EU, Ukraine to initial association agreement by end-1Q12

Ukraine’s Foreign Ministry said on its website yesterday that the European Union and Ukraine confirmed plans to initial an Association Agreement by the end of the first quarter of 2012. The announcement came after Foreign Minister Kostyantyn Gryshchenko met with EU foreign ministers in Prague yesterday. Both parties announced in December 2011 that they had agreed to the terms of the agreement, which includes an embedded Deep & Comprehensive Free Trade Agreement, but the EU has made it clear it would initial but not sign it until Ukraine addresses concerns over perceived democratic backsliding and the rule of law.

Brad Wells: We view the initialing as a positive procedural step in what is becoming a long road for this Association Agreement. However, unfortunately, the government has not addressed EU concerns necessary to move ahead with the landmark pact and further progress beyond initialing is unlikely for political reasons until at least after parliamentary elections in October, in our view.