Doing business
Luxembourg believes in democracy, the rule of law, sovereignt y and that borders cannot be changed by force. Since the first days of the large-scale invasion, the Grand Duchy has supported Ukraine politically, militarily, humanitarianly and financially, and has also formed coalitions and joined coalitions of other countries to help Ukrainians.
Under the leadership of Luxembourg and Estonia, an IT Coalition has been established to provide support to the Ministry of Defence of Ukraine and the Armed Forces of Ukraine in the areas of IT, communications and cyber security. Members of the initiative are 11 countries: Ukraine, Belgium, the United Kingdom, Denmark, Estonia, Iceland, Italy, Japan, Latvia, Lithuania, Luxembourg and the United States. Estonia (€500,000) and Luxembourg (€10 million) have already made contributions to the IT coalition. Lithuania and Latvia have also donated material assistance in the form of licences and equipment.
Luxembourg joined the Czech initiative to purchase artillery ammunition to support Ukraine in its fight against the russian aggressor. The country also decided to join the artillery coalition led by France and Germany. At the same time, the Grand Duchy will purchase drones for Ukraine in cooperation with Belgium and the Netherlands, and will continue to support Ukraine by delivering much-needed equipment.
On March 19, 2024, Ukraine and Luxembourg signed the agreement on technical and financial cooperation, especially in the metallurgical and other industries. The Ukrainian side signed the document with the Minister of Foreign Affairs of Luxembourg, Xavier Bethel. The agreement will simplify the implementation of assistance programmes and projects for Ukraine. Xavier Bethel expressed his particular interest in the reconstruction of the Kryvyi Rih district of Dnipropetrovsk region, which is a powerful industrial centre of the country.
The Duchy of Luxembourg funds €50 million to rebuild communities in the Kryvyi Rih district, which has suffered extensive damage as a result of near-daily shelling. In 2024, an analysis of the needs of communities is planned to ensure the most efficient investments and the purchase and transfer of digital equipment, such as computers and tablets. Foreigners plan to provide equipment for 1,500 teachers and 12,000 schoolchildren. The agricultural sector, road repairs, and the environmental situation are also recognised as key areas of recovery.
In addition, Luxembourg donated 100 computer monitors and 70 projectors for schools in Kyiv region. The equipment was distributed among educational institutions, depending on their needs.
In autumn 2023, an impressive exhibition entitled ‘War and Peace’ was held in Esch-sur-Alzette (Luxembourg) with the participation of talented photographers. The exhibition depicted the life of Ukraine in these challenging times, expressing the suffering of every Ukrainian. The event also raised funds to help Ukraine in its daily fight against the aggressor.
For 10 years now, the Luxembourg-based charity LUkraine asbl has been working to evacuate and help people in difficult situations during the war; it sends humanitarian and medical aid to the frontline regions. Volunteer doctors perform complex surgical and medical procedures in dangerous conditions. This assistance in regions where there is no access to other medical care is truly invaluable.
In October 2023, the LUkraine asbl team purchased 210 tablets for Ukrainian defenders. These tablets proved to be incredibly useful in training and work on the battlefield.
One of the educational and rehabilitation centres in Dnipropetrovsk region received multifunctional beds and mattresses, bicycles and backpacks from LUkraine asbl. The centre trains 170 children with speech and musculoskeletal disorders from all over the region. The centre has all the necessary conditions for their rehabilitation and development. In particular, a shelter with beds has been equipped.
LUkraine asbl, in cooperation with the Dnipropetrovsk regional council, also held a concert for patients of one of the regional medical institutions. The band ‘bandA’ gave a great mood to the military, who are now on the way to recovery.
The Luxembourg Charitable Foundation, together with many Ukrainian associations from different European countries, intends to raise donations to buy 112 new ambulances for Ukraine. As of today, funds have been raised for more than half of the vehicles.
Despite the significant decline in exports because of the war, Luxembourg has been an important commercial partner for Dnipropetrovsk region. The high level of partnership is evidenced by the analysis of foreign activities.
Luxembourg companies are interested in plastics and polymers, parts of railway locomotives, machinery and equipment. According to the results of 2023, the volume of exports of goods from Dnipropetrovsk region amounted to $548.8 thousand and decreased by 89.4% compared to 2022.
4 enterprises in Dnipropetrovsk region exported their products to the Luxembourg market, namely metallurgical enterprises, machine-building and processing companies.
Imports of goods from Luxembourg to Dnipropetrovsk region increased by 93.2% compared to 2022 and amounted to $2.7 million.
17 importers in the region purchased machinery and equipment, tools, knife products, glass and glassware, etc.
Import operations were mainly carried out by metallurgical, processing enterprises and machine-building companies.
Source: information for the article based on the open online sources