Ukraine and the UK have agreed a new Digital Trade Agreement (DTA) to boost the Ukrainian economy following Russia’s invasion earlier this year.

Trade Secretary Kemi Badenoch MP and Ukraine’s First Deputy Prime Minister and Minister for Trade and Economy, Yulia Svyrydenko, have agreed and finalised the deal.

The Ukrainian government has highlighted the important role Ukraine’s first ever digitally-focused trade agreement could play in bolstering the country’s economy.

Trading digitally is particularly important in the current conflict, where damage to Ukrainian infrastructure and warfare makes it much harder to trade physically.

Digital tools and technologies such as those that will provided as part of the deal will help Ukrainians access everyday vital goods.

There is a critical need for people to be able to use digital solutions to prove they are who they say they are, despite the loss of critical documentation or displacement across borders.

The agreement provides a framework for the UK and Ukraine to cooperate to promote compatibility between their respective digital identity systems to help address this.

Commenting on the deal, Trade Secretary Kemi Badenoch MP said: “The landmark digital trade deal agreed today between our two countries paves the way for a new era of modern trade between us.

“This agreement will mean our businesses and governments can collaborate even more and ensure Ukrainians have access to essential goods and services digital trade opens up. This will help protect jobs, livelihoods and families now and in Ukraine’s post-war future.”

First Deputy PM and Minister for Trade and Economy Yulia Svyrydenko added: “This digital trade agreement illustrates that Ukrainian IT companies operating in Ukraine are in demand around the world despite all the challenges of war.

“The UK-UA Digital Trade Agreement has enshrined core freedoms for trade in digital goods and services. Ukraine believes that an open and free framework for the digital economy is the best investment in future oriented development.”

As part of the deal, Ukraine will have guaranteed access to the financial services crucial for reconstruction efforts through the deal’s facilitation of cross-border data flows.

The deal will also establish a greater cooperation between the two countries on cybersecurity and emerging technologies, helping to keep UK and Ukrainian businesses and people safer.

By streamlining digital border processes, Ukrainian businesses will be able to better access the digitally delivered goods and services they need to succeed. They will also be able to trade more efficiently and cheaply with the UK through electronic transactions, e-signatures, and e-contracts.

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techUK CEO Julian David welcomed the agreement, stating: “It comes at a crucial time for our friends in Ukraine and it will open up new opportunities for cooperation in tech and digital between our two countries.

“This agreement provides the framework for easy flow of critical goods and services, by ensuring the free flow of data and cybersecurity cooperation.

“We are committed to working with our members and the UK and Ukrainian governments to make the most of this agreement and support the Ukrainian economy at this difficult time.”

In May this year, the UK removed all tariffs under the existing UK-Ukraine free trade agreement, supporting Ukrainian businesses and producers to export goods and rebuild their economy.

Work is also underway, through the UK-Ukraine Infrastructure Taskforce, to build partnerships between companies from both countries which help repair damaged and destroyed infrastructure including bridges and homes in and around Kyiv.

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