Prospects for the development of international economic relations between Ukraine and Kuwait
Authors:   Lviv Polytechnic National University, Bosak Andriy , Hryhoriev Olexander ,   Lviv Polytechnic National University, Romaniuk Oleh ,   Lviv Polytechnic National University
Published: January 2025

The development level of international economic relations between Ukraine and Kuwait can be described as gradually growing but still insufficient. In the context of globalization and increased regional integration, bilateral economic relations remain important in ensuring economic stability and the development of national economies. Despite the ongoing war, Ukraine has substantial agricultural, industrial, and technological potential and seeks to expand its presence in international markets by exploring new partnership opportunities. One such promising partner is Kuwait, a country with a developed economy and significant financial resources, being a member of the Gulf Cooperation Council.

Thus, this study aims to explore the opportunities and instruments for expanding cooperation between Ukraine and Kuwait and to develop well-grounded measures to enhance international economic relations between the two countries. The primary research methods included theoretical generalization, economic and statistical analysis, the historical method, and analogy.

In the course of the study, several specific tasks were addressed: the historical aspects of economic relations between Ukraine and Kuwait were examined; the economic factors influencing the level of cooperation between the countries were analyzed; the legal framework and regulatory mechanisms affecting bilateral cooperation were assessed; the political factors impacting the development of economic ties were explored; and specific pathways for deepening cooperation and improving economic relations between Ukraine and Kuwait were identified.

The volume of trade between Ukraine and Kuwait remains small, with mutual trade comprising less than 1% of the total trade structure of each country. In Kuwait's international trade structure, almost 80% is with Asian countries, while trade with Europe and America is minimal. All imported food products must meet stringent standards, and the country imposes bans on using certain food additives and other chemical products. There are also import quotas on rice, meat, milk, and dairy products. However, as the study's findings convincingly demonstrate, these restrictions should not hinder the expansion of international economic ties between Ukraine and Kuwait.

Beyond expanding the export of Ukrainian goods, there are other avenues for developing economic relations with Kuwait. Establishing oil imports from Kuwait would be advisable despite potential opposition from Saudi Arabia or other regional oil market players. Another promising direction is attracting investment from Kuwait into Ukrainian innovative startups and fundamental and applied scientific projects. Cooperation could also extend to investments in Kuwait's oil extraction, construction, and innovation sectors. Additionally, Ukrainian oil and gas industry and construction specialists could be involved in joint projects while promoting Kuwaiti students' education in Ukrainian technical universities.

The study's practical significance lies in the fact that, in the context of post-war economic recovery in Ukraine, it will be crucial to develop joint projects in construction, healthcare, and energy. There are opportunities for further deepening investment cooperation, and it is essential to begin calculating potential scenarios for future developments. Kuwait actively invests in innovative startups and scientific development, providing prospects for Ukrainian inventors and researchers.

The prospects for further research on Ukrainian-Kuwaiti economic relations are substantial. Efforts should focus on opportunities for diversifying economic ties in energy, agriculture, information technology, transportation, and logistics. Future research may also include empirical analysis of real cases of economic cooperation and the impact of regional and international policies on the development of bilateral relations.