Denmark Joins EU's Ukraine Export Credit Guarantee Program
Denmark becomes the inaugural member of a new EU initiative aimed at supporting exports to Ukraine amid ongoing conflict.
The European Union has officially welcomed Denmark as the first member of its new €300 million Ukraine Export Credit Guarantee Program, designed to facilitate European businesses engaged in trade with Ukrainian counterparts.
The initiative aims to provide essential backing to small and medium-sized enterprises (SMEs) exporting to Ukraine, offering protection against challenges posed by the ongoing conflict with Russia.
Valdis Dombrovskis, a European Commission spokesperson, emphasized that the facility represents a significant advancement in integrating the EU and Ukrainian economies, a crucial element in Ukraine’s ongoing EU accession process.
The program is expected to encourage more EU nations to participate, with Germany, the Netherlands, Austria, and several central and eastern European countries likely to join soon.
The Danish export credit agency, EIFO, has initiated this partnership, paving the way for approximately 40 Danish companies to benefit from the guarantees provided by the new export facility.
This signing is part of broader efforts to operationalize the facility within a year, according to Marjut Falkstedt, the chairman of the European Investment Fund, which administers the guarantees.
In recent years, trade dynamics between the EU and Ukraine have shifted significantly due to the ongoing conflict.
According to Eurostat, exports from the EU to Ukraine reached €42.8 billion in 2024, representing a 9.4% increase from the previous year.
Simultaneously, the EU imported €24.5 billion worth of goods from Ukraine, resulting in a favorable trade balance with a surplus of €18.3 billion.
Key exports from the EU to Ukraine included mineral fuels, electrical machinery, and various types of machinery, with significant growth attributed to Ukraine's efforts to replace previous fuel imports from Russia and Belarus with EU supplies.
Despite the progress in trade relations and the launch of the export guarantee program, Ukraine faces significant hurdles in its bid for EU membership, initiated last year.
The ongoing conflict continues to impede Ukraine's accession negotiations, as noted by Ukraine’s First Deputy Prime Minister, Yulia Svyrydenko.
The EU export assistance is anticipated to bolster trade, further integrating Ukraine into the European market.
The initiative aims to provide essential backing to small and medium-sized enterprises (SMEs) exporting to Ukraine, offering protection against challenges posed by the ongoing conflict with Russia.
Valdis Dombrovskis, a European Commission spokesperson, emphasized that the facility represents a significant advancement in integrating the EU and Ukrainian economies, a crucial element in Ukraine’s ongoing EU accession process.
The program is expected to encourage more EU nations to participate, with Germany, the Netherlands, Austria, and several central and eastern European countries likely to join soon.
The Danish export credit agency, EIFO, has initiated this partnership, paving the way for approximately 40 Danish companies to benefit from the guarantees provided by the new export facility.
This signing is part of broader efforts to operationalize the facility within a year, according to Marjut Falkstedt, the chairman of the European Investment Fund, which administers the guarantees.
In recent years, trade dynamics between the EU and Ukraine have shifted significantly due to the ongoing conflict.
According to Eurostat, exports from the EU to Ukraine reached €42.8 billion in 2024, representing a 9.4% increase from the previous year.
Simultaneously, the EU imported €24.5 billion worth of goods from Ukraine, resulting in a favorable trade balance with a surplus of €18.3 billion.
Key exports from the EU to Ukraine included mineral fuels, electrical machinery, and various types of machinery, with significant growth attributed to Ukraine's efforts to replace previous fuel imports from Russia and Belarus with EU supplies.
Despite the progress in trade relations and the launch of the export guarantee program, Ukraine faces significant hurdles in its bid for EU membership, initiated last year.
The ongoing conflict continues to impede Ukraine's accession negotiations, as noted by Ukraine’s First Deputy Prime Minister, Yulia Svyrydenko.
The EU export assistance is anticipated to bolster trade, further integrating Ukraine into the European market.
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