After Russia’s invasion, a new deal will eliminate obstacles to digital commerce and provide Ukraine the assistance it needs for its economy and way of life.
A direct request from the Ukrainian government led to the announcement, which was made on Wednesday, August 24, Ukrainian Independence Day.
Move comes after the UK decided to reduce tariffs on all Ukrainian imports to zero under the current UK-Ukraine Free Trade Agreement.
In order to aid Ukraine in reestablishing its economy and safeguarding livelihoods in the wake of Russia’s invasion, the UK and Ukraine have declared their desire to seek a new digital trade pact.
First Deputy Prime Minister and Minister of the Economy of Ukraine Yuliia Svyrydenko, Vice Prime Minister and Minister of Digital Transformation of Ukraine Mykhailo Fedorov, and Ukrainian Ambassador to the UK Vadym Prystaiko all met with International Trade Secretary Anne-Marie Trevelyan in person in London [on Tuesday, August 23] to begin discussions and to reaffirm the UK’s unwavering support for Ukraine.
By reducing red tape and assisting them in doing business with the UK more effectively through technology like electronic transactions, e-signatures, and e-contracts, the digital trade agreement will promote Ukrainian enterprises.
Additionally, it will be simpler for UK enterprises to collaborate with Ukrainian companies and aid in their economic recovery. UK exports of digitally delivered services made up 73% of all UK service exports to Ukraine in 2020, with total commerce between the two countries totaling £1.9 billion in 2021.
Anne-Marie Trevelyan, secretary of international trade, said:
Human suffering has been greatly impacted by Putin’s cruel and unjustified invasion of Ukraine. The UK stands with Ukraine and will use trade as a positive factor to aid in the nation’s efforts to rebuild its modern economy after this heinous conflict.
Our cooperation with Ukraine will enable them to take advantage of the better times to come, and we will keep up our efforts to safeguard Ukrainian families, employment, and means of subsistence.
The Ukrainian ambassador to the UK, Vadym Prystaiko, said:
The United Kingdom has consistently supported us during this unlawful invasion, and our governments’ connections have never been stronger.
Many Ukrainians think forward to how we will reconstruct our country as we bravely battle for the independence of our country.
Our IT sector, which is positioned to become a significant engine of economic development for our firms and communities, will benefit from the strengthening of our economic links provided by this historic digital trade deal.
The administration of President Zelenskyy made a specific request that led to today’s declaration. Supporting the digital economy is one of the areas of attention for the Ukrainian government in terms of the nation’s recovery and restoration.
The UK is in a good position to assist with that as a worldwide leader in digital commerce.
In May, the UK removed all tariffs under the pre-existing free trade agreement between the UK and Ukraine, assisting Ukrainian manufacturers and enterprises in expanding exports and reviving local economies.
Our commercial connection would be strengthened by a new digital trade deal, which would also provide Ukraine’s economy the much-needed boost.
The Trade Secretary also introduced a new UK-Ukraine Infrastructure Taskforce in July, which is fostering commercial relationships between UK and Ukrainian companies to support the restoration of Kyiv’s damaged and demolished houses, bridges, and other infrastructure.
Additionally, the UK has enacted one of the broadest and toughest sets of economic penalties on Russia.
Measures apply to more than 1,000 people and more than 100 businesses in important industries including defence, as well as the over £18 billion in goods that were dealt with Russia in 2021.