Ukraine Expects the EU Support for Economic and Social Reforms at the Upcoming Summit

KIEV, Ukraine, November 19, 2010 - The Ukrainian Ministry of Foreign Affairs relies on the EU
support for the ongoing reforms in Ukraine. According to Oleg Voloshyn, Head
of Information Department at the Ukrainian MFA, the upcoming EU-Ukraine
summit in Brussels will be the first bilateral summit, when Ukraine can
demonstrate a real progress on the path of economic and social reforms.

Among some of the reforms in question are the tax and pension
reforms as well as the recent liberalization of the domestic gas market.

The tax code, which is being debated nowadays, is aimed at
simplifying the Ukrainian tax system, which is now one of the most
complicated in the world. According to the proposed draft law, the number of
taxes should decrease from 29 to 17. The bureaucratic procedures of tax
administration will also be significantly eased. On top of that, a gradual
reduction of the main taxes will be introduced in 2011-2014.

With respect to the pension reform, the government is set to
implement a number of measures in order to bring the Ukrainian pension system
closer to European standards. In addition, a number of non-popular but
crucially needed steps are to be taken in the upcoming months. The rise of
the retirement age, which many EU countries also have hard time introducing,
along with other financial restrictions, will stabilize the pension fund and
will bring more transparency into the Ukrainian pension system.

The adoption of the new gas reform law in July 2010 brought
drastic changes into the local gas market. According to the law, which fully
complies with the provisions of the Brussels Declaration of March 2009,
foreign companies may now have access to Ukrainian gas storage and pipelines
based on market competition. The law was brought into life following the EU
suggestions.

Based on the above mentioned developments as well as the
ongoing consultations with the EU authorities, the Ukrainian leadership also
expects a breakthrough on the long-awaited issues: approval of the Visa-Free
Action Plan and a progress in Association agreement.

For more information, please contact Natalya Shulevska +380-633776645 news at wnu-ukraine.com, Project Manager at Worldwide News Ukraine