The industries of both Ukraine and the European Union are experiencing a significant downturn; however, the reasons for this phenomenon differ for each side. For EU countries, key factors include global competition, high energy costs, and stringent regulatory pressure. Ukraine, on the other hand, has faced prolonged systemic issues that have been exacerbated by the devastating war unleashed by the Russian Federation.
This is reported by Business • Media
Dynamics of the Ukrainian Industry and the Impact of War
The added value in Ukraine’s manufacturing sector has significantly decreased over the last one and a half decades: from $20 billion in 2007 to $6.7 billion in 2022. Following the onset of the full-scale invasion by Russia, the industry experienced a sharp decline. However, during 2023 and 2024, there is a partial recovery in production. The share of manufacturing in the country’s GDP structure has also decreased: from 20% in 2007 to 7.6% in 2022. Just in 2021, before the start of the large-scale aggression, this figure was 10.3%. The recovery of the sector is currently slow and remains far from pre-war levels.
Potential for Strategic Partnership and Recovery
The common challenges faced by the industries of Ukraine and the EU open up opportunities for deepening strategic cooperation. Ukraine has the potential to become an industrial platform for Europe, while the EU can act as a powerful investor and technological partner in the process of Ukraine’s reindustrialization. Particularly promising are the areas of critical minerals development and green energy, where Ukraine possesses significant resources.
“The integration of industrial potentials creates opportunities for mutual enhancement of competitiveness and the formation of an economic model capable of withstanding global competition.”
Active cooperation between Ukraine and the EU in the fields of industry and raw materials can provide both parties with resilience and a competitive advantage in global markets, contributing to economic growth and sustainable development.