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Ukraine and the United States Launch Work on Free Trade Zone Agreement

by Roman Cheplyk
Thursday, April 24, 2025
2 MIN
Ukraine and the United States Launch Work on Free Trade Zone Agreement

Ukraine and the United States have officially agreed to begin preparations for the creation of a bilateral free trade zone, following high-level talks in Washington

Prime Minister of Ukraine Denys Shmyhal and U.S. Treasury Secretary Scott Bessant reached this agreement during their meeting, according to the Cabinet of Ministers of Ukraine.

Key Agreements from the Meeting

  • Initiation of Free Trade Zone Discussions
    Both sides agreed to start the technical groundwork necessary for establishing a U.S.-Ukraine free trade agreement, aiming to deepen economic ties and support Ukraine’s recovery and growth.

  • Economic Partnership Agreement and Investment Fund
    The talks also focused on the upcoming economic partnership agreement, which includes the creation of a Reconstruction Investment Fund to attract American capital into Ukraine's economy.

  • Political and Legal Framework
    Prime Minister Shmyhal emphasized that ratification by the Verkhovna Rada (Ukraine’s parliament) is required under Ukrainian law for any such agreement to take effect.

  • Timeline and Progress Reporting
    Under the terms of a previously signed memorandum, the negotiating teams are expected to report progress by April 26, 2025, with the goal of finalizing the agreement shortly thereafter.

Sanctions and National Security

During the meeting, Denys Shmyhal expressed Ukraine’s appreciation for the recent executive order by President Donald Trump, which extended:

  • Sanctions against the Russian Federation for another year

  • A ban on Russian-owned or affiliated vessels from entering U.S. ports

He also advocated for increased sanctions on Russia’s energy sector, citing ongoing occupation of the Zaporizhzhia Nuclear Power Plant as a key concern.

Broader Strategic Cooperation

The Prime Minister thanked the American people for their continued support in the face of Russia’s full-scale invasion. The United States has played a pivotal role in providing financial aid, defense support, and diplomatic backing to Ukraine since the war began.

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