Ukraine is open for trade! Ukraine is an emerging free market economy, with a wide range of under-discovered opportunities.

Its location, talented human capital, cost-competitiveness and numerous free trade agreements with many global markets help to ensure rapid growth of key export sectors such as information technology, agriculture, machinery, apparel and footwear, creative industries.

Developed market economy — Ukraine has established a competitive agriculture and organic sector, a high-tech industrial base and strong manufacturing industries, fast-developing IT/high-tech sector and booming creative industries.

Ukraine is a large European country with over 40 million highly educated people, 70% of whom have secondary or higher education qualifications. «Brains & Grains» — Ukraine’s educated workforce is highly respected around the world. The Ukrainian education system has given its workforce one of the highest levels of English proficiency in post-Soviet countries. Ukraine’s workforce is hard-working and highly skilled and sought-after is a product of the educational system’s intense focus on technical and scientific disciplines.

Ukraine’s geographical location makes it an important trade and travel corridor between Europe, Asia and the Middle East. With over 170,000 km of roads, 22,000 km of railway lines and 13 seaports, Ukraine has the infrastructure to quickly move goods – from grain to auto parts – all around the country and beyond its borders. Most major destinations in Europe can be reached in two days by truck from Ukraine. This gives it a competitive edge, particularly with regard to manufacturing and food distribution.

As part of the global value chain, Ukraine currently has 18 free-trade agreements with 48 countries, including the Deep and Comprehensive Free Trade Agreement with the European Union, which goes beyond just trade and set a range of ambitious reforms that bring economic and regulatory environment closer to the EU. Learn more about main FTAs here.

Ukraine boasts one of the most cost-competitive production platforms in Europe. In terms of labour costs, utility costs and taxes, Ukraine is well able to compete with the countries of Central and Eastern Europe. As a result, an increasing number of investors are locating production facilities in the country.

Want to know more? Click here to explore Ukraine’s economy and trade information.

Check out export potential of promising Ukrainian sectors here.

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• Territory: 603,550 km2
• Population: 44.1 million
• GDP: USD 137.3 billion
• GDP growth forecast for 2021 + 4.0%
• GDP per capita: USD 3,118.40
• National currency: Ukrainian hryvnia
• Inflation rate: 2.74%

Discover more about Ukraine’s culture, on official website - ukraine.ua

Ukraine’s international rankings

Doing Business

Since 2014 Ukraine has improved 48 positions in the Doing Business rankings. In the 2020 report it occupied 64th position.

Human Capital Index

Ukraine entered the top 50 countries in the World Bank’s Human Capital Index in 2020.

Global Innovation Index

Ukraine is in the top 50 list of most innovative nations (2020: 45th position).

Good Country Index

Ukraine’s Science & Technology Global Contribution was recognised with a highly impressive 1st place out of 153 countries in the 2020 report.

Since the Revolution of Dignity, the Ukrainian Government has undertaken a series of key reforms. These include significant fiscal consolidation, moving to a flexible exchange rate, reforming energy tariffs and social assistance, enhancing the transparency of public procurement, simplifying business regulations, stabilising and restructuring the banking sector, moving forward on health and pension reforms and establishing anti-corruption agencies and business support institutions.

Historically known as the «breadbasket» of Europe, Ukraine is set to become the «food basket» of the world. Ukraine is naturally endowed with 33% of the world’s black soil and favourable climate that enables a broad range of agricultural production, as well as sustainable traditions thereof. Ukraine has long-standing traditions in machinery sector owing to significant reserves of raw materials, a developed metallurgy and an educated labor force.

Ukraine is among top10 countries in conducting IT-friendly reforms. Ukraine has booming creative industries: design, audiovisual art, publishing and advertising, traditional crafts – all ready for cooperation with foreign partners.

The economic impact from the COVID-19 outbreak was less severe than in most European countries – GDP declined by 4%. In May 2020, the Cabinet of Ministers of Ukraine approved the 2020—2022 National Economy Stimulus Plan in an attempt to repair the damage caused by the restrictions imposed to prevent the occurrence and spread of COVID-19. The plan establishes a wide range of mechanisms designed to create new opportunities, stabilise Ukraine’s economy, promote sustainable development and address unemployment by protecting existing jobs and incentivising the creation of new, highly productive jobs with decent working conditions over the period 2020—2022. The full-scale lockdown was replaced by an adaptive quarantine that enabled many services to return to normal functioning.

Export of Ukraine

In 2020 Ukraine exported $59 billion of goods and services.

The TOP Ukraine’s exporting sectors in 2020:

• Food and agriculture – 45.1%
• Iron and steel products – 18.3%
• Machinery – 11%
• Mineral products – 10.8%
• Chemicals – 5.5%
• Wood and paper – 3.7%
• Miscellaneous manufactured articles – 3.4%
• Apparel and footwear – 2.2%

Exports of services in 2020 totalled USD 15.5 billion.

The TOP Ukraine’s exporting services in 2020:

• Transport services – 43.7%
• IT and Telecommunications – 26.1%
• Production services – 12.1%

The TOP-10 Ukraine’s export destination in 2020:

• European Union – 37,1%
• China – 12,3%
• Russia – 9%
• Turkey – 4,4%
• USA – 4%
• India – 3,5%
• Egypt – 2,8%
• Belarus – 2,4%
• Israel – 1,3%
• United Arab Emirates – 1,3%

Location, talented human capital, cost-competitiveness, and availability of free trade agreements with many global markets make it a fast-developing manufacturing platform and provide great sourcing opportunities for foreign buyers. Want to know more? Click here to explore benefits of trading with Ukraine.

Check out export potential of promising Ukrainian sectors here.

Planning a business visit? Check the current rules pf entry connected with Covid-19 restrictions: visitukraine.today

Want to discover more about Ukraine? Visit Ukraine’s official website: ukraine.ua

Follow Ukraine on Facebook or Instagram.

Ukraine is becoming more and more attractive for international partners. Importers acknowledge that our country has become a stable and predictable market that is developing at a decent pace, while while its talented people, extensive infrastructure and valuable assets make our country an attractive trading partner.

Ukraine continues its deep economic transformation and makes efforts to integrate into the Euro-Atlantic and global economic community. Our country is a big advanced market in Europe that offers a wide range of opportunities.

The attractive geographical position of Ukraine, its talented people, competitiveness and available free trade agreements that provide access to many international markets can ensure a fast growth and a high return on investments in such key areas as IT, agriculture, energy sector, manufacturing and infrastructure.

In 2020, Ukraine moved seven positions higher in the World Bank Doing Business ranking to reach position 64 among 190 nations. The World Bank gave credit to Ukraine as the second-best nation worldwide in terms of the pace and scale of improving its business climate over the last 10 years.

Direct foreign investments in Ukraine have amounted more than USD 16bn over the last 5-6 years, more than 100 plants have been built with thousands of new jobs, the Ukrainian legislation on investment activities has been revamped.

Prominent examples for this include the modern seed-processing facility of the German company Bayer worth USD 200mn, the wheat terminal of the US company Cargill worth USD 150mn, the second plant of the US company Jabil worth USD 16mn as well as the start of operations in Ukraine by such global brands as General Electric, Ryanair, HEAD, IKEA, H&M, Decathlon and many others.

Various sectors of the Ukrainian economy have a high potential for investors, for instance: agriculture, energy sector, heavy industry, textile industry, IT and innovations, real estate (including objects released for privatization), infrastructure, regional infrastructure, sustainable development, logistics, manufacturing, healthcare and pharmaceutical industry.

More detailed information is available on the web page of the government investment agency - UkraineInvest, which contains reliable and up-to-date information on suitable investment opportunities. It also provides consulting services for business in Ukraine, promotes communication between investors and public agencies at all levels as well as offers assistance in solving systemic issues investors might be confronted with.

The export brand of Ukraine has been created to ensure a better recognition of Ukrainian products worldwide. It is used to promote Ukrainian goods and services in the international market based on one visual concept.

The export brand is a part of the project «Consolidation of the Export Potential of Small and Medium-Sized Business and Simplified Access to International Markets» that was implemented by the Entrepreneurship and Export Promotion Office on behalf of the European Bank for Reconstruction and Development as part of the EU4Business Programme.

Download:

• Export brand’s brandbook
• Exhibition brandbook (in English)
• Export brand’s video
• Export brand’s model kit

The conclusion of FTAs creates favourable conditions for the development of trade and economic cooperation with certain states or groups of states and is therefore an effective instrument for increasing the volume of Ukrainian exports by reducing or removing barriers to the access of goods and services to foreign markets. Establishing a free trade regime with prospective trade and economic partners allows Ukraine to diversify exports in terms of destination markets and range of products, thanks to long-term liberalised market access.

Primarily, FTAs seek to advance and protect the economic interests of Ukrainian producers and exporters and also provide a balanced tariff policy, including in relation to groups of sensitive industrial and agricultural goods, with a view to establishing the basis for the creation of favourable conditions for the expansion of trade and economic cooperation.

FTAs in force

Ukraine has concluded FTAs with the European Free Trade Association (EFTA), the European Union (EU), Canada and the Commonwealth of Independent States (CIS) and also with Montenegro, North Macedonia, Georgia, Azerbaijan, Uzbekistan and other countries.

The creation of a deep and comprehensive FTA between Ukraine and the EU is provided for in the economic part of the EU–Ukraine Association Agreement, which was signed on 27 June 2014.

The FTA between Ukraine and the EFTA states (Switzerland, Norway, Iceland and Liechtenstein) was signed in Reykjavík (Iceland) on 24 June 2010, ratified by Ukraine in Act No. 4091-VI of 7 December 2011 and came into force on 1 June 2012. The agreement covers trade in goods (industrial, agricultural, fish and other marine products) and services and dispute settlement. Given the difference in the level of economic and social development between Ukraine and EFTA member states, the agreement provides for the principle of asymmetrical obligations of the parties, which allows Ukraine to adapt its trade with the EFTA states to free trade terms.

Two further documents were signed as part of the agreement on the provision of technical and financial assistance to Ukraine for adaptation to the new terms of trade, namely the memorandum of understanding concerning the programme of bilateral cooperation in agriculture between the Ministry of Agrarian Policy and Food of Ukraine and the Swiss State Secretariat for Economic Affairs and the joint statement on cooperation in the field of fisheries between the State Agency of Fisheries of Ukraine, the Ministry of Fisheries and Agriculture of Iceland and the Ministry of Fisheries and Coastal Affairs of Norway.

The CIS Free Trade Agreement (member countries: Ukraine, Azerbaijan, Belarus, Armenia, Kazakhstan, Kyrgyzstan, the Republic of Moldova, the Russian Federation, Tajikistan, Turkmenistan and Uzbekistan) was signed on 18 October 2011 and ratified by Ukraine on 13 July 2012.

There are also bilateral FTAs currently in force between Ukraine and Azerbaijan (ratified on 12 July 1996), Uzbekistan (4 November 1995), Tajikistan (6 July 2001) and Turkmenistan (5 November 1994). Ukraine’s main trading partners within the CIS are the Russian Federation, Belarus, the Republic of Moldova and Kazakhstan.

The free trade area between Ukraine and Georgia has been in operation since 1996 under an agreement signed between the Government of Ukraine and the Government of Georgia on 9 January 1995, which came into force on 4 June 1996, and the intergovernmental protocol amending and supplementing the agreement signed on 17 June 2009 in connection with Georgia’s withdrawal from the CIS.

The FTA between the Government of Ukraine and the Government of Montenegro was signed in Kyiv on 18 November 2011, ratified by Ukraine in Act No. 5445-VI of 16 October 2012 and became effective on 1 January 2013. The agreement covers trade in goods and services and dispute settlement. Under the terms of the agreement, imports from Montenegro are duty-free. Therefore, with a view to preventing potential negative consequences for its economy, Ukraine excluded a number of groups of sensitive agricultural goods from the free trade regime. In addition, Ukraine’s right to apply export duties according to obligations under World Trade Organization (WTO) rules has been maintained.

The FTA between North Macedonia and Ukraine was signed in Skopje on 18 January 2001 and ratified by Ukraine in Act No. 2599-III of 5 July 2001. The agreement covers the removal of trade restrictions on industrial and agricultural goods, establishing conditions for fair competition in trade and investment promotion and providing for the development of joint investment projects, the protection of intellectual property and cooperation between the parties in the markets of third countries.

These FTAs promote the free movement of goods and services between the countries concerned, which contributes to attracting investment, reducing import costs, expanding domestic production and infrastructure, promoting exchanges of experience and technology, creating employment, increasing tax and duty revenues and strengthening intergovernmental relations.

The Association Agreement between Ukraine, on the one side, and the European Union, European Atomic Energy Community and their member states, on the other side (signed on 21 March 2014 and 27 June 2014, entered into force on 01 September 2017).

This is a comprehensive trade agreement aiming to reduce and to remove tariffs imposed by its parties on goods, to liberalize access to the service market as well as to adjust the Ukrainian business rules and regulations to the EU rules and regulations to ensure the free movement of goods and services between the two parties and the mutual non-discriminatory treatment of companies, goods and services in Ukraine and in the EU.

More details are available under the link.

The Free Trade Agreement between Ukraine and Canada (CUFTA) was signed on 11 July 2016 and entered into force on 01 August 2017. In accordance with the CUFTA, Canada abolished 98% of its duties on Ukrainian goods. Ukraine enjoys a 0% duty for exporting some of its agricultural goods to Canada, but it shall observe quotas set for them.

Ukraine, on its side, abolished its duties for 72% of Canadian goods. Import duties for agricultural and industrial goods from Canada were abolished as well; however, transition periods equal to 3, 5 and 7 years were agreed for that. Also, Ukraine set quotas for the import of frozen pork meat and pork lard from Canada.

Ukraine and Canada are now working to extend the Agreement to the service sector and investments.

On 21 January 2019, Ukraine and Israel signed their Free Trade Agreement.

In July 2019, the Verkhovna Rada ratified the Free Trade Agreement with Israel, in August the President of Ukraine signed the law ratifying this Agreement. The Free-Trade Agreement with Israel entered into force on 01 January 2021 in accordance with the Law of Ukraine «On the Ratification of the Free-Trade Agreement between the Cabinet of Ministers of Ukraine and the Government of the State of Israel». The Free-Trade Agreement allows to export agricultural products and industrial goods, products of chemical and light industry as well as construction materials and electronic equipment to Israel under a simplified procedure.

On 01 January 2021, the zero-rate import duty was implemented for the following groups of goods:

• agricultural products: fish, fish filet, plant oils, canned and prepared vegetables;
• industrial goods: medicines, perfumery and cosmetics;
• chemical and light industry products, paper products, fertilizers;
• construction materials, household appliances, vehicles, electronic devices;
• subject to tariff quotas: poultry meat, prepared poultry meat products, diary products, ice cream, sunflower oil, eggs, honey, wheat, bread, sparkling wines, grape wines.

Within the next 3-5-7 years, it is planned to implement the Agreement in phases and to extend the zero-rate duty to other groups of goods. According to the Agreement, the regulations of the Pan-Euro-Mediterranean Convention shall be applied to determine the origin of goods.

Ukrainian manufacturers will be able to import raw materials and other materials from Israel, process them in Ukraine and export finished goods to the EU under the preferential or zero-rate duty.

Work is also in progress to sign the Free Trade Agreement between Ukraine and Turkey.