In Depth, 21/02/2018

Kharkiv’s Huge Potential to Increase Trade with EU

Press conference on European integration process took place in Nakipelo center at the beginning of February.

According to the recent research by Polissya Foundation for International and Regional Studies, the Kharkiv region ranked 20th among Ukraine’s 24 regions. The results of the all-Ukrainian European integration advancement ranking were presented by the regional director of the foundation Viktor Kozoriz. They are based on statistical data and analysis from 2014 to 2016. The research shows that the Kharkiv region was in 15th place in 2014 and it went down to the 21st position in 2015 and 20th place in 2016.

The EU and Ukraine have applied their Deep and Comprehensive Free Trade Agreement since January 1, 2016. As a result, the share of goods export of the Kharkiv region to the EU countries has increased from 15.4 percent in 2015 to 19.9 percent in 2016. Meanwhile, most of the goods, 44 percent of the total, were exported to the Commonwealth of Independent States countries. There is also a 5 percent growth in the services export rate, but it was not enough to reach a higher ranking in the ratio for the Kharkiv region.

Kozoriz also highlights that the levels of investments also decreased during the last year. He also mentions that it is hard to count the real amounts of money coming to Ukraine because of a common schema: first, the money is transferred by Ukrainians to an offshore zone and after that, it returns to Ukraine as investments.

Nevertheless, Kharkiv’s economy is transforming into Europe-oriented. Due to its location and former relations with the nearest neighboring country, its tempo is slower than it could have been. That is why more efforts should be applied to reach a higher rank among Ukrainian cities.

Editor’s note: According to the international trade data, provided by Competitiveness department of Kharkiv Regional State Administration, the exports from Kharkiv region to the EU amounted to $114.8 million accounting for 19.5 percent of region’s total exports in first half 2017.

Text: Maryna Kosenko

Photo: Nakipelo