Brussels, 12/09/2014 (Agence Europe) - At the time of EUROPE going to press on Friday 12 September, European Commissioner for Trade Karel De Gucht was meeting Russia's Minister for Economic Development Alexei Ulyukayev and Ukraine's Minister for Foreign Affairs Pavlo Klimkin in order to conclude discussions on the impact on the Russian economy of implementing the EU-Ukraine free trade agreement.
This session follows on from the trilateral ministerial meetings - in Brussels on 11 July and Minsk on 26 August - in order to resolve the outstanding issues on this matter. The European Parliament and the Rada (Ukrainian Parliament) are due to ratify the EU-Ukraine free trade agreement during the week of 15 September. Ukraine's President Petro Poroshenko has announced the holding of the first EU-Ukraine Association Council for 17 November.
“The three parties will put forward proposals that will be discussed over the course of this meeting. The ideal result would be a compromise between the parties. We don't yet know what formula this will take”, De Gucht's spokesperson, Wojtek Talko, had said earlier in the day. “[The EU-Ukraine agreement] provides for some flexibility already. What we are trying to explain is that there are texts and annexes, in which there is already a lot of flexibility that should enable a good number of the Russians' concerns to be taken into account. This is what we have already said in the past. The purpose of today's meeting is to bring more clarity on this”, Talko added.
“This agreement will keep all its sense. I'm not going to enter into details. Commissioner De Gucht will inform us of the content of these meetings”, Commission spokesperson Pia Ahrenkilde had said, replying during a midday press conference to journalists' questions on the possibility of the agreement becoming void of substance in order to respond to Moscow's concerns.
The EU-Ukraine free trade agreement aims in particular to eliminate the majority of customs duties between the two economies - tariff liberalisation for 82.3% of Ukrainian agricultural products, preferences for 83.4% of Ukrainian exports of processed agricultural products, and tariff removal on 94.7% of Ukrainian industrial products.
Russia fears the arrival on its market, via Ukraine, of products manufactured in the EU - to the detriment of Russia's national production. In addition, Moscow does not believe that Ukraine can benefit from privileged trade conditions both with it and with the EU. The worsening of relations between Ukraine and Russia over recent years has been translated into a large decline in bilateral trade. Russia and the EU each represent around 25% of Ukraine's trade. Russia is a very important outlet in particular for heavy industry (metallurgy, chemicals, aerospace and defence) from the Russian-speaking East of Ukraine, which is currently in separatist conflict. (EH)