Transport visa-free regime between Ukraine and the EU extended until the end of 2025

Agreement on freight liberalization automatically extended due to efficiency and compliance with conditions

Ukraine and the European Union have automatically extended the “transport visa-free regime” – the Agreement on the Liberalization of Freight Transport – until December 31, 2025. This became possible due to the effective implementation of the agreements, the positive impact on the economies of both parties and compliance with all the terms of the Agreement, according to a press release from the Ministry of Communities and Territories Development of Ukraine.

The document was first signed in June 2022. At that time, its validity period was one year. The last time the agreement was extended was in June 2024, until the summer of 2025. However, one of the key conditions of the updated version was the possibility of automatic prolongation until the end of 2025, provided there are no violations and negative consequences for the parties.

“Today, road transportation between Ukraine and the EU is crucial for the economic sustainability of our country, because it is by road that we export value-added goods and import the necessary goods. Most importantly, the Agreement has a positive impact on both sides. Thanks to the ‘transport visa-free regime’, exports by road to the European Union increased by 42% and imports by road to Ukraine by 37%,” said Oleksiy Kuleba, Vice Prime Minister for the Restoration of Ukraine, Minister of Communities and Territories Development.

The Ministry of Development notes that immediately after the prolongation in 2024, active work began to ensure the automatic extension of the Agreement. The Ministry’s team under the coordination of the relevant Deputy Minister Serhiy Derkach participated in a joint working group, prepared analytical materials and worked with carriers to comply with the rules.

“We continue to work to ensure that the Ukrainian transportation sector develops in line with European standards and remains a reliable pillar of the economy,” the Ministry said.

As a reminder, at the Association Council meeting, Ukraine emphasized the importance of extending the “trade visa-free regime” with the EU until the end of 2025. The Ukrainian side also emphasized the importance of revising the Deep and Comprehensive Free Trade Area (DCFTA) provisions as soon as possible in accordance with Article 29(4) of the Association Agreement.

According to GMK Center’s research, the contribution of Ukraine’s mining and metals sector, including supply chains, to the country’s GDP increased to 7.2% last year (5.7% in 2023). The domestic steel sector is part of the European steel industry as it is included in European supply chains. The EU’s share of Ukraine’s steel exports amounted to 64% in 2024.