The Ukraine in KRU (Kazakhstan, Russia and Ukraine): prospects for the Ukrainian grain economy

Abstract

During the years leading up the Russian drought of 2010, the share of the grain exports from Kazakhstan, Russia and Ukraine (KRU) in the world grain trade steadily increased. In 2008/09 and 2009/10 they together exported an average of 36.5 million tons of wheat per year, which accounted for more than 26 percent of the world wheat exports in those two years. This was greater than the exports of any of the other major exporters – US, Canada, EU-27, and Australia. Given such a growing role for the grain sectors in the KRU region, it is important to learn more about Ukraine’s role in global market behavior. In this paper we focus on the specifics of Ukrainian agriculture, its growing integration in world markets, and its potential role in the future of grain market developments.