Kyiv calls on the European Union to extend the duty -free trade agreement, which expires on June 5, 2025. The Ukrainian government warns that in the event of its termination, the country's economy may undergo "truly devastating" consequences, since exports to the EU bring almost 10% of foreign exchange earnings.
The Agreement on the Cancellation of Duties and the Quot for Ukrainian Export was approved by the EU after the full -scale invasion of Russia in 2022. Its purpose was to support the economy of Ukraine, which is under heavy pressure due to war. However, now some EU Member States have begun to express anxiety about the impact of this event on their domestic markets.
According to Financial Times, Ukraine has repeatedly appealed to Brussels to continue the agreement, as it is critical for the stability of the economy and financing defense efforts.
Why is this important for Ukraine?
Finance Minister Serhiy Marchenko stressed in an interview with Financial Times:
"The European Union is our key trading partner, which is why it would be very devastating for us if we [found ourselves] in a situation that was before the war."
Exports to the EU provides Ukraine with a vital foreign currency used to finance the state budget, social payments and military needs. In 2024, revenues from export to the EU within the limits of "autonomous trade measures" made almost 10% of the total foreign exchange earnings of the country (about $ 41 billion).
Despite the strategic partnership with Ukraine, the European Union faces internal pressure from agrarian and industrial lobby, which requires restricting competition with Ukrainian producers. Particularly active in this matter are Poland, Hungary and Slovakia, where farmers have repeatedly protested through the import of cheaper Ukrainian agricultural products.
Brussels has not yet made the final decision, but there is little time for negotiations. Ukraine hopes that the EU will still continue duty -free trade and will not jeopardize one of the main sources of economic stability of the country.
