Brussels, 30/06/2014 (Agence Europe) - The preparatory meeting on 26 June for the ministerial level consultations meeting between the EU, Russia and Ukraine on the potential effects for Russia of the arrangements of the EU-Ukraine association agreement points to the differences in view between Brussels and Moscow remaining significant. The EU warns that it will respond to any Russian retaliation measures.
“The EU has once again listened carefully to the concerns about the potential economic impact of the deep and comprehensive free-trade area (DFCTA) between the EU and Ukraine on the Russian economy”, signed in Brussels on 27 June, said John Clancy, the spokesperson for European Commissioner for Trade Karel De Gucht, the day after the meeting of European and Russian experts to prepare for the meeting on 11 July between the European Commission and the Russian authorities - a meeting which will also be attended by the Ukrainian authorities. On the European side, it is De Gucht who will lead the delegation.
Over the course of the discussions, the compatibility of the EU-Ukraine free-trade agreement and of the community of independent states (CIS) free-trade agreement - to which both Russia and Ukraine are party - emerged again, said Clancy. Russia once again indicated that the negative impact of the EU-Ukraine agreement would result inter alia in Ukraine's adoption of the EU's system of antitrust and subsidy rules. According to the Russian claims, the increase in competition would challenge the existence of Russian monopolies, and the removal of state subsidies in Ukraine would weaken the viability of Russian investments in Ukraine, said Clancy.
“These views expose the profound differences in economic perspective between the EU and Russia. It is exactly because of the shift towards a more competitive system offering a level playing field that Ukraine will put itself on a path of growth and development and achieve the modernisation of its economy, which will ultimately benefit the many Russian investors operating in Ukraine”, Clancy commented.
The EU has therefore made it clear that it will consider any trade measure adopted by Russia in retaliation against Ukraine after signature of the association agreement as “completely unjustified and not in line” with the provisions of the CIS free-trade agreement. Such measures would also be illegal under the CIS free-trade agreement, and other CIS countries - Belarus and Kazakhstan - have already declared that they would not agree to adopt them, Clancy concluded. (EH)