Why and how Ukraine should seek special business treatment from EU

Ukraine's recent opening of its first negotiation cluster in the process of joining the European Union was an important political milestone. But its practical significance extends much further: from now on, Ukraine has an even stronger case for insisting that new EU legislation should not automatically treat it as an ordinary third country.

Ukraine is no longer merely an external trading partner. It is a candidate country, a future participant in the EU's internal market and a state that is simultaneously implementing reforms while fighting a war for its own survival and for Europe's security.

This reality should be reflected not only in political statements but also in the European Union's specific regulatory acts.

Read more about Ukraine's special status and how to advance it in the article by Olha Bielkova of FTI Consulting Brussels: More than a partner: How Ukraine can secure special status in new EU rules.

The EU is rapidly reshaping its regulatory framework in areas including climate policy, industry, energy, trade, agriculture, state aid and market access.

If Ukraine is not explicitly mentioned in the regulatory acts that will shape the EU's future economic environment, it will, by default, be treated under the rules applicable to third countries.

This means that Ukrainian producers may face the same requirements as countries that are not EU candidates, have not opened accession negotiations, are not integrating into the EU's internal market and are not operating under the conditions of a full-scale war.

This is politically inappropriate and economically dangerous.

A good example of why Ukraine requires a distinct approach is the Carbon Border Adjustment Mechanism (CBAM).

Formally, CBAM applies to imports from third countries. However, when the regulation was adopted in May 2023, Ukraine was not a typical third country. Ukrainian industry has been operating under conditions of destroyed energy infrastructure, wartime risks, exceptionally high logistics costs and severely constrained access to financing.

Ukraine is not explicitly named in EU Regulation 2023/956 establishing the CBAM. Nevertheless, Article 30(7) effectively refers to Ukraine by recognising the logic of exceptional circumstances.

For Ukraine, this should not be treated as a one-off argument but rather as a model for broader advocacy.

For example, Ukraine is not asking to be exempted from climate rules. Instead, it is seeking a fair transitional approach that takes into account the war, the destruction of its energy system, and its future EU membership.

An even more telling example is the EU's new approach to steel imports, which is intended to replace the current safeguard regime protecting the European market.

In this case, negotiations over the practical implications of the wording are still ongoing.

However, Ukraine is already mentioned explicitly.

This sets an important political and legal precedent: Ukraine is not simply "one of many" third countries.

This logic should now be extended to other areas of EU policymaking.

The Ukrainian government should launch a systematic advocacy campaign in Brussels. In every new major EU legislative proposal affecting the Ukrainian economy, Ukraine should seek an explicit reference to its special status.

To achieve this, Ukraine should establish a permanent mechanism for monitoring new EU legislative initiatives.

For every relevant proposal, the Ukrainian side should assess three key questions: does the measure affect Ukrainian producers, exporters, or Ukraine's future alignment with the EU acquis? Is Ukraine explicitly mentioned? If not, can alternative wording be proposed that recognises Ukraine's status as a candidate country facing exceptional security circumstances?

This should not be the government's responsibility alone. The effort should involve business associations, industry groups, experts, Ukraine's Mission to the EU, Members of the European Parliament, European industry associations and Ukraine's allies across EU member states.

Ukraine's task today is to ensure that references to its special status in new EU legislation become the norm rather than the exception.