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An analysis by leading Ukrainian and Russian economic experts shows that an EU-Ukrainian free trade zone will inevitably make it hard for Ukraine to develop or even sustain economic ties with the Customs Union in all major areas.This will result, above all, in curtailment of joint R&D in aircraft making, power machine-building, aerospace equipment production, nuclear power industry, power engineering, and shipbuilding.Whereas the Eurasian integration promises an immediate major improvement of Ukraine’s balance of trade and stability of its balance of payment, the EU Association option will entail a worsening of trade conditions and direct economic losses for Ukraine.The first option will ensure the necessary conditions for sustainable development of the Ukrainian economy and will improve its structure; the second one will bring about its degradation and bankruptcy.Meanwhile, all estimates suggest a 6 to 15 percent growth of Ukraine’s GDP by 2030 within the Custom Union.A comparative analysis of Ukraine’s two economic integration options seems to leave no room for doubt: participation in the Eurasian integration project would increase Ukraine’s GDP by 7.5 percent by 2030, compared to a GDP level that an association with the EU would bring (see Table 1).Nevertheless, Ukrainian opposition leaders and integration adepts ardently call for association with the EU.

The isolation of former Soviet republics from Russia inevitably worsens their economic situation due to the severance of cooperation ties and loss of established sales markets.Moreover, its association with the EU would not only hit the economy, already in a pitiful state, but would also aggravate its conflict with the breakaway Dniester Republic.Until quite recently, Armenia, too, was pressed to make a similar political choice.The key thesis is formulated in Article 124 of the Agreement: “Ukraine shall ensure that its existing laws and future legislation will be gradually made compatible with the EU acquis.” To dispel any doubts as to the integration vector, Article 56 clearly states that “Ukraine shall refrain from amending its horizontal and sectoral legislation listed in Annex III to this Agreement, except in order to align such legislation progressively with the corresponding EU acquis, and to maintain such alignment.” This means Ukraine will be unable to use the instruments envisioned by the Customs Union agreement for eliminating technical barriers to trade with CIS countries that are not members of the Union.Also, the memorandum of cooperation in the sphere of technical regulation signed by the Ukrainian government and the Eurasian Economic Commission last year appears meaningless.” has as simple an answer, formulated by lobbyists for Ukraine’s integration with Europe: to prevent Ukraine’s integration with Russia in the Common Economic Space of the Eurasian Economic Community (Eur As EC).As Ukrainian opposition member Yuri Lutsenko said, “Ukraine’s Association Agreement with the European Union is an emergency brake to stop its progress towards integration with Russia.” HOLLOW PROMISES To calm down the Ukrainian public, European political emissaries resort to barefaced lies.In other words, former Soviet republics that sign Association Agreements are assigned the role of colonies which must comply with EU jurisdiction in trade and economic regulation.For example, throughout all its sections, the draft Association Agreement makes Ukraine undertake a wealth of commitments.To force these economically wicked decisions, the Eastern Partnership policy seeks to strip the Eastern partners of their sovereignty in foreign trade issues.Draft agreements on association with the EU spell out a commitment to unquestionably comply with EU directives on trade policy, technical and customs regulation, sanitary, veterinary and phytosanitary control, subsidies and government procurements.


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