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The EU and Ukraine signed the Deep and Comprehensive Free Trade Area (DCFTA) on 27 June 2014 as part of their broader Association Agreement (AA).  In April 2014, in response to the security, political and economic challenges faced by Ukraine the EU unilaterally granted Ukraine preferential access to the EU market until 31 December 2015.

To avoid further destabilisation of the country and in particular to guarantee Ukraine's access to the CIS market under the Ukraine-Russia bilateral preferential regime, in September 2014 the EU postponed implementing the DCFTA until January 2016.

Trade picture

  • The EU is Ukraine's largest trading partner, accounting for more than a third of its trade.  It is also its main source of Foreign Direct Investment (FDI).
  • Main Ukraine exports to the EU: raw materials (iron, steel, mining products, agricultural products), chemical products and machinery
  • Main EU exports to Ukraine:  machinery and transport equipment, chemicals, and manufactured goods.
  • Given Ukraine's industrial potential, the DCFTA provides an opportunity to make the country more competitive and diversify its exports.

EU-Ukraine "trade in goods" statistics

Trade in goods 2012-2014, € billions
Year EU imports EU exports Balance
2012 14.6 23.9 9.2
2013 13.9 23.9 10.0
2014 13.8 17.1 3.8

Foreign direct investment

Foreign direct investment 2013, € billions
Year Inward stocks Outward stocks Balance
2013 0.5 27.1 26.6

More statistics on Ukraine

EU and Ukraine

The AA/DCFTA aims at boosting bilateral trade in goods and services between the EU and Ukraine by progressively cutting tariffs and by aligning Ukraine's rules with the EU's in selected industrial sectors and for agricultural products.

In the DCFTA Ukraine has committed itself to harmonising a large number of rules, norms and standards in a number of trade-related areas with those of the EU.  These areas are competition, public procurement, trade facilitation, protection of intellectual property rights and trade-related energy aspects, including on investment, transit and transport.

In line with its policy of not recognising the Russian Federation's illegal annexation of Crimea and Sevastopol, the EU has banned the import of goods originating in Crimea and Sevastopol, as well as investments and a number of directly related services there.

Since 1993 Ukraine has also benefitted from the EU's Generalised System of Preferences (GSP).  In 2013, more than 70% of Ukrainian exports to the EU of machinery and mechanical appliances, plants, oils, base metals, chemicals and textiles benefitted from GSP preferential tariffs.   

Trading with Ukraine