Ukrainian prime minister supports EU's plan to offer "neighbor" status (03/23/03)

Ukrainian prime minister supports EU's plan to offer "neighbor" status

by Roman Woronowycz
Kyiv Press Bureau

KYIV - Ukraine's Prime Minister Viktor Yanukovych expressed support on March 18 for a European Union plan to offer states that border it "neighbor" status. He explained that the designation has the potential to give Ukraine a better foothold in the European market.

"This document suggests the EU has ended a period of uncertainty and is ready to respond to Ukraine's proposition to raise the level of relations," stated Mr. Yanukovych, according to Interfax-Ukraine.

Mr. Yanukovych, speaking in Brussels during the sixth annual EU-Ukraine cooperation conference, this year titled "Wider Europe - Prospects for Ukraine," noted that the document recently approved by the European Commission, the government body of the EU, lays out a vision for European relations in the near term. He said that he sees the possibility for the development of a free trade zone to include Ukraine, and explained that the EU promised special cooperation in the spheres of transport, energy and communications.

The Ukrainian government leader said the document includes prospects for liberalization of trade relations and increased cooperation with European banks in Ukrainian investment projects. He also suggested that the new agreement would spur the development of a visa-free customs regime and the tightening of cultural interaction. He said the EC document underscored the "liberalization of relations by means of free migration of people, goods, services and capital" between the European Union and countries with "neighbor" status.

The prime minister's words offered a different Ukrainian stance from the one President Leonid Kuchma took after the latest EU offer became public on March 12. At the time, President Kuchma criticized the new document because of what he termed the vagueness of the status of a "neighbor state." The Ukrainian president has complained in the past that relations between the EU and Ukraine have been developing far too slowly. He has worked for nearly two years to have the EU open its markets to Ukrainian goods via associate membership. Such membership would give Ukraine trade benefits and exclude it from an EU quota system that has limited the export of Ukrainian metals and textiles to member-countries.

The EU has repeatedly resisted Mr. Kuchma's initiatives by explaining that Ukraine has not achieved the level and depth of economic and democratic reforms to allow for such status. Ukraine is still looking for acknowledgment by the EU of its status as a "market economy."

Poland's ambassador to the European Union, Marek Grela, who also took part in the EU-Ukraine conference in Brussels, insisted that a special situation should be created for Ukraine, putting it somewhat closer to the EU than the other states with "neighbor state" status.

"My country supports the European choice of Ukraine and its wish to sign an agreement on associate membership," explained Ambassador Grela, according to Interfax-Ukraine. "Ukraine is an important strategic partner and Poland's closest neighbor. Poland deeply understands the processes occurring in this country."

The newly approved neighbor plan is considered the EU's official strategy towards those neighboring states that are not among the 10 countries that will join the organization next year, which will include Poland. It identifies "neighbor states" with which the EU desires to develop a special economic relationship. The list includes Russia, Belarus and Moldova, in addition to Ukraine, on the EU's eastern flank, and several European and non-European countries on its southern flank, including Mediterranean rim countries such as Morocco, Israel and Palestine. In the document, the EC labels the enumerated countries "a friendly circle of close neighbors."

It expressly notes that none will be invited into the EU in the next 10 years, but holds out that with time certain ones could achieve membership.

In Brussels, Mr. Yanukovych met with European Commission President Romano Prodi to discuss details of future EU-Ukraine cooperation. Mr. Prodi told the Ukrainian prime minister that Ukraine still retains the opportunity for full EU membership and that Kyiv should continue to work with that aim in mind.

Mr. Prodi also stated that the EU wants to take part in the development of a gas transport consortium, which would move Central Asian and Russian gas through Ukraine to Europe. Thus far the consortium consists of Russia and Ukraine, along with limited German involvement. In addition, the EC president expressed the EU's desire to see the completion of the Odesa-Brody oil pipeline through to the Polish port city of Gdansk.

Prime Minister Yanukovych said the EU would delineate its specific role in the development of these types of trade ties during a special energy conference to be held in Brussels in the near future.

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