Europe's Ambitions Require Ukrainian Resources: Why Ukraine Should Be a Partner, Not Just a Supplier of Raw Materials

To achieve its climate goals, Europe needs four key elements: a sufficient supply of raw materials, the development of renewable energy, modern industrial production capacity, and investment in the creation of new enterprises. Ukraine has the potential to contribute in each of these areas.

Our country possesses one of the largest agricultural resource bases in Europe, significant potential for biomass production, and existing industrial capacity. At the same time, post-war reconstruction presents a unique opportunity to build modern bioeconomy enterprises virtually «from scratch,» immediately incorporating the latest technologies and European standards.

For many years, Ukraine has been viewed primarily as an exporter of agricultural raw materials. However, this model no longer serves the interests of the Ukrainian economy or the long-term needs of the European Union. The future lies in the creation of high-value-added products and Ukraine’s integration into European production chains.

That is why Ukraine should be viewed not as a peripheral supplier of raw materials, but as a strategic partner in shaping the future of the European bioeconomy.

The biomethane sector best demonstrates the potential of such cooperation. The European Union has set a goal of producing 35 billion cubic meters of biomethane annually, but current projections indicate that by 2030, EU countries will be able to produce only about 20 billion cubic meters. Thus, the shortfall will amount to approximately 15 billion cubic meters per year.

At the same time, Ukraine’s potential is estimated at 22.5 billion cubic meters of biomethane annually, which exceeds the projected European shortfall. This means that Ukrainian producers could become an important part of Europe’s renewable gas supply system, and realizing this potential would simultaneously contribute to the EU’s energy security and Ukraine’s economic development.

This logic also applies to other areas of the bioeconomy. Our analysis identifies five of the most promising value chains: 

biomethane and other renewable gases; 

bioethanol and advanced biofuels; 

circular agriculture; 

protein ingredients; 

biomaterials.

All these areas share a common goal—to transition from exporting raw materials to creating integrated production chains that will serve the European market. This is where economic growth, sustainable development, and the strengthening of Europe’s strategic autonomy converge.

The main challenge is not technology. The potential exists, the necessary technologies are already available, and demand for bioeconomy products is gradually emerging. The problem lies elsewhere—in the level of integration between Ukraine and the European Union. Ukrainian businesses still face a number of regulatory and market barriers.

Key barriers include: a lack of sufficient clarity regarding the rules for trading biomethane; limited access for bioethanol to the European market; and constantly evolving sustainability requirements that affect value chains in the production of soybeans, legumes, and other agricultural products.

To develop a shared bioeconomy, decisions are needed in at least three areas.

• First, regulatory integration. Ukrainian producers must operate under clear rules and have full access to European markets.
• Second is long-term investment support. Bioeconomy projects are capital-intensive and therefore require financing, guarantees, and tools to mitigate investment risks.
• Third is technological and industrial partnership. Ukraine needs not only capital but also access to modern technologies, expertise, and production cooperation with European companies.

At the same time, predictability remains the most important condition for business. Therefore, stable access to the European market, clear trade rules, and long-term signals regarding demand are critically important for making investment decisions.

Ukraine has the resources, production capacity, and potential to develop a modern bioeconomy. The main barriers today lie not in the technological sphere, but in the areas of regulation, financing, and integration.

Europe has already formulated an ambitious vision for its climate-neutral future. Ukraine possesses a significant portion of the resources needed to realize this ambition. Our shared task is to align European goals with Ukraine’s potential and transform Ukraine from a peripheral supplier of raw materials into a full-fledged participant in the European bioeconomy of the future.

Oleg Khomenko, CEO of the Ukrainian Agribusiness Club Association