BMI View: Although we have made minor changes to the Ukrainian agricultural outlook in the Q1 20128 update, we retain a cautiously optimistic outlook for the sector between 2018 and 2021, owing to improving economic indicators. All agricultural sub-sectors were negatively affected by poor macroeconomic fundamentals in Ukraine in the past year. However, as the recent dry weather season disappears and the economic and political situations improve, we are once again optimistic about the country's agricultural outlook. Nevertheless, challenges to the country's agricultural sector remain, including weak infrastructure, trading restrictions and ongoing problems with neighbouring Russia. Furthermore, significant currency depreciation will limit imports in the short run, affecting input use and domestic investment.