EU denies Ukraine claims that Association compensation talks were held

EU Enlargement Commissioner Stefan Fule denied on November 25 claims made last week by Ukrainian Deputy Vice Prime Minister Yuriy Boyko that the two sides failed to reach an agreement on compensation to Ukraine for (1) trade lost with the Russian Federation and (2) implementation of the Association Agreement, the Kommersant-Ukraina newspaper reported on November 26.

In fact, the EU didn’t receive any proposals from Ukraine to ease trade conditions for producers that could be hurt by a Russian blockade after the agreement’s signing, Fule said. The EU received only two demands from Ukraine, the first regarding a producer of a special type of steel faced with EU antidumping measures, and the second regarding a food producer faced with Russian complaints on its product safety.

Although such discussions may not have been held, the EU leadership did confirm that it would not extend Ukraine additional financial compensation for signing the agreement, such as an IMF loan. “We realize what external pressure Ukraine faces, but we believe that short-term motives aren’t supposed to exceed long-term benefits from partnership with the EU,” said a joint statement released by European Commission President Jose Manuel Barroso and EU Council President Herman van Rompuy.

Fule also dismissed Cabinet claims that the agreement’s implementation, including adapting to its standards, would cost as much as USD 20 bln. “That’s nonsense,” he said. “I don’t recognize such numbers and don’t know where they came from.”

Zenon Zawada: Fule’s comments lend further credibility to the theory that Ukrainian President Viktor Yanukovych secured financial compensation from Russian President Vladimir Putin during their closed-door meetings. Yanukovych needs this money for the government to remain solvent in 2014, which seems to have taken precedence over any long-term goals. Meanwhile, Cabinet leaders are engaged in a campaign to blame the EU leaders for the agreement’s failure.

This report – from a legitimate publication – also serves to dispel false reports being spread by government-controlled media that the requirement of arranging for the release of former Prime Minister Yulia Tymoshenko is now off the table, and that the EU and Ukrainian leadership are discussing the terms of the IMF loan and removal of import quotas. It’s unfortunate to see the Ukrainian government not engaged in genuine attempts to reach agreement, but continuing to manipulate the media and public opinion as part of feeble last attempts to squeeze concessions from the EU.