Ukraine continues to change the structure of its foreign trade, focusing on the import of weapons and investment goods while reducing the export of raw material resources. These trends were noted by Bohdan Danilyshyn, former head of the NBU Council and former Minister of Economy of Ukraine.
This is reported by Business • Media
Growth in Imports of Weapons and Defense Goods
According to the expert, in the first seven months of the current year, the volume of imports increased by 17%. The most dynamic growth is seen in the import of weapons and defense products — up by 36%, as well as investment goods — up by 25%. Among the raw material group, the import of energy carriers is increasing particularly rapidly. More than 30% of investment imports are directed towards the restoration of energy infrastructure, while another 10% is allocated for the purchase of trucks.
Despite the observed growth, the overall volume of investment imports remains low. This is due to the low investment activity of enterprises, which, in turn, is hindered by a strict monetary policy and high military risks.
Reorientation of Exports Towards Investment Goods
Significant changes are also recorded in the structure of exports. From January to July, the export of goods decreased by 3.7%, primarily due to a reduction in the supply of raw material goods, particularly agricultural and metallurgical products. At the same time, a positive trend has been the accelerated growth of exports of high value-added products — investment goods, which demonstrated a 20% increase. However, even at such rates, the volume of investment goods exports remains insignificant, accounting for about 2% of all export operations.
“In the first seven months of the year, the import of goods increased by 17%. The import of weapons and defense goods grew at an accelerated pace (+36%), as well as investment goods (+25%). Among raw materials, the import of energy carriers increased at an accelerated pace. A significant portion of investment imports is directed towards the restoration of energy capacities (over 30%) and trucks (10%). The low volumes of investment imports are explained by the low investment activity of enterprises, which is in turn restrained by a strict monetary policy and military risks.”
Thus, Ukraine is gradually reorienting its foreign trade activities, reducing dependence on raw material exports and increasing the share of investment and defense goods in the structure of imports.