Brussels (Brussels Morning Newspaper) -The European Union’s new 300 million euro Ukraine export credit guarantee program, which helps European businesses doing business with Ukrainian competitors, has officially welcomed Denmark as its first member.
In the next weeks, the European Commission, national agencies, and the European Union lending arm, the EIB Group, are anticipated to reach more than a dozen comparable agreements, the first of which is with the Danish export credit agency EIFO.
What does the EU export guarantee scheme offer?
The overall facility is designed to back small and medium-sized firms which export to Ukraine, giving them protection if companies they deal with are impacted by the ongoing war with Russia. The European Commission’s Valdis Dombrovskis said the facility represented
“a significant step forward in further integrating the EU and Ukrainian economies, which is a crucial element of Ukraine’s (EU) accession process.”
Which countries are expected to join the scheme next?
Germany, the Netherlands, Austria, and several of the central and eastern European nations that export the most to Ukraine are anticipated to join shortly, and up to 40 Danish businesses are anticipated to gain from the initial deal. Denmark’s signing was a part of major efforts to get the facility operational within a year, according to Marjut Falkstedt, chairman of the European Investment Fund, which provides the guarantees for the new export facility.
How has EU-Ukraine trade changed since the war?
According to the EU’s Eurostat agency, exports from the EU to Ukraine reached €42.8 billion in 2024. This marked a 9.4% increase compared to 2023. The EU also imported €24.5 billion worth of goods from Ukraine, resulting in a trade surplus of €18.3 billion for the EU.
The main export products to Ukraine included mineral fuels, electrical machinery, and machinery. The growth in exports was partly driven by Ukraine replacing previous imports of fuels from Russia and Belarus with supplies from the EU.
What challenges still face Ukraine’s EU accession path?
Although Kyiv’s EU membership negotiations started last year, the country still has a long and difficult path ahead of it due to the conflict with Russia. The EU export assistance would boost commerce, according to Ukraine’s First Deputy Prime Minister Yulia Svyrydenko, who was in the US on Wednesday to formally sign the high-profile minerals pact mediated by U.S. President Donald Trump.
