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Relations between Ukraine and the European Union (EU) are currently shaped via the European Neighbourhood Policy (ENP), a foreign policy instrument of the EU designed for the countries it borders. The European Union (EU) is seeking an increasingly close relationship with Ukraine, going beyond cooperation, to gradual economic integration and deepening of political cooperation.[1] Ukraine is said to be a priority partner within the European Neighborhood Policy (ENP).
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The political dialogue between the EU and Ukraine started in 1994 when the Partnership and Cooperation Agreement (PCA) was signed. That document was focused on economic and social issues as well as on the necessity of improving public government and guaranteeing free press and civil rights. The framework set for political discussions was modest: yearly meeting between EU Troika and Ukrainian leadership and some inter ministerial consultations. The Partnership and Cooperation Agreement of 1994 entered into force in 1998 and expired in 2008. None of the top level meetings brought any major changes to a reserved EU approach. Leaders focused chiefly on economic transition and human rights records as well as on issues connected to the Chernobyl nuclear power plant and its containment.
ENP partner |
EU contract | FTA provisions | Country Report | Action Plan | Adoption by the EU | Adoption by the ENP partner | AP duration | CFSP invitation [2] | EU aspiration [3] | Sub-group |
---|---|---|---|---|---|---|---|---|---|---|
Ukraine | PCA, March 1998 | No | May 2004 | End 2004 | 21.2.2005 | 21.2.2005 | 3 years | Yes [4] | Yes | East |
sources: [5], [6], ENP official page [7]
A Joint EU–Ukraine Action Plan was endorsed by the European Council on 21 February 2005. It was based on the Partnership and Cooperation Agreement of 1994 and provided, according to the European Commission, a comprehensive and ambitious framework for joint work with Ukraine in all key areas of reform.
The Eastern Partnership is a forum aiming to improve the political and economic trade-relations of the six Post-Soviet states of "strategic importance" - Ukraine, Belarus, Moldova, Azerbaijan, Armenia and Georgia with the European Union.[5] The EU draft of the EaP states that: "Shared values including democracy, the rule of law, and respect for human rights will be at its core, as well as the principles of market economy, sustainable development and good governance." The Partnership is to provide the foundation for new Association Agreements between the EU and those partners who have made sufficient progress towards the principles and values mentioned.[6]
Ukraine is one of six post-Soviet nations to be invited to cooperate with the EU within the new multilateral framework that the Eastern partnership is expected to establish. However, Kiev pointed out that it remains pessimistic about the "added value" of this initiative. Indeed, Ukraine and the EU have already started the negotiations on new, enhanced political and free-trade agreements (Association and Free-Trade Agreements). Also, there has been some progress in liberalizing the visa regime despite persistent problems in the EU Member States' visa approach towards Ukrainians.
That is why Ukraine has a specific view of the Eastern Partnership Project. According to the Ukrainian presidency, it should correspond, in case of his country, to the strategic foreign policy objective, i.e. the integration with the EU.[7] Yet, the Eastern Partership documents (the European Council Declaration of May 2009[8]) do not confirm such priorities as political and economic integration or lifting visas.
Ukraine has expressed enthusiasm about the project. Ukraine deputy premier Hryhoriy Nemyria said that the project is the way to modernise the country and that they welcome the Eastern Partnership policy, because it uses 'de facto' the same instruments as for EU candidates.[9]
Under the Eastern Partnership, Poland and Ukraine have reached a new agreement replacing visas with simplified permits for Ukrainians residing within 30 km of the border. Up to 1.5 million people may benefit from this agreement which took effect on July 1, 2009.[10]
An Association agreement (AA) has been negotiated in 2009-2011 between the EU and Ukraine, and should replace the PCA Agrement. The Associationa agreement aims at political association and economic integration; it includes a "deep and comprehensive free trade area", and runs parallel to the negotiations for a visa-free regime. It does not contain a membership perspective for Ukraine, though it recalls it as "a European country with European identity" and says that "the EU acknowledged the European aspirations of Ukraine".
On June 16, 2009, a new practical instrument was adopted - the EU-Ukraine Association Agenda.[11]
The 19 December 2011 EU-Ukraine summit, which was intended to lead to the signature of the Agreement, fell short due to the EU's uneasiness concerning the jailing of the former premier Yulia Tymoshenko. It was announced the end of the negotiations, but the text of the agreement was not initialled nor signed. EU leaders decided to wait until the Ukrainian Parliamentary elections on 1 February 2012, as a test of the vitality of democracy and rule of law in Ukraine.[12][13] A temptative date for the initialling of the agreement was set for 15 February 2012.[14]
Negotiations on a deep and comprehensive free trade agreement between Ukraine and the European Union started on 18 February 2008 between the Ukrainian government and the EU Trade Commissioner.[15] As of May 2011 there remained three outstanding issues to be resolved in the free trade deal: quotas on Ukrainian grain exports, access to the EU's services market and geographical names of Ukrainian commodities. Aside from these issues, the deal is ready.[16] Despite those outstanding issues, Ukraine is ready to sign the agreement as it stands. Although it wants stronger wording on enlargement prospects and access to the EU market for its truckers, Ukraine has more than many other candidates had at the equivalent stage of the process. It is expected that the deal would be signed in December 2011.[17]
On November 22, 2010 the European Council and Ukraine announced "an action plan for Ukraine toward the establishment of a visa-free regime for short-stay travel".[18] This roadmap requests major improvements in Ukrainian border control, migration and asylum policies.[19]
Negotiations for an amendment to the 2007 Visa Facilitation agreement were closed in December 2011; the agreement includes a simplified visa procedure that will apply to students, NGO representatives and holders of official passports. Yanukovych expects the negotiations on full visa-free travel to be completed by the end of 2014.[13]
Both Ukraine and all EU member states are signatories of the Energy Charter Treaty (ECT), a legally-binding treaty negotiated following the 1991 Energy Charter' political declaration of principles for international energy including trade, transit and investment.[20] The ECT was signed in December 1994 and came into effect in April 1998. Ukraine and all EU member states are also signatories of the 1998 Trade Amendment reflecting the change from the GATT to the WTO.[20]
Since its signature in 2005, Ukraine is member of the Energy Community (also referred as European Energy Community), a community established between the European Union (EU) and a number of third countries in order to extend the EU internal energy market to South East Europe and beyond. The Treaty establishing the Energy Community was signed in Athens, Greece, on 25 October 2005, and entered into force on 1 July 2006. Ratification by Ukraine took time and finally followed on 15 December 2010.[21]
During the 1990s, Germany, the Netherlands and Italy remained major trading partners of Ukraine. According to Eurostat, between 2000 and 2007 EU trade in goods with Ukraine more than tripled in value: exports rose from 5.5 bn Euro to 22.4 bn, while imports increased from 4.8 bn Euro to 12.4 bn. Nevertheless, this increase didn't make Ukraine one of the EU's major trading partners. In 2007, Ukraine accounted for only 2% of EU exports and a mere 1% of European Union imports which is toward the bottom of the EU's top 20 trading partners (16th).[22]
According to the European commission paper, trade with Ukraine is dominated by manufactured goods. Nearly half of the EU exports to Ukraine in 2007 were machinery and vehicles and a further quarter were other manufactured articles. A quite similar structure can be seen in imports: unspecified manufactured articles accounted for two fifths followed by a crude metal for a further fifth. At the more detailed level, the main EU exports to Ukraine in 2007 were medicine, motor vehicles and mobile phones, while the main imports were iron and steel products, as well as sunflower seed oil, ferro-nickel, iron ores and oil.[22]
Among the EU27 Members States, Germany (5.9 bn Euro or 26% of EU exports) was the largest exporter, followed by Poland (4.1 bn or 18%). Italy (2.4 bn or 19%) was the largest importer followed by Bulgaria (1.6 bn or 13%) and Germany (1.3 bn or 11%).[22]
The largest surpluses in trade with Ukraine in 2007 were observed in Germany (+ 4.6 bn Euro) and Poland (+2.8 bn Euro) while Bulgaria scored the highest deficit ( -1.4 bn Euro).[22]
For the 2000–2006 budgetary period, the financial assistance of the EU to Ukraine was framed in the TACIS programme, established in 1991, a programme of technical assistance that supports the process of transition to market economies for the 11 CIS countries and Georgia.[23]
For the 2007-2013 budgetary period, ENPI, standing for "European Neighbourhood and Partnership Instrument", covers the ENP countries, and replacing the TACIS funds for Ukraine.[24] Ukraine is moreover eligible for horizontal instruments, that cover countries regardless of their region, such as:
Since 2009, with the accession of Ukraine to the World Trade Organization, economic relations between the EU and Ukraine have to respect the WTO normative acquis.
Ukraine has always been seen as an important but uneasy to deal with political partner of the European Union. According to observers this is due to such factors as unwillingness of the EU to expand to the post-Soviet space, poor performance of Ukrainian economy, lack of democracy (during the 1990s) or internal instability (following the Orange revolution). Also, some experts notice the importance of the Russian factor in Ukraine-EU relations.
The European project has not been completed as yet. It has not been completed because there is no full-fledged participation of Ukraine. We envy Poland, but we believe that Ukraine will be in the European Union.
Ukraine's desire to join the European institutions dates back to 1994 when the government declared that integration to the EU is the main foreign policy objective. In reality, little was done since Kiev had to take into account Russia, which remained its major trade partner and natural gas and fossil energy supplier.
The political dialogue between the EU and Ukraine started in 1994 when the Partnership and Cooperation Agreement (PCA) was signed. That document was focused on economic and social issues as well as on the necessity of improving public government and guaranteeing free press and civil rights. The framework set for political discussions was modest: yearly meeting between EU Troika and Ukrainian leadership and some inter ministerial consultations. The Partnership and Cooperation Agreement of 1994 entered into force in 1998 and expired in 2008. None of top level meetings brought major changes to a reserved EU approach. Leaders focused chiefly on economic transition and human rights records as well as on issues connected to the Chernobyl nuclear power plant and its containment.
In 2002, EU Enlargement Commissioner Günter Verheugen said that "a European perspective" for Ukraine does not necessarily mean membership within 10 to 20 years; however, it is a possibility.
The Orange Revolution of late 2004 improved Ukraine's European prospects; the opposition leader Viktor Yushchenko hinted that he would press the EU for deeper ties and described a four-point plan: acknowledgment of Ukraine as a market economy, entry in the World Trade Organization, associate membership in the European Union, and, finally, full membership.[26] Ukrainian President Viktor Yushchenko asked Brussels mid-December 2004 for a clearer indication of Ukraine's prospects for membership, saying that "The approved Action Plan reflects only the level of Ukraine-EU relations that we could have reached before the presidential elections in 2004."[27]
On 13 January 2005, the European Parliament almost unanimously (467 votes to 19 in favor) passed a motion stating the wish of the European Parliament to establish closer ties with Ukraine in view of the possibility of EU membership.[28] Though there is still a long way to go before negotiations about EU membership can start, the European Commission has stated that future EU membership will not be ruled out. Yushchenko has responded to the apathetic mood of the Commission by stating that he intends to send an application for EU membership "in the near future" and that he intends to scrutinize Ukraine's relationship with the Commonwealth of Independent States in order to assure that EU integration is possible, and, if not, to make it possible. Several EU leaders have already stated strong support for closer economic ties with Ukraine, but have stopped short of direct support for such a bid.
On 21 March 2005, Polish Foreign Minister Adam Daniel Rotfeld noted that Poland will, in every way, promote Ukraine's desire to be integrated with the EU, achieve the status of a market-economy country, and join the World Trade Organization. He also said, "At the present moment, we should talk concrete steps in cooperation instead of engaging in empty talk about European integration". Three days later, a poll of the six largest EU nations conducted by a French research company showed that the European public would be more likely to accept Ukraine as a future EU member than any other country that is not currently an official candidate.
In October 2005, Commission president José Manuel Barroso said that the future of Ukraine is in the EU. On 9 November 2005, however, the European Commission in a new strategy paper suggested that the current enlargement agenda (Croatia and in the future the other ex-Yugoslavian countries) could block the possibility of a future accession of Ukraine, Armenia, Belarus, Georgia, and Moldova. Commissioner Olli Rehn said that the EU should avoid overexpansion, adding that the current enlargement agenda is already quite full.[29]
According to the Ukrainian authorities, the ENP is not an adequate political instrument, since joining the EU was one of principal objectives of all governments since 1994. After the Orange revolution of 2004 that brought to power Viktor Yushchenko, the EU commission was very slow to react: little progress was made to put the largest European country on a path to eventual membership.
In March 2007, the EU and Ukraine started talks about a new "wider agreement," aiming at offering a legal framework for a closer economic cooperation and a better political dialogue. It was agreed that Ukraine and the EU would start a parallel negotiation concerning setting up a free trade area. Later in 2007 it was announced that this issue would be incorporated into the draft agreement as a separate chapter.
In our course, aimed at the full return of Ukraine into the united Europe, we do not need alternatives
Days before the summit, the Ministers of foreign affairs of Member States agreed during their meeting in Avignon (France) that association agreement to be signed with Ukraine will have nothing to do with the association agreements the EU signed with many Eastern European States (from Poland to Romania in the beginning of the 1990s, Western Balkans by the end of the 1990s). Media reported that the Netherlands, Belgium, Luxembourg and Germany were strongly opposed to including "Ukraine is a European State" into EU legally binding documents. This was considered a failure of Kuchma-era politician Mr. Roman Shpek, then Ukrainian ambassador to Brussels. He was replaced by Mr. A. Veselovskyy, a more experienced diplomat.
A Joint EU–Ukraine Action Plan was endorsed by the European Council on 21 February 2005. It was based on the Partnership and Cooperation Agreement of 1994 and provided, according to the European Commission, a comprehensive and ambitious framework for joint of work with Ukraine in all key areas of reform.[1]
Talks on a free trade agreement between Ukraine and the European Union started on 18 February 2008 between the Ukrainian government and the EU Trade Commissioner.[31]
On 22 July 2008, it was announced that a "Stabilisation and Association" -type agreement would be signed between Ukraine and the EU on 8 September 2008 in Evian.[32]
On 2 October 2008 Ukraine President Yushchenko announced that the Association agreement between the country and the EU would be signed "within six-eight months". On that day he met with the King of Sweden Charles XVI Gustav who paid a State visit to Kiev. According to Yushchenko "the agreement is half-ready, and he hopes that there will be a possibility to finalize and sign it under Swedish presidency in the EU". He also welcomed the initiative of Eastern Partnership suggested earlier by Polish and Swedish Foreign Ministers.
On 20–24 October 2008 the EU and Ukraine held a negotiation round on the free trade area chapter of the Association agreement. According to some Ukrainian media, the "EU promised to liberalize trade relations". Ukraine's representative told that one must not "focus too much" on negotiation since there is a lot to be done by Ukrainian government to meet certain criteria. He also said, that "soon, the Balkans will enter into the European trade space and therefore Ukraine might lose these markets". This was seen as a reason for Ukraine to move forward as least as soon as Balkans, the EU did not comment on that perception.
On October 29, 2008 the EU Commissioner Jacques Barrot and Ukrainian officials met in Brussels to launch negotiations on visa-free travel. Kiev had been asking for a "road map" to visa lifting including travel document security, irregular migration, public order and foreign relations. But the EU justice commissioner avoided to give any specific dates. Moreover, the Ukrainian side argued that 2007 visa facilitation agreement is not fully implemented by the EU member states. The European Commission representative was quoted as saying that Brussels is ready to impose sanctions against those who do not respect the agreement. Spanish, Dutch, German and Belgian Embassies were cited among the most active rule breakers. Making visa processing lengthy and expensive is one of major agreement violation. On 28 October 2008 Belgian PM Yves Leterme told that Ukrainians need to avoid middlemen in visa procedures if they want to reduce their cost. The problem is that some consulates, including Belgian, oblige visa seekers to deal with a middleman.
According to Ukrainian President Yushchenko some embassies of EU countries often require Ukrainians to present documents, which had not been foreseen in the agreement on simplification of visa regulations. Around five per cent of Ukrainians willing to travel to the EU are denied visas, which, according to Yushchenko "does not meet the standards of our agreements with the EU".[33]
On June 16, 2009, a new practical instrument was adopted - the EU-Ukraine Association Agenda.[11]
In September 2009, high-ranking Ukrainian diplomats proposed that Ukraine apply for EU membership after the presidential election in January 2010, around March 2010, which would mean that the official response to the application would likely take place in early 2011 during the Polish presidency of the European Union.[34][35] However, this hasn't happened.
On October 5, 2009 Head of the Verkhovna Rada committee for European integration Borys Tarasyuk commented "the EU see the implementation of a free visa regime for Ukrainians travelling to EU countries only as a long-term prospect". Ukrainian politicians continue to insist that the implementation of that free visa regime take place by 2012, when the European Football Championship will be held in Ukraine and Poland. According to Tarasyuk, the main obstacles to the implementation of a free visa regime between Ukraine and EU is the fact that Ukraine "hasn't finished its work on legislation concerning forming a demographic [database], which then could become a good basis for issuing biometric passports" and the fact that there is no general database on the issuing of foreign passports to Ukrainian citizens. According to Tarasyuk the EU fear that this grants the opportunity for mass falsification.[36]
On December 16, 2009 the European Commission President Jose Manuel Barroso stated "our Ukrainian friends need to do more if they want us to help them more." He also stated that "enlargement is not possible in the current situation."[37]
Ukraine is one of six post-Soviet nations to be invited to cooperate with the EU within the new multilateral framework that the Eastern partnership is expected to establish. However, Kiev pointed out that it remains pessimistic about the "added value" of this initiative. Indeed, Ukraine and the EU have already started the negotiations on new, enhanced political and free-trade agreements (Association and Free-Trade Agreements). Also, there has been some progress in liberalizing the visa regime despite persistent problems in the EU Member States' visa approach towards Ukrainians.
That is why Ukraine has a specific view of the Eastern Partnership project. According to the Ukrainian presidency, it should correspond, in case of his country, to the strategic foreign policy objective, i.e. the integration with the EU.[38] Yet, the Eastern Partnership documents (the European Council Declaration of May 2009[39]) do not confirm such priorities as political and economic integration or lifting visas.
Ukraine has expressed enthusiasm about the project. Ukraine deputy premier Hryhoriy Nemyria said that the project is the way to modernise the country and that they welcome the Eastern Partnership policy, because it uses 'de facto' the same instruments as for EU candidates.[9]
Under the Eastern Partnership, Poland and Ukraine have reached a new agreement replacing visas with simplified permits for Ukrainians residing within 30 km of the border. Up to 1.5 million people may benefit from this agreement which took effect on July 1, 2009.[10]
In May 2010 President Viktor Yanukovych promised to adopt in June 2010 the legislation necessary for creating a free trade zone between Ukraine and the European Union. Yanukovych expected visas between Ukraine and EU member states to be abolished and that a free trade zone will be created by March 2011.[40]
The current Azarov Government continues to pursue EU-integration. During May and June 2010 both Prime Minister Mykola Azarov and Ukrainian Foreign Minister Kostyantyn Hryshchenko stated that integration into Europe has been and remains the priority of domestic and foreign policy of Ukraine.[41][42][43] The policies of the Azarov Government do not exclude EU integration, the EU Commissioner for Enlargement Štefan Füle stated on May 12, 2010.[44]
"An action plan for Ukraine toward the establishment of a visa-free regime for short-stay travel" between the European Council and Ukraine was agreed on November 22, 2010.[18] This roadmap requests major improvements in Ukrainian border control, migration and asylum policies.[19]
Attempts to change the French constitution are currently being carried forward in order to remove the compulsory referendum on all EU accessions of countries with a population of more than 5% of the EU's total population; this clause would apply to Ukraine and Turkey.[45]
On 4 June 2009 some media outlets reported that Germany's Free Democratic Party openly stated in its programme that Ukraine has the right for the EU membership in the long term. This was the first major German political party to state this.[46]
Our concern is connected with a certain politicization of the judicial system in Ukraine. The Tymoshenko case proves this.
European Union High Representative for Foreign Affairs Catherine Ashton warned Ukraine that although the talks on the Association Agreement with Ukraine would continue, the ratification process of this treaty "will face problems if there is no reversal in the approach of Ukrainian authorities" towards the trial of former Ukrainian Premier Yulia Tymoshenko.[48] This association agreement has to be ratified by all member states and the European Parliament for the document to take effect.[48] The sentencing of Yulia Tymoshenko to seven years in prison on October 11, 2011 (an appeal is currently pending[49]) was met with national and international protest and threatens Ukraine–European Union relations.[50][51][52] Tymoshenko herself has stated that her imprisonment should not stop the European Union to further integrate with Ukraine.[53] Certain analysts and Ukrainian politicians have pointed out that they believe that some Ukrainian businesses tycoons with "lucrative relations" with Russia are deliberately hindering Ukraine's EU integration.[54] The signing of the Association Agreement between Ukraine and the EU, although finalized, was postponed on 19 December 2011; according to a joint statement by Ukraine and the EU adopted on a Ukraine-EU Summit the ratification of the treaty depended on Ukraine's "respect for common values and the rule of law with an independent judiciary".[55]
Polls | For | Against | Total loss/gain |
---|---|---|---|
2004 University of Sussex[56] | 56% | 16% | - |
January 2008 BBC News[57] | 63% | - | 13% |
2009 EUobserver[35] | 20 to 34% | - | 29% |
May 2010 GfK[58] | 53% | - | 19% |
November 2011 Razumkov Center[59] | 45% | 34.2% | 8% |
December 2011 Kucheriv Democratic Initiatives Foundation[60] | 40% | 32.9% | 5% |
In December 2008 44.7% of all Ukrainians found it necessary for Ukraine to enter the European Union and 35.2% see no necessity in Ukraine's entering the EU.[61] In January 2008 Western Ukraine was found to be generally more enthusiastic than Eastern Ukraine, but in most regions a majority thought their lives would improve faster if their country were inside the EU.[57] Citizens aged between 20-39 and residents of Central and Western Ukraine appeared to be the strongest supporters of joining the EU in May 2010 and December 2011 (in December 2011 the opinion of the age group 18-29 did not vary from one region to another).[58][60] Ukraine's EU ambassador, Kostyantyn Yeliseyev, stated in July 2011 that business tycoons and politicians from Ukraine's Russian speaking east where as much pro-EU as the west of the country: "If any politician today in Ukraine declared himself to be against European integration, he would be politically dead."[17]
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