The Impact of War on the Reorientation of Trade Flows: The Case of Ukraine

Abstract

The military aggression of the Russian Federation against Ukraine, which started in 2014 and came to another active phase in February 2022, may change Ukraine’s foreign trade in terms of both its geography and product structure. The regions of Ukraine will not only have to recover from the consequences of destruction, but also to seek new directions of foreign economic activity and build connections with reliable partners such as the European Union and the United States. The paper presents an analysis of changes in the foreign trade of Ukraine and its regions since 2014 and examines shifts in trade flows in the direction of Western leaders of global trade. The case of Georgia, another target of Russian military intervention, in the reorientation of its trade flows, is also considered.

Keywords

• ukraine
• regions
• trade in goods
• trade in services
• export
• import