Ukraine Markets Daily (September 15, 2017)

Market news

  • Ukrainian export and import grew by 22.1% y/y and 29.4% y/y respectively in January-July of 2017
  • NBU simplified loan-raising from international financial institutions

Market comment

The UX index decreased by 0.8% yesterday and the PFTS index decreased by 0.2% (in UAH terms). The WIG-Ukraine increased by 1.7%. On the interbank exchange market, the USD/UAH was up by 0.3% to UAH 26.16 (mid price), according to Thomson Reuters. The official exchange rate reported by the NBU was UAH 26.08.


Ukrainian export and import grew by 22.1% y/y and 29.4% y/y respectively in January-July of 2017

As reported by State Statistics Service of Ukraine, for the first seven months of 2017 export increased to USD 23.9 bn (+22.1% y/y) and import grew to USD 26.7 bn (+29.4% y/y), resulting in the negative trading balance increase to USD 2.7 bn. The export coverage ratio was 0.90 (-5.3% y/y). Compared to January-July of 2016, export volume of the main groups of products had an impressive growth in the same period of 2017. In particular, export of vegetable products increased by USD 842 mn (+21.5% y/y) to USD 4,759 mn, due to the crops export growth by USD 652 mn (+21.5% y/y) to USD 3,685 mn. Exports of fats and oils of animal or vegetable origin increased by USD 618 mn (+27.3% y/y) to USD 2,883 mn, of mineral products by USD 820 mn (+56.1% y/y) to USD 2,281 mn, of metals and products thereof by USD 912 mn (+19.7% y/y) to USD 5,544 mn and of machines and equipment by USD 301 mn (+15.1% y/y) to USD 2,296 mn. For the first seven months of 2017 import volumes had increased significantly as well, compared to the same period of time in 2016. Particularly, import of mineral products increased by USD 2,623 mn (+67.7% y/y) to USD 6,497 mn, due to a USD 2,585 mn (+73.7% y/y) growth of oil and oil products import. Meanwhile, imports of chemical products increased by USD 454 mn (+14.1% y/y) to USD 3,676 mn, of machines and equipment by USD 1,118 mn (+27.0% y/y) to USD 5,257 mn and of vehicles by USD 818 mn (+56.4% y/y) to USD 2,263 mn.

Our view:

We think that such growth in export during the first seven months of 2017 is a positive sign of the Ukrainian economy recovering after the crisis in 2014. After the loss of the main market of export – Russian Federation, Ukraine found new markets for its products sales, establishing new trading relationships within Europe and Asia.


Although the information in this report has been obtained from sources which Empire State Capital Partners believes to be reliable and was collected in good faith, we do not represent or warrant its accuracy, except with respect to information concerning Empire State Capital Partners, its subsidiaries and affiliates, either expressly or implied, and such information may be incomplete or condensed. Nor has the information and/or data been independently verified, and so is provided without further caveat regarding its reliability, suitability for commerce or specific purpose. This report does not constitute a prospectus and is not intended to provide the sole basis for an evaluation of the securities discussed herein. All estimates and opinions included in this report constitute our judgment as of the date of the report and may be subject to change without notice. Empire State Capital Partners or its affiliates may, from time to time, have a position or make a market in the securities mentioned in this report, or in derivative instruments based thereon, may solicit, perform or have performed investment banking, or other services (including acting as advisor, manager) for any company referred to in this report and may, to the extent permitted by law, have used the information herein contained, or the research or analysis upon which it is based, before its publication. Empire State Capital Partners will not be responsible for the consequences of reliance upon any opinion or statement contained herein or for any omission. This report is confidential and is being submitted to select recipients only. It may not be reproduced (in whole or in part) without the prior written permission of Empire State Capital Partners. Any recommendations, opinions, forecasts, estimates or views herein constitute a judgment as at the date of this report. This document has been produced independently of Empire State Capital Partners and the recommendations, forecasts, opinions, estimates, expectations, and views contained herein are entirely those of the research analyst(s). While all reasonable care has been taken to ensure that the facts presented herein are accurate and that the respective recommendations, forecasts, opinions, estimates, expectations, and views are fair and well considered, none of the research analyst(s), Empire State Capital Partners or any of its directors, managers or employees has verified the contents of this document and, accordingly, no research analyst, Empire State Capital Partners or any of its respective directors, managers or employees shall be in any way responsible for its contents.

Kind regards

Research Team