Markets
Visualizing Ukraine’s Top Trading Partners and Products
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Visualizing Ukraine’s Top Trading Partners and Products
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International trade was equal to 65% of Ukraine’s GDP in 2020, totaling to $102.9 billion of goods exchanged with countries around the world.
In 2014, Russia’s annexation of Crimea contributed to a 30% year-over-year drop in Ukraine’s 2015 trade value ($75.6B). Now, Ukraine’s international trade has been irreversibly disrupted since Russia’s full-scale invasion on February 24th, 2022.
The current conflict continues to reshape geopolitical relations and international trade—and to give context to the situation, we’ve created this graphic using IMF and UN Comtrade data to showcase Ukraine’s largest trading partners and goods traded in 2020.
Ukraine’s Largest Trading Partners
Ukraine’s largest trading partner in 2020 was China, with the value of trade between the two countries reaching $15.3 billion, more than double the value of any other trading partner.
Germany ($7.4B), Poland ($7.4B), and Russia ($7.2B) were Ukraine’s next three largest trading partners, with the majority of Ukraine’s trade with these countries being imports.
Country | Trade with Ukraine (2020) | Exports from Ukraine (%) | Imports to Ukraine (%) |
---|---|---|---|
🇨🇳 China | $15.3B | 46% | 54% |
🇩🇪 Germany | $7.4B | 28% | 72% |
🇵🇱 Poland | $7.4B | 45% | 55% |
🇷🇺 Russia | $7.2B | 37% | 63% |
🇹🇷 Turkey | $4.8B | 50% | 50% |
🇧🇾 Belarus | $4.2B | 32% | 68% |
🇮🇹 Italy | $4.1B | 48% | 52% |
🇺🇸 U.S. | $3.9B | 25% | 75% |
🇮🇳 India | $2.7B | 73% | 27% |
🇳🇱 Netherlands | $2.6B | 71% | 29% |
Source: IMF
While most of Ukraine’s trade with top partners is made up of imports, trade with both India and the Netherlands (Ukraine’s ninth and tenth largest trading partners respectively) was more export driven, with exports holding a greater than 70% share of total trade value.
Ukraine’s Top Exports and Imports
Ukraine’s strong agricultural industry makes up a large share of the country’s exports in the form of cereals, animal and vegetable oils, and seed oils. These products made up nearly 35% of Ukraine’s exports in 2020, at a value of $17 billion collectively.
Goods Exported from Ukraine (2020) | Dollar Value | Share of Exports |
---|---|---|
Cereals | $9.4B | 19.1% |
Iron and steel | $7.7B | 15.6% |
Animal or vegetable fats, oils, and other products | $5.8B | 11.7% |
Ores, slag, and ash | $4.4B | 8.9% |
Electrical machinery and equipment | $2.6B | 5.2% |
Other goods | $19.4B | 39.5% |
Source: UN Comtrade
The other two cornerstones of Ukraine’s industry and exports are iron ore and steel, along with refined electrical machinery, equipment, and other mechanical appliances. In 2020, exports of crude iron and steel along with their refined products made up $13 billion in value, making up more than a quarter of Ukraine’s exports.
Ukraine’s imports are primarily vehicles, machinery, and the fuels necessary to power these goods. With the country’s energy consumption outpacing domestic energy production, mineral fuels and oils are Ukraine’s top import in 2020 at $7.42 billion.
Goods Imported from Ukraine (2020) | Dollar Value | Share of Imports |
---|---|---|
Mineral fuels, oil, and mineral products | $7.4B | 13.8% |
Boilers, machinery and mechanical appliances | $6.3B | 11.7% |
Vehicles other than railway or tramway rolling stock | $5.5B | 10.2% |
Electrical machinery and equipment | $5.3B | 9.9% |
Pharmaceutical products | $2.5B | 4.7% |
Other goods | $26.6B | 49.7% |
Source: UN Comtrade
Primarily importing from Belarus, Russia, and Germany, Ukraine’s need for energy fuels was greatly exacerbated by Russia’s annexation of the Crimean peninsula, which held 80% of Ukraine’s oil and natural gas deposits in the Black Sea.
Various kinds of machinery, vehicles, and electrical equipment are the next largest categories of goods imported, cumulatively making up 31% ($17.1B) of Ukraine’s imports.
Ukraine’s Shift Away from Russian Trade Dependence
Since its independence from the former USSR in 1991, Ukraine has steadily shifted towards Western trading partners, especially as conflicts with Russia escalated in the 2010s.
After years of negotiations, Ukraine’s Association Agreement with the EU in 2014 facilitated free trade between EU nations and Ukraine, reducing the country’s dependence on trade with Russia.
Ukraine is one of the most important economic centers of the former Soviet Union, and it had long been the breadbasket of the USSR thanks to its fertile chernozem soil and strong agricultural industry.
Trade value between Russia and Ukraine peaked in 2011 at $49.2 billion, and since then has fallen by 85% to $7.2 billion in 2020. During this time, European nations like Poland and Germany overtook Russia in terms of trade value with Ukraine, and in 2021 trade with the EU totaled to more than $58 billion.
War’s Effect on Ukraine’s Future Trading Partners
Russia’s invasion of Ukraine is rapidly reshaping both countries’ international relations and trading partners.
Four days into the recent conflict, Ukrainian President Zelenskyy filed for Ukraine’s special admission into the EU, which would further strengthen Ukraine’s trade with European Union members. Combining the likely breakdown of Ukrainian-Russian trade with China’s lack of condemnation of Russia’s actions, Ukraine’s trade seems likely to continue shifting towards the European Union and its Western allies.
While not exactly international trade, on February 26th the U.S. committed an additional $350 million in support to Ukraine, with American financial security assistance to Ukraine totaling $1 billion over the past year. Alongside the U.S., the EU recently committed €500 million in financial support, and multiple EU and non-EU nations are providing Ukraine with military aid.
Although it’s impossible to determine the results of this conflict and its effects on international trade, the countries supporting Ukraine’s defense today are likely to become the Ukraine’s top trading partners in the future.
Markets
The European Stock Market: Attractive Valuations Offer Opportunities
On average, the European stock market has valuations that are nearly 50% lower than U.S. valuations. But how can you access the market?
European Stock Market: Attractive Valuations Offer Opportunities
Europe is known for some established brands, from L’Oréal to Louis Vuitton. However, the European stock market offers additional opportunities that may be lesser known.
The above infographic, sponsored by STOXX, outlines why investors may want to consider European stocks.
Attractive Valuations
Compared to most North American and Asian markets, European stocks offer lower or comparable valuations.
Index | Price-to-Earnings Ratio | Price-to-Book Ratio |
---|---|---|
EURO STOXX 50 | 14.9 | 2.2 |
STOXX Europe 600 | 14.4 | 2 |
U.S. | 25.9 | 4.7 |
Canada | 16.1 | 1.8 |
Japan | 15.4 | 1.6 |
Asia Pacific ex. China | 17.1 | 1.8 |
Data as of February 29, 2024. See graphic for full index names. Ratios based on trailing 12 month financials. The price to earnings ratio excludes companies with negative earnings.
On average, European valuations are nearly 50% lower than U.S. valuations, potentially offering an affordable entry point for investors.
Research also shows that lower price ratios have historically led to higher long-term returns.
Market Movements Not Closely Connected
Over the last decade, the European stock market had low-to-moderate correlation with North American and Asian equities.
The below chart shows correlations from February 2014 to February 2024. A value closer to zero indicates low correlation, while a value of one would indicate that two regions are moving in perfect unison.
EURO STOXX 50 | STOXX EUROPE 600 | U.S. | Canada | Japan | Asia Pacific ex. China |
|
---|---|---|---|---|---|---|
EURO STOXX 50 | 1.00 | 0.97 | 0.55 | 0.67 | 0.24 | 0.43 |
STOXX EUROPE 600 | 1.00 | 0.56 | 0.71 | 0.28 | 0.48 | |
U.S. | 1.00 | 0.73 | 0.12 | 0.25 | ||
Canada | 1.00 | 0.22 | 0.40 | |||
Japan | 1.00 | 0.88 | ||||
Asia Pacific ex. China | 1.00 |
Data is based on daily USD returns.
European equities had relatively independent market movements from North American and Asian markets. One contributing factor could be the differing sector weights in each market. For instance, technology makes up a quarter of the U.S. market, but health care and industrials dominate the broader European market.
Ultimately, European equities can enhance portfolio diversification and have the potential to mitigate risk for investors.
Tracking the Market
For investors interested in European equities, STOXX offers a variety of flagship indices:
Index | Description | Market Cap |
---|---|---|
STOXX Europe 600 | Pan-regional, broad market | €10.5T |
STOXX Developed Europe | Pan-regional, broad-market | €9.9T |
STOXX Europe 600 ESG-X | Pan-regional, broad market, sustainability focus | €9.7T |
STOXX Europe 50 | Pan-regional, blue-chip | €5.1T |
EURO STOXX 50 | Eurozone, blue-chip | €3.5T |
Data is as of February 29, 2024. Market cap is free float, which represents the shares that are readily available for public trading on stock exchanges.
The EURO STOXX 50 tracks the Eurozone’s biggest and most traded companies. It also underlies one of the world’s largest ranges of ETFs and mutual funds. As of November 2023, there were €27.3 billion in ETFs and €23.5B in mutual fund assets under management tracking the index.
“For the past 25 years, the EURO STOXX 50 has served as an accurate, reliable and tradable representation of the Eurozone equity market.”
— Axel Lomholt, General Manager at STOXX
Partnering with STOXX to Track the European Stock Market
Are you interested in European equities? STOXX can be a valuable partner:
- Comprehensive, liquid and investable ecosystem
- European heritage, global reach
- Highly sophisticated customization capabilities
- Open architecture approach to using data
- Close partnerships with clients
- Part of ISS STOXX and Deutsche Börse Group
With a full suite of indices, STOXX can help you benchmark against the European stock market.
Learn how STOXX’s European indices offer liquid and effective market access.
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