Oleksandr Kravchenko discusses financing, investment and economic reforms with EU representatives during working visit to Brussels

During his first working trip to Brussels as Minister, Minister of Economy and Environment of Ukraine Oleksandr Kravchenko held a series of meetings with representatives of the European Commission and the Belgian development agency Enabel. Key topics included funding to cover Ukraine's public needs, attracting private investment, labour market development, industrial competitiveness, and fulfilment of EU integration commitments on the environment.

"The EU remains one of Ukraine's key partners in attracting investment, developing human capital and integrating Ukrainian producers into global food chains. This support and cooperation remain critically important for us. At the same time, we have much to offer Europe, from defence and energy technologies to critical raw materials, agri-processing and high value-added products. In this way, as a full-fledged partner, we can already strengthen the EU's competitiveness and security today," Oleksandr Kravchenko said.

Financing and attracting investment

At a meeting with Gert Jan Koopman, Director-General of the European Commission's Directorate-General for Enlargement and Eastern Neighbourhood, Oleksandr Kravchenko raised the issue of speeding up the disbursement of €8 billion under the Ukraine Plan within the Ukraine Facility. He also raised securing additional funding for 2027 to cover public needs and continue reforms.

Other topics included attracting private investment after the current Ukraine Investment Framework ends, launching a First Loss Fund to insure businesses against war risks, and developing the "Economy of the Future" strategy.

Economic growth strategy

At the EU–Ukraine seminar "Ukraine's Economy of the Future," participants considered opportunities for attracting investment into projects identified in the strategy. The first portfolio covers 10 priority sectors with investment potential of about EUR 230 billion.

The EU will play an important role in implementing the strategy, in particular by mobilising financing and attracting private capital. This is expected to deliver sustainable economic growth in Ukraine of about 6% a year.

Labour market and human capital development

At a meeting with Mario Nava, Director-General of the European Commission's Directorate-General for Employment, Social Affairs and Inclusion, the Minister focused on addressing labour shortages, combating undeclared work and raising productivity. Priorities for cooperation include preparing the new Labour Code for second reading, restoring social dialogue, transforming employment and labour services, and applying European experience in employment.

At a meeting with representatives of Enabel, the Belgian development agency, the sides reviewed areas of cooperation on human capital: public sector pay reform, digitalisation of migration procedures through "Obrii," forecasting labour market needs, and the Youth Guarantee programme.

Particular attention was given to developing vocational education in cooperation with business. This includes launching Junior Academy in 11 institutions, transforming 21 institutions in 12 regions into centres of vocational excellence, and implementing a grant programme with a budget of EUR 2 million.

CBAM and industrial competitiveness

At a meeting with Maria Elena Scopio, Director for Indirect Taxation and Tax Administration at the European Commission, the Ukrainian side stressed the impact of the Carbon Border Adjustment Mechanism (CBAM) on domestic producers, given the consequences of the war.

According to Ukraine's estimates, potential losses could reach USD 1.4 billion by 2030. Ukraine is working with European partners to mitigate this impact. The European Parliament has supported amendments to CBAM, and the next stage is a trilogue involving the European Parliament, the Council of the EU and the European Commission. Ukraine expects the negotiations to take into account the war's consequences for Ukrainian industry.

The sides also discussed using verified data on actual emissions and directing carbon payments to industrial decarbonisation.

Environment and fulfilment of EU integration commitments

At a meeting with Eric Mamer, Director-General of the European Commission's Directorate-General for Environment, the sides considered fulfilment of the closing benchmarks under Chapter 27. They agreed on support for strengthening the capacity of Ukrainian authorities, simplifying reporting, and Ukraine's participation in the LIFE programme.

Oleksandr Kravchenko also invited the European Commission to join the Green Accession Policy Lab, a flagship initiative Ukraine is implementing jointly with UNDP in Ukraine.