Ministry for Foreign Affairs of Ukraine

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	Ukraine - EU bilateral relations

Relations between Ukraine and the European Union were established in December 1991, when the Minister for Foreign Affairs of the Netherlands as the EU Presidency, on behalf of the Union officially recognized the independence of Ukraine.

The Partnership and Cooperation Agreement between Ukraine and the EU (PCA) signed on 16 June 1994 (entered into force on 1 March 1998) constitutes the legal base of the EU-Ukraine relations and establishes cooperation on a wide range of political, trade, economic and humanitarian issues.

At present there are 7 priorities of the EU-Ukraine cooperation envisaged by the PCA's framework: energy, trade and investments, justice and home affairs, adaptation of the Ukrainian legislation to that of the EU, environment, transport, trans-border cooperation, collaboration in the sphere of science, technology and outer space.

The EU-Ukraine dialogue is carried out through annual meetings of the EU-Ukraine Summit with the participation of the President of Ukraine; Cooperation Council with the participation of the Prime-Minister of Ukraine; Cooperation Committee; Committee on parliamentary cooperation; regular Ukraine-EU Triyka meetings; permanent expert consultations. The EU and Ukraine annually hold more that 80 different official meetings and consultations at the high and expert levels.

The European integration is a key and irreversible priority of Ukraine's foreign policy. In the address to the Verkhovna Rada of Ukraine in June 2002 the President of Ukraine outlined the European integration as a streamline of Ukraine's economic and social strategy for the next decade.

Present development of the political dialogue between Ukraine and the EU is based on implementation by Ukraine of the Strategy of integration into the EU, implementation of the PCA and elaboration of the Action Plan in the framework of the European Neighborhood Policy. Ukraine is proceeding form the fact that the implementation of this document should contribute to strengthening cooperation with the EU in the light of enlargement, create necessary preconditions for raising its relations with the Union to a qualitatively new level. Proper implementation of the Action Plan should also facilitate gradual integration of Ukraine into the EU Single Market and create prerequisites for establishing Free Trade Area with the EU. The conclusion of a new enhanced agreement with the EU should become the ultimate political goal of the Action Plan.

Remaining outside the EU borders, Ukraine has successfully associated with the realization of the EU Common Security and Defense Policy (ESDP). Our state takes part in the EU Police Missions in Bosnia and Herzegovina and the Former Yugoslav Republic of Macedonia. The expected conclusion of an Agreement on the security procedures for exchange of classified information and of an Agreement establishing a framework for Ukraine's participation in the EU crisis management operations, should contribute to strengthening legal base of cooperation in this sphere.

The EU also recognizes an important role of Ukraine in providing security and stability on the continent as well as its vast industrial and technological potential in the military sphere. The practice of inviting Ukraine to military training with the participation of the EU units is a clear confirmation of that.

The EU-Ukraine trade and economic cooperation has recently experienced notable intensification. From year to year the bilateral foreign trade turnover and direct EU investment in the Ukrainian economy are constantly increasing. Today the EU is the largest foreign trade partner of Ukraine (the share of the EU in the foreign trade of Ukraine reached 33% upon the accession to the Union of new ten Members-States). In June 2004 the Parties initialed the Agreement on trade in steel products, whose signature is scheduled for the fall this year. According to the Agreement, Ukraine's quota on steel for the year 2004 is amounted to 606 thousand tons. The EU consideration of the correspondence of the Ukrainian economy to the market standards within the framework of the EU antidumping procedures is almost completed.

Ukraine and the EU actively cooperate in the framework of the Working Party on Ukraine's accession to the WTO. The EU side supports Ukraine in multilateral as well as bilateral negotiations within the WTO on the permanent basis. After the conclusion in 2003 of the bilateral Protocol on the access to the markets of goods and services within the framework of the WTO, the parties started elaboration and adjustment of the draft Report of the Working Party.

The EU-Ukraine cooperation in the sphere of justice and home affairs, in particular on the issues of granting asylum, border management, fight against money laundering and illegal drug trafficking is consistently strengthening.

In the context of the EU enlargement Ukraine strives to prevent the creation of a new dividing lines in Europe and advocates non-discriminatory approach to the regime of movement of its citizens across the territory of the EU Member States. The work in this direction in particular includes: perspective introduction of long-term multiply visas for the citizens of Ukraine who take part in economic, cultural and sports exchanges with the EU on a permanent basis; simplification of visa regime for citizens of Ukraine - border areas inhabitants and in the long-term prospect - facilitation of visa regime for all categories of the Ukrainians.

Ukraine and the EU proceed with dynamic cooperation in the sphere of energy, including the nuclear one, agriculture and environment. The EU political and financial assistance to Ukraine in addressing the most urgent problems in the energy sector as well as in mitigating the consequences of the Chornobyl catastrophe is gradually increasing.

The EU has also provided support for reforming the control system of the Ukrainian gas-transporting system, holding technical audit of the oil terminal "Pivdennyi" and technical and economic assessment of the project of transportation of the Caspian oil by Odesa-Brody-Gdansk pipeline, development of the alternative energy and modernization of the coal industry etc.

The EU is the largest donor to Ukraine. Total assistance since 1991 in the framework of the TACIS program, macro financial and humanitarian assistance amounted to more that 1 billion euro.

The EU-Ukraine cooperation in the sphere of outer space is also very promising. Given Ukraine's place among 8 countries demonstrating significant technological background on space programmes, on 2 September 2004 the European Commission sought Council approval for its recommendation to start negotiations on a cooperation agreement with Ukraine on the development of a Civil Global Navigation Satellite System (GNSS). The cooperation is expected to cover research and scientific activities especially on standardisation issues, regional integrity monitoring and financial investment in GALILEO.

Today Ukraine sees its main task in consolidation of the European values and standards in political, economy and social spheres, regarding it as a pledge of its public stability and sustainable development.

The Partnership and Co-operation Agreement

The Partnership and Co-operation Agreement ("PCA") between the European Communities and their Member States, on the one part, and Ukraine, on the other part, was signed in Luxembourg on 14 June 1994 and came into force in March 1998.

The main objectives of the PCA are to develop close relations by means of permanent dialogue on political issues, to provide an appropriate framework for political dialogue, to promote trade and investment between the parties, to provide a basis for mutually advantageous economic, social, financial, civil, scientific, technological and cultural co-operation and to support Ukrainian efforts to consolidate its democracy, to develop its economy and complete the transition to a market economy.

The PCA Institutions

In accordance with the PCA Parties have established a regular political dialogue.

Talks at the highest political level are held in the framework of Summits.

The PCA established a Cooperation Council to supervise implementation of the Agreement. It meets at ministerial level at least once a year.

The Co-operation Council is assisted in the performance of its duties by a Co-operation Committee composed of representatives of the members of the Council of the European Union and of members of the Commission of the European Communities on the one hand and of representatives of the Government of Ukraine on the other.

The PCA also provides for regular political dialogue at parliamentary level within the Parliamentary Co-operation Committee.

The Ukraine-EU Co-operation Council may decide to set up any other special committee or body that can assist it in carrying out its duties and shall determine the composition and duties of such committees or bodies and how they shall function.

At present in the framework of Ukraine-EU Co-operation Council have been established and function 4 Subcommittees and 3 Working Groups (in the framework of the Subcommittee #3).