European Union leaders travel to Kyiv for first meeting with Ukrainian officials (09/14/97)

European Union leaders travel to Kyiv for first meeting with Ukrainian officials

by Roman Woronowycz
Kyiv Press Bureau

KYIV - Leaders of the European Union came to Ukraine on September 5 bearing gifts and urging Ukraine's leaders to restart the country's stalled reform programs.

European Commission President Jacques Santer and Prime Minister of Luxembourg Jean-Claude Juncker, the current holder of the European Union's rotating six-month presidency, flew into Kyiv for several hours for the first-ever meeting between the leaders of the European Union and Ukraine.

Although the meeting was called a "summit," it was more a "getting to know you" affair, as Mr. Juncker acknowledged. "This first meeting was not merely symbolic, it allowed us to get to know one another," said Mr. Juncker at a press conference with his EU cohort, Mr. Santer, and Ukraine's President Leonid Kuchma.

The two EU leaders brought with them a pledge of a $110 million aid package from the EU for containing Chornobyl reactor No. 4, whose sarcophagus, hastily built after the 1986 calamity, is quickly crumbling. Ukraine estimates that it needs $750 million to properly secure the leaking reactor. The G-7 states meeting at the Denver summit in June pledged $300 million.

But Mr. Santer explained the money pledged has conditions attached, including those outlined in a December 1995 Memorandum of Understanding with the G-7 countries that noted stringent nuclear safety issues. He also said the EU is ready to help finance the completion of reactors at the Rivne and Khmelnytsky plants, but again with conditions attached. "The nuclear safety of the sites must be 100 percent ascertained," said Mr. Santer, at which time Prime Minister Juncker added, "It also means that Chornobyl must be closed by the year 2000."

Although the two leaders praised the economic reform efforts undertaken by President Kuchma, the stabilization of the currency and the leveling of inflation, they urged the president to keep pushing towards a free-market economy. "We look positively at the changes that have taken place in this country, but realize there is still much to be done" said Prime Minister Juncker. "We call on people not to move away from the path of economic reforms. If Ukraine wants to get closer to the European Union, the reforms that have begun must continue and deepen."

President Leonid Kuchma called the meeting "historic" and said that in the economic sphere the two sides agreed on the need to open European markets to Ukrainian goods. In Ukraine many accuse the European Union of protectionism because tariffs make non-EU goods much costlier.

But Mr. Santer said the only goods banned from the European market are those that fall within the framework of anti-dumping laws. "This only relates to some goods and are within legislative guidelines," said Mr. Santer. "We are happy with the state of trade between the European Union and Ukraine."

The EU is Ukraine's second largest trading partner after Russia. In 1996 Ukraine exported 1.5 billion ECU (European Currency Units) to the EU and imported 2.6 billion ECU. The EU is also the biggest foreign investor in Ukraine with over a third of the total foreign investment, more than that of Russia and the United States combined. Ukraine is one of the largest recipients of EU aid to former Soviet republics. Since 1991 the country has received some $4 billion (U.S.) in export credits, loans and grants from the EU.

Ukraine, which currently holds most-favored-nation trade status with the EU, is expected to sign a treaty on friendship and cooperation with the 15-nation group either late this year or early in 1998, said Mr. Santer.

At the summit there was no talk, however, of Ukraine entering the EU. Mr. Kuchma said only that "this is our strategic goal, but it will take a long time."

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