Luxembourg
Ukraine & Luxembourg economic dialogue
Contrary to the usual UA-EU trade pattern, UA is a net exporter of goods to LUX with a deficit €29 mln in 2024
Number of UA refugees in LUX has been on the decline since 2023
LUX exports mainly royalties and other services related to the use of intellectual property
LUX primarily functions as a financial and ownership hub for Ukraine’s companies, including for round-tripping investments
Centre for Economic Strategy (CES), an independent Ukrainian think tank that analyzes key public policies and promotes support for reforms.
With donor support, CES has launched a series of studies on trade relations between Ukraine and the European Union countries.
Free movements of goods and services
Pre-war and now, LUX mainly exports to UA industrial machinery and vehicles, and plastics
UA exports to LUX mainly ferroalloy (nearly 40% of UA ferroalloy exports in 2024), as well as carbon black, plywood and railway components
> 5 times
Trade in services between LUX and UA has expanded by more than 5 times between 2010 and 2024, driven by the liberalisation of trade between UA and the EU
Most trade in services is concentrated in IT and intellectual property
Trade Balance UA-LUX 2024
Free movement of persons and capital
Ukrainians with temporary protection status, one of the largest refugee groups in LUX
LUX served mainly as a holding company jurisdiction, with the ultimate beneficial owners located elsewhere. Much of the LUX FDI in Ukraine comes from Ukrainian business groups, mainly in agriculture, metallurgy, and machine building
The integration of Ukrainians in LUX is difficult. Only 31% are employed, compared to the 57% EU average
FDI in UA financial sector decreased due to the nationalisation of Sense Bank
LUX’s FDI stock in UA, € mln
Tighter co-operation potential
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LUX-UA integration policy should focus on a capital- and industry-driven strategy, where LUX serves as a financial gateway and investment platform.
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Strengthening the relationship under new EU CBAM-regulations is about building compliance capacity: reliable emissions reporting, certification of embedded carbon, and predictable access to EU markets for key industrial products.
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Investment dialogue should prioritise sectors where Luxembourg-linked firms are active: agrifood, logistics, chemicals, and pharmaceuticals.
Interesting fact
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