Statement by Prime Minister Denys Shmyhal at Government session

Dear colleagues! Fellow Ukrainians!

We are starting a regular meeting of the Government.

The future of our country lies in a united Europe. We are negotiating Ukraine’s accession to the European Union and are simultaneously implementing sectoral integration.

One of its elements is the development of joint logistics.

We are creating a single logistics space so that people, goods and services can move quickly and without obstacles on both sides of the border.

We are moving in five key areas.

The first area is the “transport visa-free regime” with the EU, which means that Ukrainian carriers no longer need separate permits.

The Government is working to make this a long-term instrument in our relations with the EU. This is important for the Ukrainian economy.

The EU is Ukraine’s key trading partner.

We export about 60% of our goods to the EU. In particular, in January of this year, the volume of exports to Europe totalled USD 1.8 billion.

Our top three export destinations this year: Poland, Italy and Spain.

Roads play an important role in these exports.

Last year, Ukraine exported USD 14.7 billion worth of goods by road, which is 5% more than in 2023. We will continue to work on expanding opportunities for road transport.

The second area in developing logistics to the West is the modernisation of border infrastructure and crossing points.

We have clear goals – to upgrade 29 border crossings and build 17 new ones by 2030.

The work will be carried out in close cooperation with our western neighbours.

Yesterday, during a telephone conversation with the Prime Minister of Poland Donald Tusk, we agreed to promote further development of border infrastructure.

We also discussed the renovation and development of border crossing points during a meeting with the President of the European Investment Bank Nadia Calviño. We have reached specific agreements.

I am grateful to our partners for their support.

The third area of our work is the launch of joint customs and border control on the borders with the EU.

We expect to launch a pilot project on the Ukrainian-Polish border this year.

We are currently negotiating the relevant agreement with the European Commission.

Joint control at the border will save significant time for people and businesses and bring us even closer to the European Union.

The fourth area of accelerating our logistics is the eCherha system.

It is already in operation at 28 checkpoints.

At 24 of them, the function of reserving a border crossing slot is available. This is how carriers plan and save their time.

Since the launch of eCherha in late 2022, almost 1.7 million border crossings have been recorded using this service.

We will continue to improve and scale it.

The fifth area is the Ukrainian Sea Corridor.

Over the past year and a half, it has transported more than 100 million tonnes of cargo to 53 countries. The sea has once again become a gateway for Ukrainian exports.

The operation of this corridor is one of the biggest economic victories during the full-scale war.

In addition to economic benefits, it has a humanitarian component.

The Food from Ukraine programme, initiated by President Volodymyr Zelenskyy, is being scaled up. Ukraine retains its place as one of the guarantors of global food security.

We will continue to invest in the development of port infrastructure both in Odesa and on the Danube.

Another area that is directly related to logistics is the support of Ukrainian exports.

The state, through the Export Credit Agency, has supported exporters to the tune of UAH 20 billion over the past three years. This year, such support has already amounted to UAH 1.5 billion.

We strive to export high value-added goods, and therefore we are focusing on the development of processing.

This is part of our Made in Ukraine policy, and the Government will expand incentives in this area, as this is the only way to build a strong competitive economy.

That is why, out of more than UAH 277 billion of affordable loans received by businesses during the full-scale war, more than UAH 32 billion were issued for the processing of agricultural products.

Processing is also encouraged in other sectors. In particular, by issuing grants through the eRobota programme.

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The results of changes in all these areas of logistics are already being felt by Ukrainian businesses and citizens.

Improving logistics capacities and restoring transport infrastructure is an important element of our “build back better” recovery.

With the support of our partners, we will strengthen this area along with other recovery priorities. Housing, energy, critical infrastructure.

We are constantly working with our allies around the world to raise additional resources for all these programmes.

Today we are making an important decision for our recovery.

We are approving a draft agreement between the governments of Ukraine and Japan to attract a grant of JPY 8.8 billion, or about USD 58 million.

These are funds from the Japan International Cooperation Agency (JICA) to finance reconstruction projects.

I am grateful to our Japanese partners for their consistent and unwavering support.

I am grateful to all our friends who have been helping Ukraine to survive for three years of full-scale war.

I am grateful to the defenders of Ukraine.

I thank all Ukrainians who make our country stronger through their work.

We will withstand, win and rebuild!

Thank you for your attention! Glory to Ukraine!