Ukraine signed an agreement with the EU on participation in the “Single Market” program. What does it mean?

Author:
Sofiia Telishevska
Date:

Ukraine signed an agreement with the European Union on participation in the Single Market Program and a memorandum on strategic partnership in the field of renewable gases.

"We signed an agreement on Ukraineʼs participation in the EU Single Market Program with a budget of €4.2 billion," said Prime Minister Denys Shmyhal during a joint briefing with the President of the European Commission, Ursula von der Leyen.

This is an EU financial support program with a budget of €4.2 billion, which is designed for 7 years (from 2021 to 2027). The program should contribute to simplifying access to markets, creating a favorable business environment, business development and growth, ensuring the competitiveness and stability of companies and entire sectors of the economy. It will help develop an entrepreneurial environment, including mentoring schemes.

The European Commission will also offer member states to extend the temporary cancellation of European Union customs duties on Ukrainian goods for one year.

The corresponding announcement was made by the President of the European Commission.

  • In May 2022, the European Union exempted Ukrainian exports from customs duties for one year. The decision entered into force on June 4. It should help Ukrainian manufacturers and exporters to withstand the burden of the war and strengthen their position on the European market. The same decision was later introduced regarding goods from Moldova.