Ukraine After the Orange Revolution by Kataryna Wolczuk

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Ukraine After the Orange Revolution by Kataryna Wolczuk Ukraine after the Orange Revolution By Kataryna Wolczuk ★ Ukraine’s new president, Viktor Yushchenko, wants Ukraine to become a candidate for EU membership. For the application to be credible, he must open up the economy, fight corruption and heal post-election rifts – reforms that will proceed slowly and suffer setbacks. ★ The EU’s refusal to consider the possibility of Ukrainian membership looks untenable after the Orange Revolution. And it risks undermining Yushchenko’s reformist, pro-European platform. ★ The EU’s new neighbourhood policy is a welcome attempt to help stabilise and modernise Ukraine, but it needs stronger incentives to be effective. The pace and scope of change triggered by frequently reminded European leaders that Ukraine Ukraine’s presidential elections in late 2004 has has a rightful place in Europe’s political and surprised the EU, the US, Russia and, not least, economic clubs. “I don’t feel comfortable striving to most Ukrainians themselves. The rigged first round join Europe,” he explained during the Davos World of the elections in October sparked the so-called Economic Forum in January 2005, “I feel like I am a Orange Revolution – mass protests under the European. I live in a European country and possess orange banners of the opposition – as well as European values.” widespread international criticism of the regime of President Leonid Kuchma. In the second round of voting in December, the Kuchma regime’s The EU remains cautious candidate, Prime Minister Viktor Yanukovych, lost The EU has congratulated Yushchenko on his to the opposition leader Viktor Yushchenko. victory. It has sent its foreign policy chief, Javier Solana, to his inauguration. In a ten-point plan in The election brought about the most radical shake- January 2005, the EU offered Ukraine better trade up of Ukraine’s political scene since the country’s relations, more aid, easier visas and closer co- independence. Yushchenko’s victory promises big operation in security and other areas. But it has so changes, both in terms of domestic and foreign far studiously avoided the question of membership policy. During his spell as prime minister in 2000-01, for Ukraine. While the European Parliament has Yushchenko built a track record as a liberal but called on EU leaders to give Ukraine a ‘membership pragmatic reformer. As president, he has promised to perspective’, EU foreign ministers only went so far kick-start Ukraine’s sluggish economic reform as to acknowledge that the Orange Revolution “is process, helped by his prime minister-designate, Yulia credible proof that Ukraine’s European aspirations Tymoshenko. The new president has also promised are based on common values shared by both to work hard to improve Ukraine’s ties with the West European states and citizens”. The European and end the semi-isolation that Ukraine endured Commission insists that the EU and Ukraine should during most of Kuchma’s second term in office. In first make headway under the EU’s new ‘European particular, Yushchenko has made it clear that he neighbourhood policy’, a programme that is only wants his country to join the EU and NATO. He has just getting under way. Centre for European Reform T: 00 44 20 7233 1199 29 Tufton Street F: 00 44 20 7233 1117 London SW1P 3QL UK [email protected] / www.cer.org.uk 2 The EU’s cautious response to Ukraine’s EU setbacks, without the EU being able to do much about aspirations will disappoint the Ukrainians. But it is in it. The regular EU-Ukraine summits resembled stiff line with the EU’s long-standing neglect of Ukraine. rituals, with little open discussion and even less Throughout most of the 1990s, the EU was busy substantive agreement. A plethora of bilateral expert completing its single market, getting ready for the meetings and commissions achieved some notable euro and helping the Central and East European results in sectoral co-operation, but did little to applicants with their internal reforms. It paid little improve the overall political relationship. The EU’s attention to the countries further east, such as assistance under Tacis has dwarfed other multilateral Ukraine, Belarus and Moldova. EU policymakers saw aid programmes, making the EU Ukraine’s largest the former members of the Soviet Union – with the donor. But – poorly targeted and at times badly notable exception of the Baltic states – as a fairly managed – EU assistance has had only a limited homogenous lot. So the EU offered them all more or impact on Ukraine’s transition process. Overall, the less the same treatment: a Partnership and Co- EU’s policy towards Ukraine has lacked a clear vision, operation Agreement (PCA) for closer trade and and its instruments have been rather blunt. political ties, and financial aid and expert advice under the Tacis assistance programme. Neighbours that need each other But the former Soviet countries have differed greatly It is clear that EU-Ukraine relations have not lived in their approach to the European Union. Russia has up to their potential. The EU needs a stable and sought a broad-based relationship of equals, or prosperous Ukraine, and Ukraine needs the EU as an ‘strategic partnership’, while jealously guarding its open and reliable economic and political partner. national sovereignty. Belarus has shunned closer ties Already, the enlarged EU is Ukraine’s most with Western Europe, preferring re-integration with important trading partner, accounting for more than Russia as a way of propping up its ailing economy. one-third of the country’s imports and exports. EU- Ukraine, by contrast, left little doubt that it wanted to based companies are also the biggest foreign integrate with the EU and eventually become a full- investors in the Ukrainian economy – although the fledged member of the club. Successive Ukrainian amounts Ukraine has attracted have been tiny governments asked the EU to give their country a compared with the sums that have flowed into the ‘membership perspective’. They did not, however, East European accession states. Perhaps most push through the political and economic reforms that importantly, the EU can act as an anchor for would have made these demands credible. Perhaps Ukraine’s economic and political reform efforts, not surprisingly, the EU showed little enthusiasm for emulating the success of other post-Communist Ukraine’s membership aspirations. ‘Don’t ask us for countries such as Poland and Hungary. Ukrainian candidate status’, the EU insisted ‘because the answer politicians and intellectuals have always cited their would be No.’ country’s ‘Europeanness’ as the key reason for leaving the Soviet Union and aspiring to democracy and an open market economy. Past disappointments Meanwhile, the EU offered little help to keep Ukraine For the EU – with its vastly bigger economy – Ukraine on a pro-European, pro-reform path. The PCA is only a minor trading partner (accounting for between the EU and Ukraine that came into force in around 1 per cent of EU external trade). But it is an 1998 committed both sides to gradually opening their important neighbour nonetheless. With a population markets for goods, services and capital. Ukraine also of 48 million, Ukraine is the most populous non-EU promised to bring its rules and regulations more in country on the continent, after Russia and Turkey (an line with those of the EU and the World Trade EU candidate). Following the EU’s eastward Organisation (WTO), which Ukraine has long sought enlargement in May 2004, Ukraine now shares a long to join. Yet, seven years later, trade between the EU common border with three EU member countries, and Ukraine does still not flow freely. The EU boasts Hungary, Poland and Slovakia. Given the presence of that its average import tariff is only 3 per cent, but it ethnic minorities on both sides of the common border, still imposes tight restrictions in those sectors where historical cross-border ties and the large volume of Ukraine is most competitive, such as food, textiles shuttle trade going back and forth, the EU cannot and and steel. The EU officially supports Kiev’s WTO bid, should not try to cordon off Ukraine. Already, but it has not upgraded the country to ‘market Ukrainians are angry that they now require visas to economy status’ for trade policy purposes. (The travel to Hungary, Slovakia and Poland – countries upgrade would change Ukraine’s WTO accession that they could previously visit visa-free. The EU terms and make it harder for the EU to impose anti- should help Ukraine to achieve stability and dumping duties on Ukrainian goods.) prosperity, and not only in the border region. An unstable Ukraine could become a major transit route Similarly, under Kuchma’s presidency the EU and for weapons, drugs and people trafficking coming Ukraine were a long way from the PCA’s other stated from further east. Moreover, Ukraine’s stability also objective, to promote a political dialogue on matters for the EU’s energy security, since much of the democratic values and human rights. Under Kuchma, EU’s oil and gas comes from Russia and is shipped Ukraine’s democratic development suffered numerous through Ukrainian pipelines. 3 By responding to Ukraine’s request for closer ties, the of 2005, as a result of constitutional changes that he EU could help to build a reliable partner in a agreed with his opponents during the political crisis. potentially unstable region. The EU’s nascent common foreign and security policy needs reliable partners. For example, Ukraine could help EU Ukraine’s foreign policy after the election attempts to resolve the ‘frozen’ conflict in In his foreign policy, Yushchenko faces similarly Transdnistria, a breakaway region in Moldova difficult choices. Yushchenko’s priorities may lie in adjoining Ukraine that has become a hotspot for Brussels.
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