Brussels, 24/02/2014 (Agence Europe) - On Monday 24 February, the European Union postponed the possible signature of an agreement to move closer to Ukraine until the formation of a government after the early elections on 25 May. In addition, the EU reiterated that any financial aid would be conditional upon economic reforms.
“We can see and hear the European aspiration of the Ukrainians. We are ready to support it. The trade and investment agreement that we offered the Ukrainians is still on the table. And we will discuss it with the next legitimate government after the next elections. This is to ensure that our relations with Ukraine are strengthened”, said Olivier Bailly, a spokesperson for the European Commission, on Monday. The planned association agreement includes a section on the creation of a free-trade area between the EU and Ukraine.
The Commission is currently ruling out any signature of such an agreement before the formation of a newly elected government in Ukraine. The refusal of fallen president Viktor Yanukovych to sign such an agreement in November precipitated the country into crisis. “We must first let the transition period reach its end” - a political transition that was started in Kiev on Saturday 22 February with the fall of Yanukovych - before holding discussions after the early elections on 25 May “once the new government is formed”, said Bailly. “This does not mean that the current government is not legitimate, but we would like an elected government that has a sovereign choice supported by a clear majority”, he added.
Economic aid. Bailly also recalled that European financial and economic aid to Ukraine would be conditional upon the Ukraine's implementation of economic reforms, which the IMF is ready to dictate. “We are ready to help on condition that there are economic reforms in Ukraine”, Bailly said. The new Ukrainian authorities are currently asking for $35 billion of financial aid from the international community in order to avoid bankruptcy. “We are ready to examine different options to help Ukraine economically”, Bailly again said.
Ukraine has also suggested organising a big international donors' conference with the EU, US, IMF and other international financial organisations in order to obtain funding for modernisation and reforms in Ukraine. The acting president, Olexandr Turchynov, warned on Sunday that Ukraine was on the edge of default. UK Chancellor of the Exchequer George Osborne stated on Sunday that “we should be there ready to provide financial assistance through organisations like the IMF”. Osborne added that much of this assistance should take the form of loans.
Russia has since promised to lend $15 million (€11 million) to Ukraine and to cut the price of the natural gas that it sells Ukraine. Moscow has nevertheless suspended payment of this aid this week.
Sanctions not automatic. The Commission recalled that work was ongoing in the Council to determine the scope of application of the sanctions (assets freeze and visa bans) for those responsible for the deadly violence in Ukraine. “The final decision will be taken in the light of the events on the ground. There will be nothing automatic”, said the Commission. The weekend of 22-23 February brought a number of developments. The new Ukrainian authorities launched an arrest warrant for fallen president Yanukovych for “mass murder”. Dismissed by the Ukrainian Parliament on Saturday, Yanukovych has not been seen since, and it is thought he could be hiding in the east of the country. The violence in the centre of Kiev claimed 82 lives last week.
The list of those targeted by EU sanctions - around 20 people - is unlikely to be disclosed before Thursday, according to a European diplomat. This caution on the part of the EU is reportedly “to avoid any provocation” of Russia, and to prevent any risk of the partition of Ukraine between the pro-European west and the pro-Russian east, according to sources.
Ashton in Kiev. “The Europeans have asked Russia not to intervene. The flip side of the coin is that the EU is committed to keeping out of the game”, said a source. This is reportedly the message that High Representative of the EU for Foreign Affairs and Security Policy Catherine Ashton - who set off on a two-day visit to Kiev on Monday - would like to transmit to her Ukrainian partners. Ashton is due to meet the parties that form the new majority, and is due to speak about the different forms of aid that the EU could bring Ukraine. “It's not for us to take sides. We are conducting an inclusive dialogue with all the parties concerned”, said a Commission spokesperson.
On Monday, the Visegrad countries (Czech Republic, Hungary, Poland and Slovakia) called for “responsible dialogue from all the Ukrainian political forces”, in the aftermath of new power being established in Kiev. The four Visegrad countries, members of the EU and three of which share borders with Ukraine, are “greatly determined for [Ukraine] to maintain sovereignty, independence, unity and territorial integrity”, said their foreign ministers at a meeting in Budapest. The cooperation of the Visegrad countries focuses on energy and security issues, as well as the partnership with countries from the East like Ukraine and Russia. On Monday, the Visegrad four asked for international “macroeconomic aid” for Ukraine, believing that “stabilisation of the Ukrainian economy is the key” to the stabilisation of the country.
Release of Yulia Tymoshenko. European Commission President José Manuel Barroso and European Parliament President Martin Schulz hailed the release of opposition leader and former Ukrainian prime minister Yulia Tymoshenko on Saturday 22 February. Two hours before the release of the muse of the 2004 Orange Revolution, Barroso stated on Twitter that an independent judicial system is essential for a democratic Ukraine. Schulz, on behalf of the European Parliament, hailed Tymoshenko's release, and he added that the announcement of presidential elections on 25 May was particularly welcome and important. He added that change was under way in Ukraine. The European Parliament's EPP Group leader, Joseph Daul, said in a press release that he was relieved that after three years of unjust imprisonment - imprisonment that was politically motivated by Yanukovych's regime - Tymoshenko is finally free. Tymoshenko is reportedly not interested in the post of prime minister in the new government. (LC/transl.fl)