EU & Ukraine

After years of steady progress in many areas covered by the Action Plan, the 2009 ENP progress report said Ukraine witnessed a slowing in the pace of reformin 2009, as a result of global economic and financial crisis and domestic political and constitutional difficulties. As regards the EU-Ukraine Association Agreement, substantial progress was made in negotiations on economic and sector cooperation issues. Negotiations on a deep and comprehensive free trade area continued with the aim of concluding them as soon as possible.
 
In spite of the gas dispute in January, which disrupted supplies to the EU, 2009 saw a significant achievements in the energy sphere. In March, the EU and Ukraine jointly hosted a high-level investment conference on the modernisation of Ukraine’s gas transit system, accompanied by a number of key reform commitments in the sector. In December, approval was given for Ukraine's accession to the Energy Community Treaty pending adoption of a gas law in accordance with the EU acquis. In other sectors, negotiations on the EU-Ukraine Agreement on a Common Aviation Area advanced, while dialogue towards a visa free regime progressed well.
 
However, implementation of key political and economic reforms in 2009 was hampered by the continuing constitutional crisis resulting from unclear separation of powers. No progress was made on the issue of constitutional reform, and no or only limited progress was made with respect to judicial reform and anti-corruption measures. Ukraine’s economic situation continued to deteriorate in 2009 in the wake of the global downturn. While the outlook is improving, immediate challenges remain, in particular as regards bringing social and pension expenditure under control.
 
Key reform priorities in 2010 include: efforts to enhance macro-financial stability, reform of the constitution in order to enhance political stability while maintaining the pace of democratic development, energy sector reform (in particular as regards gas), public administration reform, the fight against corruption notably through judicial reform as well as measures to improve the business and investment climate. 
 
An indicative amount of €470.05 million has been allocated for 2011-13 under the ENPI.
 
The EU and Ukraine - ENPI Info Centre press pack 


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