VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
In 2010, a trade turnover with Ukraine grew by 61.8% from the previous year, reaching 37.1 billion dollars. Russian exports increased 67.1%, to $23.1 billion, while imports hit $14 billion, marking an increase of 53.8%.
Russia's trade with Ukraine has advanced at a much faster pace than with other states of the former Soviet Union and as compared with Russia's overall trade.
Ukraine accounted for 4.9% of Russia's trade in 2009; the figure rose to 5.9% last year and reached 7.8% in January 2011.
In 2010, Ukraine became Russia's fifth largest trade partner after China, the Netherlands, Germany and Italy, and the top one among post-Soviet states. As of January 2011, Ukraine already ranked third, after China and Germany.
Russia's share in Ukraine's total trade grew to 31.7% last year (2010): 26.1% in exports (up from 21.4% a year ago) and 36.5% in imports (up from 29.1%).
Russia's exports to Ukraine in 2010 were dominated by mineral resources (67.3%); machinery, equipment, transport vehicles (11%); chemicals (8.6%); and metals and metal objects (6.3%). It imported machinery, equipment and vehicles (36.3%), metals and metal objects (20.6%); food and agricultural products (14%); and commodities (11.2%).
Ukraine sees Russia as an attractive importer of Ukrainian goods. Russia buys from Ukraine three times as much machinery as the 27 EU countries do. Some Ukrainian exports – including alumina, ferrochrome, large-diameter pipes, and certain types of equipment – play an important role in the Russian economy.
On the other hand, the steady supply of Russian fuels is a crucial factor in the development of Ukraine's industry and agriculture. Many of the food products made in Ukraine compete with Russian counterparts.
Ukraine is a popular destination with Russian businessmen investing internationally. Russia's investments totaled $1.089 billion last year. The investors include private as well as public companies. Among them are heavyweights such as Gazprom, RUSAL, LUKOIL, Tatneft, TNK-BP, SUAL Holding, Vimpel Communications, MTS, AFK Sistema, and Vimm-Bill-Dann.
Russian companies prefer to invest in some of the key sectors of Ukraine's economy, including the fuel and energy sector, the chemical industry, metallurgy, machinery, metals processing, and banking and finance. Lately, there has been a considerable increase of investment in construction, hospitality, and wholesale trade.
The amount of accumulated direct investment from Ukraine into Russia was estimated at $173.1 million as of October 1, 2010. Investments went primarily into manufacturing (44% of the total) and into the financial sector (30%).
Ukrainian investors make serious investments into Russia's pulp and paper industry, ferrous metallurgy, metal processing, and mechanical engineering.
The work of the Russian-Ukrainian Interstate Commission's Economic Committee is focused on advancing cooperation between the two countries. The committee is co-chaired by Russian Prime Minister Vladimir Putin and Ukrainian Prime Minister Mykola Azarov.
Each of its 12 subcommittees specializes in some particular area, such as trade, fuel and energy, nuclear power and materials, industrial policies, aviation, the space industry, the agro-industrial complex, transport, financial services, science and technology, property and ownership, and regional and border cooperation. Work is currently underway to set up an additional subcommittee to deal with investment cooperation and the protection of investor rights.
The Economic Committee's seventh session took place in Kiev on October 27, 2010. The next meeting is scheduled for the second quarter of 2011, and is to be held in Russia.
