Economic relations of Switzerland with Ukraine

The Government of the Swiss Confederation has concluded several bilateral agreements with Ukraine:

• Agreement on Trade and Economic Cooperation (1.8.1996);
  
  
• Agreement on the Promotion and Reciprocal Protection of Investments (1997);
  
  
• Convention of the Federal Council of Switzerland and the Government of the Ukraine with respect to the Avoidance of Double Taxation and with respect to taxes on income and capital of 30.10.2000, entered into force on 1 January, 2003.

After Russia, Ukraine is Switzerland’s second most important commercial partner amongst the CIS countries. Since 2000, Swiss exports to Ukraine have constantly increased. By the end of 2003 they reached CHF 220 million. As far as imports are concerned, they are still modest. In 2002 they amounted to CHF 33 million and in 2003 CHF 46 million. At the end of the first quarter of 2003, the stock of Swiss direct investments (more than 200 companies) reached about USD 283 million. Switzerland ranks eighth among foreign investors in Ukraine, with a share of 4.4%.

• strong focus on the strengthening of the role of small and medium-sized enterprises, as the fastest growing segment of the Ukrainian economy and one of the largest sources of employment, through targeted activities in the areas of investment and trade promotion, and financial sector support;
• increased partnership with the private sector and priority for initiatives or mechanisms that promote transparent corporate governance practices, and that offer a strong leverage for the mobilization of private resources;
• support for projects or programmes which stimulate and support innovative approaches, with high potential demonstrative effect. Whenever general policy issues or frame conditions have to be addressed, development of close cooperation and eventual co-financing options with multilateral or multi-national partners;
• support for projects or programmes with a high potential for visibility, through substantive knowledge and experience sharing;
• continued active and consistent involvement in the nuclear safety area;
  results-based management of projects and activities with clearly defined performance indicators (including expected contribution to poverty reduction);
• careful monitoring of SECO supported activities with regard to the evolution of the political and economic situation, as well as good governance practices (at political, public and corporate levels). For detailed information, SECO's Country Strategy note can be downloaded (see link at the end of the page).

Projects at a glance (click on project for further information):