Business news from Ukraine

Business news from Ukraine

Ukraine is building “digital shield” based on cloud infrastructure and integration with NATO and EU cyber ecosystem

Strengthening cloud infrastructure and cybersecurity is one of the key areas for strengthening Ukraine’s “digital shield” in the context of the ongoing war, according to participants in the panel discussion “Rebuilding Smarter: Cloud Infrastructure and Cyber Security for a Strong Ukraine’s Digital Shield” at the “Rebuilding Ukraine: Security, Opportunities, Investments” forum in Bucharest.

The panel was moderated by Daniel Ionita, senior associate expert at the New Strategy Center (Romania). The discussion was joined by Oleg Haiduk, advisor on AI and innovation at the PARKOVY data center and former Deputy Minister of Defense of Ukraine for Digital Development; Volodymyr Luchenko, technical director at Kyivstar; Dragos Dima, senior cybersecurity advisor at the EU Mission for Civilian Security Sector Reform in Ukraine (EUAM Ukraine) and Olga Belyakova, co-head of technology, media, and communications practice at CMS Cameron McKenna LLC in Central and Eastern Europe.

According to the speakers, immediately after the start of the full-scale Russian invasion in February 2022, Ukraine transferred critical data arrays to data centers in the EU. By 2023, the strategy had been transformed towards the creation of sovereign national data centers with support for cross-border backup solutions. This transition was made possible by accelerated legislative changes, which by the end of the year provided a functional regulatory framework for the provision of cloud services.

In the field of cybersecurity, the key measures, according to the panel participants, are the widespread use of VPN solutions, the introduction of centralized access management (PAM), the use of multi-factor authentication, and the integration of WAF-class solutions to protect web resources. “This is not just about technical means, but about building a comprehensive architecture of trust – from the user to state registries and critical infrastructure,” said Haiduk.

The experts emphasized that Ukraine’s cyber resilience must be built in a cross-border format—through the integration of critical digital infrastructure into NATO and EU security systems, joint incident response protocols, and the exchange of threat data. “The more closely Ukraine’s digital infrastructure is integrated into the Euro-Atlantic security ecosystem, the more difficult it will be to isolate or paralyze it as a result of cyberattacks,” Belyakova emphasized.

Following the discussion, participants concluded that the development of national data centers, the expansion of cloud services, and the synchronization of cyber defense standards with NATO and the EU are necessary conditions not only for the security of the public sector, but also for the stable functioning of business and the implementation of reconstruction projects.

The forum “Rebuilding Ukraine: Security, Opportunities, Investments” is being held on December 11-12 in Bucharest under the auspices of the Romanian Ministry of Foreign Affairs and the Ukrainian Ministry of Foreign Affairs and is organized by the New Strategy Center. According to the organizers, more than 30 panel discussions and parallel sessions are planned over two days with the participation of representatives of governments, international organizations, the private sector, financial institutions, and experts from Europe, North America, and Asia. The topics of the panels cover security and defense, infrastructure, financing and investment, green energy, digitalization, human capital, and cross-border cooperation.

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Ukraine’s “green” reconstruction should be based on digitalization and integration into EU energy market

Participants in the Green Reconstruction and Green Energy panel at the Rebuilding Ukraine: Security, Opportunities, Investments forum in the Romanian capital concluded that the modernization and decarbonization of Ukraine’s energy infrastructure must go hand in hand with digitalization, the development of smart cities, and deeper integration into the EU energy space.

The panel was moderated by Corneliu Bodea, president of the Romanian Energy Center, who outlined the need for profound transformations of energy systems to transition to a low-carbon model. The key speaker was Bogdan-Gruia Ivan, Romania’s Minister of Energy, who set the strategic guidelines for the discussion. The discussion was also joined by George Agafitei, Head of Sustainable Development and Institutional Relations at PPC Group; Vitaly Radchenko, Head of Energy and Climate Change Practice at CMS Ukraine; Nicolas Richard, CEO of Engie Romania; Gheorghe Chubotar, President of Electroalfa International; and Eduard Dumitrascu, President of the Romanian Smart City Association.

The speakers noted that urban digitalization and energy modernization projects, in particular smart city initiatives, have become important catalysts for the renewal of local energy systems and municipal infrastructure. They emphasized that Ukraine should not be underestimated in terms of technological solutions: businesses and government agencies are highly receptive to the implementation of digital tools, from artificial intelligence to network infrastructure optimization. “Ukraine has already demonstrated its ability to quickly transition to new digital platforms. This makes it possible to build a modern energy sector rather than a ‘patched-up’ one,” Radchenko noted.

Participants emphasized that Ukraine is undergoing an intensive phase of legislative reforms and convergence with European standards in the fields of energy, ecology, and market regulation. This creates conditions for more effective coordination between central authorities and local levels, as well as for the implementation of joint projects with EU countries, with an emphasis on inter-state interconnectors, network balancing, and strengthening regional energy security. “Aligning rules with European ones is not only a requirement for integration, but also a prerequisite for attracting investors to long-term ‘green’ projects,” Ivan emphasized.

A separate part of the discussion was devoted to rethinking the architecture of energy networks in the direction of decentralization, flexibility, and increasing opportunities for electricity flows between countries. Participants recalled that Ukraine is already working in sync with the European energy system and is increasing the volume of electricity and gas exchanges with EU countries. In their opinion, Ukraine’s “green” transformation requires not only the physical reconstruction of generation and network assets, but also the formation of a new culture of innovation capable of attracting strategic investments and the most advanced technologies.

In this context, cooperation between European and Ukrainian energy and technology ecosystems was described as a fundamental element of regional energy sustainability. Participants called green reconstruction a historic opportunity to form a more sustainable, digitized, and EU-integrated Ukrainian economy. The panel concluded that, despite the challenges, close cooperation and coordinated investment by the state, business, and international partners is the only realistic path to an effective, future-oriented reconstruction of the energy sector.

The forum “Rebuilding Ukraine: Security, Opportunities, Investments” is being held on December 11-12 in Bucharest under the auspices of the Romanian Ministry of Foreign Affairs and the Ukrainian Ministry of Foreign Affairs and is organized by the New Strategy Center. According to the organizers, more than 30 panel discussions and parallel sessions are planned over two days with the participation of representatives of governments, international organizations, the private sector, financial institutions, and experts from Europe, North America, and Asia. The topics of the panels cover security and defense, infrastructure, financing and investment, green energy, digitalization, human capital, and cross-border cooperation.

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Ukrainian flour is already being sold in Germany, Czech Republic, Spain, and Italy

For the first time in 2025, a separate annual quota for the supply of 30,000 tons of Ukrainian flour to the European Union has been granted, which opens up opportunities for long-term planning for the domestic flour milling business, said Rodion Rybchinsky, director of the Ukrainian Flour Millers Association.

“The top 10 export-oriented companies have already invested around EUR 17 million in modernization and now understand that these investments will have prospects,” he said at the “Agribusiness in Ukraine” conference in Kyiv on Thursday.

He recalled that until 2022, flour was exported within the joint quota with wheat. Flour millers usually did not have time to deliver their products to the EU, as grain traders were the first to choose the quota. Only after the opening of trade preferences in 2022 did Ukrainian flour begin to actively enter the EU market, and in 2023, flour exports to EU countries amounted to 73,000 tons.

“These volumes became an argument in the negotiations: if 73,000 tons were successfully delivered to the EU, the question of Ukrainian flour’s non-compliance with European quality requirements would be moot,” said Rybchynskyi.

According to him, Ukrainian flour is now available in Germany, the Czech Republic, Spain, and Italy, which is clear proof of the high quality of Ukrainian products.

Rybchynskyi noted that during the 11 months of 2025, Ukraine supplied 26,000 tons of this product to the EU, so by the end of the year, domestic producers will be able to fully use the quota. At the same time, the biggest problem for flour millers in 2026, if we assess the prospects of the industry, will be the labor shortage.

He named the European Millers’ Congress in France as one of the most anticipated events in the industry next year, during which the Ukrainian side will try to find arguments and establish contact, in particular, with the Romanian Association of Flour Producers, as well as try to lay the groundwork for a review of quotas in 2028. According to Rybchynsky’s estimates, Ukraine is capable of supplying 300,000 tons of flour to the EU market.

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Ukrainian sugar increases its share in EU market

Ukrainian sugar in 2025 turned out to be a very bitter topic and a sore point in negotiations on trade in agricultural products with the European Union. The industry’s plans for 2026 are to increase the share of Ukrainian sugar on the European market, said Yana Kavushevska, head of the National Association of Sugar Producers of Ukraine “Ukrtsukor,” Yana Kavushevska at the conference “Agribusiness in Ukraine” in Kyiv on Thursday.

She noted that during the preparation of the updated trade agreement, the Ukrainian side was not prepared to deal with the powerful sugar lobby and its stakeholders in the EU, along with their strong support at the political level.

Another surprise was the European community’s bias against Ukrainian agricultural products. Among the most absurd myths, Kavushevska named the inexhaustible potential of the Ukrainian agricultural sector, the dominance of agricultural oligarchs, etc. Both Ukrainian agricultural associations and government officials had to refute these myths.

“One of the areas of our communication was to explain to Europeans that the Ukrainian sugar industry is a continuation of the European one. We use all the inputs that we purchase in the European Union in our work. (…) For every hectare of sugar beet, we purchase approximately $1,000 worth of goods in the EU. Accordingly, this year we have 200,000 hectares of sugar beet in Ukraine, for which we have purchased $200 million worth of products from the EU,” said the head of Ukrtsukor, adding that such arguments either surprise or are ignored by her European colleagues.

Speaking about the quotas that Ukraine received for sugar supplies to the EU under the updated trade agreement, Kavushevska noted that they had increased fivefold compared to the previous ones.

“Indeed, the results we have achieved with the quota received in the European Union for sugar show a fivefold increase — from 20,000 tons to 100,000 tons. Is this a lot or a little? Probably no one could be satisfied. But I am sure that if there had been no effective agricultural and social communication, this quota could have been smaller,” said the head of Ukrtsukor.

She stressed that the EU likes predictability, balance, and foreseeability. This is how she explained the need for Ukraine to introduce internal licensing for sugar exports to the European Union. In her opinion, this mechanism will allow Ukrainian sugar producers to eventually become not just technical suppliers of products to the EU, but gradually transform into full-fledged members of the European market.

“Yes, it costs producers who want to export additional expenses for obtaining documents, complications, and delays in possible deliveries. But this (internal quotas – IF-U) is what demonstrates to Europeans that we know how to work and regulate the market,” the expert explained.

Kavushevska named another complication of the updated trade agreement for sugar producers as the European Union’s application of the concept of a “critical quota” to Ukrainian sugar. It provides for the importer to deposit financial guarantees into special accounts, which will be returned to them 3-30 days after customs clearance of goods received from Ukraine. According to the expert, this mechanism is one of the ways to prevent the uncontrolled spread of Ukrainian sugar in the EU. At the same time, it is an unpleasant moment for European buyers, who have to freeze their own working capital for a certain period.

Speaking about the sugar producers’ plans for 2026, the head of the association said that the industry will continue to establish contacts with the European sugar industry and hopes that licensing will continue as an export mechanism. In addition, benchmarks will be developed for key production indicators so that the industry can prepare for integration into the European market.

“For Ukrainian sugar producers, the European market is virtually the only option. We cannot compete for Africa because Brazil will always dominate there logistically. Our task is to gain a foothold in Europe, increase Ukraine’s share as much as possible, and eventually ensure the European Union’s self-sufficiency in sugar,” Kavushevska concluded.

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Ukrainian lobbyists appeal to European Parliament to clarify rules for registration in EU Transparency Register

The National Association of Lobbyists of Ukraine (NALU) is initiating an official appeal to the European Parliament regarding the rules for registering Ukrainian organizations in the EU Transparency Register.

“The National Association of Lobbyists of Ukraine will soon send an official appeal to the European Parliament requesting clear and unambiguous clarification on which Ukrainian organizations are required to register in the European Union Transparency Register in order to interact with European institutions,” she told the Interfax-Ukraine news agency.

The association will also raise the question of whether Ukrainian entities—public organizations, professional associations, business associations, consulting companies, charitable foundations, and other structures—should undergo additional registration and obtain lobbyist status when working with EU bodies in accordance with the requirements of European legislation.

The association notes that with the entry into force of Ukraine’s Law on Lobbying and the state’s active course towards European integration, the issue of harmonizing Ukrainian lobbying practices with European Union approaches is becoming critically important. The lack of clear instructions and a unified position may create legal uncertainty for Ukrainian organizations seeking to operate within the EU legal framework and represent Ukraine’s interests at the international level.

“We seek to obtain an official explanation so that Ukrainian organizations can act in accordance with European rules, avoid risks, and ensure maximum transparency in their activities. This is also important for protecting Ukraine’s image as a state that is moving towards civilized interaction and open advocacy,” notes the NALU.

The explanations received from the European Parliament are planned to be published and forwarded to Ukrainian institutions, businesses, and public organizations as an official guideline for further work with EU bodies.

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Ukraine explained to EU purpose of export duties on soybeans and temporary ban on timber exports

The tenth annual meeting of the Ukraine-EU Association Committee in Trade (ACTA) was held in Brussels, where issues related to Ukraine’s export duties on soybeans and rapeseed, as well as temporary restrictions on the export of unprocessed timber, were discussed, according to the Ministry of Economy, Environment, and Agriculture.

Ukraine informed its partners that a 10% export duty on soybeans and rapeseed was introduced in 2025 to support the development of agricultural processing within the country. At the same time, agricultural producers who export their own products are completely exempt from paying duties. Therefore, the mechanism introduced does not create additional financial costs for them.

“It is precisely through the proceeds from export duties on soybeans and rapeseed that the state will fill a special budget fund, from which programs to support agricultural producers are financed. First and foremost, these are programs for frontline territories, as well as grants for processing, greenhouses, orchards, compensation for agricultural equipment, insurance against military risks, and other key instruments. This allows us to maintain support for farmers even in wartime,” emphasized Deputy Minister of Economy, Environment, and Agriculture Taras Vysotsky.

The meeting participants also discussed decisions on regulating timber exports, including a temporary ban on the export of unprocessed timber (except pine) and the establishment of zero quotas until the end of 2025.

The Ukrainian side stressed that these measures are aimed at meeting the needs of defense and critical infrastructure, as well as reducing risks to the environment in wartime. At the same time, these measures prevent a shortage of raw materials on the domestic market.

It was separately noted that the Verkhovna Rada of Ukraine is considering draft laws on the formation of an updated timber market model, taking into account security challenges.

The Ukrainian side stressed the importance of continuing an open dialogue with the EU on all temporary measures that the state is applying during the period of martial law. At the same time, maintaining access for Ukrainian products to the European market remains one of the key factors for economic stability and support for national production.

The Ukraine-EU Association Committee in Trade Composition (ACTC) was established in accordance with Article 465 (4) of the Association Agreement between Ukraine and the EU to consider issues related to Section IV “Trade and Trade-Related Matters” of the Association Agreement. The CATS operates in accordance with the rules of procedure approved by Decision No. 1/2014 of the Association Council between Ukraine and the EU of 15 December 2014 “On the adoption of the rules of procedure of the Association Council, the Association Committee and its subcommittees”.

The Trade Committee meets annually and includes representatives from Ukraine and the European Commission.

As reported, a 10% export duty on soybeans and rapeseed for traders has been in effect in Ukraine since September 4, 2025. Agricultural producers who export their own products, or agricultural cooperatives that export the products of their members, are exempt from this duty, provided that the origin of the goods is documented. Until 2030, the duty will be reduced by 1% each year until it reaches 5%.

The Cabinet of Ministers has temporarily banned the export of unprocessed wood (except pine) until December 31, 2025, setting a zero quota for its export. This is done to provide the domestic market with raw materials, support Ukrainian woodworking enterprises, and stabilize the industry.

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