Ukraine Faces $800M Export Blow Amid EU Trade Shift

Ukraine is bracing for an $800 million hit to its export revenues from June to December this year, as its preferential trading status with the European Union ends, a central bank official revealed on Thursday.

The EU had initially granted Ukrainian products free access to its markets following Russia's full-scale invasion in February 2022. With the expiration of these trade privileges on June 5, Ukraine and the EU will revert to a previously agreed free trade agreement encompassing about 30 product quotas.

Although the Ukrainian economy ministry confirmed an extension for steel and iron exports, the broader implications on sectors like wheat and sugar could be significant. Ukraine is pivoting to alternate markets in Africa and Asia to cushion these losses, while the central bank stands ready with policy measures to stabilize the currency exchange rate amid a growing trade deficit.

(With inputs from agencies.)