UK announces new trade measures to support Ukraine including applying more sanctions on Russia

Tue 26 Apr 2022
Posted by: Noelle McElhatton
Trade News

The UK has removed all tariffs on existing UK-Ukraine trade and levelled fresh sanctions at Russia.

All tariffs on goods imported from Ukraine will be reduced to zero and all quotas will be removed under an agreement to liberalise trade with the war-torn country.

The announcement follows a request from Ukraine’s president, Volodymyr Zelensky, to liberalise tariffs and support the Ukrainian economy. Key Ukrainian exports including barley, honey, tinned tomatoes and poultry will benefit.

International Trade Secretary Anne-Marie Trevelyan said: “We stand unwaveringly with Ukraine in this ongoing fight and will work to ensure Ukraine survives and thrives as a free and sovereign nation.”

One year and maybe more

According to the Standard, the tariff liberalisation will be for an initial period of 12 months but could be extended.

There was no obligation on Kyiv to reciprocate by lifting trade barriers, although the Ukrainian government has said its preference is to match the approach and will liberalise tariffs with the UK.

Ukrainian exports were previously subject to tariffs of around 22%, reports the Independent.

Closing loopholes on Russia

The UK has also announced a new export ban on products and technology that Russia could use to repress Ukraine, such as interception and monitoring equipment.

Boris Johnson is sending ambulances, fire engines and rescue equipment to help the Ukraine.

The UK will also send Ukraine more military equipment and will reopen its embassy in Kyiv, the BBC reports.

As previously covered in the IOE&IT’s Daily Update, last week the UK announced it was bolstering its current tariff sanctions against Russia, by increasing the list of products facing import bans and increased tariffs.