The Ukrainian government is actively negotiating with the European Commission to update the trade terms with the EU, aiming to avoid a return to previous arrangements that could threaten Ukrainian exports by up to $1.5 billion.

Source:  "European Truth"

Details:  If a new decision is not made by June 5, the old provisions of the Association Agreement will automatically come into effect, which experts believe could lead to significant reductions in Ukrainian exports to the EU.

Economic losses in this case are estimated at $1.5 billion, or nearly 4% of total exports, according to a study by Veronika Movchan and Ricardo Jucci.

The European Commission supports the continuation and improvement of trade conditions. 

Specifically, European Commission President Ursula von der Leyen assured Ukrainian Prime Minister Denys Shmyhal that new trade terms would be better than those that were in place before 2022.

This is planned to be achieved through a review of the existing free trade regime in accordance with Article 29 of the Association Agreement. 

The Ukrainian side emphasizes that it is crucial to maintain and enhance access for Ukrainian goods to the European market.

"The format of the future agreement is not critical. What matters is the result, not the formalities," the government stated.

Reminder:

• On May 13, 2024, the EU Council approved the extension of preferential trade with Ukraine for another year, until June 5, 2025.
• Preliminary agreements were established that the conditions for duty-free trade would be integrated into the Association Agreement with the EU.
• In February 2025, First Deputy Prime Minister Yulia Svyrydenko stated that Ukraine's top task in 2025 would be to finalize consultations on trade liberalization with the EU.