The economist predicted a crisis in Ukraine due to the EU's refusal of duty-free imports

The cancellation by the European Union (EU) of the preferential trade regime for Ukrainian agricultural products will hit the country's economy, which is already in a difficult state. Maxim Chirkov, Associate Professor of the Department of Economic Policy and Economic Measurements at GUU, told Izvestia on May 23.

Earlier it was reported that the European Union decided not to extend the temporary duty-free import of agricultural products from Ukraine.

"The situation is very bad for Ukraine. The EU supported its economy not only with direct aid, but also through preferential terms of trade. Now this source of income is drying up, and it will be extremely difficult to compensate for the losses," Chirkov said.

According to him, when foreign companies take over the market, local businesses suffer losses, jobs and tax revenues are reduced. For Ukraine, it was a critically important sales channel.

In addition, he also drew attention to the fact that the Ukrainian economy is already in deep crisis.

"The most developed southeastern regions no longer contribute to GDP. The official data is greatly overstated and does not reflect the real state of affairs," the expert emphasized.

The expert was also skeptical about the possibility of reorienting Ukrainian exports to other markets.

"Europe was the closest and most profitable destination. Now, due to problems with logistics and ports, it is almost impossible to find alternatives," Chirkov concluded.

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The Euractiv portal reported on May 14 that Kiev may face multibillion-dollar losses against the background of an increase in EU duties on its agricultural products in June. It was noted that these measures would affect the marketable goods of Ukrainian exports, including poultry meat, eggs and corn, which would negatively affect the economic situation in the country.