In 2009, trade between Russia and Ukraine fell by 42.3% to $22.9 billion year-over-year. Russian exports to Ukraine fell by 41.5% to $13.78 billion and imports fell by 43.9% to $9.12 billion. The sharp decline in trade between the two countries was caused by the prolonged settlement of gas disputes as well as the influence of the global financial crisis. Highly processed products were most affected by the decline; these include chemical, metal and other processed materials, machinery, equipment, and transport vehicles.
In January 2010, trade with Ukraine more than doubled compared with last January, reaching $2.133 billion. Russia's exports nearly trebled to $1.54 billion and imports rose to $592.9 million. Russia's trade with Ukraine is growing much faster than Russia's foreign trade in general and trade with the CIS countries.
Ukraine is Russia's sixth largest trading partner after the Netherlands, Germany, China, Italy and Belarus.
In 2009, mineral products accounted for 65% of Russian exports to Ukraine, chemical products for 12%, machinery, equipment and transport vehicles for 11%, metals and metal items for 6%.
In 2009, machinery, equipment and transport vehicles accounted for 34% of Russia's imports from Ukraine, metals and metal items for 22%, food products and agricultural raw materials for 16%, chemical products for 10%.
Инвестиционное сотрудничество между двумя странами строится в соответствии с Соглашением между Правительством Российской Федерации и Кабинетом Министров Украины «О поощрении и взаимной защите инвестиций» и «Соглашением о сотрудничестве в области инвестиционной деятельности».
Investment cooperation between Russia and Ukraine is based on the Agreement on Promoting and Protecting Investments and the Agreement on Investment Cooperation, signed between the government of the Russian Federation and the Ukrainian cabinet.
Ukraine is one of the main targets of Russian investments and their share is constantly growing. As of January 1, 2010, Russia's investments in Ukraine totaled $2.675 billion. Russian companies generally invest in Ukraine's main economic sectors, such as the fuel and energy complex, the chemical industry, metallurgy, engineering, metalworking as well as the banking and financial sector. Russia's investments in construction, hotels and restaurants, and wholesale trade in Ukraine have recently increased considerably.
Russia's main investors in Ukraine are large companies, such as Gazprom, RusAl, LUKOIL, Tatneft, TNK-BP, SUAL-Holding, VimpelCom, MTS, AFK Sistema, Vimm Bill Dann, and others.
Ukraine's direct investments in Russia amounted to $165.5 million as of January 1, 2010. Manufacturing accounts for 44%, the financial sector for 30%. Russia's pulp and paper industry, iron industry, engineering and metalworking also draw relatively significant investments from Ukraine.
Ukraine's Privat Group owns the Alapayevsk Metallurgical Plant, a 20% stake in the Azot factory and a majority stake in the Altai Coke and By-Product Plant. The Energo Group controls two Russian mines, Kostromskaya and Zarechnaya, and is developing the Ivanovskoye coking coal deposit. Ukrprominvest holds a 78% stake in the Lipetsk Confectionery Plant. Ukraine's Kiev-Konti, which owns the Conditer-Kursk, also operates on Russia's confectionery market. KMT Group owns the Stavropol Butter and Fat Plant.
At the same time, there have been problems in Ukraine regarding the infringement of Russian investors' rights. These problems are rooted in Ukrainian authorities unwillingness to allow Russian capital in the strategic sectors of the Ukrainian economy. As evidence, Russia can point to the issue of the Kremenchug refinery, problems with the privatisation of Luganskteplovoz, the suspension of construction on the Krivoi Rog mining plant with the participation of Metalloinvest, and other examples.
The Committee for Economic Cooperation of the Russian-Ukrainian Interstate Commission (hereinafter referred to as the Committee) works to strengthen and develop economic cooperation between the two countries. The fifth session of the Committee was held on November 19, 2009 in Yalta.
The Committee has 12 subcommissions: on Trade and Economic Cooperation, on the Fuel and Energy Complex, on Nuclear Energy and Materials, on Industrial Policy, on Cooperation in the Aviation Industry, on Cooperation in the Space Industry, on the Agro-Industrial Complex, on Transport, on Credit and Financial Cooperation, on Scientific and Technical Cooperation, on Property, on Inter-Regional and Border Cooperation.
Председателем Российской части Комитета является Председатель Правительства Российской Федерации В.В. Путин, Украинской части- Премьер-министр Украины Н.Я. Азаров.
Russia's Prime Minister Vladimir Putin is chairman of the Russian part of the Committee and Ukraine's Prime Minister Mykola Azarov - of the Ukrainian part.