The United Kingdom was Ukraine’s 12th largest two-way trading partner, worth $1.77 billion in January-September 2020, accounting for 2% of total Ukrainian trade. According to the State Statistics Service of Ukraine, the UK is Ukraine’s 12 largest trading partner (18th largest trading partner in goods (1.37%) and 4th in services (6.4%)).
Ukrainian exports of goods to the UK were $452 million (down 2.9% on the same period in 2019), exports of services $418 million (down 7.3%). Total exports to the UK were worth $1 billion, a 16% decrease from 2019.
Ukrainian imports of goods from the UK were $556.7 million in January-September 2020 (down 0.3% on the same period in 2019), imports of services $345.7 million (down 25%). Total imports from the UK were worth $902.4 million, a 8.9% decrease from 2019.
In the first nine months of 2020 the Ukrainian trade deficit with the UK was $32.4 million, substantially narrowing from deficit of $892 million in 2013. This represents the lowest trade deficit with the UK in 2010s. Ukraine had a trade in good deficit of $105 million and trade in services surplus of $72.
The UK is 4th largest export market for Ukrainian services (5%) and Ukraine’s largest import market for services globally (9.4%). Trade in services plays an important role in Ukrainian exports to the UK, representing almost 50% of its total value. The level is significantly higher average share of 20% for Ukraine in general.
The top three commodities exported by Ukraine to the UK were colour metals (18%, $82 million, down 47.5%), grains (17%, $77 million, down 23%), animal and vegetable oils (15.4%, $70 million, up 20%). Combined, their value accounted for nearly 50% of all Ukrainian goods exports to the UK.
Main British commodities exported by the UK in January-September of 2020 to Ukraine were vehicles, except railroad (18.5%, $103 million, up 22%), nuclear reactors, boilers and machinery (12.6%, $70 million, donw 29%), mineral fuel, oil and oil distillation products (13%, $71 million, up 7%), pharmaceutical (11%, $62 million, up 9.6%) and chemical products (6%, $35 million, down 4.3%).
The trade in services was dominated by transport services, telecommunication, computer and information, as well as financial and business services. The main services exported from Ukraine to the United Kingdom were transport services, telecommunication, computer and information and other business services.
There is a trend of significant increase of telecommunication, computer and information services exports to the UK. In January-September of 2020, the share of those services was 56%, significantly widening from 22% in 2017 and 31% in 2018. The Ukrainian IT exports to the UK were $250 million in the first nine months of 2020, exceeding combined exports of top-3 commodities exports.
Ukraine imported from the United Kingdom transport services, financial services, royalty and other intellectual property services, business services, IT services and travel services.
The UK was the 3rd largest investor in Ukraine (after Cyprus and the Netherlands) with an inward FDI stock of $3 billion as of 2020. Total share of UK investment into Ukraine accounted 6% in 2020.
FDI flows constituted $191 million in January-September 2020, which exceeds the results of the whole 2019.