EU, UKRAINIAN OFFICIALS COMMENT ON ACTION PLAN,

C O N F I D E N T I A L SECTION 01 OF 02 BRUSSELS 000450

SIPDIS

E.O. 12958: DECL: 02/05/2016
TAGS: PGOV PREL CVIS ECON UP XH IR USEU BRUSSELS
SUBJECT: EU, UKRAINIAN OFFICIALS COMMENT ON ACTION PLAN,
VISA FACILITATION, AND IRAN

Classified By: USEU POLCOUNS LEE LITZENBERGER; REASON 1.4 (B,D)


1. (C) Summary: In separate meetings, Ukrainian and EU
officials discussed the status of the EU-Ukraine Action Plan
and negotiations on a visa facilitation regime and
readmission agreement. Ukrainian embassy officials said
their priorities with the EU in 2006 are to: 1) launch
consultations on a new EU-Ukraine agreement to replace the
current one that expires in 2007; 2) negotiate a Free Trade
Agreement with the EU; 3) implement a December 2005
Memorandum of Understanding on energy security with the EU.
Ukraine is also seeking visa facilitation steps from the EU
much as the EU granted Russia last year. In return, the EU
wants Ukraine to negotiate a re-admission agreement with
Russia, which Ukraine says it needs EU help to achieve. Kiev
is also urging the EU to negotiate strategic airlift
contracts directly with Ukrainian firms, and to fund
destruction of toxic ammunition/fuel. EU officials said
Ukraine has also asked for "more time" to align itself with
EU statements on Iran. End Summary.

EU Action Plan; Domestic Politics
--------------


2. (C) On February 3, USEU Poloffs met with EU Council
official Sofia Moreira de Sousa who reviewed the status of
EU-Ukraine relations in advance of the February 6 EU
Political Directors' meeting in Kiev. The focus of the
discussion would be on domestic political developments in
Ukraine in advance of the March elections. The EU message on
the domestic front would be to emphasize the importance of
free and fair Parliamentary elections. While the outcome of
the elections was uncertain, given the split in the reformist
camp, the EU expected smooth elections, with both OSCE and
European Parliament election monitors on the ground.


3. (C) The meeting will also include a discussion of
Ukraine's bilateral Action Plan under the EU's Neighborhood
Policy. Progress on the Action Plan in 2005 was
"considerable," de Sousa said, warranting the EU decision to
grant Market Economy Status to Ukraine. She added, though,
that Ukraine had moved ahead on the "easier" components of
the Plan and the EU was looking to Kiev to tackle the
difficult parts as well. Unfortunately, there has been no
progress since December, due to the political crisis in
Ukraine. She added that, nonetheless, Ukraine can meet an
additional Action Plan benchmark by successfully holding free
and fair Parliamentary elections.


4. (C) In a separate meeting, Ukrainian DCM to the EU
Kostiantyn Yelisieiev told USEU that Kiev has three main EU
goals for 2006: 1) To launch bilateral consultations on a
new enhanced agreement to replace the Partnership and
Cooperation Agreement that will expire in 2007; 2) To launch
negotiations on a Free Trade Agreement with the EU (but which
requires agreement on WTO accession); and 3) To implement a
Memorandum of Understanding on energy security negotiated
last December, prior to the gas dispute with Russia.


Visa Facilitation
--------------


9. (C) Yelisieiev also raised Ukrainian aspirations for a
visa facilitation agreement from the EU, in response to
Ukraine's unilateral decision last year to offer visa-free
entry to EU citizens. Expressing frustration at a perceived
EU double-standard on its visa regime for Russia and Ukraine,
the Ukrainian DCM asked USEU for help in convincing the EU to
introduce visa facilitation program for Ukraine, as it has
for Russia. He emphasized that the EU should offer better
visa facilitation terms than were granted to Russia, and
ticked off the reasons: "The EU should take Ukraine's
unilateral step into account, Ukraine does not require the
registration of foreigners, Ukraine has a good record on
illegal immigrants, with bilateral readmission agreements
with Slovakia, Poland and Hungary, and Ukriaine does not hav
an open border with Russia." The EU wants Ukraine to
negotiate a readmission agreement with Russia, he said, and
claimed the text was almost completely agreed. The only
thing lacking, he added, "is Russian political will. And we
need EU help to persuade Moscow to sign." Realizing that
Ukraine still has a "long way to go" on this issue, the DCM
nevertheless said that his citizens need to see a "light at
the end of the tunnel."


10. (C) The EU version was slightly different. Moreira de
Sousa said that FM Tarasyuk wanted a visa facilitation
agreement in place by the March elections. She said that the
Ukrainians have been negotiating this issue in good faith but
that Member States are skittish on moving forward absent a
Russo-Ukrainian readmission agreement. Furthermore, Kiev
is asking for border assistance from the EU on its eastern
front with Russia, in addition to its western front with
Europe, which the EU is not prepared to do. In addition, EU
member states are only prepared to offer the same terms to
Ukraine as were offered Russia.

Strategic Airlift; Ammunition Destruction
--------------


11. (C) Moreira de Sousa said that Ukraine has been lobbying
the EU to negotiate contracts for use of Ukrainian transport
aircraft directly with Ukrainian firms. (At present, the EU
has access to Ukrainian airlift assets through a NATO-EU
contract to provide flying hours at short notice.) Noting
that the terms offered are cheaper than the current
arrangement, Moreira de Sousa there was no political will at
this time among Member States to accept it. EU skeptics on
the deal have noted that the Ukrainian Rada has not approved
the proposed deal, and that the current arrangement ensures
minimum maintenance and safety standards are met.


12. (C) Ukraine has also sought EU assistance to destroy and
cleam up toxic fuel and ammunition in Ukraine. Citing an
OSCE study which said that Ukraine does in fact need
assistance in this area, de Sousa said that there was more
traction to this proposal among Member States.

Ukraine/Iran
--------------


13. (C) Moreira de Sousa said that the Ukrainian Mission in
Brussels had asked for more advance notice whenever a
forthcoming EU declaration on Iran was to be released so that
Kiev could have sufficient time to coordinate its political
alignment with the statement. (Ukraine has agreed to align
itself with EU foreign policy statements, as part of the
Action Plan.) This topic was brought up because de Sousa
said Solana was distressed when Ukraine failed to align
itself with an EU declaration on Iran last year. Solana
raised this issue at the December 1 Summit with Ukraine; he
underlined that the international community needs to be
aligned on this issue. The Ukrainians responded that they
needed additional time to coordinate alignment on Iran, which
they said was a "sensitive" issue for Kiev.
McKinley
.