EU prepares to grant Ukraine access to Single Market in peace deal

The Telegraph reported the information.

Gaining access to the Single Market, which serves 449 million consumers, would provide a significant economic boost to Ukraine as it works toward rebuilding its war-torn economy and seeking EU membership.

Under the proposed plan, Brussels would decide which sectors to open to Kyiv and which to keep restricted. One major component of the strategy is Ukraine’s rapidly expanding defense industry, which is producing substantial numbers of drones and supplies 55% of the arms used by its military.

Tariff-free access to Ukrainian arms could generate revenue for Kyiv, while also bolstering the defense capabilities of EU nations ramping up their defense budgets and production.

These plans would ideally be part of a final peace agreement, although the exchange of Single Market access for arms could expedite Ukraine’s eventual EU membership, regardless of whether a deal is reached.

Marta Kos, the EU’s Commissioner for Enlargement, underscored the potential of Ukraine’s thriving defense industry, noting that its integration could help create a more unified European defense market.

"We are also working on plans to accelerate the integration of Ukraine into many more parts of the Single Market – to attract more investments, to strengthen Europe-wide value chains, and to create new opportunities for both Ukrainian and European businesses," Kos said. "This will be a stepping stone to speed up the reconstruction of Ukraine."