EU-Ukraine in FTA Deal, Russia Protests

The EU Council summit in the Belgian town of Ypres will kick off later today, with the two-day meeting slated to see EU leaders sign a highly-anticipated free trade pact with Ukraine on the event margins, as well as deals with Georgia and Moldova.

The signing of a deal for a Deep and Comprehensive Free Trade Area between the EU and Ukraine is likely to be one of the highlights of this week’s meetings, given the controversy surrounding the pact. The two sides had originally been expected to sign the deal late last year, only for Ukraine’s then-President Viktor Yanukovych to decide against it, following pressure from neighbouring Russia.

The protests that arose in the wake of that decision ultimately led to Yanukovych’s ouster, and a deadly crisis that has continued to this day. Along with bringing to the fore deep-seated divisions among Ukrainians over whether to deepen ties with Brussels or Moscow, the situation has ignited broader geopolitical tensions, bringing relations between Russia and its Western partners to their lowest point in years.

Russia has warned that it will take steps to protect its economy should the EU-Ukraine deal move forward. Despite Moscow’s continued opposition to the deal, the EU and Russia have, however, agreed in recent weeks to hold trilateral talks at a political level – with Ukraine – over the pact.

According to a summary released by the Commission after the talks, EU officials sought to reassure their Russian counterparts that the trade deals were compatible, and urged against the suspension of any trade preferences between Russia and Ukraine. Russian officials, meanwhile, have reportedly asked for a mechanism that would ensure transparency in any changes to Ukrainian technical regulations, while noting how valuable the latter’s market is to Russian agricultural and industrial goods exporters.

Georgia, Moldova deals

While the Ukraine deal has attracted the most attention, the EU is also set to sign two other Association Agreements with Georgia and Moldova, which are also former members of the Soviet Union. The prospect of these new deals has similarly been criticised by Russia, which has warned that it may take economic countermeasures in response.

All three agreements are set to be applied provisionally, the European Commission has said, in order for the countries involved to see the bulk of their benefits even before ratification by the European Parliament and EU member states take place.