Ukraine Prime Minister Denys Shmyhal arrives at the Vatican, April 27, 2023 for an audience with Pope Francis. Ukraine and the European Union have agreed to extend for one year their preferential trade regime, which is due to expire on June 5, Shmyhal said May 3, 2023. (PHOTO / AP)
KIEV/BRUSSELS – Ukraine and the European Union have agreed to extend for one year their preferential trade regime, which is due to expire on June 5, Ukrainian Prime Minister Denys Shmyhal said Wednesday.
Ukraine and the EU reached agreements on extending the "economic visa-free regime" for another year. Ukrainian businesses will be able to continue selling their goods to the EU without any quotas, duties, or tariffs, Shmyhal wrote in a post on Telegram.
The Ukraine-EU preferential trade regime, abolishing tariffs and quotas on Ukrainian industrial goods and foods, took effect in June 2022
The extension of the preferential trade rules will contribute to the revival of the Ukrainian economy, Shmyhal said.
He noted that the access of Ukrainian agricultural products to the European market has been partially restored after a ban by five neighboring countries.
The European Commission developed a compromise mechanism, which temporarily restricts Ukraine from exporting four types of agricultural products to its neighbors, Shmyhal said.
ALSO READ: Ukraine to 'join EU internal market before full membership'
The Ukraine-EU preferential trade regime, abolishing tariffs and quotas on Ukrainian industrial goods and foods, took effect in June 2022.
Last month, Poland, Hungary, Slovakia, Bulgaria, and Romania imposed unilateral import restrictions on agricultural goods from Ukraine.
EU to make more ammunition for Ukraine
The European Commission on Wednesday adopted a proposal to ramp up ammunition production to support Ukraine, and address a shortage among European Union member states.
One billion euros has been allocated to the Act in Support of Ammunition Production, European Commission President Ursula von der Leyen has said.
Half of the funding will come from the EU budget, while the other half will come from leveraged additional financing.
READ MORE: Ukraine says seeks to join EU within year
ASAP is part of a three-track plan to help support Ukraine while making sure the European Union's ammunition stocks are not depleted, the Commission said.
A "Ramp-Up Fund" may also be created to assist the ammunition and missile supply chains in gaining access to both public and private financing.
The ASAP proposal must now be adopted by the Council of the European Union and the European Parliament before it can be implemented. It would then apply until mid-2025.