Why Ukraine

One of the key events for Ukraine was its political and economic association with the European Union in 2014. This step, which included the creation of a free trade zone, significantly strengthened trade and economic ties across more than 30 sectors, including agriculture, manufacturing, and energy supply. However, with the onset of the war in 2022, this integration became even more crucial for ensuring Ukraine’s resilience and development amid external threats.

Ukraine is the second-largest country in Europe by land area, second only to Russia. It is located at the crossroads of transport corridors linking Northern Europe to Turkey in the south and East to West—connecting Russia and Asia with Central Europe. These geographical features make Ukraine an important transit and economic hub.

On June 27, 2014, Ukraine signed the economic part of the Association Agreement with the European Union, marking a significant step in its European integration. This agreement opened opportunities for further strengthening economic and political ties with the EU, as well as expanding cooperation in sectors such as agriculture, industry, energy, and consumer rights protection.

From 2011 to 2013, Ukraine gradually reoriented its foreign trade priorities, significantly increasing trade with European countries. In 2014, trade between Ukraine and the EU surpassed trade with Russia for the first time, accounting for 35% of the country’s total foreign trade.

However, starting in February 2022, events took a dramatic turn. Russia’s full-scale invasion of Ukraine led to a humanitarian and economic catastrophe. Millions of people were forced to flee their homes, and territories, especially in the east and south of the country, were occupied. Ukraine’s economy faced enormous challenges, including the destruction of infrastructure, a shortage of workforce, and a sharp decline in production.

In response to the aggression, Ukraine received significant support from the European Union, which not only increased economic sanctions against Russia but also accelerated Ukraine’s candidate status for EU membership in 2022. The EU has continued to provide financial assistance, including for the reconstruction of damaged infrastructure and the support of internally displaced persons.

According to forecasts, Ukraine’s economy, despite enormous losses, continues to adapt. In 2022, the country’s GDP shrank by a record 30%, but by 2023, the economy began to recover, despite the ongoing war. Projections for 2024 suggest possible GDP growth if the war ends and the situation stabilizes.

Ukraine remains an important player on the international stage. Despite the crisis, it continues to maintain active cooperation with international partners, including the European Union, the United States, and other countries. According to data from the State Statistics Service of Ukraine, foreign investment in the country’s economy in 2022 amounted to over $58 billion, with the majority coming from EU countries. The main sources of investment include Germany, the Netherlands, Cyprus, the United Kingdom, the United States, and others.

Today, Ukraine actively imports European machinery, transport, pharmaceuticals, electrical equipment, plastics, food products, agricultural machinery, and other goods. Ukraine’s exports to the EU primarily include ferrous metallurgy, ores, agricultural products such as oilseeds and fruits, electrical machinery, mineral fuels, wood, and wooden products.

Despite the difficult conditions, Ukraine continues to strive for recovery and strengthening its position in the global economy, aiming for long-term goals such as joining the European Union and full integration into European structures. It is important to note that only peace and the restoration of the country’s territorial integrity will enable the full development of the economy and the improvement of citizens’ living conditions.