BDO in Ukraine participated in the preparation of the White Paper “Supporting Business in the Regions of Ukraine that Border the EU”, presented by the European Business Association.
The drafting of the White Paper was carried out within the framework of the Ukraine Recovery Committee. The document sets out a series of recommendations for the Government of Ukraine and the European Union, with a view to supporting and developing economic activity and potential in the western regions of Ukraine.
Due to their proximity to the EU borders, western regions provide rapid access for Ukrainian goods to European consumers, enhancing their competitiveness against the backdrop of growing requirements for delivery speed and just-in-time principles in international trade, while opening new opportunities for small and medium-sized enterprises. The geographic proximity to the EU, logistical advantages, cross-border cooperation programmes and support from neighbouring countries all combine to make these regions strongholds of European integration.
Specifically, the border regions: Volyn, Zakarpattia, Ivano-Frankivsk, Lviv, Chernivtsi, Rivne and Ternopil have become key trade hubs following the reorientation of Ukrainian exports to the European market and, in particular, to its closest neighbours: Poland, Romania, Hungary and Slovakia.
More than 60% of Ukrainian exports are directed to the EU market, and this figure continues to grow. Border regions present a unique opportunity for integration into the European economic space, which is of critical importance for economic recovery and business development.
It should be noted that the recommendations outlined in the document are proposed as a pilot project for the western regions, with the prospect of implementation in other regions of Ukraine, including those with access to the Danube or a developed industrial base.
Recommendations to the Government of Ukraine
- Positioning border regions as safe and attractive for business — launching a promotional campaign to attract investment
- Engaging foreign railway operators in the Ukrainian market
- Establishing joint industrial parks and investment zones — cross-border production chains with tax and customs incentives
- Introducing joint customs zones and simplifying procedures — expanding the practice of the “customs visa-free regime” and electronic declaration
- Increasing border throughput capacity for freight transport
- Stimulating the development of service businesses with dual presence (offices in both Ukraine and the EU.)
Recommendations to the European Union
- Developing transport infrastructure — extending trans-European railway corridors into Ukraine and collaborating with carriers on joint projects
- Stimulating the economic development of Ukraine’s border regions through investment platforms and cooperation programmes
- Expanding educational, scientific and cultural cooperation between the EU member states bordering Ukraine and the Ukrainian regions bordering the EU.
The full version of the White Paper “Supporting Business in the Regions of Ukraine that Border the EU” is available for download on our website.
BDO in Ukraine continues to play an active role in supporting the country’s recovery process. We are an official partner of the fundraising platform UNITED24, an active participant in Skills Alliance, and the company’s CEO, Vira Savchenko, is a Board Member of the Ukraine Recovery Committee at the European Business Association.
In addition, our company has a dedicated “Ukraine Recovery” expert group, which is actively working to support the revitalisation of the country's business and economy.
Should you require assistance in leveraging the advantages offered by border regions and integrating into the European economic space, please contact us. The team of BDO in Ukraine is prepared to offer expert consultations and practical solutions.
