The U.K. will extend tariff-free trade on the majority of goods imported from Ukraine for an additional five years until 2029 to support Ukraine's long-term economic recovery from Russia's war, the U.K. government announced on Feb. 8.
The previous arrangement, which removed levies on all U.K.-Ukraine trade, was due to expire in March 2024 after being introduced in 2022 following Russia's full-scale invasion of Ukraine. All tariffs on goods imported from Ukraine were reduced to zero, and all quotas were removed under the free trade agreement.
The tariff-free trade extension aims to support Ukraine's long-term economic recovery from the war with Russia, which has disrupted supply chains and transport routes and impacted Ukraine's ability to export goods.
The five-year extension applies to all categories of goods except eggs and poultry, which will be extended only for two years. According to the announcement, British firms would also benefit from removing tariffs for exports to Ukraine.
"This extension will boost opportunities for Ukrainian business in key sectors such as oils, grains, and other agri-foods," Head of Trade Policy at British Chambers of Commerce William Bain said.
"This agreement provides much-needed long-term economic support to Ukraine, its businesses, and its people – critical to its recovery from (Russian President Vladimir) Putin's illegal invasion," U.K. Trade Policy Minister Greg Hands said.
Hands and Ukraine's First Deputy Prime Minister Yuliia Svyrydenko will sign the revised deal in a virtual ceremony on Feb. 8, the British government announced.
U.K. Prime Minister Rishi Sunak signed a bilateral security agreement with Ukraine during his visit to Kyiv on Jan. 12, which reportedly aims to remain in effect until Ukraine joins NATO.