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E UROPE AN UNION
                                          ~FACTSHEET~

                                      EU-UKRAINE SUMMIT
                                        (Kiev, 19 December 2011)


 The 15th EU-Ukraine Summit will take place in Kiev on 19 December 2011. Ukraine will be
 represented by President Viktor Yanukovych. The EU will be represented by Herman Van Rompuy,
 President of the European Council, and José Manuel Barroso, President of the European
 Commission.


 SUMMIT AGENDA
 The main focus of discussions at this summit is expected to be Ukraine’s reform agenda, linked to
 the jointly agreed goal of political association and economic integration standards between the EU
 and Ukraine. Leaders will discuss the following main themes:

 Political association, as envisaged in the EU-Ukraine Association Agreement, and in particular
 respect for shared values including human rights, fundamental freedoms and the rule of law.

 Economic integration, notably macro-economic stability, efforts to improve economic governance,
 in particular management of public finances, and the business and investment climate in Ukraine as
 well as energy issues.

 Mobility, including the latest developments regarding the implementation of the Action Plan on
 Visa Liberalisation which was presented to Ukraine at the 2010 summit as well as regarding the
 negotiations on amending the 2008 Visa Facilitation Agreement.

 Regional and international issues, in particular the relations with Russia, including on energy,
 follow up of the Eastern Partnership Summit in Warsaw, relations with Belarus and with the
 Republic of Moldova.


 EU-UKRAINE RELATIONS
 2011 marks the twentieth anniversary of Ukraine’s independence and the 25th anniversary of the
 Chernobyl accident, this gave both Ukraine and the EU a unique opportunity to reflect on the
 evolution of their relations and on the road ahead.

 The European Union and Ukraine share common borders, extensive economic and trade relations,
 and a common cultural, linguistic and historic heritage. EU-Ukraine cooperation is built on a shared
 commitment to the rule of law, human rights, democratic principles and fundamental freedoms.


                                           P R E S S
    Rue de la Loi 175   B – 1048 BRUSSELS       Tel.: +32 (0)2 281 9548-5150 / Fax: +32 (0)2 281 80 26
press.president@consilium.europa.eu - www.european-council.europa.eu/the-president/summits-with-third-countries
EU-Ukraine relations are based on the Partnership and Co-operation Agreement (PCA) which
entered into force in 1998. The partnership aims to promote political dialogue, trade and investment
as well as economic, social and cultural cooperation.

Since March 2007, the EU has been negotiating with Ukraine an ambitious and pioneering
Association Agreement (AA) and since 2008 a Deep and Comprehensive Free Trade Area
(DCFTA) as an integral part of the Association Agreement. These negotiations are now in its final
stages; the 21st round of talks took place on 11 November in Brussels. The AA will provide a new
legal framework for EU-Ukraine relations. It is a concrete way to sustain positive dynamics in our
relations, focusing on support to core reforms, on economic and political governance and
cooperation across a range of sectors. The AA with Ukraine will also be the first of a new
generation of Association Agreements with Eastern Partnership countries.

Eastern Partnership: Multilateral Cooperation
The EU has created a specific multilateral framework for its Eastern neighbours: the Eastern
Partnership. It is based on a community of values and the principles of democracy, respect for
human rights, fundamental freedoms and the rule of law. In September 2011, the Eastern
Partnership Summit in Warsaw put forward several concrete ideas for enhancing existing
relationships, notably by strengthening the role of civil society.

EU Assistance
The European Union and its Member States continue to be the largest donor to Ukraine: since 1991,
assistance provided by the European Union alone has amounted to over €2.5 billion. The European
neighbourhood policy instrument allocates € 470 million to Ukraine for the years 2011-2013. This
goes to support action in three priority areas: good governance and the rule of law; facilitating the
entry into force of the association agreement, and sustainable development, including energy and
environment. This amount includes funding under the Eastern Partnership for the comprehensive
institution building programme (€ 43.37 million). The latter is designed to improve the
administrative capacity of partner countries and their compatibility with EU institutions, for
instance through twinning programmes, professional training and secondment of personnel.

Trade Relations
The EU is Ukraine's main commercial partner and accounts for 31% of its external trade, ahead of
Russia (2010). With the EU’s support, Ukraine joined the World Trade Organization in May 2008
and immediately launched negotiations for the establishment of a Deep and Comprehensive Free
Trade Area (DCFTA). Closer economic integration through the DCFTA will be a powerful
stimulant to the country's economic growth. As a core element of the Association Agreement, it will
create business opportunities in Ukraine and will promote real economic modernization and
integration with the EU. Higher standards, better service to citizens, and above all Ukraine’s
readiness to compete effectively in international markets should be the result of this process.
                                     2008                      2009                       2010
      Trade partner
                             Billion €    Ranking     Billion €     Ranking      Billion €     Ranking
                              (share)                  (share)                    (share)
Ukraine
Total trade with the EU      41 (36%)        1       18 (29.3%)        1       25 (31.4%)        1
Imports from EU              28 (41%)        1        11 (34%)         1        15 (35%)         1
Exports to EU                13 (29%)        1        7 (24%)          1         9 (26%)         1
European Union
Total trade with Ukraine     40 (1.4%)      16       22 (0.9%)        24         28 (1%)         23
Imports from Ukraine         15 (0.9%)      23       8 (0.7%)         29        11 (0.8%)        25
Exports to Ukraine           25 (1.9%)      14       14 (1.3%)        20        17 (1.3%)        19
                                                                                                     2
                                                                                               EN
Justice and Home Affairs
Justice and home affairs, especially mobility issues, have been key topics at previous EU-Ukraine
summits and matters such as migration and asylum policies, border management, visas, the fight
against international crime and terrorism, money laundering and human trafficking are regularly
discussed, most recently at the JHA Ministerial in June 2011.

At the 2010 EU-Ukraine Summit, an action plan on visa liberalisation was presented to Ukraine,
setting out the conditions to be met before the possible establishment of a visa-free travel regime for
Ukrainian citizens. Recently, negotiations on amendments to the 2008 visa facilitation agreement
have been finalised, may provide inter alia for the extension of certain facilitations to further
categories of beneficiaries and a visa waiver for holders of biometric service passports, and
clarifying the provisions on multiple entry visas.

Energy
Ukraine has an important strategic position in energy transit. Many EU member states rely on the
gas and oil supplied from Russia, Central Asia and the Black Sea through Ukraine. The major goals
for energy cooperation with Ukraine include: improved security for energy supplies; enhanced
energy efficiency; and the integration of Ukraine into the EU's internal energy market. In this spirit,
Ukraine also joined the Energy Community Treaty in February 2011, providing benefits in terms of
investment, efficiency and security of supply. The EU is also a key partner of Ukraine in the
modernization of its gas transit infrastructure.

During the EU-Ukraine Summit in December 2005, the two parties signed a Memorandum of
Understanding (MoU) in the field of energy. The sixth report on its implementation should be
endorsed at the summit. It covers the areas of nuclear safety, electricity and gas market integration,
security of energy supplies, the improvement of standards in the coal sector and developments
concerning renewable energy and efficiency.

The EU, Ukraine, the EIB, EBRD and the World Bank are cooperating closely in order to
implement the joint declaration signed at the occasion of the international investment conference on
the modernisation of Ukraine's gas transit system that was held in Brussels in March 2009. The
success of the initiative ultimately lies in Ukraine's readiness to implement the agreed gas sector
reform conditionalities. The Commission, together with the World Bank, has offered technical
support to the Ukraine Ministry of Energy and Coal to meet these conditionalities, relating inter alia
to the corporatisation and financial transparency of Naftogaz. The EU closely follows the
discussions between Ukraine and Russia on their future gas relations, in particular in view of
Ukraine's obligations under the Energy Community.

Nuclear Safety
The Euratom and Ukraine signed agreements in July 1999 on cooperation in the fields of nuclear
safety and controlled thermonuclear fusion. The Euratom-Ukraine Agreement for cooperation on
the peaceful uses of nuclear energy entered into force on 1 September 2006.

Since the Chernobyl accident, the EU has been working continuously with Ukraine to improve
nuclear safety and to deal with legacy of the disaster. So far the EU has committed €580 million to
Chernobyl-related projects, mainly for nuclear safety, but also to improve the living conditions of
the local population and to reinforce research programmes. In addition, the bilateral contributions
from EU member states to the Chernobyl projects amount to €452 million.



                                                                                                     3
                                                                                                 EN
Security and Defence
The EU and Ukraine collaborate on several foreign and security policy issues, including crisis
management. An example is Ukraine’s contribution to EU's police mission in Bosnia and
Herzegovina as well as to the Atalanta counter-piracy operation. The EU and Ukraine also conduct
regular dialogue on issues such as terrorism, non-proliferation and arms export control.

Thanks to the commitment made in the Easter Partnership Summit declaration in Warsaw, Ukraine
plays an important role in the EU’s reflection on how to foster cooperation with third countries in
the area of Common Security and Foreign Policy/Common Security and Defence Policy. It is in the
EU's interest to enhance the CFSP/CSDP cooperation with Ukraine. The intensification of our
dialogue and cooperation in view of gradual convergence in the area of CSFP is also foreseen in the
Association Agreement.

Ukraine plays a key role in the settlement of the Transnistrian conflict in the Republic of Moldova.
The EU and Ukraine have regular discussions on this subject, since both are members of the so
called 5+2 settlement negotiation format.

Transport
The Association Agreement, once finalised, will constitute an important basis for the future bilateral
cooperation between EU and Ukraine in the area of transportation. It will facilitate the
modernisation of Ukraine's transport sector, improve movement of passengers and goods and
contribute to the development of transport flows by removing administrative and technical
obstacles. Ukraine is in particular an important aviation partner of the European Union: in this
context negotiations on a common aviation area are ongoing and the EU is committed to finalising
the negotiations.

Science and Technology
The first joint committee meeting with Ukraine under the bilateral science and technology
cooperation agreement took place on 23 November 2011 in Brussels. Both sides shared information
on priorities in the areas of health, information and communication technology and
e-Infrastructures, and nanotechnology/materials research, with a view to promoting and potentially
increasing future cooperation in these areas through both the EU's research framework programme
and the Ukrainian programmes.


                                      ___________________




                                                                                                    4
                                                                                                EN

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  • 1. E UROPE AN UNION ~FACTSHEET~ EU-UKRAINE SUMMIT (Kiev, 19 December 2011) The 15th EU-Ukraine Summit will take place in Kiev on 19 December 2011. Ukraine will be represented by President Viktor Yanukovych. The EU will be represented by Herman Van Rompuy, President of the European Council, and José Manuel Barroso, President of the European Commission. SUMMIT AGENDA The main focus of discussions at this summit is expected to be Ukraine’s reform agenda, linked to the jointly agreed goal of political association and economic integration standards between the EU and Ukraine. Leaders will discuss the following main themes: Political association, as envisaged in the EU-Ukraine Association Agreement, and in particular respect for shared values including human rights, fundamental freedoms and the rule of law. Economic integration, notably macro-economic stability, efforts to improve economic governance, in particular management of public finances, and the business and investment climate in Ukraine as well as energy issues. Mobility, including the latest developments regarding the implementation of the Action Plan on Visa Liberalisation which was presented to Ukraine at the 2010 summit as well as regarding the negotiations on amending the 2008 Visa Facilitation Agreement. Regional and international issues, in particular the relations with Russia, including on energy, follow up of the Eastern Partnership Summit in Warsaw, relations with Belarus and with the Republic of Moldova. EU-UKRAINE RELATIONS 2011 marks the twentieth anniversary of Ukraine’s independence and the 25th anniversary of the Chernobyl accident, this gave both Ukraine and the EU a unique opportunity to reflect on the evolution of their relations and on the road ahead. The European Union and Ukraine share common borders, extensive economic and trade relations, and a common cultural, linguistic and historic heritage. EU-Ukraine cooperation is built on a shared commitment to the rule of law, human rights, democratic principles and fundamental freedoms. P R E S S Rue de la Loi 175 B – 1048 BRUSSELS Tel.: +32 (0)2 281 9548-5150 / Fax: +32 (0)2 281 80 26 press.president@consilium.europa.eu - www.european-council.europa.eu/the-president/summits-with-third-countries
  • 2. EU-Ukraine relations are based on the Partnership and Co-operation Agreement (PCA) which entered into force in 1998. The partnership aims to promote political dialogue, trade and investment as well as economic, social and cultural cooperation. Since March 2007, the EU has been negotiating with Ukraine an ambitious and pioneering Association Agreement (AA) and since 2008 a Deep and Comprehensive Free Trade Area (DCFTA) as an integral part of the Association Agreement. These negotiations are now in its final stages; the 21st round of talks took place on 11 November in Brussels. The AA will provide a new legal framework for EU-Ukraine relations. It is a concrete way to sustain positive dynamics in our relations, focusing on support to core reforms, on economic and political governance and cooperation across a range of sectors. The AA with Ukraine will also be the first of a new generation of Association Agreements with Eastern Partnership countries. Eastern Partnership: Multilateral Cooperation The EU has created a specific multilateral framework for its Eastern neighbours: the Eastern Partnership. It is based on a community of values and the principles of democracy, respect for human rights, fundamental freedoms and the rule of law. In September 2011, the Eastern Partnership Summit in Warsaw put forward several concrete ideas for enhancing existing relationships, notably by strengthening the role of civil society. EU Assistance The European Union and its Member States continue to be the largest donor to Ukraine: since 1991, assistance provided by the European Union alone has amounted to over €2.5 billion. The European neighbourhood policy instrument allocates € 470 million to Ukraine for the years 2011-2013. This goes to support action in three priority areas: good governance and the rule of law; facilitating the entry into force of the association agreement, and sustainable development, including energy and environment. This amount includes funding under the Eastern Partnership for the comprehensive institution building programme (€ 43.37 million). The latter is designed to improve the administrative capacity of partner countries and their compatibility with EU institutions, for instance through twinning programmes, professional training and secondment of personnel. Trade Relations The EU is Ukraine's main commercial partner and accounts for 31% of its external trade, ahead of Russia (2010). With the EU’s support, Ukraine joined the World Trade Organization in May 2008 and immediately launched negotiations for the establishment of a Deep and Comprehensive Free Trade Area (DCFTA). Closer economic integration through the DCFTA will be a powerful stimulant to the country's economic growth. As a core element of the Association Agreement, it will create business opportunities in Ukraine and will promote real economic modernization and integration with the EU. Higher standards, better service to citizens, and above all Ukraine’s readiness to compete effectively in international markets should be the result of this process. 2008 2009 2010 Trade partner Billion € Ranking Billion € Ranking Billion € Ranking (share) (share) (share) Ukraine Total trade with the EU 41 (36%) 1 18 (29.3%) 1 25 (31.4%) 1 Imports from EU 28 (41%) 1 11 (34%) 1 15 (35%) 1 Exports to EU 13 (29%) 1 7 (24%) 1 9 (26%) 1 European Union Total trade with Ukraine 40 (1.4%) 16 22 (0.9%) 24 28 (1%) 23 Imports from Ukraine 15 (0.9%) 23 8 (0.7%) 29 11 (0.8%) 25 Exports to Ukraine 25 (1.9%) 14 14 (1.3%) 20 17 (1.3%) 19 2 EN
  • 3. Justice and Home Affairs Justice and home affairs, especially mobility issues, have been key topics at previous EU-Ukraine summits and matters such as migration and asylum policies, border management, visas, the fight against international crime and terrorism, money laundering and human trafficking are regularly discussed, most recently at the JHA Ministerial in June 2011. At the 2010 EU-Ukraine Summit, an action plan on visa liberalisation was presented to Ukraine, setting out the conditions to be met before the possible establishment of a visa-free travel regime for Ukrainian citizens. Recently, negotiations on amendments to the 2008 visa facilitation agreement have been finalised, may provide inter alia for the extension of certain facilitations to further categories of beneficiaries and a visa waiver for holders of biometric service passports, and clarifying the provisions on multiple entry visas. Energy Ukraine has an important strategic position in energy transit. Many EU member states rely on the gas and oil supplied from Russia, Central Asia and the Black Sea through Ukraine. The major goals for energy cooperation with Ukraine include: improved security for energy supplies; enhanced energy efficiency; and the integration of Ukraine into the EU's internal energy market. In this spirit, Ukraine also joined the Energy Community Treaty in February 2011, providing benefits in terms of investment, efficiency and security of supply. The EU is also a key partner of Ukraine in the modernization of its gas transit infrastructure. During the EU-Ukraine Summit in December 2005, the two parties signed a Memorandum of Understanding (MoU) in the field of energy. The sixth report on its implementation should be endorsed at the summit. It covers the areas of nuclear safety, electricity and gas market integration, security of energy supplies, the improvement of standards in the coal sector and developments concerning renewable energy and efficiency. The EU, Ukraine, the EIB, EBRD and the World Bank are cooperating closely in order to implement the joint declaration signed at the occasion of the international investment conference on the modernisation of Ukraine's gas transit system that was held in Brussels in March 2009. The success of the initiative ultimately lies in Ukraine's readiness to implement the agreed gas sector reform conditionalities. The Commission, together with the World Bank, has offered technical support to the Ukraine Ministry of Energy and Coal to meet these conditionalities, relating inter alia to the corporatisation and financial transparency of Naftogaz. The EU closely follows the discussions between Ukraine and Russia on their future gas relations, in particular in view of Ukraine's obligations under the Energy Community. Nuclear Safety The Euratom and Ukraine signed agreements in July 1999 on cooperation in the fields of nuclear safety and controlled thermonuclear fusion. The Euratom-Ukraine Agreement for cooperation on the peaceful uses of nuclear energy entered into force on 1 September 2006. Since the Chernobyl accident, the EU has been working continuously with Ukraine to improve nuclear safety and to deal with legacy of the disaster. So far the EU has committed €580 million to Chernobyl-related projects, mainly for nuclear safety, but also to improve the living conditions of the local population and to reinforce research programmes. In addition, the bilateral contributions from EU member states to the Chernobyl projects amount to €452 million. 3 EN
  • 4. Security and Defence The EU and Ukraine collaborate on several foreign and security policy issues, including crisis management. An example is Ukraine’s contribution to EU's police mission in Bosnia and Herzegovina as well as to the Atalanta counter-piracy operation. The EU and Ukraine also conduct regular dialogue on issues such as terrorism, non-proliferation and arms export control. Thanks to the commitment made in the Easter Partnership Summit declaration in Warsaw, Ukraine plays an important role in the EU’s reflection on how to foster cooperation with third countries in the area of Common Security and Foreign Policy/Common Security and Defence Policy. It is in the EU's interest to enhance the CFSP/CSDP cooperation with Ukraine. The intensification of our dialogue and cooperation in view of gradual convergence in the area of CSFP is also foreseen in the Association Agreement. Ukraine plays a key role in the settlement of the Transnistrian conflict in the Republic of Moldova. The EU and Ukraine have regular discussions on this subject, since both are members of the so called 5+2 settlement negotiation format. Transport The Association Agreement, once finalised, will constitute an important basis for the future bilateral cooperation between EU and Ukraine in the area of transportation. It will facilitate the modernisation of Ukraine's transport sector, improve movement of passengers and goods and contribute to the development of transport flows by removing administrative and technical obstacles. Ukraine is in particular an important aviation partner of the European Union: in this context negotiations on a common aviation area are ongoing and the EU is committed to finalising the negotiations. Science and Technology The first joint committee meeting with Ukraine under the bilateral science and technology cooperation agreement took place on 23 November 2011 in Brussels. Both sides shared information on priorities in the areas of health, information and communication technology and e-Infrastructures, and nanotechnology/materials research, with a view to promoting and potentially increasing future cooperation in these areas through both the EU's research framework programme and the Ukrainian programmes. ___________________ 4 EN