Ukraine, US to start working on free trade zone, Shmyhal says

Ukraine and the U.S. agreed to start working on a free trade zone between the two countries, Prime Minister Denys Shmyhal said on April 23 after meeting U.S. Treasury Secretary Scott Bessent in Washington.

Ukraine and the U.S. launched initial talks on a free trade zone back in 2021. Earlier, Shmyhal said that Kyiv seeks to boost bilateral trade and an agreement with the U.S. to allow "everything except for the fixed exceptions."

Ukrainian trade with the U.S. has dropped in recent years, with only $874 million of exports and $3.4 billion of American imports last year. But the knock-on effect could be a global trade war that hits Ukraine too, Oleksandra Myronenko from the Center for Economic Strategy (CES) in Kyiv, told the Kyiv Independent.

In early April, U.S. President Donald Trump imposed a 10% tariff on all Ukrainian goods, except metal products, which had already been subject to a 25% tariff in March.

According to Shmyhal, the parties also discussed "important political aspects" of the long-debated future minerals deal between Kyiv and Washington, which was reaffirmed in a recently signed memorandum. Further details on the ongoing negotiations are expected by April 26.

"Ukraine's government undoubtedly supports the conclusion of an agreement on economic partnership between the American and Ukrainian peoples and the creation of a Reconstruction Investment Fund," the prime minister said.

Shmyhal also called on the U.S. to strengthen energy sanctions against Russia due to the occupation of the Zaporizhzhia Nuclear Power Plant.

Politico reported on April 23, citing undisclosed sources, that the Trump administration is discussing the possible lifting of sanctions on Russia's Nord Stream 2 gas pipeline and other Russian energy assets in Europe.