The EC is considering granting Ukraine access to the European single market as part of a final peace agreement.

The head of the European Commission, Ursula von der Leyen, will propose granting Ukraine access to the European single market as part of a final peace agreement. Ukraine’s access to a market with 449 million consumers will provide a much-needed economic boost for Ukraine’s recovery. Under the plan, Brussels will choose which economic sectors to open to Kyiv and which to keep closed.

One of the plan’s goals is the Ukrainian defense industry’s development, which could help to rearm Europe. Ukraine currently produces many of the most advanced drones and provides 55% of the weapons used by its military. Duty-free access to Ukrainian weapons would bring Kyiv money and, at the same time, bolster European defense readiness.

The EU has already moved to unify Ukraine’s electricity market with the European market and will seek to deepen cooperation between the two. The opening of Ukraine’s services sector has also been discussed, as Kyiv is a major exporter of IT services and goods with the largest number of outsourced developers in Eastern Europe.