Analytical report on trade and economic cooperation between Ukraine and the French Republic

Russia's full-scale war against Ukraine made adjustments to the development of economic relations between Ukraine and the world. Accordingly, the State Statistics Service of Ukraine did not publish data on Ukraine's trade in goods with foreign countries for 2022 (the latest available information on trade in goods with France for January 2022 - 212.88 million US dollars). If we analyze the data for 2021, the total turnover between Ukraine and France amounted to 3,089.7 million US dollars (+30.2% compared to 2020 figures). The increase in turnover was caused by a sharp increase in commodity exports (+51.3%) and imports (+19.6%), while exports of Ukrainian services grew by +39.1%. The foreign trade balance was negative for Ukraine and amounted to -796.6 million dollars. USA. According to Eurostat data, in 2022, Ukraine's exports to France amounted to EUR 704 million, and Ukraine's imports from France amounted to EUR 795 million.

It is necessary to note the positive dynamics of Ukrainian exports of fats and oils of animal origin (22.1%). In addition, positive dynamics were observed in other trade positions: seeds and fruits of oleaginous plants (18.7%), food industry residues and waste (9.8%), ferrous metals (7.2%), wood and wood products ( 5.4%), fertilizers (3.5%), edible fruits and nuts (3.3%), electric machines (3.2%).

Regarding trade in services, the value of services provided by Ukraine to France amounted to 250.07 million dollars. USA, which is 36.7% more compared to the corresponding period of 2020. The main items of export of Ukrainian services to France were transport services (39.7%), services in the field of telecommunications, computer and information services (36.4%), business services (16.8%), services for the processing of material resources ( 4.3%).

According to the National Bank of Ukraine, as of December 31, 2021, France invested $1,315.8 million in the economy of Ukraine. US direct investment (equity instruments and debt instruments, balances by countries of the world).

Equity instruments (balances by countries of the world) as of 12/31/2021 amounted to USD 1,055.3 million. of the USA, which is 2.2 percent of the total volume of direct foreign investments involved in the economy of Ukraine.

The largest volume of investments from France in the economy of Ukraine went to the sphere of financial and insurance activities - 471.1 million dollars. USA, which is 44.6 percent. from the total volume of French investments in the Ukrainian economy.

To the sphere of wholesale and retail trade; repair of motor vehicles and motorcycles attracted 321.8 million dollars. USA, which is 30.5 percent. from their total volume.

Industry received 157.9 million dollars. USA, which is 15.0 percent. from the total volume of French investments in the Ukrainian economy.

Inflows of French investments in industry were distributed as follows:

Industry	As of 31.12.2020 million dollars USA	In % of the investment volume	As of 31.12.2021 million dollars USA	In % of the investment volume
The total volume of investments in industry: including:	140,9	17,0	157,9	15,0
Mining and quarrying	*	*	*	*
Processing industry	131,8	15,9	148,8	14,1
Supply of electricity, gas, steam and air conditioning	*	*	*	*

USD 27.9 million was involved in the field of transport, warehouse management, postal and courier activities. USA, which is 2.6 percent. from the volume of investments.

Investments in other spheres of economic activity were distributed as follows:

- agriculture, forestry and fisheries – 45.7 million US dollars.(4.3%);

- information and telecommunications - 17.5 million UA dollars (1.7%);

- activities in the field of administrative and auxiliary services - 4.4 million US dollars (0.4%);

- professional, scientific and technical activities - 3.6 million US dollars, which is 0.3% of the total volume of investments in the Ukrainian economy;

- transactions with real estate - 2.5 million US dollars (0.2%);

- construction - 1.9 million US dollars (0.2%).

- temporary accommodation and catering - 1.0 million US dollars (0.1%);

- education - * million US dollars.

Despite Russia's full-scale invasion of Ukraine in February 2022, Ukrainian-French economic cooperation had quite positive dynamics during the year, in particular in the context of reconstruction and the provision of financial assistance to Ukraine. One of the key economic events in bilateral relations this year was the official visit of the Prime Minister of Ukraine Denys Shmyhal to Paris on December 11-14, 2022, during which 5 agreements were concluded with international partners, totaling almost 500 million euros.

In addition, within the framework of the Forum, the French side handed over a letter about the program of providing state guarantees to the French government through the investment bank Bpifrance Assurance Export for the export of sowing seeds to Ukraine in the amount of approximately 20-25 million euros.

During 2022, cooperation in the field of nuclear energy strengthened: on September 5, 2022, negotiations were held between the French company ORANO and "Energoatom" regarding promising areas of cooperation in the field of nuclear energy.

On December 2, 2022, a meeting of the Ukrainian part of the Mixed Ukrainian-French Intergovernmental Commission on Economic Cooperation was held in order to update the current state of implementation of the Action Plan for the implementation of agreements reached during the 8th meeting of the Commission. The next meeting was suggested by representatives of the French Ministry of Economy to be held approximately in May-June this year, in the context of a possible visit of the Minister of Economy, Finance and Industrial and Digital Sovereignty Bruno Le Maire to Ukraine.

On March 9, 2023, with the assistance of the Embassy of Ukraine in France, together with the French law firm BG2V, a conference on attracting investments for the reconstruction of Ukraine was held in Paris.

About 110 participants from French companies and government organizations took part in the event, including representatives of the Ministry of Economy of Ukraine, the Ministry of Economy, Finance, Industrial and Digital Sovereignty of France, the government office for attracting investments UkraineInvest, the association Business France, MEDEF International, the Chamber of Commerce and Industry of Ukraine and others.

During the event, the participants were presented with the initiatives and incentives of the Ukrainian Government to support the attraction of investments in Ukraine, promising reconstruction projects, as well as the experience of French companies that continue to work on the Ukrainian market during the war and financial support tools that France offers to its companies.

Opening of new markets

The involvement of Ukrainian manufacturing companies and goods in the French market is carried out in accordance with the unified, harmonized rules and standards of the EU, the provisions of the Association Agreement between Ukraine and the EU. Separate national restrictions on the access of groups of Ukrainian goods, apart from temporary bans in case of phytosanitary threats, are not introduced by the French side.

Exhibition activity

 

It is worth paying attention, in particular, to active cooperation in the field of IT. On June 15-18, 2022, the first official delegation of Ukraine took place at the Viva Technology international technology conference. In particular, 14 Ukrainian startups and the Ukrainian technological ecosystem as a whole, the unique legal and tax space of Diya.City and Ukrainian victories on the cyber front were presented at Viva Tech 2022.

In the context of the participation of Ukrainian companies in exhibition events, the Embassy of Ukraine in France agreed with the organizers of the SIAL Paris 2022 exhibition to provide a free stand for Ukrainian exporters. The national stand of Ukraine and the Ukrainian food export sector at the exhibition were represented by Ukrainian manufacturers and exporters, in particular 17 companies, including: "GREENVECTOR", "VSmak", "Agroimpex Group", "AMBRA GRAIN", "Oliyar", "Kernel-Trade" " which presented a wide range of domestic oil products, as well as "ICHNYA CONDENSED MILK COMPANY" (condensed milk), "Schedro" (ketchups and mayonnaise), "GK Alliance" (sausages), Radyvylivmoloko (butter and cheese), "Khorol Factory for Baby Food", "Limo ice cream" and others. This is the first exhibition where the Ukrainian stand was organized under the patronage of NAZOVNI - a digital platform of diplomatic assistance for the promotion of Ukrainian exports abroad.

In recent years, the Embassy has maintained constructive relations with the organizers of the La Cité du Vin Wine Culture and Civilization Foundation. In this regard, with the support of the Ukrvinprom association and the Embassy, on November 15, 2022, a presentation of the Ukrainian wine industry was held in the French city of Bordeaux at the La Cité du Vin Wine Culture and Civilization Foundation. The event took place within the framework of the project called "Ukrainian wine - part of the world cultural heritage of wine at the La Cité du Vin fund", where the best samples of Ukrainian "ambassador" wines were presented. Ukraine was represented by Prestige group, Shabo, Kolonist, 46 Parallel wine group, My wine by Eduard Gorodetsky, Falko Winery, Beykush Winery, Chateau Chizay, Stakhovsky Wines, Graevo, Artwinery and Fathers Wine.Посольством було домовлено про безкоштовне виділення площі на Міжнародній виставці «Wine Paris&Vinexpo Paris.» (13-15 лютого 2023 р) для національного стенду. З українського боку було забезпечено участь українських компаній як Chateau Chizay, SHABO, ТМ «Falko», ТМ «Graevo», Artwinery, ТМ «Odessa Prestige».

Also, the Embassy of Ukraine in France held negotiations with the organizers of the exhibition "Global Industrie 2023 (March 7-10, 2023), during which it was agreed to provide Ukrainian companies with preferential conditions and free space (84 m²) in the hall dedicated to the Universe of Regions and Countries (l'Univers Régions et Pays). The organizers of the exhibition agreed to provide Ukrainian companies with a preferential tariff of 420 euros for each exhibitor. In addition, the organizers provided an offer on the possibility of building a Ukrainian stand at a price of 204 euros without VAT per m².

The embassy agreed to provide a free stand for the participation of Ukrainian companies in the IT exhibition VivaTechnology 2023, which took place on June 14-17, 2023 in Paris. 12 Ukrainian startups took part in the exhibition: UGLA, Qudi, Orderry, SkillzRun, Revisior, FlightMind.AI, USPACY, MISU, InVisionaryBox, Adminix, G-MAK and Elomia Health.

Economic indicators

Annual inflation (for 2022)– 5.2%.

GDP dynamics (for 2022): +2,6%, прогноз на 2023 р.: +0,3%, 2024 р.: +1,2%.

Industrial production (for 2022): +0,3%.

France ranks 6th in the world among exporting countries (with a share of 3.4%).

139,400 French enterprises work for export.

Exports from France (for the first 3 quarters of 2022) – 439 billion euros (+20% compared to the same period in 2021).

Imports to France in February 2023 – 61.5 billion euros (-1.2 billion compared to -1.5 billion in January 2023).

The main export destinations of French products are Germany (68.6 billion euros), Italy (39.1 billion euros), Belgium (37.2 billion euros). Spain (36.4 billion euros). In total, EU countries account for 54.3% of French exports, Great Britain - 6%, other European countries - 7.6%, Asia - 13.7%, American continents - 10.6%.

The main countries from which France imports goods are: Germany (81.4 billion euros), China (63.8 billion euros). Italy (46.3 billion euros), Belgium (45.6 billion euros). In total, EU countries account for 54% of French imports, Great Britain - 3.6%, other European countries - 7%, Asia - 19.2%, American continents - 8%.

The largest export industries are the aerospace industry (19.7 billion euros), the chemical and perfume industry (15.2 billion euros), the agricultural industry (8 billion euros), and the pharmaceutical industry (2.6 billion euros).

Industries most dependent on imports: energy (43.1 billion euros), production equipment 9.5 billion euros), automotive industry (18 billion euros), textile industry and clothing manufacturing (8.6 billion euros).

Export of services from France in 2022 – 240.4 billion euros (+20.8%).

Import of services to France in 2022 – 228.6 billion euros.

Conseil des exportateurs et des investisseurs d'Ukraine