'Ukraine's fighting and open for business': UK unveils new digital trade agreement 6 months after Russia's invasion
24 August 2022, 00:11 | Updated: 24 August 2022, 00:20
The UK and Ukraine have announced a new digital trade agreement to help Ukraine rebuild its economy and protect livelihoods on the six month anniversary of the Russian invasion.
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International Trade Secretary Anne-Marie Trevelyan met with Ukrainian Ambassador to the UK Vadym Prystaiko in London on Tuesday to "reiterate the UK’s unwavering support for Ukraine and begin talks".
The digital trade agreement will aim to support Ukrainian businesses by cutting red tape and helping them to trade with the UK more efficiently through technology such as electronic transactions, e-signatures, and e-contracts.
It will also make it easier for UK companies to work with Ukrainian businesses and support their economic recovery.
The Trade Secretary also spoke virtually with the First Deputy Prime Minister and Minister of Economy of Ukraine Yuliia Svyrydenko and Vice Prime Minister and Minister of Digital Transformation of Ukraine Mykhailo Fedorov.
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Ukrainian Ambassador on new digital trade agreement
During an interview with LBC's Rachael Venables, Vadym Prystaiko said: "The UK was with us all these years but after the launch of the attack against us by Putin in late February this cooperation became not just very needed but actually needed for survival of our nation. And that’s where we had opportunities starting with armaments and financial and political support.
"But now we have to think about how our economy, how our nation and our businesses are surviving."
The ambassador said he was "very proud" of the agreement and when asked about Boris Johnson's departure he replied: "We will be happy to finish many things while he is still in office including the digital trade… which is not obviously do-able but we will have so many other things with the new Prime Minister who ever it will be."
He added: "We don’t believe the change in government will change the attitude because our people will push both of our governments together... regardless of who is on the very top of it."
Total trade between the UK and Ukraine was worth £1.9 billion in 2021 and UK exports of digitally delivered services accounted for 73% of all UK services exports to Ukraine in 2020.
August 24 marks Ukraine Independence Day, but also six months since Russia invaded the country with no respite to the heavy fighting.
Recalling the brutality of the last six months, the ambassador said Ukrainians survive on a "dark sense of humour" knowing that they are six months into Putin's promised "three day" plan to capture the country,
Adding: "We managed with the assistance and help of our friends, we managed to survive. This is most important. But now we are managing to push them away from our land, that is what we wanted to achieve, that is what we wanted Ukrainians to know on independence day.
"We cherish this moment very much and that is why we will be very happy to celebrate [independence day] again when we are free and strong, surrounded by and supported by our friends. Ukraine is still fighting and open for business."
Anne-Marie Trevelyn on new digital trade agreement with UK
Speaking to Rachael Venables, Ms Trevelyan said: "I am delighted to be at the Ukrainian embassy. We are launching our negotiations on a digital trade agreement, only the second that we have done - our first was with Singapore."
She went on: "Digitalisation of course is the way to help businesses to grow, to strip away costs and to build new ways of working. We are really excited to be bringing together how we can do that through this DTA with Ukraine.
"Ukraine has an incredible digital footprint already and we want our UK businesses and theirs to be able to grow together, stripping away as many of the barriers as we can because as part of our commitment to Ukraine, defending its freedom and democracy, it's important to keep its economy going, thriving and we want to support them in that key area of digitalisation."
The Trade Secretary said the "exciting" deal will "strip away costs" for both the UK and Ukraine and said the Government "want to be the partner of choice, economically, with Ukraine for the long term".
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When asked whether Rishi Sunak and Liz Truss are as committed as Boris Johnson to supporting Ukraine after his departure from Number 10, she replied: "I am very confident that both of my wonderful colleagues who are presently standing for the role of the new leader of the Conservative party and therefore Prime Minister, are absolutely committed to our continued strong relationship and support for Ukraine."
She said the support offered by the UK would be both military and economic.
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Boris Johnson says UK must continue to support Ukraine in Russia’s “hideous war”
The Government say the new agreement will remove barriers to digital trade, providing much needed support for Ukrainian jobs and livelihoods following Russia’s invasion.
Vadym Prystaiko, Ambassador of Ukraine to the United Kingdom said: "The United Kingdom has shown unwavering support throughout this illegal invasion and the ties between our governments have never been closer.
"While we fight fearlessly for the freedom of our nation, many Ukrainians also look ahead to how we will rebuild our country. Strengthening our economic ties through this landmark digital trade agreement will support our IT industry, which is set to become a major driver of economic growth for our businesses and cities."
Today’s announcement comes following a direct request from President Zelenskyy’s government.
The Ukrainian government has identified supporting the digital economy as one of its areas of focus for the recovery and reconstruction of the country. The UK, as a global leader in digital trade, is well placed to help with that.
It follows the UK’s removal of all tariffs under the existing UK-Ukraine free trade agreement in May, supporting Ukrainian businesses and producers to export goods and rebuild their economy.
In July the Trade Secretary also launched a new UK-Ukraine Infrastructure Taskforce, which is building partnerships between UK and Ukrainian businesses to help repair damaged and destroyed infrastructure including bridges and homes in and around Kyiv.
The UK has also introduced one of the largest and most severe packages of economic sanctions against Russia.
Measures cover over £18 billion worth of products that were traded with Russia in 2021, as well as over 1,000 individuals and over 100 entities in key sectors such as defence.
International Trade Secretary Anne-Marie Trevelyan added: "Putin’s brutal and unprovoked invasion of Ukraine has had devastating human consequences. The UK stands shoulder to shoulder with Ukraine and will use trade as a force for good to help the country rebuild its modern economy after this barbaric war.
"Our partnership with Ukraine will help them seize the brighter days ahead, and we will continue to do everything in our power to protect Ukrainian jobs, livelihoods and families."
