The European Commission is Contented With Free Trade Zone Progress With Ukraine

KYIV, Ukraine, May 17, 2011 - "We are not just discussing the possibility to make a serious
step forward and sign an association agreement, create a free trade zone - we
are actively working on it," said Stefan Fuele, the European Commissioner for
Enlargement and Neighbourhood Policy summing up the meeting with Vasyl
Dzharty, Prime Minister of the Autonomous Republic of Crimea, Ukraine.

The European Commissioner's comment was accompanied by a EUR
12 million pledge to support the joint initiative of cooperation in Crimea
during the official three day visit of the Crimean Prime Minister to London
and Brussels.

The latest round of the Ukraine-EU talks on the introduction
of the Free Trade Zone between Ukraine and the EU took place on April 4-8,
2011. The Free Trade Zone is the core of the Association Agreement which
stipulates different aspects of economic and scientific cooperation between
the EU and Ukraine and is aimed at promoting and enhancing their political
collaboration in the future.Overall, Ukraine and the EU have held a series of
negotiations regarding the deep and comprehensive Free Trade Agreement
starting February 18, 2008.

Less than a month ago Ukraine has expressed its readiness to
compromise with the European Union on the Free Trade Zone. The key priority
issues for Ukraine in the free trade zone negotiations are the agricultural
production and automotive transportation. Despite the fact that upon signing
of the Agreement Ukraine will get alucrative access to the market of about
500 million people, it still may require a transition period and compensation
mechanisms for the local producers in the priority sectors. Such provisions
have already been embodied by the EU in the existing Euro-Mediterranean
Partnership and include the WTO-compatible transition period of up to 12
years, varying between countries and sectors.

During the last high profile negotiations between the EU and
Ukraine, the latter has clearly demonstrated its intention of not becoming a
member of the Customs Union but deepening its relations with its eastern
members without affecting the EU integration plans.

Taking into account that over 90 percent of the positions in
the free trade agreement have already been agreed upon both parties are
convinced that signing of the agreement will take place by the end of 2011.

For more information, please contact MarynaKhorunzha, +380443324784, news at wnu-ukraine.com, Project Manager at Worldwide News Ukraine