Luxembourg contributes to just 0.076% of all EU exports to Ukraine. Photo: Shutterstock.

Luxembourg contributes to just 0.076% of all EU exports to Ukraine. Photo: Shutterstock.

Although 55% of Ukraine’s imports originate from the EU, Luxembourg's contribution is comparatively negligible, with just 46 companies from the grand duchy currently active in Ukraine.

With Russian president Vladimir Putin's recent decision to recognise the independence of the separatist regions Donetsk and Lugansk,  has become more and more increased. This will likely have an effect on international markets as a diplomatic solution now appears less likely.

Some economists believe that the macroeconomic impact attributed to the Ukrainian crisis are being overestimated. However, Ukraine remains a significant economic partner to the EU.

A Russian invasion--partial or total--of Ukraine would have an impact on trade between Kiev and European states, with the EU already having imposed financial sanctions on politicians from Russia's lower house, the Douma.

The consequences of a Russian military invasion of Ukraine would be damaging for the EU, which in 2019 contributed to almost 55% of the country's imports. In terms of services imported by Kiev, the EU contributed 41.45% in 2020.

Exports of EU products form a significant part of the Ukrainian economy, with Germany contributing the most in 2020, accounting for 24% of all member states' exports. Poland, the main EU member state bordering Ukraine, is in second place with 18%, followed by Italy with 10%.

Far behind its European partners, Luxembourg contributes to just 0.076% of all EU exports to Ukraine. The grand duchy places 25th place in the league table of member states exporting to the Eastern European country.

Contacted by Delano's sister publication Paperjam, the Luxembourg Chamber of Commerce indicated that it is in contact with 46 Luxembourg companies operating in Ukraine. Around one hundred companies with Luxembourg participation are also registered in Ukraine. These investments are in industry, wholesale and retail trade, and the construction and transport sectors.

Poland is the main contributor when it comes to services exported to Ukraine by EU member states with 41% [data for Germany could not be collected for this article]. Although Luxembourg is the 16th largest European contributor to the Ukrainian economy in terms of services, it accounts for only 0.015% of EU exports to Ukraine in this field.

Although it is more difficult to provide a figure for companies with Ukrainian participation in Luxembourg, Luxembourg imports from Ukraine amount to around €60,000,000--more or less equally divided between products and services. They represent 0.079% of Luxembourg's total imports in 2019.

Luxembourg's imports of products from Ukraine include mainly metals and wood.

This story was first published in French on . It has been translated and edited for Delano.