India-Ukraine Trade and Economic Cooperation

1. Ukraine is the second largest trade partner of India in the CIS region. The latest bilateral trade figures are given below.

(Figures in million US dollars):

Year	Exports from Ukraine	Imports from India	Total Trade
1999	173.82	65.95	239.77
2000	168.28	76.00	244.28
2001	129.9	95.6	225.5
2002	157.9	110.78	268.68
2003	202.78	153.97	356.75
2004	481.82	226.85	728.87
2005	736.941	321.407	1058.348
2006 (Jan-Aug)	544.838	230.838	775.676

(Source : Statistics Committee of Ukraine)

2. The major commodities which are exported by Ukraine to India include chemicals, fertilizers, ferrous metals, power equipment (including for nuclear reactors), steel, steel-related equipment, aluminum, railway equipment, medical equipment, vegetable oils, paper products, electrical equipments, etc.

3. The major commodities, which are exported by India to Ukraine include pharmaceutical products, tobacco, coffee, tea and spices, cosmetics and toiletries, natural rubber, bovine meat, plantation crops, readymade garments, machinery and instruments, leather and leather products, cotton yarn, fabrics and other textile items, agricultural products, plastic and linoleum products, packaged edibles etc.

4. Under the Focus CIS Policy of the Government of India, economic and commercial activities between the two countries are likely to increase, with Ukraine being one of the seven focus countries. During the visit of the Indian President to Ukraine in June 2005, the two countries agreed to endeavour to reach a target of US$ 5 billion in total trade turnover by the year 2010.

5. Most of the Indian companies based in Ukraine are involved in trading. Drugs and Pharmaceuticals is the dominant sector, with about 30% of Indian exports to Ukraine accounted for by this sector. India is the second largest exporter of pharmaceutical products to Ukraine after Germany in value. Indian exports, however, are the largest in volume. A number of Indian companies like Ranbaxy, Dr. Reddy's Laboratory, Sun Group etc have their representative offices in Ukraine. Representatives of major Pharmaceutical companies have set up the 'Indian Pharmaceutical Manufacturing Association' (IPMA).

6. CII held "Enterprise India 2004" exhibition in July 2004 in Kyiv on small and medium enterprises displaying hand tools, bicycle and auto parts. There has been, in the recent past, a regular flow of commercial and trade delegations from India to Ukraine, from varied sectors like gem and jewellery (Gem and Jewellery Export Promotion Council), agriculture (FICCI), wool and woolen products (Wool and Woolen Export Promotion Council), herbals segment of pharmaceuticals (PHARMEXCIL) etc for attending exhibitions, buyer-seller meets etc arranged by the Mission in association with the Chambers of Commerce and Industry in Kyiv.

7. FICCI and the Ukrainian Chambers of Commerce formed a Joint business Council in 2000, which had its second session in Kyiv in July 2003. A Joint Business Forum hosted by the Ukrainian League of Industrialists and entrepreneurs in September 2003 was attended by a seven-member CII delegation. A 23-member Ukrainian delegation from the International Chamber of Commerce visited India on the invitation of FICCI in January 2005 and signed an MOU with ASSOCHAM.

Industrial Cooperation

8. Possibilities of cooperation exist in mechanical engineering, shipbuilding, light industry, mining, metallurgy, steel, coking industry, construction of road and rail networks in India etc. Ukraine is a well-known manufacturer of world class gas and steel turbines for thermal, hydel and nuclear power plants, compressors, transformers, pumps, motors equipment for laying power transmission lines etc. Ukraine is keen to explore new avenues of joint development of power projects in India.

Indo-Ukraine Inter-Governmental Commission (IUIGC)

9. The India-Ukraine Inter-Governmental Commission (IUIGC) was established in April 1994. It has so far held 3 meetings on Trade, Economic, Scientific, Technological, Industrial and Cultural Cooperation. The sides agreed to form two Working Groups - one on Metallurgy and the other on Power to open new vistas of cooperation in the fields of metallurgy and power respectively. The fourth session is expected to be held in New Delhi in 2007.