Kyiv has urged the EU to extend the duty-free trade regime to avoid devastating Ukraine’s economy.

Ukraine has warned that the expiration of duty-free trade with the EU on June 5 could result in ”serious damage” to its economy. Kyiv hopes the EU will extend the duty-free trade regime, especially given the uncertainty surrounding long-term US support. However, some EU member states, including Poland, Hungary, Slovakia, and Bulgaria, oppose expanding Ukraine’s market access, fearing competition for their farmers.

In 2024, the EU’s “autonomous trade measures” accounted for nearly 10% of Ukraine’s $41B total export revenue.

“The EU is our key trading partner, so it would be truly devastating for us if we found ourselves in a pre-war situation again,” Finance Minister Serhiy Marchenko stated.

Ending the deal would send “a very wrong signal,” he added. The most likely option is a temporary extension of the current agreement, but negotiations are moving slowly.

“Our producers need predictability regarding exports; the EU cannot initiate negotiations a week before the expiration of the current regulation,” Marchenko added.