Trade business with Ukraine in 2023 brought Poland a record surplus while Polish farmers blocked and continue to block the Ukrainian border. Find out how much Poland earned from Ukraine and how Ukrainian authorities may hit Polish business in response

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In 2023, Ukraine became the seventh largest export market for Polish manufacturers, and the sale of Polish goods to Ukraine brought the country record earnings during the bilateral trade. We tell you what Poles earn in the neighbouring country and how this can be against the background of the unilateral blockade of the Ukrainian border by Polish farmers.

According to the Rzeczpospolita, last year the volume of exports to Ukraine was one of the largest. Only Germany, the Czech Republic, France, the UK, Italy and the Netherlands are ahead. By comparison, in 2021, Ukraine ranked fifteenth among the countries to which Poland exported its products.

While Polish farmers are demanding that the border be closed to Ukrainian goods, blocking roads and staging large-scale protests, the trade balance is tilting in Poland's favour.

How Polish exports to Ukraine have grown

The publication notes that Polish exports to Ukraine have revitalised significantly in recent years. In 2020, it will amount to almost PLN 23.3 billion ($5.9 billion), and as much as PLN 45.6 billion ($11.55 billion) in 2022. Last year, the figure reached PLN 52 billion ($13.17 billion).

At the same time, in 2023 Poland purchased Ukrainian goods worth 20 billion zlotys (4.7 billion dollars). Thus, the balance in favour of Poland is more than 31 billion zlotys (7 billion euros) and is a record for bilateral trade.

What does Poland make the most money on?

Representatives of the Polish dairy industry have expressed their concern about how the border blockade is already affecting and may affect trade. This particular industry has been the only one in Polish business to express concern since the beginning of the farm protests back in 2023. The reason is simple - Ukraine is the third export market for Polish dairy products after the UK and Algeria.

Ukraine also supplies Poland with dairy products, particularly milk powder and butter. However, despite this, the balance of this trade is positive for Poland, totalling €96.7 million annually, Rzeczpospolita reported.

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A blow to Polish business

Back in February, Forbes, citing sources in the Ukrainian government, reported that the Ukrainian government was allegedly discussing the introduction of restrictions on trade with Poland due to the fact that the problem with regular border blockades was not being solved.

"I would like to avoid this, but we are at the lowest point now, and if this continues, it will have to be done," one of the interlocutors said.

Earlier, Ukraine's ambassador to Poland Vasyl Zvarych estimated in his address to protesters that Ukraine has already lost about 2bn zloty as a result of the border blockade.

At the same time, the losses can be much bigger if they are counted from the moment the protests started. And these losses are not only for Ukrainian exporters, but also for Polish importers.

Despite the huge losses in bilateral trade, Polish protesters have extended the blockade of the Ukrainian border for almost 2 months - until 30 April 2024. In this way, the Poles want to impose restrictions on the import of agricultural products from outside the European Union, including from Ukraine.

At the same time, Ukrainian Trade Minister Taras Kachka said that Ukraine was ready to accept restrictions on trade with the European Union in order to defuse a fierce political dispute with Poland. However, he also called for a ban on imports of Russian grain, which still enters Europe via Belarus and the Baltic States

We remind you! Record profits of Polish airlines in 2023 became possible thanks to Ukrainians. How Ukrainian citizens helped Polish carriers and why the airlines' development strategy takes into account the interests of Ukraine, we tell you here.

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