Trade and economic cooperation | Embassy of Ukraine in the Kingdom of Norway

Trade and economic cooperation

22 January 2024 15:27

Trade and economic cooperation between Ukraine and Norway is regulated by the following documents: the Free Trade Agreement between Ukraine and the EFTA States and the Agreement on Agriculture between Ukraine and Norway (both agreements were signed on 24 June 2010 and entered into force on 1 June 2012). During the last years, Ukrainian-Norwegian trade and investment cooperation has shown a relatively positive dynamic.

The total trade turnover between Ukraine and Norway in 2023 amounted to 523 million USD.

Exports of goods from Ukraine to Norway amounted to 103 million USD (% to 2022: +65%). During the same period, imports of goods to Ukraine from Norway amounted to 420 million USD (% to 2022: +67%).

Top export commodities (Ukraine to Norway): fats and oils of animal or vegetable origin - 39,4% (in 2022 - 4,3%); Industrial goods - 29% (49,7%); food and live animals - 11,5% (5,2%); machinery and transport equipment - 10% (27%).

Top import commodities (Norway to Ukraine): food and live animals - 54% (in 2022 - 59%); miscellaneous industrial products - 20,9 % (32,7%); machinery and transport equipment - 22,5 % (6,1%).

In 2023, the negative trade balance for Ukraine (goods) with Norway amounted to 317 million USD.

The total trade turnover between Ukraine and Norway in the first half of 2024 amounted to 225 million USD.

Exports of goods from Ukraine to Norway amounted to 51 million USD (% to the first half of 2023: +46%). During the same period, imports of goods to Ukraine from Norway amounted to 174 million USD (% to first half of 2023: -20%).

Top export commodities (Ukraine to Norway): fats and oils of animal or vegetable origin - 37,1% (first half of 2023 - 18,9%); industrial goods - 21,6% (43,4%); food and live animals - 20,4% (11,7%); machinery and transport equipment - 14% (13,7%).

Top import commodities (Norway to Ukraine): food and live animals - 61,5% (first half of 2023 - 45,6%); miscellaneous industrial products - 25,1% (35,7%); machinery and transport equipment - 11,8% (17%).

In the first half of 2024, the negative trade balance for Ukraine (goods) with Norway amounted to 123 million USD.

In 2022 and 2023, statistical information on trade in services and direct investment from Norway in the economy of Ukraine is not available, given that during the martial law, the State Statistics Service of Ukraine suspended the publication of such statistical information.

Trade in Services in 2021 amounted to about 58 million USD. Exports of services from Ukraine to Norway - 45 million USD (compared to 2020 - 117%) and imports of services - 13 million USD (compared to 2020 - 31%).

Its main export items were telecommunication, computer and information services - 66% (% to 2020: 107%); transportation services - 23% (% to 2020: 184%); business services - 10% (% to 2020: 96%).

Its main import items were business services - 49% (% to 2020: 61%); telecommunication, computer and information services - 28% (% to 2020: 100%); public and government services - 5% (% to 2020: 2.5%).

In 2021 Ukraine's positive balance in trade in services with Norway amounted to 31 million USD.

The real volumes of exports of goods and services from Ukraine to Norway are much higher than the data of the State Statistics Service of Ukraine. The situation is similar with the volume of exports of services from Ukraine to Norway. The existing differences in the statistics of Ukraine and Norway are due to the non-designation of Norway as the destination country for many Ukrainian exports and services and, instead, their inclusion as exports to EU countries, primarily Denmark, the Netherlands, Germany, Poland, and the Baltic States.

According to the National Bank of Ukraine, as of December 31, 2021, Norway invested 34.8 million USD in direct investment in Ukraine (equity instruments and debt instruments, balances by country). At the same time, equity instruments (balances by country) amounted to 26.1 million USD as of December 31, 2021, which amounted to 0.1% of total foreign direct investment in the Ukrainian economy.

As of December 31, 2021, there were no Ukrainian investments in the Norwegian economy.

Guidelines for credit and banking institutions in Norway

A part of the territory of Ukraine is occupied by Russia as a result of its aggression, which began in 2014 and significantly expanded in 2022. Ukraine’s Autonomous Republic of Crimea and the city of Sevastopol are fully under Russia's temporary occupation. In the other four regions of Ukraine, namely Donetsk, Zaporizhzhia, Luhansk and Kherson oblasts, part of the territory is currently temporarily occupied by Russia, while the rest remains under Ukrainian control.

Any payment, trade and other foreign economic transactions with the territories of Ukraine temporarily occupied by Russia are prohibited by the relevant EU sanctions, which have also been joined by Norway.

At the same time, there are no restrictions on such transactions with the government-controlled territories of Donetsk, Zaporizhzhia, Luhansk and Kherson regions and they are carried out on the same terms as with the rest of Ukraine.

In case of need for additional information, we suggest taking into account the Consolidated FAQs drafted by the European Commission Directorate‑General for Financial Stability, Financial Services and Capital Markets Union for the financial institutions and business entities in the EU (Part D. Trade and Customs, paragraph 9. Oblast, p. 190): Consolidated version - Frequently asked questions concerning sanctions adopted following Russia’s military aggression against Ukraine and Belarus' involvement in it.