Issued by: Department for Business and Trade

The UK-Ukraine Digital Trade Agreement (DTA) enters into force today, allowing businesses on both sides to benefit from quicker and cheaper trade.

- UK and Ukrainian businesses set to benefit as UK-Ukraine digital trade deal enters into force today

- Agreement paves the way for a new era of trade, making trade between both countries cheaper and easier and boosting both economies

- Trading digitally is particularly important during the current conflict, where warfare and damage to infrastructure make it harder to trade physically

UK-Ukraine trade is set to grow as the UK-Ukraine Digital Trade Agreement (DTA) today [Sunday 1 September] enters into force, allowing businesses on both sides to benefit from quicker and cheaper trade.

The digital agreement is one of the first of its kind and opens the door to wider shifts to digital trading systems. Such digital systems are more important than ever for Ukraine as physical trading systems have been impacted by war.

Ukraine is one of the largest exporters of information technology services globally, with areas such as outsourcing, cybersecurity, artificial intelligence (AI) and mobile applications in rapid development before the war.

As a global leader in tech, the UK is ideally positioned to aid Ukraine’s post-conflict transition to a digital economy, with over half of our services exports to Ukraine already digitally delivered.

Business and Trade Secretary Jonathan Reynolds said:

"We’re modernising our trade relationship with Ukraine with one of the world’s first digital only trade agreements.

"Greater digitalisation of the economy is an important step in supporting Ukraine’s economy and their fight for independence. This government will continue to lead the way in our unwavering support for Ukraine and its people."

First Deputy Prime Minister and Minister of Economy of Ukraine Yuliia Svyrydenko said:

"The support of Ukraine from the United Kingdom is unprecedented. We have felt it from the very first days of the full-scale war. The digital trade agreement between our countries is another manifestation of solidarity and support.

"Implementing this agreement will deepen Ukraine’s participation in global supply chains, foster the development of small and medium-sized businesses, maintain free access for Ukrainian IT companies to the UK digital markets, and provide crucial support to our economy during the war and in the post-war reconstruction period."

Minister for Trade Policy Douglas Alexander said:

"With the current conflict in Ukraine making physical trade more difficult, we hope this agreement will make trading digitally easier for Scottish and Ukrainian businesses.

"I know there is a tremendous amount of support for Ukraine and its people throughout Scotland, and this government will do all we can to support them."

Sabina Ciofu, Associate Director, International Policy & Trade, TechUK said:

"The UK-Ukraine digital trade deal coming into force is a great step forward that will strengthen tech ties between both countries, and simplify and reduce the cost of trade for businesses, especially at a time when trade is made more difficult by Russia’s invasion of Ukraine.

"TechUK is looking forward to working with our sister organisation IT Ukraine and both governments to deliver on the promises of this agreement, especially around regulatory cooperation and emerging technologies."

Pavlo Pikulin, CEO and founder at Deus Robotics said:

"We are deeply thankful to the UK Government, the Ministry of Digital Transformation of Ukraine, and the Ministry of Foreign Affairs of Ukraine for establishing the UK-Ukraine TechBridge programme.

"In essence, our successes in the UK thus far can be directly attributed to this initiative. TechBridge has provided us with everything essential for a tech startup to thrive in the UK — access to potential clients, partners, investors, and mentors. With this programme, you know who to talk to, and how and where to do it best."

The agreement is part of a series of digital initiatives by the UK government to support Ukraine’s digital economy. The UK-Ukraine TechBridge promotes collaboration and investment across the UK and Ukraine tech sectors.

Tech partnerships are also a key area of the digital trade agreement, supporting collaboration between the UK and Ukraine on areas like cybersecurity.

Background

- Total trade in goods and services between the UK and Ukraine was £1.6 billion in the four quarters to the end of Q1 2024. In 2021, the export of digitally delivered services to Ukraine was worth £151 million - 54% of our total service exports to Ukraine

- The UK-Ukraine TechBridge is a programme designed to support the Ukrainian tech sector and ensure its resilience so it can contribute effectively to Ukraine’s economic recovery whilst strengthening the UK’s tech sector collaborations.

- In addition to these digital initiatives, DBT is mobilising UK businesses to support Ukraine’s immediate defence needs and deliver infrastructure projects.

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