Ukraine and Britain have signed a groundbreaking new deal, allowing Ukraine to access British financial services as it seeks to rebuild its shattered economy, the British government announced early on Wednesday.
Britain said it had agreed in principle to a digital trade deal with Ukraine, the Eastern European country's first such agreement as it seeks economic support following Russia's invasion, which started in February.
The U.K. has sought to support Ukraine during the war, providing weapons but also taking economic steps, such as cutting tariffs on all Ukrainian goods to zero.
Talks on the digital deal began in the summer and were fast-tracked with a view to supporting Ukraine's economy through the war and afterward.
The call for the agreement came from Ukrainian President Volodymyr Zelenskyy, just after the country's independence day, Aug. 24.
The Ukrainian government has identified supporting the digital economy as one of its areas of focus for the recovery and reconstruction of the country. The U.K., as a global leader in digital trade, is well-placed to help with that.
"This agreement will mean our businesses and governments can collaborate even more and ensure Ukrainians have access to essential goods and services digital trade opens up," British Trade Minister Kemi Badenoch said.
"The landmark digital trade deal agreed today between our two countries paves the way for a new era of modern trade between us. This will help protect jobs, livelihoods and families now and in Ukraine's post-war future," he added.
The deal covers areas such as streamlining digital border processes, cross-border data flows, electronic transactions and e-signatures.
Digital trade is considered to be particularly important in the current conflict with Russia where the fighting and the damage to infrastructure make physical trade more difficult.
Yulia Svyrydenko, Ukraine's first deputy minister and minister for trade and economy, will be in London to mark the agreement.
"The UK-UA Digital Trade Agreement has enshrined core freedoms for trade in digital goods and services," Svyrydenko said.
This is the second digital trade agreement for the U.K. after one with Singapore was reached earlier this year.