On May 15, 2025, the online workshop “Integration of Ukrainian Business into the EU Single Market: Opportunities and Challenges” took place. The event was held within the framework of the program “Doing Business in the EU: Month of Strengthening Business Support Organizations”, implemented by the EU4Business: SMEPIS project team.
The workshop participants were introduced to the principles of the EU Single (or Internal) Market and the pathways for integrating Ukrainian business into this trade space by experts in international trade, European integration, business development, and export activities.
How does the EU Single Market work and what will it change for Ukrainian business?
The EU Single Market consists of 27 EU member states plus Iceland, Norway, Liechtenstein, and Switzerland. It encompasses 447 million consumers, 23 million companies, and 196 million workers. European integration expert, associate partner at Civitta, and head of the European integration direction at NGO EasyBusiness, Ivan Nahorniak, emphasized that since 2015, the European Union has become Ukraine’s main trading partner. The value of Ukrainian exports to the EU in 2024 amounted to $24.5 billion.
“We see how the gradual harmonization of Ukrainian legislation with European standards opens new opportunities for business. It is a complex process, but it already yields results. Today, over 50% of our trade turnover occurs with EU countries. Access to the European market is not just an opportunity; it is a requirement of the time for Ukrainian exporters. We have the potential and resources to become a significant player in this market,” Ivan Nahorniak noted.
The expert also reminded that on June 5, 2025, the term of the “economic visa-free” — EU trade preferences that, since 2022, allowed Ukraine to export to the European Union without tariffs and quotas — expires. This means a return to the Association Agreement conditions, where some tariff barriers remain relevant. Despite this, Ukraine is actively negotiating with the European Commission regarding the implementation of a transitional period for visa-free trade and is also working on harmonizing standards to simplify access to European markets.
In particular, in the near future, Ukrainian producers will have access to European markets without repeated certification thanks to the ACAA Agreement. This will reduce costs by 2–5% for each exported product.
“Implementing transparent rules of origin allows us to open new markets and remove barriers for our producers,” emphasized Ivan Nahorniak.
During the discussion, the expert also explained in detail the mechanisms of tariff and non-tariff barriers, including anti-dumping measures and quotas. He also spoke about the importance of the Pan-Euro-Mediterranean Convention, which regulates preferential rules of origin.
“Ukrainian exporters must know all the details to avoid customs delays and misunderstandings with EU partners,” Nahorniak stressed.
Opportunities for Ukrainian business and strategies for entering EU markets
Trade between the EU and Ukraine is expected to grow during Ukraine’s candidate status. As experience from CEE countries shows, trade turnover with other EU countries significantly increases during negotiations. At the same time, joining the Single Market will not hinder trade with third countries. Dmytro Livch, Chairman of the Board and Executive Director of NGO EasyBusiness, noted that the European integration process positions the country as one of the most attractive regions in the world for foreign direct investment. However, integration into the EU does not automatically guarantee an influx of investments.
“Ukraine can leverage the experience of CEE countries with sequential investment attraction during the transitional period, as well as encourage joint investments by integrating local producers into value chains. Our task is to teach Ukrainian businesses to integrate into European supply chains to become full-fledged players in this market,” stated Dmytro Livch.
The expert also highlighted that Ukrainian companies can use a range of programs providing access to European markets.
“Integration into the EU is not just access to a new market; it is a scaling of opportunities for business, including access to support programs such as Horizon Europe, Digital Europe, and simplified trade within the Single Market. Increased internal competition, export growth, and improved technological base are real steps toward integration into European value chains,” the expert noted.
However, the successful integration of Ukrainian businesses into European markets is not only a new opportunity for Ukraine; it can become a mutually beneficial partnership. The EU’s dependence on imports from third countries creates challenges amid global uncertainty. The biggest risk factor is reliance on Russian raw materials and Chinese industrial goods. With deeper integration, Ukraine can strengthen the strategic autonomy of the EU in security, human capital, and the economy.
Export preparation, risk reduction, and compliance with EU standards
International export and business support expert Serhii Nerpii discussed the importance of market analysis and sources of information for exports. He presented the concept of “opportunity scan” — a multi-stage process to systematically reduce the number of potential markets to 1–2 most promising ones. Before exporting, it is also important to understand if a company has sufficient resources and staff. The export preparation stages include: preliminary assessment of opportunities, selection of target markets, in-depth market research, and development of a marketing plan.
Serhii Nerpii also emphasized that such preparation helps companies make informed decisions and reduce risks.
“The export process is not very complicated. It just requires time, attention, and hard work. Before starting exports, the company should have someone who understands the product very well, usually engineers or production staff. Associations in the EU also help, as they have deep knowledge of these matters and provide free guides,” the expert explained.
Sources of information for in-depth market analysis:
- Statistical databases (e.g., Trade Map, Export Potential Map, Eurostat)
- Industry associations in the EU
- Trade journals and blogs
- Trade exhibitions
- Marketing research and reports
- Direct contacts with buyers
According to the expert, Ukrainian companies already have some advantages and readiness for EU export due to standards harmonization in recent years.
“Ukraine has already gone through a systematic and prolonged approximation of legislation to EU standards. If a company produces products sold in the Ukrainian market (e.g., in supermarkets), it already has good chances for EU exports. Many technical regulations and sanitary/phytosanitary standards in Ukraine are already identical to EU norms. Even if a company does not plan to export now, it still has to comply with EU standards, as Ukraine moves toward EU membership. This applies not only to large enterprises but also to small and medium businesses,” emphasized Serhii Nerpii.
International expert, Director of CTA Economic & Export Analysts Ltd, Mark Hellier, during the webinar, also noted that Ukraine has already adopted many EU technical regulations. He said that upon joining the EU, control over their implementation will be strengthened. Technical regulations and sanitary/phytosanitary measures are often perceived as barriers to EU export, especially for small and medium enterprises. These measures are based on WTO principles and aim to protect consumers. They are applied equally to all trading partners. Sanitary and phytosanitary measures concern food safety, environmental protection, and prevention of deceptive practices, including control of contaminants, microbiological risks, pesticide residues, etc.
The process of conformity confirmation depends on the product risk level. For low-risk products, internal control is sufficient; for high-risk products, assessment by an authorized EU body is mandatory.
“One of the biggest challenges is documentation. Export to the EU requires a complete set of technical documents proving compliance and describing quality control processes. Without proper documentation, even a quality product cannot enter the EU market. The cost of these services can be a significant financial burden. For simple products, it can cost up to €200 per year. For more complex and high-risk products, fees can reach thousands of euros,” Mark Hellier noted.
At the same time, according to the expert, compliance with European standards is a gateway to one of the largest markets in the world, where Ukrainian producers have all the chances to become competitive and successful.
Export Credit Agency and financial export support instruments
To stimulate Ukrainian export growth, in 2018, the Government established the Export Credit Agency of Ukraine (ECA). Denys Harasyuta, Board Member of ECA, spoke about the agency’s activities. Key functions include:
Protection of exporters through trade contract insurance:
- Insurance of export contracts against non-payment by foreign partners
- Compensation for exporters in case of non-payment for delivered goods
- Possibility to use insurance as collateral for bank loans
- Insurance of bank guarantees for exporters
Protection of investors from war and political risks:
- Insurance of direct investments in Ukrainian enterprises against war and political risks
- Compensation for investment amounts if enterprise operations are halted due to war
- Insurance of investment loans to develop export potential
- Assistance in obtaining financing for enterprises in frontline regions
ECA provides these services to support Ukrainian exports and attract investment under increased risk conditions.
In 2024, the Export Credit Agency supported 69 exporters totaling UAH 7.53 billion, while the financing obtained by exporters thanks to ECA exceeded UAH 1 billion. During the event, Denys Harasyuta also presented an investment and investment loan insurance tool against war risks.
“We understand that even financially strong enterprises may face loan rejections solely due to their location near the front. That’s why we launched an investment loan insurance product against war and political risks. It allows ‘unfreezing’ access to financing where it was previously almost unavailable. The product is new, we continue to improve it — but we already have the first four cases of its use. This is another step toward supporting business in the most difficult conditions,” said Denys Harasyuta.
He also presented the investment and loan insurance tool against war risks, which allows attracting additional financing even under critical conditions, ensuring contract reliability.
“We have created mechanisms that allow businesses to be confident even in the toughest conditions. This is our contribution to the country’s economic stability,” emphasized Denys Harasyuta.
Workshop materials — presentation “Program for Developing the Potential of the Ukrainian Business Support Ecosystem: Integration into the Single Market and Access to EU Markets”
The program “Doing Business in the EU: Місяць посилення організацій з підтримки бізнесу” is implemented within the framework of the EU4Business: SME Policies and Institutions Support (SMEPIS) project, carried out by Ecorys in consortium with GIZ Ukraine, BRDO – Office of Effective Regulation, and Civitta, with financial support from the European Union. The program’s information partners are the Ukrainian Chamber of Commerce and Industry and NGO EasyBusiness.