The European Union continues to be Ukraine’s primary trading partner, as evidenced by official data from the State Statistics Service. In 2024, 59% of all Ukrainian exports were destined for the EU market. However, the growth rate of exports to the EU has slowed somewhat compared to 2022, when the war and logistical constraints made the EU virtually a non-alternative destination for Ukrainian exporters. The resumption of maritime logistics has enabled some businesses to diversify their supply chain, contributing to a slowdown in export growth.
The International Trade Forum in Kyiv organized a panel discussion to discuss the development of trade between Ukraine and the EU within the framework of European integration. The discussion was attended by representatives of the Ukrainian Chamber of Commerce and Industry, Ukrainian Agri Council and German Association of the Automotive Industry. The key issues addressed included exports of Ukrainian goods and services, barriers faced by Ukrainian businesses on their way to Europe, and opportunities for development in European markets.
Key challenges for Ukrainian exporters
The following are the key barriers that Ukrainian exporters are currently facing:
- Tariff and non-tariff restrictions on the export of Ukrainian goods.
- Logistical challenges related to customs procedures and border transportation blocking.
- Uncertainty about the future of autonomous trade preferences that Ukraine received after the war started.
- Insufficient integration of Ukrainian business into European production chains.
- Ukrainian producers compete not only with other European manufacturers, but also with countries that already have established supplies and favorable conditions for entering the EU markets.
Gennadiy Chyzhykov, President of the Ukrainian Chamber of Commerce and Industry, has highlighted the issue of the limited number of certified exporters in Ukraine. He stated that only 17,000 Ukrainian companies have the necessary certificates to trade with the EU, which is approximately 1% of the total number of companies in Ukraine.
How can Ukraine better integrate into the EU market?
Andrii Dykun, Chairman of the Ukrainian Agri Council, observed that while the Ukrainian agricultural sector is already firmly integrated into the global market, it still faces challenges from European competitors. He emphasized the importance of establishing common strategic points of interaction between Ukraine and the EU. He cited the potential for Ukraine to substitute its imports of soybeans and sugar from Brazil with Ukrainian products as an illustration.It is also imperative for Ukraine to establish a transition period for Ukrainian businesses to adjust to EU requirements, particularly in the domains of agriculture and environmental standards. Businesses that wish to sell their products in European markets should monitor changes in European legislation, as Ukrainian legislation will soon be adapted accordingly.
Ukraine should aim to become a strategic partner for the EU, and this objective should be communicated at all levels, from small farmers to large enterprises. Furthermore, it is essential to enhance collaboration with European partners and leverage opportunities to foster strategic cooperation between Ukraine and the EU.
Tasks ahead
What collaborative initiatives can the government, business, and public associations implement to enhance exports?
- Supporting small and medium-sized businesses in entering European markets. This is not only about government support and assistance from specialized associations. It is important that companies with experience in exporting to the EU support their less experienced colleagues as they navigate this process.
- The expansion of financial support programs for exporters will facilitate Ukrainian companies’ access to resources for development and entry into new markets.
- Modernization of production facilities in Ukraine to achieve high quality standards that meet EU requirements.
- Searching for new markets outside the EU, particularly in Africa and Asia, which will help diversify potential risks.
- Creating a single institutional mechanism for communication between business and European partners.
Ukraine remains an export-oriented country, and expanding cooperation with the EU is key to economic recovery. However, without a comprehensive strategy and active business participation in shaping the rules of the game, integration into European markets will be challenging.
The experts of BDO in Ukraine are already actively involved in working groups on European integration, drawing on the experience of colleagues from other BDO offices who were also involved in the European integration transition in their countries. Consequently, we can accumulate the best practices and adapt them to the Ukrainian reality. If your business is ready to begin the process of European integration, but you recognize that this will require external support, please contact us and we will deal with all the challenges together.
