Brexit (UK's leaving the European Union) will not significantly affect the Ukrainian economy, but it should be taken into account in forming Ukraine's foreign trade policy for the EU zone, First Deputy Prime Minister and Economic Development and Trade Minister of Ukraine Stepan Kubiv said at a briefing in Kyiv last week.
“The formation of breaches in the European zone is more likely linked to the social and political character than economic stability. This fact could influence growth of the economy in the European zone, and this should be taken into consideration when we form the relevant budget principles in the budget policy for foreign trade in the EU zone,” he said.
Deputy Minister of Economic Development and Trade, Trade Representative of Ukraine Natalia Mykolska said at the briefing that the government is waiting for the decision of the European Commission on the concrete mechanism for Brexit. Ukraine will then decide what, if any, measures it should take.
“We are waiting for the formal position of the European Commission, how they see the process so that we can help Ukrainian business and our economy to balance the aftermath (of Brexit). Understanding that the European Union is our key partner, any decline of their economy a priori could have negative impact on our economy. The large dependence on any trade partner always brings risks for the economy, and the task of the government is to expand (Ukraine’s) presence on markets and enter new markets,” she said.
First Deputy Economic Development and Trade Minister Yulia Kovaliv said at the briefing that Brexit would not directly affect the hryvnia exchange rate.
“We do not expect any (financial) destabilization. We have seen the hryvnia strengthening in the past several months,” she said.
