Ukraine and the EU Can Create a Partnership in Technology and Raw Materials for Industrial Development
Both Ukraine and the European Union are currently facing a significant decline in their industries, but the reasons for this phenomenon differ. In the EU, industrial production is suffering due to increasing global competition, rising energy costs, and strict regulatory pressure. Meanwhile, in Ukraine, the decline is caused by long-standing systemic issues and a large-scale war that has had a devastating impact on the economy.
This is reported by AgroReview
The Impact of War and Economic Crisis on Ukraine’s Industry
In recent years, the domestic manufacturing industry has experienced a substantial contraction: while its added value was $20 billion in 2007, it dropped to only $6.7 billion in 2022. Following the onset of Russia’s full-scale aggression, the sector underwent a sharp decline; however, a gradual recovery is observed in 2023-2024. Nevertheless, the current level of production is still far from pre-war figures. The share of manufacturing in Ukraine’s GDP structure decreased from 20% in 2007 to 7.6% in 2022, while in 2021, before the war began, this figure was 10.3%.
Paths to Strategic Partnership Between Ukraine and the EU
Similar challenges faced by the industrial sectors of Ukraine and the EU open up opportunities for deepening strategic cooperation. Ukraine can become an important manufacturing hub for Europe, while the EU can act as an investor and supplier of modern technologies for the reindustrialization of our country. Ukraine’s particular potential lies in the extraction of critically important minerals and the development of green energy. Deepening the integration of industrial capabilities on both sides can significantly enhance their competitiveness and help create a sustainable economic model capable of effectively responding to global challenges.
“At the same time, the common challenges faced by our country and the EU in the industrial sector create a foundation for strategic partnership: Ukraine can become Europe’s industrial platform, while the European Union can be an investor and technological partner for Ukrainian reindustrialization.”