Ukraine is a priority partner for the European Union, also within the EU's Eastern Partnership. An Association Agreement, including a Deep and Comprehensive Free Trade Area (DCFTA) between the EU and Ukraine, was negotiated between 2007 and 2011 and signed on 21 March and 27 June 2014. It replaces earlier frameworks for cooperation. The Association Agreement is the main tool for bringing Ukraine and the EU closer together: it promotes deeper political ties, stronger economic links and the respect for common values.

Parts of the Association Agreement have been provisionally applied since 1 November 2014. This has enhanced EU-Ukraine cooperation on human rights, fundamental freedoms and the rule of law; political dialogue and reforms; movement of persons; and strengthened cooperation in a number of sectors, including, energy; the environment and climate action; transport; financial services; public finances, including anti-fraud; agriculture and rural development; fisheries and maritime policies; consumer protection and civil society.

The Agreement entered into force on 1 September 2017. The state of implementation of the Association Agreement is reported on annually. The latest report (2019) is available online

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Since Spring 2014, Ukraine has embarked on an ambitious reform timetable aiming to stabilise its economy and improve the livelihoods of its citizens. Ukraine and the EU have jointly defined a reform agenda - the Association Agenda, and follow the progress of this closely. The fight against corruption, reforming the judiciary, constitutional and electoral reforms, the improvement of the business and investment climate and energy efficiency, as well as reform of public administration, including decentralisation, are among the top priorities on the agenda. Gender mainstreaming is a priority in all sectors.

In addition to political support, since 2014, the EU and the European Financial Institutions have mobilised more than €15 billion in grants and loans to support the reform process in Ukraine.

Programmes committed and under implementation include, inter alia:

• The EU disbursed the second and last € 500 million tranche under the fourth Macro-Financial Assistance on 10June. With this release, the total Macro-Financial Assistance extended to Ukraine by the EU since 2014 has reached € 3.8 billion (out of 4.4 billion committed), the largest amount of such assistance directed at any single partner country. In addition, The EU has also made available Macro-Financial Assistance loans of up to € 1.2 billion to Ukraine to help limit the economic fallout from the coronavirus pandemic.
• € 4.3 billion in loans signed by the European Investment Bank (EIB) since 2014, to support infrastructure development and reforms in the transport,  energy,  agriculture, education and municipal sectors, as well as substantial financial and technical support for SME development and reconstruction of essential social infrastructure damaged in the conflict in eastern Ukraine.
• € 4.05 billion in investment from the European Bank for Reconstruction and Development (link is external) under the current portfolio, thanks to the support of the EU and its Member States, including as donors, to help develop and reform, inter alia, the banking sector, agribusiness, transport and small businesses in Ukraine.
• EU External Investment Plan (EIP) – This is a key EU initiative set up to encourage public and private investments. The EIP leverages additional investments by mitigating financial risks with the new EU Guarantee Fund (€ 1.5 billion) and by blending EU grants with loans from European Financial Institutions via the Neighbourhood Investment Platform (NIP). Since 2014, more than € 205 million has been channelled through the NIP to Ukraine to support the financing of infrastructure in fields such as water and sanitation, energy efficiency, transport, connectivity and environment, support to SMEs, municipal infrastructure and local currency lending.
• € 1 365  million from the European Neighbourhood Instrument, including:
  
  • In 2014 - €365 million to support and monitor democratic reforms and reinforce macroeconomic stability, strengthen governance capacity and Ukraine's socioeconomic development. This was done through two actions: budget support in the form of a State Building Contract (€355 million) and support to Civil Society in Ukraine (€10 million).
  • In 2015 – €200 million for: a private sector development programme (€95 million), Technical Cooperation Facility (€15 million), and support to the decentralisation reform U-LEAD (€90 million).
  • In 2016 – €200 million for: the EU Anti-corruption Initiative in Ukraine (€15 million), Technical Cooperation Facility (€28.5 million), Public Administration Reform (€104 million), and PRAVO programme to support rule of law reforms (€52.5 million).
  • In 2017 – €200 million for: energy efficiency (€50 million), public finance management (€50 million), support to sustainable socioeconomic development and good governance in conflict-affected eastern regions of Ukraine (€50 million), Technical Cooperation Facility (€37 million), and €13 million for local currency lending to provide additional finance i.a. to micro- and small enterprises through NIP.
  • In 2018 - €200 million for: Energy Efficiency Support Programme for Ukraine –  EE4U-II (€ 54 million), Technical Cooperation Facility (€ 37 million), EU4Skills: Better Skills for Modern Ukraine (€ 38 million), People to People Contacts Programme: House of Europe (€ 18 million), € 3 million to civil society and a contribution to NIP for municipal infrastructure projects (€ 50 million).
  • In 2019 - €200 million for: EU Anti-Corruption Initiative in Ukraine – Phase II (€ 15 million), U-LEAD with Europe: Phase II (€ 40 million), support to civil society and culture (€ 10 million), Technical Cooperation Facility 2019 (€ 44 million), e-governance and digital Economy (€ 25 million), further support of € 10 million to the east Ukraine, agriculture and small farm development (€ 44 million) and contribution of € 25 million to NIP for municipal infrastructure projects and local currency lending.

• Since 2014, more than € 116 million have been mobilized by the Services for Foreign Policy Instruments (FPI) under the Instrument contributing to Stability and Peace (IcSP).

This includes support to the OSCE Special Monitoring Mission, assistance to internally displaced persons (IDPs) and to conflict-affected populations as well the restoration of governance and reconciliation in crisis-affected communities. Selected recent examples include:

• 2018: Enhancing stability in Ukraine by reinforcing cyber security in the preparation of the presidential elections (€ 1 million)
• 2019: Support to mine action to strengthen resilience and stability in eastern Ukraine, including regions bordering the Sea of Azov (€ 5 million)
• 2019: Countering disinformation in southern and eastern Ukraine (€ 2 million)
• 2020: Support to greater resilience of the Sea of Azov region (€ 1 million)
• 2020: Strengthening the reintegration of veterans of the conflict in Eastern Ukraine (phase II)

• The EU Advisory Mission for Civilian Security Sector Reform Ukraine (EUAM Ukraine), under the EU's Common Security and Defence Policy (CSDP), was launched in December 2014. It aims to assist the Ukrainian authorities towards sustainable reforms in order to achieve an efficient and trustworthy civilian security sector. Its mandate was extended until May 2021 with a total budget of  € 54 million for the extension period, and approximately 350 Staff members employed. The overall accumulated budget since 2014 is of € 142 million. EUAM is an unarmed, non-executive civilian mission with its Headquarters in Kyiv and Field Offices in Lviv, Kharkiv, Odesa, and Mariupol (since June 2020), as well as one Mobile Unit.

• In 2014, the European Commission also created a dedicated Support Group for Ukraine (SGUA). It is composed of experts from EU institutions and Member States, who provide coordination and advice to the Ukrainian authorities in key reform sectors.

On 11 June 2017,  visa-free travel for Ukrainian citizens with biometric passports entered into force. It followed  the successful conclusion of the visa liberalisation dialogue, covering significant reforms ranging from rule of law to integrated border management and fundamental rights. Visa liberalisation is one of the EU’s most powerful tools in facilitating people-to-people contacts and strengthening ties between the citizens of third countries and the EU. Every year through the Visa Suspension Mechanism Report, the Commission assesses if the country continues to fulfil the engagement taken throughout the visa liberalisation dialogue - so called visa liberalisation benchmarks. Each year, the Commission publishes a report reflecting this monitoring.

On 10 July 2020, the Commission published the third report under the Visa Suspension Mechanism. The report confirms that the visa liberalisation benchmarks continue to be fulfilled by Ukraine.

Despite the decrease in the return rate, good cooperation on readmission continued and should be maintained. The same concerns cooperation with the EU and Member States on measures to tackle migration challenges and mitigate security risks. Ukraine continued its efforts in the area of rule of law. However, more efforts are needed to ensure the sustainability of results in particular as regards the fight against corruption and organised crime as well as further improvement of the Integrated Border Management System (including the criminalisation of smuggling of goods). Immediate actions are also needed to address irregular migration challenges.

The EU and Ukraine have Agreement on cooperation in science and technology since 2002. It is currently being renewed to continue facilitate cooperation in common science and technology (S&T) priority areas.

In 2015, Ukraine became fully associated to Horizon 2020. Its participation in Horizon 2020 is particularly successful in Marie Skłodowska-Curie actions, 'Smart, green and integrated transport' and 'Secure, clean and efficient energy'.

In 2016, Ukraine and the EU also concluded an agreement on the association of Ukraine to the Euratom Research and Training Programme. The programme is specifically aimed at improving the nuclear safety and radiation protection. Since its association, Ukraine has benefited from direct and indirect actions in the fields of fission and fusion research. Cooperation in nuclear research with Ukraine is vital for sharing research excellence and the EU’s nuclear safety culture with the Ukrainian nuclear sector.

Ukrainian researchers, businesses and innovators can apply to all funding schemes of both mentioned programmes, across the whole research and innovation value-chain, from fundamental research up to pre-commercialization activities, on equal terms with their EU counterparts.

The EU and Ukraine cooperate in research and innovation also within the European Neighbourhood Policy (ENP) and the Eastern Partnership (EaP).

To date, Ukrainian beneficiaries received a total of € 36,11 million from H2020.

More information on EU-Ukraine research and innovation cooperation is available online.

The European Council of 20 March 2014 strongly condemned the illegal annexation of Crimea and Sevastopol by the Russian Federation. EU leaders underlined that there is no place for the use of force and coercion to change borders in Europe in the 21st century. Six years on, the EU does not recognize and continues to condemn this violation of international law. The EU has adopted a strict non-recognition policy with regard to the illegal annexation. This policy has led to substantive sanctions, set out in the annex to this Factsheet. The sanctions have been extended several times since then.

The EU has been strongly supporting efforts to come to a peaceful and sustainable solution to the conflict in eastern Ukraine.

From the outset, the EU has supported Ukraine's territorial integrity, condemning the clear violations of Ukrainian sovereignty and territorial integrity by acts of aggression by the Russian armed forces. It has fully supported all initiatives aimed at bringing a lasting political solution to the conflict in eastern Ukraine, using all the means available. 

The EU's approach has been to combine pressure through restrictive measures with diplomatic efforts and continuing dialogue.

Diplomatic restrictions against the Russian Federation were first imposed at an extraordinary meeting of EU leaders on 6 March 2014. The EU gradually increased its restrictive measures, starting on 17 March 2014 with targeted sanctions against persons responsible for actions against Ukraine's territorial integrity, sovereignty and independence. In view of Russia's actions destabilising eastern Ukraine, a first package of significant economic sanctions targeting cooperation and exchanges with Russia was announced on 29 July 2014. A reinforced package of economic sanctions was announced in September 2014. Details about restrictive measures are in the annex.

At the same time, the EU participated directly in negotiating the Geneva Joint Statement of 17 April 2014.  It welcomed the subsequent agreements for a ceasefire and further steps to stabilise the situation and achieve a political solution, reached in Minsk in September 2014 and in February 2015. The duration of the EU's economic sanctions against the Russian Federation is clearly linked to the complete implementation of the Minsk agreements. As part of its efforts for a political solution, the EU has stepped up its assistance to the Organisation for Security and Co-operation in Europe (OSCE), conducted trilateral talks on trade and energy-related issues with Russia and supported political engagement including through discussions in the Normandy format (France; Germany; Ukraine; Russia) and the Trilateral Contact Group (OSCE; Ukraine; Russia). 

The Russian presidential decree of 24 April 2019, enabling the simplified issuing of passports in certain areas of Ukraine's Donetsk and Luhansk regions runs counter to the spirit and objectives of the Minsk agreements.  The Commission and the EEAS have issued guidance to the Members States on how to handle visa applications of the residents of non-government controlled areas.

The EU has been at the forefront of the response to the humanitarian crisis. Humanitarian needs are still high in eastern Ukraine: the conflict is affecting over 5 million people, of which 3.4 million are still in need of humanitarian assistance, especially along the contact line and in the non-government controlled territories.

The European Union and its Member States have provided financial support to the most vulnerable people. The EU, together with its Member States, is the biggest donor of humanitarian and early recovery/development assistance to Ukraine.

The EU's Civil Protection and Humanitarian Aid Operations (ECHO) have operated in Ukraine since February 2014 and plays a key role in facilitating humanitarian coordination and information sharing with various humanitarian organisations, including donors, authorities and aid partners. The EU is stepping up humanitarian funding to help those most in need in Ukraine with an additional €13 million. The assistance includes essential support such as basic needs, healthcare, including psychosocial support, shelter repairs, water, cash transfers and Education in Emergencies projects. All EU humanitarian aid is impartial and independent, and is provided along the line of conflict and in the non-government controlled areas. This brings the total EU humanitarian support for Ukraine to €154.8 million

In addition to financial aid, in-kind assistance was mobilised through the EU Civil Protection Mechanism in the early onset of the conflict. The EU also provides assistance to displaced Ukrainians in Belarus and Russia.

Diplomatic measures

• Instead of the G8 summit in Sochi, a G7 meeting was held in Brussels on 4 and 5 June 2014. EU nations supported the suspension of negotiations over Russia joining the OECD and the International Energy Agency (IEA).
• The EU-Russia summit was cancelled and EU Member States decided not to hold regular bilateral summits. Bilateral talks with Russia on visa matters as well as on the New Agreement between the EU and Russia were suspended.

Asset freezes and travel bans

Asset freezes and visa bans apply to 177 persons while 48 entities are subject to a freeze of their assets in the EU. This includes persons and entities responsible for action against Ukraine's territorial integrity, persons providing support to or benefitting Russian decision-makers and 11 entities in Crimea and Sevastopol that were confiscated or that have benefitted from a transfer of ownership contrary to Ukrainian law. The ban also includes a prohibition of any payments made to these persons and entities. On 28 January 2020, the EU added 7 Russian individuals involved in the holding of local elections by Russia in the illegally annexed peninsula. On 1 October, the EU added two individuals and four entities to the list of those individuals and entities subject to restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine. These measures were adopted in the light of the role played by these people and entities in the construction of the bridge and railway tracks linking Russia to the illegally annexed Crimean peninsula via the Kerch Strait, and further isolating Crimea from Ukraine.See the latest consolidated version in the Official Journal.

Restrictions for Crimea and Sevastopol

As part of the EU's non-recognition policy of the illegal annexation of Crimea and Sevastopol, the EU has imposed substantial restrictions on economic exchanges with the territory. These include:

• A ban on imports of goods originating in Crimea or Sevastopol unless they have Ukrainian certificates;
• A prohibition to invest in Crimea. Europeans and EU-based companies can no longer buy real estate or entities in Crimea, finance Crimean companies or supply related services. In addition, they may not invest in infrastructure projects in six sectors;
• A ban on providing tourism services in Crimea or Sevastopol. European cruise ships may not call at ports in the Crimean peninsula, except in case of emergency. This applies to all ships owned or controlled by a European or flying the flag of an EU Member State;
• Goods and technology for the transport, telecommunications and energy sectors or the exploration of oil, gas and mineral resources may not be exported to Crimean companies or for use in Crimea;
• Technical assistance, brokering, construction or engineering services related to infrastructure in the same sectors must not be provided.

To facilitate compliance with these restrictive measures and other elements of the non-recognition policy, the EU has compiled an Information Note to EU business operating and/or investing in Crimea/Sevastopol.

Information note to EU business on operating and or investing in Crimea/Sevastopol

"Economic sanctions"

• EU nationals and companies may not buy or sell new bonds, equity or similar financial instruments with a maturity exceeding 30 days, issued by:
  
  • five major state-owned Russian banks;
  • three major Russia energy companies;
  • three major Russian defence companies;
  • subsidiaries outside the EU of the entities above, and those acting on their behalf or at their direction.
• Assistance in relation to the issuing of such financial instruments is also prohibited.
• EU nationals and companies may also not provide loans with a maturity exceeding 30 days to the entities described above.
• Embargo on the import and export of arms and related material from/to Russia, covering all items on the EU common military list, with some exceptions.
• Prohibition on exports of dual use goods and technology for military use in Russia or to Russian military end-users, including all items in the EU list of dual use goods. Export of dual use goods to nine mixed end-users is also banned.
• Exports of certain energy-related equipment and technology to Russia are subject to prior authorisation by competent authorities of Member States. Export licenses will be denied if products are destined for oil exploration and production in waters deeper than 150 meters or in the offshore area north of the Arctic Circle, and projects that have the potential to produce oil from resources located in shale formations by way of hydraulic fracturing.
• The following services necessary for the above mentioned projects may not be supplied: drilling, well testing, logging and completion services and supply of specialised floating vessels.

See the Commission Guidance note on the implementation of certain provisions of Regulation (EU) No 833/2014

Measures concerning economic cooperation

• On 16 July 2014, the European Council requested the EIB to suspend the signature of new financing operations in the Russian Federation. European Union Member States will coordinate their positions within the EBRD Board of Directors with a view to also suspending financing of new operations.
• The implementation of EU-Russia bilateral and regional cooperation programmes has been largely suspended. Projects dealing exclusively with cross-border cooperation and civil society are maintained.

Asset freezes for misappropriation of Ukrainian state funds

An asset freeze is in place against 10 people identified as responsible for the misappropriation of Ukrainian state funds or for abuse of office causing a loss to Ukrainian public funds