Ukraine plans to increase export of its machinery to Central Asia

increase export of Ukrainian mechanical engineering products to Turkey, Iran and Central Asia

This article discusses plans of the #Cabinet of Ministers of Ukraine to increase #export of Ukrainian #mechanical engineering products to #Turkey, #Iran and #Central Asian countries.

Visit our website if you are interested in the #Ukrainian economy or #doing business in Ukraine.

The Vice Prime Minister of Ukraine announced that Ukraine plans to increase export of mechanical engineering products of Ukrainian origin, especially power machinery, to Turkey, Iran, Kazakhstan, Turkmenistan and Azerbaijan. The Cabinet of Ministers has already established respective joint commissions and working groups, which deal with proper preparation of the relevant bilateral trade agreements and implementation of appropriate policy which would ensure increase of export to Central Asian countries.

We note that earlier a memorandum of mutual understanding was signed between Ukraine and Iran, in which all the areas of cooperation between the parties are specified with concrete steps for implementation of such cooperation. Under the terms of this memorandum, Iran is interested, inter alia, in Ukrainian-made machinery to be imported to its territory.

In addition, the Deputy Minister of Economic Development and Trade of Ukraine announced that trade delegations of Ukraine and Turkey had conducted a meeting in relation to establishment of a free trade zone. It is expected that the deal will be completed in 2016. Negotiations on conclusion of the free zone agreement between Ukraine and Turkey commenced in March 2015. However, recent intensification of such negotiations is partially influenced by the regime of severe economic sanctions imposed by the Russian Federation on goods manufactured or imported from Turkey. Ukrainian market is likely to substitute the Russian market for the Turkish goods.

We note that in 2015 Ukraine was trading with 217 countries. Diversification of trade partners seems to be the latest trend in the Ukrainian economy. Following launching of EU-Ukraine free trade zone from 01 January 2016, Ukraine also announced its plans to conclude similar free trade zone agreements with Canada and Israel in 2016.

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