As previously reported on this blog, the conclusions of a trilateral ministerial meeting between EU Trade Commissioner De Gucht, Russian Economic Development Minister Aleksei Ulyukaev and Ukrainian Foreign Minister Pavlo Klimkin on 12 September were that the provisional application of the trade element of the EU-Ukraine Association Agreement (the “AA“), namely Title IV, and the related Annexes and Protocols, on trade and related matters, including the establishment of a free trade area (the “DCFTA“), would be delayed until 31 December 2015.
On 29 September 2014, by way of a joint statement of the European Council and the European Commission and associated press statement, it was formally announced the DCFTA would provisionally apply from 1 January 2016. This has been implemented by way of Council Decision 2014/691/EU, which amends Council Decision 2014/668/EU.
The majority of the remainder of the AA will start on 1 November, including the provisions on justice, freedom and security including the fight against crime and corruption; increased cooperation in a wide range of economic sectors based on the gradual approximation with the EU’s body of law, as well as on financial cooperation. This is subject to completion of the ratification process concerning the AA in all EU Member States, which is ongoing. The complete text of the EU-Ukraine Association Agreement is available on the website, accessible here.
In response to a decree recently adopted by the Russian Government proposing new trade barriers between Russia and Ukraine (and as reported on this blog, see here), the President of the European Commission, José Manuel Barroso, wrote a letter to President Putin, on 1 October 2014, in which he emphasises that the delay to the provisional application is linked to the continuation of the CIS-FTA preferential regime, as agreed by Russia at the trilateral ministerial meeting. President Barroso reiterates in the letter that the EU is prepared to engaged in further consultations to address concerns raised by Russia as to the “perceived negative impacts to the Russian economy” of the DCFTA. Affirming the conclusions from the ministerial meeting, he states, “these steps are part and parcel of a comprehensive peace process in Ukraine, respecting the territorial integrity of Ukraine as well as its right to decide on its destiny“.
