According to the statistics provided by the State Statistics Service of Ukraine, in 2023 Ukraine – Luxembourgish trade turnover amounted to 16,9 million US dollars, a 15.9% decline year-on-year. The value of Ukrainian export in goods to Luxembourg in 2023 amounted to 3,4 million US dollars, a 62.7% decline year-on-year, while the value of import amounted to 13,5 million US dollars, 22.8% rise year-on-year. A bilateral trade between Ukraine and Luxembourg during this period amounted to a deficit of around 10.1 million US dollars.
The structural decomposition of the Ukrainian export in goods shows the prevalence of following products: wood and wood products (51.9%); alcoholic and non-alcoholic beverages (22.0%); railway locomotives (6.5%); nuclear reactors, boilers, machines (6.1%); plastics, polymer materials (4.0%); furniture (1.9%); grain crops (1.6%).
The structural decomposition of the Ukrainian import in goods shows the prevalence of following products: rubber, rubber and products made from them (19.6%); nuclear reactors, boilers, machines (15.8%); means of land transport except railway (12.8%); plastics, polymer materials (9.3%); paper and cardboard (8.6%); essential oils (7.8%); tools, knife products (7.5%); cotton wool (4.6%); optical and photographic devices and apparatus (4.3%).
In 2022 the Ukraine – Luxembourg volume of services trade decreased by 57.6%, amounting to 60.6 million US dollars. At the same time, the value of Ukrainian export in services decreased by 50.1%, amounting to 16 million US dollars, while the value of Ukrainian import decreased by 59.7%, amounting to 44.6 million US dollars. A negative balance of trade in services over the above-mentioned period for Ukraine amounted to 28.7 million US dollars.
The top services exported by Ukraine to Luxembourg have traditionally been linked to: telecommunications, computer and information services – 54.7%; transport services – 19.3%; business services – 13.1%; royalties and other services related to the use of intellectual property – 4.8%; services related to financial activities – 4.4%.
The top services imported by Ukraine to Luxembourg have traditionally been linked to: royalties and other services related to the use of intellectual property – 57.2%; IT sector (telecommunications services, IT services) – 25.3%; services related to financial activities – 12.7%; transport services – 2.3%.
According to the statistics released by the National Bank of Ukraine as of December 31, 2022, the level of Luxembourgish investing resources in the Ukrainian economy amounted to 262,4 million US dollars, in percentage terms it was estimated to be 3% of the total investments volume attracted to the Ukrainian economy over the same period of time.
The distribution of Luxembourgish investments across the sectors of the Ukrainian economy was as following: the share of Luxembourgish investment into the agriculture, forestry and fishing sector amounted to 341,3 million US dollars (in percentage terms it was estimated to be 33.5% of the total volume of Luxembourgish investments); into the field of real estate – 244,4 million US dollars (24%); into the industrial sector – 161,1 million US dollars (15.8%); into the sector of wholesale and retail trade, repair of motor vehicles and motorcycles – 80,1 million US dollars (7.9%); to cover the activities carried out in the transport, logistics, and postal services sector – 63.3 million US dollars (6.2%); into the sector of professional, scientific and technical activity – 9,0 million US dollars (0,9%); into the sector of administrative and support services – 6,1 million US dollars (0,6%); into the IT sector (telecommunications services, IT services) – 3,9 million US dollars (0,4%).
Luxembourgish investments served also to support financial and insurance activities; health care and provision of social assistance; construction.
The official estimate for Luxembourg's GDP was 78 billion euros at the end of 2023, which is 1.5% point higher than predicted this year. The Luxembourg GPD composition by sector of origine was: financial and business services with 36% (the services sector generally accounts for 80% of the Luxembourg 's economic activity); industry – 15%; agricultury – 5%. More than 65% of goods and services produced in Luxembourg are exported.
In the first nine months of 2023, the total turnover of Luxembourgish foreign trade for the first nine months of 2023 stood at 720 billion euros, Luxembourgish exports amounted to 364,1 billion euros, while imports amounted to 359,2 billion euros. The structural decomposition of the Luxembourgish export and import shows the prevalence of services (financial, insurance, business and consulting services, fintech, trade, air transportation, telecommunication services, royalties, licensing, tourism), products of the steel industry and agriculture products.
Luxembourg's largest trade partners are Germany, France, Belgium, the Netherlands, Austria, and Spain.
The following economic institutions are responsible for boosting the Luxembourgish foreign economic activity and Luxembourgish products abroad: the Chamber of Commerce and Industry of Luxembourg, that is in charge of supporting Luxembourg business and promoting Luxembourg exports, drawing up development programs and carrying out economic analysis; "Luxinnovation", which is the national innovation agency of Luxembourg encouraging and supporting innovative projects and the development of companies, as well as promoting their cooperation with state research institutions, offering companies a wide range of its own services; "LTIO" – the Luxembourg Trade and Investment Office, which provides assistance directly to Luxembourg businesses in matters of innovative development and promotion of exports abroad.
According to the information released by the Ministry of Foreign and European Affairs of Luxembourg, the total amount of the humanitarian assistance to Ukraine in 2023 provided by the government of Luxembourg amounted to 18.5 million euros.
Luxembourgish humanitarian assistance for Ukraine includes several financial support packages, namely a package of 8.2 million euros in the form of humanitarian financial contributions and material aid provided through the UN Office for the Coordination of Humanitarian Affairs (OCHA), the Office of the United Nations High Commissioner for Refugees (UNHCR), the World Food Program of the United Nations (WFP), Caritas (Caritas), the International Committee of the Red Cross (ICRC), the humanitarian organization CARE and the organization of life support in dangerous areas HALO Trust. Luxembourg makes significant efforts to develop projects to rebuild Ukraine: restore the destroyed Ukrainian infrastructure, Ukraine's hardest-hit regions and the Ukrainian economy as a whole. In this regard, humanitarian aid package amounted to 10.3 million euros and was directed by the government through the United Nations Children's Fund (UNICEF) and the UN program The Ukraine Community Recovery Fund.
Since the introduction of EU sanctions against the russian federation, Luxembourg has blocked russian corporate assets worth 6.2 billion euros.
Exporters and Investors Council (EIC) under the Ministry of Foreign Affairs of Ukraine was established in 2013 in order to safeguard national interests in Ukrainian export promotion and attraction of foreign investments to Ukraine.
EIC is a platform, which unites Ukrainian producers, exporters and leading business associations providing necessary support in promoting their goods and services abroad and entering new markets, as well as attracting foreign investors and companies to Ukraine effectively using diplomatic tools, resources and networks.
The Head of the Council is the Minister for Foreign Affairs of Ukraine.
Ukraine has got its official website Ukraine.ua. With this modern digital platform, we want to tell a creative and inspiring story about Ukraine for the foreign visitors. Here everyone can get their first impression of the country and make a decision to come here to study, invest or travel.
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While being the largest country within Europe, Ukraine enjoys the benefits of location at the crossroads of major transportation routes between Europe, Asia and the Middle East.
Ukraine is a world level player in a number of industries, including agriculture, developed energy, metallurgy, chemicals, manufacturing, IT and high-tech sector. It is home to a number of global firms that began as successful startups (Grammarly, Depositphotos, MacPaw, Petcube and others). Many global companies have also established major R&D facilities in Ukraine, including Oracle, Ring, Siemens, Cisco and Samsung.
Ukraine is ranked 64th in the World Bank Ease of Doing Business 2020’s ranking , rising 88 positions since 2012. Being the most cost-efficient manufacturing platform in Europe and having 18 free trade agreements with 48 countries we have a lot to offer to investors.
On 13 February 2021 the Law of Ukraine No. 1116 “On State Support for Investment Projects with Significant Investments in Ukraine” (so-called Law on Investment Nannies) entered into force introducing a comprehensive legislative framework aimed at attracting large investments to the economy of Ukraine. According to this Law and respective amendments to the Tax and Customs Codes of Ukraine (effective as of 28 March 2021), a package of special investment incentives became available for investment projects meeting certain criteria.
In terms of looking for the information and best opportunities to invest in Ukraine, this information may be useful: