Ukraine–European Union relations

Euro-Ukrainian relations

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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 EU is seeking an increasingly close relationship with Ukraine, going beyond cooperation, to gradual economic integration and deepening of political cooperation. Ukraine is said to be a priority partner within the ENP.^[12] In 2012, the EU signed deals on free trade and political association with Ukraine; however EU leaders have stated that these agreements will not be ratified unless Ukraine addresses concerns over a "stark deterioration of democracy and the rule of law", including the imprisonment of Yulia Tymoshenko and Yuriy Lutsenko in 2011 and 2012.^{[13][14][15][nb 1]} On 25 February 2013, the EU set a three-month deadline for Ukraine to carry out the required changes to its justice and electoral systems in order to enable the formal signing of their agreements with the EU in Vilnius on 29 November 2013.^[16] Though Ukrainian President Viktor Yanukovych urged the parliament to adopt laws so that Ukraine would meet the EU's criteria,^{[17][18][nb 2]} all six motions on allowing Tymoshenko to receive medical treatment abroad were rejected by Ukraine's Parliament on 21 November 2013 and the same day a Ukrainian government decree suspended preparations for signing the association agreement, endangering the formal signing scheduled for a week later.^[19][20] However, the same day Yanukovych stated "an alternative for European integration does not exist".^[21] President Yanukovych still attended the 28–29 November 2013 EU summit in Vilnius, where the Association Agreement was originally planned to be signed,^[17] but the agreement was not signed.^[22] However, on 29 November 2013 President of the European Commission José Manuel Barroso reiterated that EU's offer to Ukraine in terms of signing an Association Agreement remained on the table.^{[23][24][nb 3]} The decision to put off signing the association agreement lead to massive, ongoing protests in Ukraine.^[25]

History

Early relations

Ukraine has long been seen as an important but difficult 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 the 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.

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. The first EU-Ukraine summit took place in September 1997 in Kiev.^[27] During the second summit in October 1998 in Vienna, Ukraine-EU relations were defined as a "strategic and unique partnership" and Ukraine first declared its desire to acquire associate membership in the EU.^[27] None of top level meetings brought major changes to a reserved EU approach. Leaders focused chiefly on post-communism 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 same year Ukrainian President Kuchma stated that Ukraine wanted to sign an association agreement with the EU by 2003–2004 and that his country would meet all EU membership requirements by 2007–2011^[27]

Post-Orange Revolution relations

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 Organisation, associate membership in the European Union, and, finally, full membership.^[28] 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."^[29]

On 13 January 2005, the European Parliament almost unanimously (467 votes to 19 in favour) passed a motion stating the wish of the European Parliament to establish closer ties with Ukraine in view of the possibility of EU membership.^[30] 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 scrutinise 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 Organisation. 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.^[31]

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.^{[citation needed]} 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.^{[citation needed]}

Association negotiations

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.

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.^[12]

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.^[33]

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.^[34]

Second Tymoshenko government

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 finalise 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 liberalise trade relations". Ukraine's representative told that one must not "focus too much" on negotiation since there is much 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 29 October 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".^[35]

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.^[36]

On 16 June 2009, a new practical instrument was adopted – the EU-Ukraine Association Agenda.^[37]

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.^[38][39] However, this hasn't happened.

On 5 October 2009, the 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 member states of the European Union 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.^[40]

On 16 December 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."^[41]

Eastern Partnership (2009)

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 liberalising 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.^[42] Yet, the Eastern Partnership documents (the European Council Declaration of May 2009^[43]) 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.^[44]

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 1 July 2009.^[45]

Viktor Yanukovych presidency

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 (EU).^{[nb 4]} Yanukovych expected visas between Ukraine and EU member states to be abolished and that a free trade zone will be created by March 2011.^[46]

The current Azarov Government continues to pursue EU-integration. During May and June 2010 both Prime Minister Mykola Azarov and Ukrainian Foreign Minister Kostyantyn Gryshchenko stated that integration into Europe has been and remains the priority of domestic and foreign policy of Ukraine.^[47][48][49] The policies of the Azarov Government do not exclude EU integration, the EU Commissioner for Enlargement Štefan Füle stated on 12 May 2010.^[50]

"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 22 November 2010.^[51] This roadmap requests major improvements in Ukrainian border control, migration and asylum policies.^[52]

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.^[53]

Ukraine–European Union Association Agreement

The EU Association Agreement (AA) was initialed on 30 March 2012 in Brussels;^[54] but as of November 2012 the 27 EU governments and the European Parliament have yet to sign the accord.^[55][56][57] The treatment and sentencing (considered by EU leaders as a politically motivated trial^[58]) of former Prime Minister of Ukraine Yulia Tymoshenko have strained the relations between the EU and Ukraine.^[58][59] The European Union and several of its member states, notably Germany, have been pressuring Ukrainian President Viktor Yanukovich and his Azarov Government to halt the detention of Tymoshenko in fear of her degrading health.^[60] Several meetings with Yanukovich have been deserted by EU leaders, including the German president Joachim Gauck.^[61][62]

At the request of opposition politicians in Ukraine, EU government officials boycotted the UEFA Euro 2012 soccer championship in Ukraine.^[57][61][63] EU leaders have suggested that the AA, and the Deep and Comprehensive Free Trade Agreement, will not be ratified unless Ukraine addresses concerns over a "stark deterioration of democracy and the rule of law", including the imprisonment of Tymoshenko and Yuriy Lutsenko in 2011 and 2012.^[13][14][15]

A 10 December 2012 statement by the EU Foreign Affairs Council "reaffirms its commitment to the signing of the already initialed Association Agreement, including a Deep and Comprehensive Free Trade Area, as soon as the Ukrainian authorities demonstrate determined action and tangible progress in the three areas mentioned above, possibly by the time of the Eastern Partnership Summit in Vilnius in November 2013". These three areas are: "Electoral, judiciary and constitutional reforms (in line with international standards are integral parts of it and commonly agreed priorities)".^[64]

Kostiantyn Yelisieiev, Ukraine's Ambassador to the EU, responded in February 2013 by rejecting any preconditions by the EU for signing the AA.^[65] However, on 22 February 2013 a resolution was approved by 315 of the 349 registered members of the Verkhovna Rada stating that "within its powers" the parliament would ensure that 10 December 2012 EU Foreign Affairs Council "recommendations" are implemented.^[66] At the 16th EU-Ukraine summit of 25 February 2013,^[67] President of the European Council Herman Van Rompuy followed up on the December 2012 EU Foreign Affairs Council statement by reiterating the EU's "call for determined action and tangible progress in these areas – at the latest by May, this year".^[16]

The same day President Yanukovych stated Ukraine will "do its best" to satisfy the EU's requirements.^[16] At the time President Yanukovych was also in negotiations with Russia to "find the right model" for cooperation with the Customs Union of Belarus, Kazakhstan and Russia.^[16] But also on 25 February 2013 President of the European Commission José Manuel Barroso made it clear that "one country cannot at the same time be a member of a customs union and be in a deep common free-trade area with the European Union".^[16]

To coordinate preparation of Ukraine for European integration, the Government of Ukraine has adopted a Plan on Priority Measures for European Integration of Ukraine for 2013. Successful implementation of the plan is assumed as one of the conditions necessary for signing of the Association Agreement, planned for 29 November 2013 during Eastern Partnership Summit in Vilnius.^[17][68]

In March 2013, Stefan Fuele, the EU's Commissioner for Enlargement, informed the European Parliament that while Ukrainian authorities had given their "unequivocal commitment" to address the issues raised by the EU, several "disturbing" recent incidents, including the annulment of Tymoshenko's lawyer Serhiy Vlasenko's mandate in the Verkhovna Rada (Ukraine's parliament), could delay the signing of the agreements. However, the next day the Ukrainian Ministry of Foreign Affairs expressed it's optimism that they would still be signed in November.^[69]

On 7 April 2013 a decree by President Yanukovych freed Lutsenko from prison and exempted him, and his fellow Minister in the second Tymoshenko Government Heorhiy Filipchuk, from further punishment.^[2]

On 3 September 2013 (at the opening session of the Verkhovna Rada after the summer recess) President Yanukovych urged his parliament to adopt laws so that Ukraine will meet the EU criteria and it can sign the Association Agreement in November 2013.^[18]

On 18 September the Ukrainian cabinet unanimously approved the draft association agreement.^[70]

On 25 September 2013 Chairman of the Verkhovna Rada Volodymyr Rybak stated that he was sure that his parliament would pass all the laws needed to fit the EU criteria for the Association Agreement since, except for the Communist Party of Ukraine^{[nb 5]}, "The Verkhovna Rada has united around these bills".^[1]

On 20 November 2013 EU's Commissioner for Enlargement Fuele stated he expected that the Verkhovna Rada would consider and adopt the remaining bills necessary for the signing of the association agreement, planned for 29 November 2013, the next day.^[17]

Suspension of association agreement signature

On 21 November 2013 the Verkhovna Rada failed to pass any of the six motions on allowing former Prime Minister Yulia Tymoshenko to receive medical treatment abroad, which was an EU demand for signing the association agreement.^[19][20] (The same week Tymoshenko had stated that she was ready to ask the EU to drop the demand for her freedom if it meant President Viktor Yanukovych would sign the association agreement.^[71]) The same day a Ukrainian government decree suspended preparations for signing of association agreement; instead it proposed the creation of a three-way trade commission between Ukraine, the European Union and Russia that would resolve trade issues between the sides.^[19] Prime Minister Mykola Azarov issued the decree in order to "ensure the national security of Ukraine" and in consideration of the possible ramfications of trade with Russia (and other CIS countries^[72]) if the agreement was signed on a 28–29 November summit in Vilnius.^[19]

In the following days, Euromaidan, the biggest protests since the Orange Revolution, were being held in Kiev by opposition parties.^[73][74]

Relations since suspension of association agreement

On 2 December 2013 President of the European Commission José Manuel Barroso agreed to meet with a delegation from Ukraine to discuss closer ties with the EU but stated there would be no re-opening of negotiations on the proposed Association Agreement.^[75] The same day First Vice Prime Minister of Ukraine Serhiy Arbuzov announced that Ukraine planed to sign a "roadmap" with the EU "I'm not talking about the conditions of the association but about the conditions we planned to resolve before signing and after signing".^[76] Ukraine and the EU started "conducting technical preparations for the upcoming dialogue between Ukraine and the EU on certain aspects of the implementation of an Association Agreement" on 5 December 2013.^[3] However, on 15 December Fuele said that the Ukrainian government's negotiating position had "no grounds in reality" and that they were suspending further talks.^[77]

On 17 December, Ukraine signed a treaty with Russia under which Russia will buy $15 billion of Ukrainian Eurobonds and the cost of Russian natural gas supplied to Ukraine will be reduced,^[78][79] though Putin stated that "today we have not discussed the issue of Ukraine joining the Customs Union [of Belarus, Kazakhstan, and Russia] at all".^{[80][nb 6]} Three days later, high ranking EU-officials stated that the EU is still ready to sign the Association Agreement "as soon as Ukraine is ready for it", that the agreement was also beneficial for Russia and that the EU "is totally not concerned about the fact that Ukraine is signing agreements with Russia".^{[81][82][83][84][85]} On 23 December 2013 Russian presidential aide Yuri Ushakov stated "there is no contradiction" in Ukraine's association with the EU and their observer status in the Customs Union of Belarus, Kazakhstan, and Russia and the Eurasian Economic Union.^[86]

On 20 December 2013 Chairman of the Verkhovna Rada (Ukraine's parliament) Volodymyr Rybak did not rule out the possibility of signing an Association Agreement between Ukraine and the EU without the creation of a free trade area (FTA).^[87] On 24 December 2013 Minister of Foreign Affairs of Ukraine Leonid Kozhara stated that "at the present time" his Ministry's "and other government agencies' efforts are focused on further negotiations with the EU to provide conditions for implementing the association agreement".^[88] He added that "Ukraine will resume the negotiations on this agreement after the holidays" and that the text of the Association Agreement itself would not be changed, but that Ukraine intended to focus on the issues related to its implementation.^[89]

On 15 January 2014 Ukrainian Prime Minister Mykola Azarov gave an interagency (ministries and other agencies) working group two months to draw up a plan "on conditions of the implementation of the Association Agreement" for negotiations with the EU.^[90]

Legal instruments

Partnership and Cooperation Agreement (1994)

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.

European Neighbourhood Policy (ENP)

ENP partner	EU contract	FTA provisions	Country Report	Action Plan	Adoption by the EU	Adoption by the ENP partner	AP duration	CFSP invitation[nb 7]	EU aspiration[nb 8]	Sub-group
Ukraine[nb 9]	PCA, March 1998	No	May 2004	End 2004	21 February 2005	21 February 2005	3 years	Yes[nb 10]	Yes	East

sources: , , ENP official page

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.

Eastern Partnership (EaP)

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.^[91] 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.^[92]

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 liberalising 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.^[42] Yet, the Eastern Partership documents (the European Council Declaration of May 2009^[43]) 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.^[44]

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 1 July 2009.^[45]

Negotiations of an Association Agreement (AA)

An Association agreement (AA) between Ukraine and the EU was negotiated from 2009–2011, and should replace the existing PCA. The AA aims for political association and economic integration, 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 16 June 2009, a new practical instrument was adopted – the EU-Ukraine Association Agenda.^[37] 19 December 2011 EU-Ukraine summit, which was intended to lead to the signature of the Agreement, fell short due to the EU's concerns over the jailing of former premier Yulia Tymoshenko. The end of negotiations were announced, but the text of the agreement was not signed with EU leaders deciding to wait until the October 2012 Parliamentary elections as a test of the vitality of democracy and rule of law in Ukraine.^[93][94] The AA was initialed shortly thereafter, on 30 March 2012.^[55][56] Before it enters into force it must be ratified the Ukrainian Parliament, the European Parliament, and each EU member state.^[56][57] However, EU leaders have suggested that the agreement will not be ratified unless Ukraine addresses concerns over a "stark deterioration of democracy and the rule of law", including the imprisonment of Yulia Tymoshenko and Yuriy Lutsenko in 2011 and 2012.^[13][14][15] In November 2012, EU Commissioner for Enlargement and European Neighbourhood Policy Stefan Fule stated that the AA, and DCFTA, could be signed in November 2013 if the EU's concerns were addressed.^[95][96]

However, in February 2013 Fule warned Ukraine that the agreements could be abandoned if the required reforms are not made quickly. He also stated that Ukrainian membership in the Customs Union of Belarus, Kazakhstan and Russia would be incompatible with the agreements with the EU.^[97]

Deep and Comprehensive Free Trade Agreement (DCFTA)

While work on signing a deep and comprehensive free trade agreement between Ukraine and the EU first began in 1999,^[27] formal negotiations between the Ukrainian government and the EU Trade Commissioner were not launched until 18 February 2008 .^[98] 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 was ready.^[99] Despite those outstanding issues, Ukraine was ready to sign the agreement as it stood. Although it wanted stronger wording on enlargement prospects and access to the EU market for its truckers, Ukraine had more than many other candidates at the equivalent stage of the process. The finalised agreement was initialed on 19 July 2012.^[55] Ratification of the DCFTA, like the AA, has been stalled by the EU over concerns over the rule of law in Ukraine.^[13][14][15] This includes the application of selective justice, as well as amending electoral laws. As a result, the role of Ukrainian oligarchs in sanctioning the agreement was also questioned.^[100]

If Ukraine would choose the agreement, the Eurasian Economic Commission's Customs Union of Belarus, Kazakhstan and Russia would withdraw from free trade agreements with the country, according to Russian presidential advisor Sergei Glazyev.^[101] However, on 21 November 2013 a Ukrainian government decree suspended preparations for signing the agreement^{[nb 11]} that was scheduled to be signed during a 28–29 November 2013 EU summit in Vilnius, and it was not signed.^{[17][19][20][21][22][23][24][nb 12]} The decision to put off signing the association agreement lead to massive, ongoing protests in Ukraine.^[25]

Visa Liberalisation Dialogue

• 2006 Readmission Agreement
• 2007 Visa Facilitation Agreement
• 2010 Visa Liberalisation Action Plan

On 22 November 2010 the European Council and Ukraine announced "an action plan for Ukraine toward the establishment of a visa-free regime for short-stay travel".^[51] This roadmap outlined major improvements in Ukrainian border control, migration and asylum policies.^[52] Negotiations for an amendment to the 2007 Visa Facilitation agreement, which expanded the subset of individuals eligible for simplified visa procedures to include students, NGO representatives and holders of official passports, were finalised in December 2011,^[94] and the Visa Facilitation Agreement was ratified by the Verkhovna Rada on 22 March 2013.^[102] On 18 April 2013 the European Parliament followed suit,^[103][104] and the European Council finalised the agreement on 13 May 2013.^[103][105] Yanukovych expects negotiations for full visa-free travel to be completed by the end of 2014.^[94] The European Commission has said that Ukraine must strengthen its anti-discrimination laws before the visa-free regime is established.^[106]

Energy Charter Treaty and Energy Community

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.^[107] 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.^[107]

After its entry into force, Ukraine held an Observer status for the Treaty establishing 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. Ukraine soon expressed its interest in full membership. Mandated by the Energy Community Ministerial Council, the European Commission had the first round of formal negotiations with Ukraine in late 2008. After three negotiation rounds, the technical negotiations with Ukraine were concluded in 2009. The Ministerial Council, however, made the membership conditional on legislative amendments. In concrete, it requested Ukraine to revise its gas law so that it complies with EU's Gas Directive 2003/55/EC.^[108] Following the amendment of the gas law in July 2010, Ukraine signed the Energy Community Accession Protocol on 24 September 2010,^[109] ratified the Treaty on 15 December 2010^[110] and officially acceded the Energy Community on 1 February 2011.

Economic relations

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).^[111]

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.^[111]

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%).^[111]

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).^[111]

EU Financial Assistance to Ukraine

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.^[112]

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.^[113] Ukraine is moreover eligible for horizontal instruments, that cover countries regardless of their region, such as:

• the Instrument for Stability, a new instrument to tackle crises and instability in third countries and address trans-border challenges including nuclear safety and non-proliferation, the fight against trafficking, organised crime and terrorism;
• the Macro Financial Assistance

WTO membership of Ukraine (2009)

Since 2009, with the accession of Ukraine to the World Trade Organisation, economic relations between the EU and Ukraine have to respect the WTO normative acquis. The EU has always believed that WTO membership can play a key role in supporting Ukraine's economic reform, especially in the context of a transition economy. In joining the WTO, Ukraine benefits from secure access to the markets of all WTO members and commits to providing the kind of stable trade and investment environment that will attract further trade and investment.

Popular support to EU integration of Ukraine in European Union

Support in Ukraine for European Union membership since 2004

Polls	For	Against	Total loss/gain
2004 University of Sussex[114]	56%	16%	-
January 2008 BBC News[115]	63%	-	13%
2009 EUobserver[39]	20 to 34%	-	29%
May 2010 GfK[116]	53%	-	19%
November 2011 Razumkov Centre[117]	45%	34.2%	8%
December 2011 Kucheriv Democratic Initiatives Foundation[118]	40%	32.9%	5%
July 2012 RATING[119]	54%	34%	14%
December 2012 Democratic Initiatives Foundation & Razumkov Centre[120]	48%	10.5% (32% supported Ukraine's accession to the Customs Union of Belarus, Kazakhstan and Russia)	6%
March 2013 RATING[121]	50%	37%	2%
June 2013 Deutsche Welle[122]	59%	24%	9%
October 2013 RATING[123]	53%	35% (34% supported Ukraine joining to the Customs Union of Belarus, Kazakhstan and Russia)	6%
November 2013 Kyiv International Institute of Sociology[124]	39%	35% (37% supported Ukraine's accession to the Customs Union of Belarus, Kazakhstan and Russia)	14%

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.^[125] Western Ukraine is found to be generally more enthusiastic than Eastern Ukraine, but in most regions a majority early 2008 believed that their lives would improve faster if their country were inside the EU.^[115][119] 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).^[116][118] In July 2012 residents of West Ukraine (74%), Central Ukraine (59%) and North Ukraine (56%) where the biggest supporters for EU membership.^[119] A June 2013 poll, on behalf of Deutsche Welle, found that 52% of Eastern Ukraine was in favor of joining the EU.^[122]

Ukraine's EU ambassador, Kostyantyn Yeliseyev, stated in July 2011 that business tycoons and politicians from Ukraine's Russian speaking east were 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."^[126]

See also

• Future enlargement of the European Union
• 2008 EU–Ukraine Summit
• INOGATE

Notes

References

Literature

• Anatolij Ponomarenko: "Die europäische Orientierung der Ukraine: Dekret des Präsidenten der Ukraine über die Strategie der Integration der Ukraine in die Europäische Union; Partnerschaftsabkommen zwischen der EU und der Ukraine". Zentrum für Europäische Integrationsforschung, Bonn 1999. 42 S. ISBN 3-933307-39-2 (German)
• Dezseri, Kalman [ed.]: Economic and political relations after the EU enlargement: the Visegrad countries and Russia, Ukraine, Belarus and Moldov, Budapest 2004.
• Wolfgang Tiede and Sabina Krispenz: "Die Ukraine auf dem Weg in die Europäische Union?" ("Ukraine on the way to the European Union?" in Osteuropa-Recht (OER)) 2008 (German Law Journal), vol. 6, pp. 417–426.
• Wolfgang Tiede and Christina Schröder: Die Ukraine auf dem Weg in die NATO? ("Ukraine on the Way to NATO Membership?"), in Osteuropa-Recht (OER) 2009 (German Law Journal), vol. 3, pp. 294–304 (German).
• Andreas Umland: „Europa und die ukrainische Misere: Weil die EU dem Land eine Mitgliedschaft gar nicht in Aussicht stellt, trägt sie zum Chaos in Kiew bei. Ein historischer Fehler", in: Frankfurter Allgemeine Sonntagszeitung, 1 November 2009, p. 15 (German).
• Wolfgang Tiede and Jakob Schirmer: "Strategische Notwendigkeit – Die Östliche Partnerschaft der Europäischen Union" ("The EU’s Eastern Partnership"), in "WeltTrends" (Zeitschrift für internationale Politik und vergleichende Studien), 71/2010, pp. 10–14 (German).
• Dmitry Yefremenko. Life after Vilnius. A new geopolitical configuration for Ukraine. - Russia in global affairs. - Vol. 11, No. 3 - July – September 2013. Electronic version: http://eng.globalaffairs.ru/number/Life-after-Vilnius-16166

External links

• The European Commission's Delegation to Ukraine
• Mission of Ukraine to the European Union
• Ministry of Foreign Affairs of Ukraine
• European Union External Action Service: Ukraine
• Text of association agreement between EU, Ukraine

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