In a move to further integrate Ukraine into the European Union’s economic space, Ukraine and the European Commission have agreed to extend their freight liberalisation agreement for another year.
According to Ukraine’s Prime Minister Denys Shmyhal, the agreement allows Ukrainian cargo to enter the EU market permit-free, with the possibility of an automatic extension until the end of 2025.
“This is an important step towards integrating #Ukraine into the EU area, increasing Ukrainian exports and European imports, strengthening the economy and stability,” Shmyhal said on social media.
The agreement, first signed on June 29, 2022, has been renewed annually and has proven critical in the aftermath of Russia’s invasion of Ukraine, when the blockade of Ukrainian Black Sea ports disrupted the country’s key import and export operations.
The permit-free freight regime has enabled the seamless movement of Ukrainian products across the EU’s borders, avoiding the need for Ukrainian carriers to obtain costly permits for bilateral and transit transport.
However, the sharp increase in traffic across Ukraine’s borders with the EU has also caused protests from hauliers in neighboring countries. Truck drivers in Poland, for instance, have staged demonstrations, arguing that Ukrainian truckers’ permit-free access is undercutting their prices.
Despite these concerns, the extension of the freight liberalisation agreement is seen as a significant step in strengthening Ukraine’s economic integration with the EU, a key priority for the country as it navigates the challenges posed by the ongoing Russian invasion.