Prime Minister Arseniy Yatsenyuk promised that Ukraine would continue on the path of reform following a meeting with the European Union on their joint association agreement in Brussels on Dec. 7.
Yatsenyuk and Johannes Hahn, the EU enlargement commissioner, both reiterated that a free trade agreement would go into force as scheduled on Jan. 1 in a step-by-step process despite attempts by Russian to postpone its implementation.
“We have had 13 (joint) consultations with our northern neighbor,” Yatsenyuk said, referring to Russia, but “nothing will stop the free-trade deal, which is in the interest of both Ukraine and the EU.”
During recent three-way talks, Russia had demanded a 10-year delay of certain provisions of the free-trade deal, Yatsenyuk had previously said. Moscow had also asked Kyiv to restrict imports of foods from the EU in retaliation against Western sanctions imposed over Russia’s annexation of Crimea and its war against Ukraine in the east.
Yatsenyuk rejected the Kremlin’s demands as absurd. The EU responded by urging Russia to refrain from imposing further import restrictions on Ukrainian goods after Jan. 1 as announced by the Kremlin. An export ban could cost Ukraine $600 million in lost exports, Yatsenyuk estimated. Somewhat softening the rhetoric, Moscow talked about customs barriers, not an embargo.
Addressing the issue of increased competition, Hahn said that the EU had set up a €55 million fund to assist small and medium businesses adopt and overcome the challenges of entering the EU market. He pledged continued support for the Ukrainian economy and emphasized agriculture. He saw signs of some improvement in the business climate and the fight against corruption.
Meanwhile, Yatsenyuk listed the daunting task of reform still facing his government. Combating graft, overhauling the justice system, overhauling the public administration and the energy sector. The prime minister had earlier asked the EU to co-finance a reform of the public sector, including raising salaries for civil servants.
The 28-nation political bloc also agreed to set up a public administration fund on the condition that the funding could be specifically targeted. Yatsenyuk acknowledged that any financing would be released only when the government had a specific plan to overhaul public administration including “deep revisions” of the service.
Referring to parliament’s role in passing the required legislation, Yatsenyuk said he “hoped” that the legislature would pass the necessary changes soon. A final vote on the issue has been postponed a number of times, with the latest one scheduled for Dec. 8.
Visa-free travel
Yatsenyuk, moreover, said that Ukraine had fulfilled all requirements set by the EU to obtain visa- free travel with the bloc. Hahn in turn said that he was “almost certain” that the EU would make “a positive decision” in the matter on Dec. 15 with the measure to take effect in mid-2016.
He said that stability – including political stability – should be a priority for the government since the economy needs it to grow. Since no elections are scheduled for next year, it should be used to focus on reform, Hahn said.
Federica Mogherini, the EU’s top diplomat, said that both sides had agreed to continue cooperating on efforts to fight corruption, to improve decentralization and public administration.
Back home, the government of Yatsenyuk was under increasing pressure to step down over mounting allegations of foot-dragging on reforms and of outright involvement in corrupt schemes.
The outspoken Odesa Governor Mikheil Saakashvili on Dec. 6 accused Yatsenyuk and other top officials of grand corruption, allegedly causing the nation at least $5 billion annually.
A political consultant, Taras Berezovets, the director of Berta Communications, was one of many voices predicting that political stability was in short supply and that early parliamentary elections were to be expected sometime in 2016.
Staff writer Johannes Wamberg Andersen can be reached at [email protected]
