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05.09.2008
Credit-Rating: cutbacks in export to Russia may be partially compensated by trade with WTO member states
Credit-Rating notes that possible Russian Federation`s toughening the terms for import of Ukraine-produced goods may have negative impact on development of certain sectors of the national economy, which are oriented to the Russian market. The most vulnerable to the demand in the Russian market are metallurgy, machine-building and food industries. At the same time, the agency will deliberately revise credit ratings assigned to the entities operating in the mentioned industries, taking into account that a significant specific gravity of one foreign market in the sales structure is considered as a risk factor which affects the rating.
We would like to note that on 29th August the Russia`s first vice prime-minister Viktor Shuvalov charged Ministry of Economy Development, Ministry of Agriculture, Ministry of Industry and Trade and Ministry of Finance to secure protection of the Russian market in connection with Ukraine`s entering the WTO.
The dependency of Ukraine`s economy upon the Russian market remains high, though having a decreasing trend over the past few years (in 2005-2007 the share of the Russian Federation in the structure of Ukrainian export shrank to 38% from 42%). It should be noted that, despite the agreement on free trade between Ukraine and Russia, the Russian authorities introduced different restrictions against the Ukraine-produced goods (pipes, milk and meat goods, confectionery etc.).
In Credit-Rating`s view the factor, which mitigates negative impact of new restrictions in the Russian market may be increase in Ukraine`s export of certain types of goods to the WTO member states following the liberalization of trade relations after Ukraine`s entering this organization. At the same time, according to Credit-Rating`s head for corporate sector Dmitry Melnik `the national companies will encounter certain difficulties, among of which are compliance with international quality standards and certification`.
For more information, please contact:
Information and Communication Department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
