Market Overview – Russia, Belarus, Ukraine and Kazakhstan in January-June 2017

In January-June, 2017, the volume of road transportation in/from Belarus, Ukraine and Kazakhstan increased over the same period in the previous year. The volume of imports to Russia also increased, while the exports revealed a negative trend, which happened due to the reduction in the exports of commodities.

 Major Trends

According to Eurostat, the volume of imports expressed in physical terms from the EU countries amounted to 9,976,341 tons in January-June 2017 showing an increase of 17.8% over the same period in 2016. The volume of exports totaled 9,805,913 tons in January-June 2017 with an increase of 2.9% over January-June 2016.

Market Overview

Ukraine

1. Dynamics of macro-indicators

Foreign trade statistics according to state agencies

According to the State Statistics Service of Ukraine, foreign trade turnover between Ukraine and all the countries worldwide in January-June 2017 amounted to 43.2 billion dollars with an increase of 27.3% over January-June 2016, exports totaled 20.7 billion dollars (+24.2%) and imports amounted to 22.5 billion dollars (+30.2%).

Foreign trade turnover expressed in value terms amounted to 7.4 billion US dollars in June 2017 making an increase of 26.1% over June 2016, while exports grew by 16.4% and imports increased by 35.8% . From the total volume of trade in June 2017, 46.3% accounted for exports and 53.7% – for imports. The balance of foreign trade turnover was negative in June 2017 with -3.2 billion US dollars.

2. Dynamics of foreign trade (according to Eurostat, road transport)

According to Eurostat, the volume of imports expressed in physical terms to Ukraine from the countries of the European Union in January-June 2017 totaled 2,755,170 tons with an increase of 22.5% over January-June 2016. The volume of exports in January-June 2017 amounted to 2,757,379 tons making an increase of 9.2% over January-June 2016.

Ukraine’s major trading partners

The most important foreign trade partners of Ukraine among the EU countries in 2016 were Poland, Germany, the Netherlands, Romania, Italy, Hungary, the Czech Republic, Slovakia, Austria and Lithuania accounting for 85% of foreign trade turnover.

Speaking about the share of the major partners in foreign turnover in the period under review, 34% accounted for Poland, 15% – for Germany and 6% – for Romania.

Dynamics in cooperation between Ukraine and its major trading partners

Export trading partners’ ranking in the descending order from the largest share of the recipient country to the lowest

Import trading partners’ ranking in the descending order from the largest share of the country of origin to the lowest

Ukraine’s export commodity structure in January-June 2017 was dominated by woodworking industry, fast moving consumer goods, iron and steel industry followed by construction materials.

The largest share in imports in January-June 2017 accounted for fast moving consumer goods, chemical industry, woodworking industry, rubber and plastics industry.

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In January-June 2017 over January-June 2016, the largest growth in exports accounted for the commodity groups in the following sectors: woodworking industry 109,916 tons (+18%); fast moving consumer goods 71,372 tons (+14%); construction materials 58,476 tons (+40%); household appliances and electronics 17,344 tons (+27%); rubber and plastics industry 7,957 tons (+33%); chemical industry 5,189 tons (+7%); other goods 1,653 tons (+26%). Negative trend in export supplies was recorded in the following sectors: machine building and car industry 248 tons (-1%); iron and steel industry -9,072 (-3%).

A significant increase in imports occurred in chemical industry 81,586 tons (+23%), household appliances and electronics 56,700 tons (+31%), woodworking industry 43,835 tons (+16%), rubber and plastics industry 18,090 tons (+7%), iron and steel industry 15,599 tons (+9%), machine building and car industry 2,783 (+21%), other goods 619 (+13%). Negative increase was observed in fast moving consumer goods -25,122 tons (-5%) and construction materials -3,454 tons (-2%).

Russia

1. Dynamics of macro-indicators

Foreign trade statistics according to state agencies

According to the Federal Customs Service, foreign trade turnover between Russia and all the countries worldwide in January-June 2017 amounted to 268.6 billion dollars with an increase of 28.1% over January-June 2016, exports totaled 167.6 billion dollars (+29.1%) and imports amounted to 101.1 billion dollars (+27.5%).

Foreign trade turnover expressed in value terms amounted to 50.1 billion US dollars in June 2017 making an increase of 27.7% over June 2016, while exports grew by 24.2% and imports increased by 33.3% . From the total volume of trade in June 2017, 60% accounted for exports and 40% – for imports. The balance of foreign trade turnover was positive in June 2017 with +10 billion US dollars.

Trade turnover with the EU countries increased by 31% amounting to 117.8 billion US dollars (44% of Russia’s total trade turnover). Exports increased by 31% to 79.5 billion US dollars, and imports grew by 24% to 38.4 billion US dollars.

2. Dynamics of foreign trade (according to Eurostat, road transport)

According to Eurostat, the volume of imports expressed in physical terms to Russia from the countries of the European Union in January-June 2017 totaled 5,371,331 tons with an increase of 19% over January-June 2016. The volume of exports in January-June 2017 amounted to 5,106,844 tons decreasing by -3.8% over January-June 2016.

Russia’s major trading partners

The most important foreign trade partners of Russia among the EU countries in 2016 were Germany, Poland, Finland, Italy, the Netherlands, Lithuania, Belgium, the Czech Republic, Hungary and Latvia accounting for 80% of foreign trade turnover. It should be noted that there were changes in the geographical structure against the year 2016, so France did not hit the top 10 trading partners because of the reduction in exports.

Speaking about the share of the major partners in foreign turnover in the period under review, 21% accounted for Germany, 15% – for Poland and 12% – for Finland.

Dynamics in cooperation between Russia and its major trading partners

Export trading partners’ ranking in the descending order from the largest share of the recipient country to the lowest

Import trading partners’ ranking in the descending order from the largest share of the country of origin to the lowest

3. Changes in Russia’s commodity structure of export and import with EU countries

Russian exports in January-June 2017 were dominated by woodworking industry, chemical industry, iron and steel industry followed by rubber and plastics industry, construction materials, etc.

Russia’s import commodity structure in January-June 2017 was dominated by fast moving consumer goods, chemical industry, household appliances and electronics, rubber and plastics industry followed by woodworking industry, iron and steel industry, etc.

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In January-June 2017 over January-June 2016, the largest growth in exports accounted for the commodity groups in the following sectors: woodworking industry 89,323 tons (+11%); construction materials 40,306 tons (+20%); rubber and plastics industry 26,603 tons (+9%); iron and steel industry 11,486 tons (+2%); machine building and car industry 3,518 tons (+32%); household appliances and electronics 1,670 tons (+3%); fast moving consumer goods 96 tons. Negative absolute increase in export was recorded in the following sectors: chemical industry -28,927 tons (-4%); other goods -709 tons (-15%).

A positive increase occurred in all import categories – household appliances and electronics 163,990 tons (+28%), fast moving consumer goods 149,688 tons (+17%), chemical industry 84,420 tons (+10%), iron and steel industry 77,366 (+26%), woodworking industry 63,127 (+12%), rubber and plastics industry 44,705 tons (+8%), machine building and car industry 32,425 tons (+25%), construction materials 28,039 tons (+11%), other goods 104 tons (+2%).

Belarus

1. Dynamics of macro-indicators

Foreign trade statistics according to state agencies

According to the State Customs Committee of Belarus, foreign trade turnover between Belarus and all the countries worldwide in January-June 2017 amounted to 29.1 billion dollars with an increase of 21% over the year 2016, exports totaled 13.6 billion dollars (+22.4% ) and imports amounted to 2.6 billion dollars (+19.9%).

Foreign trade turnover amounted to 5.4 billion US dollars in June 2017 making an increase of 16.5% over June 2016, while exports grew by 16.1% and imports increased by 16.9% . From the total volume of trade in June 2017, 47.47% accounted for exports and 52.3% – for imports. The balance of foreign trade turnover was -247.8 million US dollars.

Trade turnover with the EU countries increased by 12.2% amounting to 5.3 billion US dollars (22.5% of total trade turnover of the Republic of Belarus). Exports increased by 9.8% totaling 2.9 billion US dollars, and imports grew by 15.2% amounting to 2.4 billion US dollars. The balance was positive with +525.0 million US dollars.

2. Dynamics of foreign trade (according to Eurostat, road transport)

According to Eurostat, the volume of imports expressed in physical terms to Belarus from the countries of the European Union in January-June 2017 totaled 1,534,916 tons with an increase of 7.2% over January-June 2016. The volume of exports in January-June 2017 amounted to 1,854,549 tons making an increase of 14% over January-June 2016.

Major trading partners of the Republic of Belarus

The most important foreign trade partners of Belarus among the EU countries in the first half of 2017 were Poland, Germany, the Netherlands, Lithuania, the Czech Republic, Latvia, the Netherlands, Italy, Belgium, Romania and Austria accounting for 91% of foreign trade turnover.

Speaking about the share of the major partners in foreign turnover in the period under review, 37% accounted for Poland, 20% – for Germany and 15% – for Lithuania.

Dynamics in cooperation between Belarus and its major trading partners

Export trading partners’ ranking in the descending order from the largest share of the recipient country to the lowest

Import trading partners’ ranking in the descending order from the largest share of the country of origin to the lowest

3. Changes in Belarus commodity structure of export and import with EU countries

Belarusian exports in January-June 2017 were dominated by woodworking industry and iron and steel industry followed by fast moving consumer goods, construction materials, etc.

Belarusian imports in January-June 2017 can be represented in the following descending order by volume – fast moving consumer goods, rubber and plastics industry, chemical industry (15.8%) followed by woodworking industry, , household appliances and electronics, etc.

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In January-June 2017 over January-June 2016, the export of wood products increased by 100,684 tons (+23%), chemical products 19,270 tons (+47%), construction materials 16,473 (+24%), fast moving consumer goods 1,561 tons (+2%), rubber and plastics products 1,106 tons (+3%). The decrease was recorded in export of other goods with -320 tons (-9%), products of machine building and car industry with -413 tons (-13%), household appliances and electronics -2,444 tons (-17%), iron and steel products -18,835 tons (-8%).

Import of fast moving consumer goods increased to 31,840 tons (+23%), household appliances and electronics – to 20,595 tons (+44%), rubber and plastics products – to 19,269 tons (+23%), chemical products – to 16,077 tons (+19%), wood products – to 14,171 tons (+32%), iron and steel products to 5,970 tons (+13%), products of machine building and car industry – to 4,593 tons (+45%), other products – to 173 tons (+23%). There was a decrease in imports of construction materials -8,842 tons (-10%).

Kazakhstan

1. Dynamics of macro-indicators

Foreign trade statistics according to state agencies

According to the State Statistics Service of Kazakhstan, foreign trade turnover between Kazakhstan and all the countries worldwide in January-June 2017 amounted to 36.6 billion dollars with an increase of 30.5% over January-June 2016, exports totaled 23.1 billion dollars (+37.4%) and imports amounted to 13.5 billion dollars (+20.2%).

Foreign trade turnover amounted to 6.7 billion US dollars in June 2017 making an increase of 34.4% over June 2016, while exports grew by 36.2% and imports increased by 31.5% . From the total volume of trade in June 2017, 61.4% accounted for exports and 38.6% – for imports. The balance of foreign trade turnover was positive with +1.5 billion US dollars.

Trade turnover with the EU countries increased by 30% amounting to 14.7 billion US dollars (40% of Kazakhstan’s total trade turnover). Exports increased by 41% to 12 billion US dollars, while imports decreased by -2% to 2.7 billion US dollars.

2. Dynamics of foreign trade (according to Eurostat, road transport)

According to Eurostat, the volume of imports expressed in physical terms to Kazakhstan from the countries of the European Union in January-June 2017 totaled 314,924 tons with an increase of 15.8% over January-June 2016. The volume of exports in January-June 2017 amounted to 87,141 tons making an increase of 17.1% over January-June 2016.

Kazakhstan’s major trading partners

The most important Kazakhstan’s foreign trade partners among the EU countries in 2016 were Germany, Poland, Italy, Lithuania, France, the Netherlands, Austria, Belgium, the Czech Republic and Spain accounting for 87% of foreign trade turnover.

Speaking about the share of the major partners in foreign turnover in the period under review, 25% accounted for Germany, 19% – for Poland and 9% – for Italy.

Dynamics in cooperation between Kazakhstan and its major trading partners

Export trading partners’ ranking in the descending order from the largest share of the recipient country to the lowest

Import trading partners’ ranking in the descending order from the largest share of the country of origin to the lowest

3. Changes in Kazakhstan’s commodity structure of export and import with EU countries

Kazakh exports in January-June 2017 were dominated by fast moving consumer goods followed by chemical industry, iron and steel industry, etc.

Kazakh imports in January-June 2017 were dominated by fast moving consumer goods, chemical industry, household appliances and electronics, iron and steel industry, rubber and plastics industry.

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A positive increase occurred in exports expressed in physical terms occurred in the following categories: fast moving consumer goods 10,031 tons (+24%), chemical industry 4,484 tons (+52%), other goods 432 tons (29%), machine building and car industry 176 tons (+77%), rubber and plastics industry 156 tons (+318%), construction materials 103 tons (+3%). The decrease was recorded in woodworking industry -14 tons (-74%), household appliances and electronics -315 tons (-39%), iron and steel industry -1,273 tons (-11%).

Import of fast moving consumer goods increased to 7,759 tons (+24%), chemical products – to 4,095 tons (+11%), wood products – to 4,009 tons (+49%), household appliances and electronics – to 3,815 tons (+11%), rubber and plastics products – to 2,130 tons (+14%), products of machine building and car industry – to 1,181 tons (+18%), other goods – to 8 tons (+11%). There was a decrease in imports of construction materials -3,170 tons (-18%) and iron and steel products -5,638 (-19%).

The overview has been prepared by the Marketing Department of TELS Group of companies, according to data from Eurostat for information purposes.