The UK-Ukraine Digital Trade Agreement (DTA) officially comes into force today, marking the start of a new era in trade between the two nations, enabling businesses on both

sides to engage in faster and more cost-effective transactions.

The agreement is designed to simplify and reduce the cost of trade between the UK and Ukraine, providing a significant boost to both economies. The ability to trade digitally is especially crucial given the current conflict, where war and infrastructure damage have made physical trade more challenging.

This digital agreement is one of the first of its kind and signals a broader shift towards digital trading systems, which are increasingly important for Ukraine as traditional trading methods have been disrupted by the war.

Before the conflict, Ukraine was one of the world’s leading exporters of information technology services, excelling in areas such as outsourcing, cybersecurity, artificial intelligence (AI), and mobile applications.

Business and Trade Secretary Jonathan Reynolds said:

“We’re modernising our trade relationship with Ukraine with one of the world’s first digital only trade agreements.

Greater digitalisation of the economy is an important step in supporting Ukraine’s economy and their fight for independence. This government will continue to lead the way in our unwavering support for Ukraine and its people”.

First Deputy Prime Minister and Minister of Economy of Ukraine Yuliia Svyrydenko said:

“The support of Ukraine from the United Kingdom is unprecedented. We have felt it from the very first days of the full-scale war. The digital trade agreement between our countries is another manifestation of solidarity and support.

Implementing this agreement will deepen Ukraine’s participation in global supply chains, foster the development of small and medium-sized businesses, maintain free access for Ukrainian IT companies to the UK digital markets, and provide crucial support to our economy during the war and in the post-war reconstruction period”.

Minister for Trade Policy Douglas Alexander said:

“With the current conflict in Ukraine making physical trade more difficult, we hope this agreement will make trading digitally easier for Scottish and Ukrainian businesses.

I know there is a tremendous amount of support for Ukraine and its people throughout Scotland, and this government will do all we can to support them”.

Sabina Ciofu, Associate Director, International Policy & Trade, TechUK said: 

“The UK-Ukraine digital trade deal coming into force is a great step forward that will strengthen tech ties between both countries, and simplify and reduce the cost of trade for businesses, especially at a time when trade is made more difficult by Russia’s invasion of Ukraine.

TechUK is looking forward to working with our sister organisation IT Ukraine and both governments to deliver on the promises of this agreement, especially around regulatory cooperation and emerging technologies”.

Pavlo Pikulin, CEO and founder at Deus Robotics said:

“We are deeply thankful to the UK Government, the Ministry of Digital Transformation of Ukraine, and the Ministry of Foreign Affairs of Ukraine for establishing the UK-Ukraine TechBridge programme.

In essence, our successes in the UK thus far can be directly attributed to this initiative. TechBridge has provided us with everything essential for a tech startup to thrive in the UK — access to potential clients, partners, investors, and mentors. With this programme, you know who to talk to, and how and where to do it best”.

As a global tech leader, the UK is well-positioned to support Ukraine's transition to a digital economy post-conflict. Currently, over half of the UK’s service exports to Ukraine are already delivered digitally. This agreement is part of the UK's broader digital initiatives to bolster Ukraine’s digital economy, including the UK-Ukraine TechBridge, which fosters collaboration and investment between the tech sectors of both countries.

Moreover, tech partnerships are a crucial component of the digital trade agreement, encouraging collaboration in areas like cybersecurity, further strengthening the ties between the UK and Ukraine in the tech sector. Photo by UP9, Wikimedia commons.