Ukraine seeks to revitalise export agency to boost economy

KYIV (Reuters) - The Ukrainian government will provide state guarantees to revitalise its export credit agency, a move designed to help domestic exporters and lift the economy after 14 months of war, Prime Minister Denys Shmyhal said on Tuesday.

Before Russia's full-scale invasion in February last year, Ukraine's economy was export-led, but Moscow's war in Ukraine has disrupted supply chains and logistics.

"We are intensifying the work of the export credit agency. We want as many Ukrainian businesses as possible to export their products abroad," Shmyhal told a government meeting. "We see there is a demand from businesses, but many companies lack resources and need state support."

The government approved a decision to provide state guarantees for the agency to help strengthen its ability to support Ukrainian exporters, Shmyhal said.

The move is part of efforts to help the economy recover after gross domestic product fell by 29.1% in 2022, the biggest annual drop since the independence.

Exports fell by 42.8% in the first two months of this year compared with the same period a year earlier, the statistics data showed. Ukrainian exports took another hit this month as several Eastern and Central European countries banned imports of Ukrainian grains and other food products.

(Reporting by Olena Harmash, Editing by Timothy Heritage)