Ukraine-U.S. Trade Record Start But Russia’s Invasion will Upend Trend
06 April 2022
Ukraine’s 2022 trade with the United States was off to
a record start but the Russian invasion of Ukraine which began in Feb 2022 will
certainly upend that trend because of Ukraine’s destroyed infrastructure and
affected supply chain of goods. In the month of January, the only 2022 data
currently available, Ukraine recorded its highest monthly total in at least two
years at US$444.39 million. In fact, for the last five months, Ukraine’s trade
with the US topped US$400 million, the only month it has done so in the last
two years.
Ukraine’s trade with the U.S. by
Year
The trade balance between Ukraine and the United
States stood at US$540 million in 2021. Ukraine’s imports from the U.S. totaled
US$2,528 million, while Ukraine’s exports to the US totaled US$1,988 million in
that year. Here’s a quick overview of Ukraine-U.S. bilateral trade in the last
ten years.
|
Year |
Ukraine Imports from the US
(Value US$ Million) |
Ukraine Exports to the US
(Value US$ Million) |
|
2012 |
1,408 |
1,935 |
|
2013 |
1,084 |
1,924 |
|
2014 |
973 |
1,239 |
|
2015 |
897 |
862 |
|
2016 |
609 |
1,078 |
|
2017 |
1,074 |
1,788 |
|
2018 |
1,424 |
2,486 |
|
2019 |
1,358 |
2,457 |
|
2020 |
1,376 |
1,907 |
|
2021 |
1,988 |
2,528 |
Ukraine’s trade with the U.S. by
commodity
Ukraine is one of the largest exporters of corn,
wheat, soybeans, sunflower oil, and iron ore. And the United States is not
particularly dependent on Ukraine for those exports, meaning the impact, as
least directly, is not as significant as it might be for other countries,
including European ones. This does not suggest that the Russia-Ukraine war is
of no concern to the United States.
The United States is largely not dependent on Ukraine
for goods, however, it imports Ukrainian soybeans, sunflower oil, and other
agricultural products. Ukraine actually imports goods from the United States to
meet its demand. Here is a list of commodities that Ukraine import from the US
and export to the US with dollar amounts reported in 2021.
|
Ukraine’s Imports from the
US |
Value US$ Million |
Ukraine’s Exports to the US |
Value US$ Million |
|
Used Vehicles |
575 |
Non-alloy Pig Iron Containing 0.5% or Less Phosphorus |
989 |
|
Metallurgical Bituminous Coal Not
Agglomerated |
467 |
Iron Ore Agglomerated
Pellets |
74 |
|
Parts & Accessories for Motor Vehicles |
87 |
Soybeans |
46 |
|
Passenger Motor Vehicles |
79 |
Crude Sunflower Oil |
44 |
|
Tractors for Agricultural Use |
56 |
Refined Sunflower Oil |
41 |
|
Worn Clothing & Accessories |
46 |
Furnishing Articles
(excluding those of heading 9404) |
40 |
|
Vaccines for Human Medicine |
37 |
Casing, Seamless, Oil or Gas Drilling, Iron or Non-alloy Steel |
36 |
|
Civilian Aircraft, Engines, Equipment &
Parts |
34 |
Tubing, Seamless, Oil
or Gas Drilling, Iron or Non-alloy Steel |
23 |
|
Passenger Electric Motor Vehicles |
29 |
Apple Juice |
22 |
|
Vessels including Lifeboats (Not Row Boats) |
26 |
Insulated Ignition
Wiring Sets for Vehicles, Aircrafts & Ships |
18 |
According to the International Monetary Fund (IMF),
Ukraine’s war-ravaged economy could shrink by up to 35% in 2022. And many
countries that are dependent on Russian and Ukrainian goods have to look for
alternatives to meet the demand.
The trade between Ukraine and the United States had
been growing steadily and it has been becoming a more significant trade
partner. After reporting positive business growth, it is expected that
Ukraine-U.S. trade will be upended by Russia’s invasion of Ukraine. The flow of
goods through Ukrainian territory is almost halted as there is no movement of
shipments from the Black Sea, which is the major sea transport of goods. Many
countries have put sanctions on Russia for this invasion, leading to global
supply chain disruption.
