Ukraine's ongoing attempts at economic integration with Europe may have begun to bear fruit today, with the European Parliament giving the green light for visa-free travel.
Meanwhile, the World Economic Forum in Davos,
Switzerland led to high-level meetings between European and Ukrainian
officials.
International Monetary Fund Managing Director
Christine Lagarde met with President Petro Poroshenko at Davos, according to
media reports. Calling the meeting “productive,” Poroshenko spokesman
Svyatoslav Tsegolko tweeted that the pair discussed the ongoing progress, or
lack thereof, in Ukraine’s ongoing reform efforts. Tsegolko added:
“Lagarde is hoping for a positive conclusion.”
The meeting comes as the IMF is considering
whether to give Ukraine an additional tranche of low-interest loans. The
approval of a third low-interest tranche loan of $1.7 billion depends on an
ongoing IMF review of a new tax and budget law passed on Dec. 25.
IMF economists have already signaled that
Ukraine’s 2016 budget is broadly compliant with its demands, but the tax code
needs further review.
Should the IMF decide to stop lending to Ukraine,
an additional $2.3 billion in credits from the United States, European Union
and World Bank would be in jeopardy as well. Ukraine has already received almost $10 billion from the IMF and other international lenders in 2015.
Visa-free travel
In a Jan. 21 statement, the European Parliament
lauded Ukraine’s progress on its “chosen path of closer political and
economic integration with the European Union,” recommending that the
European Council and European Union member states immediately grant Ukraine a
visa-free travel regime.
The resolution also urges Ukraine’s leadership
“to fulfil its commitments to fight endemic corruption.”
According to the document, members of the
European Parliament expect growth of Ukraine’s export to the EU, and point out
the need in further EU financial help for Ukraine.
“Members of European Parliament condemn Russia’s
suspension of its free trade agreement with Ukraine at the very moment when the
EU-Ukraine free trade deal entered into force,” the resolution says. “They
deplore the ‘heavy trade restrictions’ on Ukraine’s exports to Russia, voice
concerns about Ukraine’s economic and financial standstill and repeat the need
for further EU financial assistance.”
European Parliament also said that the member
states of EU should avoid building new gas pipelines from Russia that bypass
Ukraine, such as “Nord Stream II.”
The report condemned Russia’s annexation of
Crimea and its involvement in “the conflict in the eastern parts of Ukraine,”
the war that has already killed over 9,000 people and left another 1.5 million
displaced.
“European Parliament calls on the Russian
Federation to end its occupation of Crimea, and to put an immediate end to all
direct or indirect involvement in the ongoing conflict in Ukraine,” the
resolution said.
The document recommends EU to keep the
Organisation for Security and Cooperation in Europe mission fully manned and
fully operational. Once the situation permits, an EU-led Common Security and
Defence Policy mission should be offered for deployment to Donbas, to assist in
tasks such as demining, assisting with preparations for local elections and
securing free access for humanitarian aid organisations.
