Moscow scored a major diplomatic coup after Kiev agreed to postpone the enforcement of its Association Agreement with EU until the end of next year, following three-way talks between Russia, Ukraine and European Union officials in Brussels.
“We agreed on delaying the provisional application until the
end of next year and to prolong the autonomous trade measures for
the same period. That gives breathing space to discuss whatever
problem may arise and then it will be up to the three parties
concerned to see what they do after Jan. 1, 2016. I hope by then
we come to a solution,” said EU Trade Commissioner Karel De
Gucht, following the conclusion of the one-day negotiations.
The European official said Ukraine would begin to enjoy
unfettered access to European markets starting from the
ratification of the EU Association Agreement, which paves the way
for the country’s economic and eventually political integration
into Europe.
In turn, Russia, which enjoys close economic ties with Ukraine,
also promised that it would not introduce tariffs for Ukrainian
exporters for the duration of the delay – something it earlier
threatened to do.
“The compromise will make sure that Russia has no basis for
the imposition of any kind of retaliatory measures,” said
Ukrainian Foreign Minister Pavel Klimkin, who said that the text
of the proposed agreement would be ratified by the Rada
“unamended” as early as Tuesday next week.
Earlier on Friday, before the compromise solution emerged,
Ukrainian President Petro Poroshenko, who was not at the talks,
claimed that the document would come into force in November.
Moscow, has vehemently opposed the divisive EU-Ukraine pact since
it was drafted two years. Former President Viktor Yanukovich’s
decision to postpone the signing of the agreement provoked
initial Maidan demonstrations in Kiev last fall, and set the
current Ukrainian crisis in motion.
Russia’s chief negotiator in Brussels, economic development
minister Aleksey Ulyukaev, said that Moscow, which is in the
process of creating its own free trade zone with former Soviet
states, hadn’t given up its hope of attracting Kiev into its
economic sphere.
“We will use the next fifteen months to continue our dialogue
with the Ukrainian side. We will present our arguments, and the
Ukrainian side will reply with theirs,” said the Russian
official.
There have been varying estimates of the financial impact of the
EU deal on Ukraine, and its aspects can not be separated from the
geopolitical effects and fallout from Kiev’s choice. But the
original figures advertised by Europe would see Ukraine save €500
million a year through lower tariffs, while Vladimir Putin said
that Russia’s western neighbor stood to lose as much as €165
billion in ten years if it stopped free trade with Russia.
Ukrainian businesses have also worried about competing directly
with European companies, and on Friday, news agencies reported
that Poroshenko asked the EU to gradually reduce Ukraine’s import
tariffs, to help it adjust. If the EU acquiesced, then the delay
helps Ukraine not only to stave off more disagreements with
Russia, but to reap one-sided benefits of European trade.
Article source: http://rt.com/business/187408-eu-ukraine-pact-postponed/
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