gasworld’s Business Intelligence team provides you with an insight into how the recent difficulties within Ukraine has impacted the nation’s industrial gas market.
Since fighting broke out in early 2014, Ukraine has faced serious challenges from a humanitarian, economic and industrial perspective.
In 2012, gasworld’s Business Intelligence team valued the Ukrainian industrial gases market at just over $120 million. Between 2002 and 2012, growth stood at an impressive average rate of around 13% p.a. This was fuelled by major investment from international industrial gas companies and an increase in demand from the country’s large manufacturing industry.
Economic growth over the past decade (2004-2014) averaged at 1.2% p.a. This was distorted by periods of high growth at the beginning of the decade and massive contractions within the economy over the past few years. Industrial production (as measured by the industrial production index) had fallen from growth rates of around 8% in 2004, to -18% in 2014).
Over the past few years, the industrial gas market in the country has unsurprisingly been in decline. We estimate that revenues dropped by 8% in 2013 and a further 26% in 2014.
The outlook for the industrial gas market in Ukraine is somewhat uncertain, although we expect revenue growth to stay relatively flat over the coming years. The general situation is unlikely to improve and the Hryvnia currency continues to weaken, which in turn is increasing the public debt of Ukraine.
For more information on the industrial gas markets of Eastern Europe, or other regions around the world, please contact email@example.com or phone +44 1872 225031