Published in EurActiv

Ukraine is making steady progress towards EU membership, but is aware of the difficulties which lie ahead amid an unfavourable global economic context, Ukrainian Deputy Prime Minister Hryhoriy Nemyria, responsible for European integration, told EurActiv in an exclusive interview.

The EU and Ukraine are preparing an association agreement which notably includes a free trade deal. What is the tentative timetable for this, and what areas could be difficult for Ukraine, justifying special measures like transition periods?

The EU-Ukraine Association Agreement is principally a new document with the free trade area as its key element. 

At the start of the negotiation process, we jointly chose a so-called FTA+ model. It envisages not only improved terms of trade with the EU, but also deeper integration of our markets. It is to be achieved through comprehensive legislative approximation with EU standards. In practice, Ukraine must within a very short time transpose into national legislation a vast body of European norms and rules which have evolved in the EU for years. 

As far as the duration of negotiations is concerned, for Ukraine the priority is the quality of negotiations and their results. Our negotiating teams currently concentrate on the contents of the Agreement; [and] in particular, [the] transitional periods required for [the] most sensitive sectors of the Ukrainian economy. 

Read the full interview on EurActiv

RBC-Ukraine

Ukraine will receive the third tranche of the IMF loan by the end of this week, Prime Minister Yulia Tymoshenko announced at the start of today’s session of government.

“By the end of this week the Ukrainian budget will have these financial resources at its disposal…providing hope that Ukraine will remain stable through the end of the financial crisis…month by month it will be easier to fill the budget, ensure all budget expenditures, and timely and full payment of all Ukraine’s external debts,” Tymoshenko said.

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Published in Inform issue #119
See the full issue here.

Ukraine has one of the most recession ravaged economies in Eastern Europe, but there are signs that the country is at the bottom of the recessionary curve and is perhaps taking the first tentative steps on the long road to recovery.

Speaking on a visit to her home city of Dnipropetrovsk, Prime Minister Yulia Tymoshenko forecast that the recession, on its current scale, would last to the end of the year with a global recovery beginning in 2010. The premier cited a number of positive trends.

Cause for cautious optimism is born out of recent figures from the State Statistics Committee that reveal that industrial production grew by 3.1 percent from May to June. Growth sectors leading the way were light industry at 14.2 percent, the timber industry at 10.1 percent and machine building at 6.9 percent. The processing industry was up 3 percent, mining up 2.3 percent, and metallurgy up 1.1 percent.

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Published by NRCU

Negotiations on the creation of 'an enhanced in-depth free trade zone' between Ukraine and the European Union are coming to an end, Deputy Prime Minister Hryhoriy Nemyria has told a news conference Thursday.

He noted that 'this is a very important factor [free trade zone talks], which, I believe, is now taken into account by many investors from the point of view of their presence in Ukraine'. H. Nemyria also believes that this will become one of the crucial points for further integration of Ukraine with the EU, economic first of all. Ukraine and the EU discussed steps to intensify a negotiation process to create a free trade zone. The quality and matter of the instrument is crucial for Ukraine, as well as to what extent the document will take into account the interests of the Ukrainian goods producers and provide a possibility for full, but not 'virtual' access in the EU domestic market. Ukraine and the EU had launched talks on free trade zone on February 18, 2008.

Published by NRCU

Ukraine is completing proceedings to draw from the World Bank a loan of over USD 500 million for development policy, Deputy Prime Minister Hryhoriy Nemyria says.

"I see clear positive dynamics of our relations with the World Bank," he noted. Nemyria emphasized that Ukraine cooperates with the World Bank, the European Bank for Reconstruction and Development, and the European Investment Bank on the program of gas sector modernization.

Published in Inform issue #118
See the full issue here.

US Vice President Joseph Biden swept into Kyiv on Tuesday, with a strong message to the Ukrainian people that US moves to reset relations with Russia “will not come at Ukraine’s expense.” During his whistle-stop visit Mr Biden met the four main presidential candidates and had a tête-à-tête meeting with Prime Minister Yulia Tymoshenko lasting more than an hour.

Mr Biden’s visit to Ukraine and Georgia – two prospective candidates for NATO membership – follows the visit earlier this month by US President Barack Obama to Moscow. The new White House administration’s desire to reset relations with the Kremlin raised concerns that Ukraine could become sidelined as both superpowers tried to patch up their differences. The unfulfilled position of US ambassador to Ukraine appeared to some to confirm a shift in attitude. But not so, according to Mr Biden who said that the US would continue to support Ukraine’s push to integrate with the West.

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Government Press Service

Prime Minister Yulia Tymoshenko held an unplanned meeting with US Vice President Joseph Biden in a tête-à-tête format which lasted for over an hour.

This was followed by a large format meeting attended by US and Ukrainian officials. Ukrainian officials included Vice Prime Minister Hryhoriy Nemyria, Minister of Fuel and Energy Yurii Prodan, acting Defence Minister Valerii Ivashchenko, Deputy Minister of the Cabinet of Ministers Volodymyr Fedorchuk, Ambassador of Ukraine to the US Oleh Shamshur.

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Source: RBC-Ukraine

The government will introduce necessary norms that were included in the draft Budget Code vetoed by the president directly into the law on the 2010 budget, Prime Minister Yulia Tymoshenko said today during a briefing.

According to Tymoshenko, they will simultaneously hold talks with the Party of Regions on overriding the president’s veto and gaining parliamentary approval for the changes to the Budget Code.

“This is a great crime by the president against local government. This differs greatly from the promises he made during the elections. This is the step of an intriguer, nor a politician. Everyone understands that the veto is only meant as a means to personally battle me in the elections. I will turn to the Party of Regions and want to believe that at least Viktor Yanukovych and his faction won’t fight with me at the price of local government,” she noted.

Today President Viktor Yushchenko vetoed the new version of the Budget Code that was approved by parliament on June 23. The new version included a formula for transferring funds between the state and more than 12,000 municipal budgets.

Published in Kyiv Post

After Ukrainian Prime Minister Yulia Tymoshenko completes her visit to the Republic of Korea, the Ukrainian government will form a special group of assistance to South Korean investors, which will be led by Vice Premier Hryhoriy Nemyria.

Tymoshenko said this while opening a working lunch with representatives of South Korea's business circles, the Ukrainian governmental press service reported on Thursday.

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RBC-Ukraine

If her political force wins the presidential elections, a nationwide referendum will be held on the form of government – presidential or parliamentary - in Ukraine, Prime Minister Yulia Tymoshenko announced today during ceremonies marking the 10th anniversary of the Batkivshchyna Party.

Tymoshenko also spoke in favor of a “radical Constitutional change.” “We already have such a draft of the Constitution,” she added.

According to Tymoshenko, the Verkhovna Rada will not be dissolved. “We are running in the presidential elections. We will build a campaign on true Ukrainian ideals and will prove that we can win. Should our team be victorious…first we must decide what to do with parliament. There are two options: the first is to dissolve parliament and hold new elections and the second is to unite parliament. After the presidential elections we will unite parliament,” Tymoshenko said, adding that the existing VR coalition “will be increased.”

A convention marking the 10th anniversary of the Batkivshcyna Party is taking place today at the International Exhibition Center in Kyiv.

Party leader Prime Minister Yulia Tymoshenko gave the opening remarks.

Government Press Service

On July 10, Prime Minister Yulia Tymoshenko will meet with Polish Prime Minister Donald Tusk, who is on a working visit to Ukraine.

The heads of the Ukrainian and Polish governments will participate in the third meeting of the Ukrainian-Polish Committee for Preparing and Hosting the Euro-2012 Football Championship.

During the meeting information will be exchanged regarding necessary infrastructure preparations in both countries for hosting the championship. The sides also plan to outline the plan for Ukrainian-Polish cooperation in providing security during the Euro-2012 finals.

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Government Press Service

The government has approved Ukraine’s letter of cooperation with the International Monetary Fund, Prime Minister Yulia Tymoshenko said during a press conference yesterday.

Tymoshenko noted that this document will allow Ukraine to obtain money that will help keep the hryvnia stable: “This is the goal of cooperating with the IMF, to ensure stability of the national currency during this difficult time, with the help of money from the IMF.”

According to Tymoshenko, based on the results of talks with the IMF, Ukraine plans to receive $3.2 billion through the third tranche of its loan: “This tranche, I can say without any doubt, will ensure the stability of the Ukrainian currency.”

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Government Press Service

Prime Minister Yulia Tymoshenko told journalists today that Naftohaz of Ukraine will pay Gazprom on time for gas supplied in June.

“I’m always surprised at how Ukrainian politicians force the issue of non-payment for gas: every time, on the 7th of the month, they are hysterically shouting that Ukraine won’t pay for gas…while I am prime minister, Ukraine will pay Russia on time for natural gas. That will be the case this month too. We won’t allow any failure on Ukraine’s part,” Tymoshenko emphasized. 

Government Press Service

During a press conference today in Ukrainka following the conclusion of the All-Ukrainian Conference of the Association of Small Cities of Ukraine, Prime Minister Yulia Tymoshenko announced that talks with the International Monetary Fund over the next loan tranche for Ukraine are moving along constructively and she expects them to end successful.

“I have hope that the talks will end well and important decisions for Ukraine will be passed,” Tymoshenko said.

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Published in Kyiv Post

The Ukrainian government’s committee on European integration and international cooperation has approved a draft Cabinet of Ministers directive, approving plans to seek a loan from the World bank to finance reconstruction of hydroelectric power stations.
 
The press service of Deputy Prime Minister Hryhorii Nemyria, who heads the committee, announced this in a statement.

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Published in Inform issue #117
See the full issue here.

EU, Ukrainian and Russian officials met on Monday in Brussels along with representatives from leading banks to try to find a way to assist Ukraine to pay for gas to be put into storage. Last January’s gas deal committed Ukraine to purchase vast amounts of gas from Gazprom to put into store for onward sale to Europe in the winter months.

Although Naftohaz Ukrainy has given assurances that it will pay its bill for gas imports in June (see article “Gas Bill for June Will be Paid”), the extra purchase of nearly 20 billion cubic metres of gas for storage would require financing to the tune of $4.2 billion. However, European experts now say that only another 8-10 billion cubic metres of gas is needed, which would bring down the cost to $2 billion.

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