EU tells Ukraine political and trade deal still on table

The European Union has told Ukraine that a historic pact is still on offer this week, as street protests continued against the government’s decision to postpone an EU deal and repair relations with traditional ally Russia.

After more than 100,000 people gathered in Kiev and other cities on Sunday, smaller pro-EU demonstrations took place yesterday, despite warnings from officials that unauthorised rallies would not be tolerated. Riot police used teargas to disperse protesters outside government headquarters, and opposition politicians accused security forces of beating marchers.

Protests began after the cabinet loyal to president Viktor Yanukovich announced late last week that it was scrapping plans to sign a political association and trade pact with the EU at a summit starting on Thursday, which would have aligned Ukraine with the West rather than Russia. The government said the deal would not compensate Ukraine for the huge damage that would be done by threatened economic reprisals from Moscow.

Tough conditions
Officials also complained that the IMF was placing excessively tough conditions on an urgently needed loan. Russia – Ukraine's biggest trading partner – is believed to be offering easy credit and a deep discount on energy if Kiev turns away from Brussels. Moscow is now trying to build its own trade bloc to rival the EU.

European Commission head José Manuel Barroso and president of the European Council Herman van Rompuy insisted yesterday that a deal with Ukraine was "still on the table", however. They said in a joint statement that the pact was "the most ambitious agreement the European Union has ever offered" and "provides the best possible support for Ukraine's economic situation, reform course and modernisation".

'Strongly disapprove'
Noting that they "strongly disapprove" of Russia's pressure on its neighbour, they stressed to Ukraine that "short-term considerations should not override the long-term benefits that this partnership would bring".

“The EU stands ready to be more open and more supportive to those who are willing to engage in reforms and modernisation,” the EU chiefs added, saying the street protests showed Ukrainians “fully understand and embrace the historic nature of European association”.

Surveys suggest most Ukrainians support the EU agreement but, as well as fearing Russia’s reaction, Mr Yanukovich is reluctant to allow the release from prison of his chief rival, former premier Yulia Tymoshenko, a move the EU says would prove Kiev’s determination to end politically motivated prosecutions.

Ukraine’s foreign minister Leonid Kozhara said yesterday Mr Yanukovich would attend this week’s EU summit in Lithuania, and hinted that Kiev’s current stance on the deal might not be final.