Negative Trade Balance Totals USD 1.85 Bln In 2005.

In 2005 exports grew by 5% yoy to USD 34.3 bln while imports increased by 24.6% yoy reaching USD 36.1 bln. Concorde Capital: In 2005, imports of goods grew almost as fast as 2004, whereas the export growth rate dropped eight-fold (41.6% yoy in 2004). The main factor behind slow growth of exports was a drop in global prices for the steel products – Ukraine’s main export. At the same time imports were supported by substantially increased personal incomes as well as lower import duties and simplified customs procedures. However, we believe the total foreign trade balance for 2005 will remain positive at ~USD 200 mln, due to the surplus services exports, expected to be at ~USD 2.1 bln.