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Inside the talks: Ukraine’s push for access to the EU Single Market

From legal alignment to land reform - what Kyiv wants, what Brussels expects, and what lies behind the negotiations

Yuriy Panchenko, Sergiy Sydorenko European Pravda July 4, 2025 05:00

When news reports mention Ukraine’s future EU membership and the conditions Kyiv must meet, the focus is usually on issues like democracy, rule of law, good governance – in other words, “political” matters.

These are indeed fundamental, core requirements for EU membership, and the focus on them is justified. It is no coincidence that in the EU accession negotiations, they are grouped under the first cluster (“Foundations”) with special importance.

However, despite that title, the real foundation of the European Union is the economy, first and foremost – the Single Market, of which Ukraine also aspires to become a part.

So, what changes will Ukraine’s EU path bring for Ukrainian businesses? Is the business sector ready for these changes? And is the state ready? And ultimately, will this be full integration, or will there be many exceptions?

The answer to these questions will come from Ukraine’s opening negotiations with the EU on the second cluster, “Single Market”.

The Ukrainian government hopes and prepares to open this cluster among the first – immediately after Hungary lifts its veto blocking the accession talks. Although this has not happened yet, the government is already making plans and expects to complete all necessary legislative and regulatory changes related to this cluster by the end of 2027.

However, this work may prove far more challenging than it seems. It is worth recalling that among the reforms Kyiv will not avoid is the opening of the agricultural land market to foreigners – an issue that has always been extremely sensitive and strongly resisted in Ukraine.

EUalive republishes its partner’s European Pravda article on closed-door meetings covering all clusters of the EU negotiation process held at Kyiv’s Eurohub. Since the meeting was held under the Chatham House Rule – open and off-the-record – this article does not identify sources.

Is Ukraine ready?

The “Single Market” is one of the clusters where Ukraine has made the most progress. Specifically, the screening procedure – a review of how current legislation aligns with EU law – is already completed.

“This stage was handled very well – we had no failed chapters. There were questions, but no chapter after review that would embarrass us,” Ukrainian negotiators say.

The draft European Commission screening report is also ready and awaits the unblocking of the process. EuroPravda has seen the conclusions; it notes that the Commission “positively” evaluates Ukraine’s legislation in three of nine chapters of this cluster – namely “Company Law”, “Intellectual Property”, and “Competition Policy”. The existing Ukrainian legislation “largely complies with the acquis, though it requires further alignment or institutional strengthening,” the Commission concluded.

In other areas, the situation is worse.

Even in chapter 1, “Free Movement of Goods,” as well as other chapters in this cluster, the Commission found “significant gaps in alignment, mainly due to incomplete legal frameworks or insufficient institutional capacity.”

This assessment of Ukraine’s state is quite surprising.

The fact is that the three chapters where Ukraine received compliments from Brussels were previously considered “average”, scoring only 2 out of 5 points last year – a low result.

Meanwhile, chapter 1, which is now classified as “problematic”, was previously seen as a success story, with 3 points – the highest in the market cluster.

Apparently, Ukraine did not previously pay systemic, comprehensive attention to this topic. Thus, in trade in goods, some areas show very positive results (e.g., standardisation), as Kyiv implemented most pre-accession EU requirements through the Association Agreement. But in others, such as market surveillance, progress is still zero.

Integration with exceptions

Preparing for quick progress when Hungary’s veto will be lifted, Ukraine took the next step – preparing and agreeing with the EU on a draft Ukrainian negotiation position. During the closed-door Eurohub discussion, officials proudly said the document was prepared extremely quickly – within just two weeks.

This formulation may surprise many, so it deserves explanation.

It might seem that a national negotiation position for accession talks should never be disclosed to the EU, let alone agreed with the other party. That is the logic of any other negotiation.

But accession negotiations are fundamentally different.

Despite their name, accession talks are not classical negotiations where the candidate “bargains” what conditions to meet or not. In principle, joining the EU means fulfilling all conditions. Whether a law sufficiently complies or not can be discussed, but the minimum “flexibility” allowed is limited.

During accession, transitional periods can be agreed – meaning that EU requirements apply fully only after a year or more, or some single market element opens gradually. In exceptional cases, opt-outs are possible, where some EU rules won’t apply in Ukraine.

Ukraine’s negotiation position outlines Kyiv’s requests for such delays and opt-outs. That’s why it must be agreed with the EU – it is a bilateral agreement. Ukraine also has access to the EU’s negotiation position.

The EU convinced Ukraine to revise its position, as government representatives acknowledged this during the “Kitchen Eurohub” talk.

Kyiv tried to push the maximum from EU enlargement rules but found that many requests did not pass even the first filter – preliminary consultations in Brussels.

“After talks with all government bodies, we went to the EU with many requests for transitional periods. But after consultations with the Commission, only a few remained in our position,” officials say, because deviations from full EU adaptation must be exceptions with solid grounds.

“The EU insists that transitional periods and opt-outs must be justified, must not harm the internal market, and must be supported by all member states. The Commission must understand that in the end, all EU countries will agree to our requests,” explains a negotiator.

Land for foreigners and other issues

The “when” is problematic – the EU expects clear deadlines from Kyiv. “But martial law complicates this,” says a government official involved in talks. Some rules are impossible to implement during wartime. This is why a compromise was found with the EU.

“We set 2027 as the maximum deadline for adopting legislation. But adoption does not mean entry into force – for some cases, we won’t specify when laws take effect,” the official added. This approach avoided the most sensitive topics for now.

Ukraine must allow foreigners to buy agricultural land once it joins the EU. No exceptions are allowed, as EU citizens must have equal business rights in Ukraine. But the government did not fix the date for this in the documents.

“We convinced partners that this issue is so sensitive that any date will cause concern. So we noted that we will ask for transitional periods on land – but didn’t specify a date,” officials say.

But sooner or later, this issue will have to be resolved. This won’t be an insurmountable obstacle, even for the current parliament, participants say.

“Of course, Yulia Tymoshenko will oppose again. Also, the Razumkov group will resist. But with others, it’s possible to work, and with safeguards, 226 votes are achievable,” said an MP from the pro-presidential majority.

War-related particularities

“First and foremost, martial law now cannot justify transitional periods. Brussels reminds us that by the time Ukraine joins the EU, martial law will be over,” a negotiator notes.

But war does affect the process.

Can Ukraine demand transitional periods citing war consequences? Kyiv believes so — for example, due to demographic decline caused by Russia’s full-scale invasion. This problem, and others, will remain long after martial law ends.

“The EU understands Ukraine’s land-sale sensitivity and may allow indefinite transitional periods,” officials say.

Business concerned but not afraid

How does Ukrainian business view the changes Ukraine must make under the “Single Market” cluster? In short – the mood is calm. No panic, no euphoria.

Business does not expect EU accession to radically improve market access conditions. (Agricultural producers are a special case, regulated in another cluster.)

The EU market has been open to Ukrainian companies for about 10 years — since the Association Agreement. Companies aiming for EU markets have already entered. Full integration will increase exporters but not explosively, warn business associations.

There is still another barrier to exports. To effectively adopt EU technical standards, Ukraine needs enough labs and certification centers.

“Otherwise, like now when I transport products to Poland for certification, I will still have to do so,” says one entrepreneur.

Another producer shared how lack of labs already harms his business.

“We discovered Ukraine lacks a lab that covers full certification for our products under the new law. Without postponement or new labs, 15 Ukrainian producers, including us, will have to halt production in November,” he said.

Some argue EU accession will open the Ukrainian market to Europeans and increase competition.

But business does not see this as a major challenge. Ukraine opened its market already in 2008 when joining the WTO. Guarantees of stable EU market access are important for Ukrainian producers.

“It’s a fact: without the EU, Ukraine’s economy won’t survive. The only way to improve competitiveness is through the EU. There are no alternatives. With Russia or the US, everything is clear. So the decision is made – and we must go,” a business association representative summed-up the challenge.

Insight: How “EU minus Orbán” decides on Ukraine

Edited by k.n.

Caption: Ukrainian Deputy Prime Minister for European Affairs Olha Stefanishyna (6-L, front row) poses with European affairs ministers and representatives at the first meeting of the Conference on Accession of Ukraine to the European Union in Luxembourg, 25 June 2024. The meeting follows a decision by the European Council on 14 December 2023 to open accession negotiations with Ukraine. EPA/OLIVIER HOSLET

Updated: July 4, 2025 - 05:00

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