of Ukraine’s economy:
- In 2020, Ukraine’s merchandise trade stood at $157.9 billion, representing 10.1% of the country’s GDP
- Exports contributed $63.6 billion and imports, $94.3 billion to this figure
- Ukraine’s top three export markets are Russia, Turkey, and Poland – totaling over $62 billion in 2020
- For imports, Turkey, the EU and Russia are the top sources
Key Business Sectors Ukraine is known for its production of chemical, metallurgical and agricultural products, as well as its flourishing IT sector. Its chemical industry is ranked first in Europe and fourth in the world, with exports heavily centered around methanol, ammonia, nitrogen and olefins. In the metallurgical sector, Ukraine is the fifth-largest global exporter of iron and steel, while in the agricultural sector it is the world’s fourth-largest exporter of corn and the fifth-largest exporter of wheat.
Conclusion
Post-war Ukraine has shown strong resolve in its quest to reclaim its status as a respected global trading partner. It has already made notable steps towards a more diversified economy, and its upward trend in international trade points to a prosperous future for the nation. With its resources, infrastructure, and strong will combined, the rebirth of Ukraine on the world stage is looking more certain than ever.
