Ukraine gas imports cut improves November trade gap

Макроэкономика 15.01.2014 Ukraine’s trade deficit declined 5.7% yoy to USD 876 mln in November, compared to USD 929 mln in the same year-ago month, according to state statistics released on Jan. 14. Exports decreased 6.4% yoy, owing to declines in chemicals (-36.6%) and machinery (-54.0%), while imports fell 6.3% yoy, owing to less natural gas (-19.0% yoy). For 11M13, the trade deficit reached USD 12.6 bln, which is USD 1.0 bln less than the same year-ago period (USD 13.6 bln for 11M12). Alexander Paraschiy: We anticipate further improvement of the trade balance for 2014. Assuming Ukraine maintains the conditions of its gas price discount from Russia, we estimate the trade deficit to decline to USD 11.2 bln by the end of this year (according to Ukrstat methodology).