Its like a scud

thats prepared. Its not

yet launched, but its
ready to be
launched
- Karel De Gucht, EU trade chief
Last updated: September 25, 2014 7:26 pm
Putin demands reopening of EU trade pact with Ukraine
By Peter Spiegel in Brussels Author alerts
Vladimir Putin has demanded a reopening of the EUs recently-ratified trade pact with
Ukraine and has threatened immediate and appropriate retaliatory measures if Kiev moves
to implement any parts of the deal.
The demand, made in a letter to European Commission President Jos Manuel Barroso,
reflects Russias determination to put a brake on Ukraines integration into Europe and other
Euro-Atlantic organisations such as Nato, even after annexing Crimea and creating a pro-
Russian separatist entity in the east of the country.
It also comes amid a fresh crackdown on Russias oligarchs, exemplified by the recent house arrest of billionaire businessman Vladimir
Yevtushenkov, which was extended by a court on Thursday.
The integration treaty was the spark that set off the 10-month Ukraine crisis after the countrys then-president, Viktor Yanukovich,
backed out of the deal. Petro Poroshenko, the new Ukrainian president, has made integration with the EU a key objective of his
presidency.
But this is strongly opposed by Moscow, which is determined to keep Ukraine within its own economic sphere of influence.
Mr Putins letter argues that a 15-month delay in implementing part of the deal which Kiev and the EU agreed to earlier this month
should be used to establish negotiating teams to make wholesale changes to the deal.
Ukraine and the EU agreed to the delay under Russian pressure but view it only as a means of reassuring the Kremlin that it will not
harm Russian economic ties to Ukraine.
We still believe that only systemic adjustments of the association agreement, which take into account the full range of risks to
Russian-Ukrainian economic ties and to the whole Russian economy arising from implementation of the agreement, will allow [us] to
retain existing trade and economic considerations between the Russian Federation and Ukraine, Mr Putin says in his letter.
EU officials have remained adamant the treaty cannot be changed despite Kremlin demands that as many as 2,400 tariff lines be
modified in the pact.
We are creating a kind of time out; you could call this a peace clause, Karel De Gucht, the EUs trade
chief who negotiated directly with Mr Putin last month in Minsk, said in an interview. The Russians, of
course, they do not see this as a period of clarification but as a time they can put on the table a personne
interpose [third party] in fact emptying the agreement.
Mr Putins letter appeared part of a growing realisation in Moscow that the 15-month hiatus had not won
the Kremlin any concrete concessions since it allowed the treatys ratification to proceed. According to one
person briefed on internal Kremlin deliberations, the hiatus led to a bust-up within the Russian government
shortly after it was agreed.
There was a complete breakdown in communication within the administration, and those participating in the talks including economy
minister [Alexei] Ulyukaev got scolded really badly, said the person.
In the letter, sent the day after the Ukrainian and European parliaments simultaneously ratified the pact, Mr Putin warns any move
towards changing Ukrainian laws to better align them with EU regulations would be considered an infringement of the hiatus
warranting retaliation.
Its like a scud thats prepared. Its not yet launched, but its ready to be launched, said Mr De Gucht. He insisted the agreement had
no provisions preventing Kiev from adjusting its domestic standards during the hiatus.
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In depth
Crisis in Ukraine
Kiev and pro-Moscow
separatists have agreed extra
measures to ensure the
ceasefire in eastern Ukraine
Further reading
European Union, Ukraine, Vladimir Putin, Global Trade, European Commission RELATED TOPICS
Mr Poroshenko on Thursday set out an ambitious plan designed to get Ukraine ready to apply for EU membership by 2020, an
indication he is unwilling to delay legislative reforms despite the Russian threat. The plan included measures to fight corruption,
decentralise power, reduce Ukraines reliance on Russian energy and reform the justice systems.
The new stand-off over the treaty comes ahead of a meeting on Tuesday of EU diplomats tasked with
weighing whether to suspend sanctions imposed on Russia. A senior Nato diplomat said conventional
Russian troops had mostly withdrawn from Ukraine and a recent exchange of prisoners was a sign Mr
Putin, for the first time, may be serious about de-escalation.
But EU diplomats said it remains highly unlikely Brussels would back off any measures next week, saying
the largest European countries particularly Germany believe the Kremlin has not done nearly enough
to warrant such a move.
Although the European Commission has been tasked with drawing up options to suspend the sanctions,
Mr De Gucht said it was unlikely to recommend such actions. At this moment in time, there is no reason
whatsoever to change anything to the sanctions, he said. What you really should have is a peace plan
respecting the territorial integrity of Ukraine. Thats not yet in place.
Additional reporting by Neil Buckley in London and Kathrin Hille in Moscow