Business Week: Trump's tariffs for Europe, Europe's tariffs for Ukraine, sanctions against Russia
Last week was marked by a number of important business news. Discussions continue on the topic of the EU reintroducing quotas on Ukrainian products. Poland has already announced the return of quotas starting June 5, citing the fact that it cares about its economic interests.
Donald Trump announced his intention to impose a 50% duty on goods from the European Union starting June 1, 2025.
By the end of the week, it was reported that Ukraine and the United States had completed all the necessary formalities to launch the U.S.-Ukraine Reconstruction Fund.
Read more about this and other news in the digest from LIGA.net .
The U.S.-Ukraine Reconstruction Fund is officially launched
On Friday, May 23, First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko announced that Ukraine and the United States have completed all the necessary formalities to launch the U.S.-Ukraine Recovery Fund.
The last necessary step in the procedure was the delivery of a diplomatic note from the United States. It was handed over by Julie S. Davis, Chargé d'Affaires of the United States in Ukraine.
According to the Deputy Prime Minister, the Fund's work is focused on a future in which the United States and Ukraine jointly invest in Ukraine's recovery. The fund's mechanism envisages joint management by Ukraine and the United States, as well as joint investment on the principles of equal partnership.
Return of EU duties and quotas: what it means for Ukraine
The Ministry of Economy has confirmed that after June 6, 2025, the pre-war terms of trade with the EU will return, which means the termination of autonomous trade measures (ATMs). These measures had been in place since 2022 and provided duty-free access for Ukrainian goods to the European market. This decision could cost Ukraine billions of euros annually and hit the agricultural sector, which is the country's main export, hardest.
As later learned, the European Commission decided to reinstate these restrictions under pressure from farmers from Poland, Hungary and Slovakia.
During the vote, no EU member states objected. Eight countries abstained: Sweden, Czech Republic, Denmark, Estonia, Finland, Germany, Ireland, and Lithuania. The quotas will be in effect until the end of 2025 and will amount to 7/12 of the usual annual volumes.
Poland has already announced that starting from June 5, 2025, it will cancel the European mechanism of autonomous trade measures (ATMs), which allows duty-free imports of goods from Ukraine. This was announced in the Sejm by the country's Prime Minister Donald Tusk .
Prices for cherries and cherries will soar in 2025
The spring frosts in April 2025 dealt a serious blow to the cherry and sweet cherry harvest in Eastern Europe and Turkey. Experts predict that yields in many countries will decline by 50% or more, which will inevitably lead to higher prices.According to preliminary estimates, about 45-55% of the sweet cherry harvest was lost, primarily in the southern regions of Ukraine, where production is concentrated. In the central regions, the losses were even higher, but the area under cherries there is smaller.
Trump threatens EU with 50 percent tariffs over failed trade talks
US President Donald Trump announced his intention to impose 50% duties on goods from the European Union starting June 1, 2025. The reason for this decision was the ineffectiveness of trade negotiations with Brussels.
Trump explained his position by saying that cooperation with the EU has proven to be extremely difficult. The President accused the European bloc of creating numerous trade barriers for American companies.
In his statement, Trump listed claims against the EU: high trade barriers, value-added tax, fines for corporations, currency manipulation, and unfair lawsuits against American businesses. According to him, this has led to a trade deficit of more than $250 billion a year.
At the same time, the president noted that the new customs duties would not affect American-made goods. Trump characterized the EU as an association created primarily to benefit from trade with the United States.
The AMCU approves the sale of Khmelnytsky Brewery to a glass container manufacturer
may 22 The Antimonopoly Committee of Ukraine has given its consent to the transfer of control over the Khmelnytsky Regional Brewery to the Kostopil Glassworks.
Khmelnytsky Brewery, also known as Khmelpyvo, specializes in the production of beer under the Proskurivske brand. Last year, the company demonstrated successful financial performance: net profit amounted to UAH 76.9 million on total revenue of UAH 146.4 million. The controlling stake (78%) and management of the plant belong to Oleksandr Lysiuk.
The new owner, Kostopil Glassworks (KZS Glass), manufactures packaging for the food industry, pharmaceuticals, and other sectors of the economy. The company is run by Dmytro Oliynyk, who is the chairman of the supervisory board. He is also the Chairman of the Federation of Employers of Ukraine.
The deal opens up new opportunities for vertical integration of beer and glass packaging production.
SBU seizes half a billion hryvnias worth of property of Motor Sich ex-exec's son
The Security Service of Ukraine has announced the seizure of assets, belonging to the son of the former president of Motor Sich, Oleksandr Boguslaev. The value of the blocked property is estimated at about UAH 500 million.
The list of seized assets includes 62 residential and commercial properties, corporate rights to 18 Ukrainian enterprises, and shares in two joint-stock companies.
Particular attention is drawn to the production facilities among the seized property: helicopter assembly workshops, a grinding equipment manufacturing plant, and several dozen Motor Sich facilities. According to the investigation, these assets were illegally transferred to the suspects.
The decision to seize the property was made by the court at the request of law enforcement agencies in the framework of criminal proceedings.
NACP exposes former head of Pension Fund in Khmelnytskyi region for concealing $500 thousand
The National Agency for Prevention of Corruption has found serious violations in the declaration of Oleksandr Krupa, former head of the Main Department of the Pension Fund of Ukraine in Khmelnytsky region.
Comprehensive audit of 2022 declaration reveals signs of illicit enrichment in the amount of UAH 19 million and submission of false information worth UAH 44 million.
According to the agency, the former official declared cash in different currencies worth more than UAH 23 million, but could not confirm the legality of their origin during the inspection.
The most resonant was the discovery that the official did not indicate in his declaration a deposit of more than $500,000 (which is more than 19.5 million hryvnias at the then exchange rate) in an Austrian bank. The account was opened in the name of his wife at the beginning of the full-scale Russian aggression against Ukraine.
EU approves 17th package of sanctions against Russia and prepares further restrictive measures
on May 20, the Council of the European Union officially adopted the 17th package of sanctions against the Russian Federation in response to its full-scale war against Ukraine.
The EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas, said on social media platform X that the new package of sanctions targets nearly 200 vessels of the so-called "shadow fleet." The measures also include countering hybrid threats and protecting human rights .
"Additional sanctions against Russia are already being developed. The longer Russia wages war, the tougher our response will be," the European diplomat emphasized .
According to the head of the Office of the President of Ukraine, Andriy Yermak, the total number of vessels under sanctions now stands at 342. These vessels are used to transport Russian oil, weapons and stolen Ukrainian grain.
Experts warn of water crisis in southern Ukraine: Odesa and Kherson are at risk
The head of the Restoration Agency, Serhiy Sukhomlyn, has warned that large southern cities in Ukraine may experience acute water shortages within the next 10-15 years. In an interview with the Telegraph, he cited climate change and inefficient wastewater treatment as the main causes .
Odesa and Kherson are most at risk. Odesa receives water from the Dniester through a water intake station in Bilyaivka, 40 kilometers from the city. Kherson relies on underground artesian springs.
"It is important for us to think about meeting the needs of Odesa and Kherson right now. If nothing is done, in 15 years we will have serious problems with water in Kherson, so we need to get involved now," Sukhomlyn emphasized .
According to him, Odesa may face water supply restrictions at all.
An ambitious infrastructure project is being proposed as a way out of the situation: the construction of a transport corridor between Odesa and the Danube ports, bypassing Moldova, with the parallel construction of a water pipeline.
Glovo says new taxation will not affect delivery costs
Maryna Pavliuk, Glovo's director in Ukraine, told LIGA.net that the company is actively preparing for the implementation of draft law No. 13232 on taxation of digital platforms' income. According to her, the platform participated in the development of this document .
According to the draft law, digital platforms will automatically transfer 10% of couriers' earnings to the state budget – 5% of income tax and military duty. Couriers will receive the remaining 90% as net profit .
Pavliuk noted that the implementation of the new rules requires technical integration with government systems, primarily with the tax service, for reporting. The high-quality implementation of these changes should simplify cooperation with couriers.
"It is currently difficult to predict how the new model will affect the market. However, we are convinced that if it is implemented taking into account digital tools and platforms' features, there will be no significant impact on the market or delivery costs," emphasized the head of Glovo.
According to her forecasts, the correct implementation of the draft law will make working with platforms more convenient for both experienced couriers and newcomers to the field.
