Trade disputes with EU neighbors hurt Ukraine's economy and budget - IMF
Kyiv • UNN
According to the IMF, trade disputes between Ukraine and its European neighbors have affected Ukraine's economic growth and budget revenues.
The IMF says that trade disputes between Kyiv and its European neighbors have affected Ukraine's economic growth and budget revenues. This was reported by the Voice of America, UNN.
Details
After the start of the full-scale invasion of Russia, the European Union liberalized trade with Ukraine and significantly facilitated access for Ukrainian goods to the EU market. In March, the EU extended the duty-free trade with Ukraine until June 2025.
However, in November 2023, farmers and carriers in Poland began a blockade of the Polish-Ukrainian border, protesting against Ukrainian exports, which hurt trade.
Alfred Kemmer, Director of the International Monetary Fund's European Department, says that Europe's decision to open the market to Ukraine was especially important against the backdrop of Russia's blockades of the Black Sea at the beginning of a full-scale war.
"Europeans have opened their borders, which was especially useful when the export corridor through the Black Sea was blocked. Now this corridor is mostly open, but there are issues at the border. I think a solution has been found for them," Kemmer said in an interview with Voice of America.
According to the official, trade restrictions by neighbors have not been painless for Ukraine.
These restrictions have affected the governance in Ukraine, reduced tax revenues at the end of last year and the beginning of this year and affected economic growth, so it has not been painless, but overall it remains an export channel for Ukraine
He also noted that it is important for the post-war recovery that those Ukrainians who are currently in Europe return.
"The government's goal of ensuring the return of Ukrainians is important. In Europe, Ukrainian refugees gain experience and skills that they would not have gained in Ukraine, so this connection with Europe will be a strong point when they return. This can be a big positive for Ukraine, but it is important that they return," the official emphasized.
