Ukraine's Finance Minister Serhii Marchenko has stated that the reintroduction of duties on Ukrainian goods in the European Union will have devastating consequences for the Ukrainian economy.

Source: Marchenko in an interview with the Financial Times (FT), as reported by European Pravda

Details: The EU's emergency trade measures, which lifted duties and quotas on Ukrainian exports, will expire on 5 June 2025.

Revenues from exports to the EU account for nearly a tenth of Ukraine's total export revenue (US$41 billion in 2024).

Ukraine hopes the EU will extend these measures, particularly in light of uncertainty surrounding long-term support from the US.

However, some EU member states, such as Poland, Hungary, Slovakia and Bulgaria, are opposed to expanding Ukraine's market access, fearing competition for their farmers.

Marchenko argued that no deal would send "a very wrong signal".

"The European Union is our key trade partner, and that’s why it would be really damaging for us if we [found] ourselves in a situation which we had before the war," he said.

The FT, citing an unnamed official, reported that the most likely outcome is a temporary extension of the current agreement, although negotiations are progressing slowly and time is running out.

"The message is very simple: our producers need predictability over exports, [the] EU can’t start negotiations one week before the current regulation expires," the Ukrainian minister said.

Background:

• On 13 May 2024, the Council of the European Union approved the extension of preferential trade with Ukraine for another year after a long and tense negotiation process.
• In January 2025, the Polish news portal RMF24 reported that the European Commission would not extend the unilateral cancellation of duties on Ukrainian agricultural products, which is valid until 5 June.
• Instead, European Commissioner for Agriculture Christophe Hansen announced a new trade agreement within the DCFTA (Deep and Comprehensive Free Trade Area).

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