CARRYING OUT EU-UKRAINE ACTION PLAN

CARRYING OUT

EU-UKRAINE ACTION PLAN

As of 5 October 2005

EU-Ukraine action plan

2.1. Political dialogue and reform

2.6. Human contacts

2.2. Economic and social reforms and development

2.4. Co-operation on Justice and Home Affairs

2.3.Trade, market and regulatory reforms

2.5. Transport, power engineering, information society and environment

Democracy, rule of law, human rights and fundamental freedoms

Regional and international issues, co-operation on foreign and security policy, non-proliferation of weapons of mass destruction and disarmament, conflict prevention and crisis management

Functioning market economy

Monetary exchange rates and fiscal policies

Structural reforms

Social situation, employment, reduction of poverty

Regional development

Sustainable development

Movement of goods

Taxation. Competition policy.Intellectual property.Public procurement.Statistics.Financial control.Enterprise policy

Right of establishment; company law and services

Movement of capital and current payments

Movement of persons including movement of workers

EU action plan on Justice and Home Affairs

The fight against corruption, border control, migration, fight against “money laundering”, people trafficking and drug industry, fight and prevention of children sexual exploitation and pornography

Simplification of visa regime

Transport

Power engineering

Information society

Environment

Science and technology, investigation and development

Education, study and the youth

Public health

Cross-border and regional co-operation

Cultural and audiovisual issues

Co-operation in civil society

2.1. POLITICAL DIALOGUE AND REFORM

PREPARING FOR 2006 PARLIAMENTARY

ELECTIONS

In April 2005 for the purpose of carrying out expertise of Ukrainian electoral legislation and its further improvement the following laws have been conveyed to the Venice Commission:

- The Law of Ukraine ‘On election of people deputies of Ukraine’ of 25 March 2004 After the new wording of the Law of Ukraine ‘On election of people deputies of Ukraine’

had been adopted on 7 July 2005 it was agreed that its translated text would be submitted to the Venice Commission for expertise - The Law of Ukraine ‘On introduction of amendments to the Constitution of Ukraine’ of 8

December 2004 Expert opinions approved on 10-11 June 2005 during 63rd Plenary session of the Venice Commission were processed and forwarded to the President of Ukraine and the Head of the Verkhovna Rada9-10 June 2005. International conference ‘2004 presidential elections: problems of theory and

practice’ was held in Kyiv (participated representatives of the OSCE Office on Democratic Institutions and Human Rights (ODIHR), the European Commission, the Venice Commission of the Council of Europe, Ukrainian political parties and NGO’s). The follow-up recommendations of the conference on ensuring democratic conduct of 2006 parliamentary elections have been sent to the Verkhovna Rada.

7 July 2005. The Law of Ukraine ‘On introduction of amendments to the Law of Ukraine ‘On election of people deputies of Ukraine’ (with regard to the experience of holding the late Ukrainian presidential elections and OSCE ODIHR missions’ conclusions). Among other, the Law establishes course of actions concerning registration, activities and rights of official observers representing foreign countries and international organizations.


ENSURING HUMAN RIGHTS

11 April 2005. The European Convention on the compensation of victims of violent crimes is signed. Set of documents for its ratification is being perepared

20 April 2005. The Government adopted measures on the implementation of Convention on the ensuring protection of legitimate rights and interests of people who suffered from crimes during 2005 – 2006 (Resolution of the Cabinet of Ministers of Ukraine № 110)

31 May 2005. The Government of Ukraine adopted the decision on the expediency of signing the Declaration of friendly settlement in ‘Gongadze against Ukraine’ case which is being examined by the European Court of Human Rights. (Resolution of the Cabinet of Ministers № 169)

29 August 2005. The Convention on the protection of individuals with regard to automatic processing of personal data and the Protocol thereto is signed

31 August 2005. Ukraine’s Permanent Representative to UN was granted a mandate for signing Optional Protocol to the Convention against torture and other cruel, inhuman or degrading treatment or punishment (Decree of the President of Ukraine № 1155)

7 September 2005. The draft Law of Ukraine ‘On introduction of amendments to certain legislative acts’ (concerning ensuring the rights of convicts and persons kept under guards to be in correspondence with the European Court of Human Rights) has passed the first reading in the Verkhovna Rada


STABILITY AND EFFECTIVENESS

OF INSTITUTIONS

The Government is formed as a political body which bears political responsibility for developing and implementing decisions

Increased responsibility of ministers for state policy implementation in relevant areas Number of steps concerning policy consolidation in the areas of public finance, transport and

communication, social affairs and employment, power, justice and emergencies. The system of integrated management of natural resources and ecological safety is created

To avoid duplications functional analysis within the central bodies of executive power is being conducted The number of the deputy ministers’ positions and other top official positions within the executive branch

is reduced Strengthening state authority at the local level The Draft Law of Ukraine ‘On the territorial structure of Ukraine’ is submitted for Government’s

consideration On 8 September 2005 the Verkhovna Rada of Ukraine adopted the Law of Ukraine ‘On stimulating

regional development’

13 September 2005. The Declaration of unity and co-operation for the future of Ukraine was signed (the document was signed by the President of Ukraine, the Head of the Verkhovna Rada, Acting Prime Minister of Ukraine and authorized representatives of parliamentary factions (groups) and political parties

Parliamentary hearings ‘Power decentralization in Ukraine. Broadening mandate of local government’ are planned to be conducted on 12 October 2005

The Decree of the President of 15.04.2005 №658 ‘On decision of the Council of National Security and Defense of 14 March 2005 ‘On principles of reforming the system of central bodies of executive power’

The Decree of the President of Ukraine of 10.03.2005 N 455 ‘On amendments to management’s quantitative structure within the system of central bodies of executive power’

The Decree of the President of Ukraine of 03.04.2005 N 593 ‘On improvement of the structure of the local state administrations’

The Decree of the President of Ukraine of 15.05.2005 № 794 ‘On amendments to the Decree of the President of Ukraine of 15 December 1999 № 1572’ (amendments to the Decree of the President of Ukraine ‘On the system of central bodies of executive power’)

The Resolution of the Cabinet of Ministers of Ukraine of 12.03.2005 N 179 ‘On regulating structure of apparatus of central executive power bodies, their territorial subdivisions and local state administrations’

The Resolution of the Cabinet of Ministers of Ukraine of 11.05.05 N 328 ‘On structure of local state administrations’


FIGHTING CORRUPTION

16 March 2005 The Verkhovna Rada of Ukraine ratified the Civil Law Convention Against Corruption. This will allow to create effective means for combating corruption and provide legal remedy to the people who suffered from corruption. Having ratified the Civil Convention Ukraine became a member of the Council of Europe Group of States against Corruption (GRECO).

The Government carried out number of measures directed to combating corruption, namely:

• review and optimization of permissive functions (reducing number of permissions and licences)

• increasing institutional and personal responsibility and control regarding performing permissive functions

• increasing civil servants’ remuneration

‘Hot lines’ at the State customs service and Board of Importers of the Cabinet of Ministers of Ukraine are constantly being operated. The analysis of the information received is the basis for development amendments to relevant legislation and for other activities aimed at fighting corruption.

16 June 2005. The Verkhovna Rada of Ukraine adopted the Law of Ukraine ‘On introduction of amendments to the Law of Ukraine ‘On procurement of goods, works and services at the state expense’ which provides for establishing of competitive environment in public procurement, barring the corruption in this area, providing thrifty and effective use of state funds, openness and transparency.

The following draft laws has been submitted for President’s consideration:

On ratification of the Criminal Law Convention Against Corruption

On ratification of the additional Protocol to the Criminal Law Convention Against Corruption

On ratification of the United Nations Convention Against Corruption

On basics for preventing and combating corruption in Ukraine

On introduction of amendments to certain legislative acts concerning responsibility for corruption transgressions

On legal entities’ responsibility for corruption transgressions

20 September 2005. The Verkhovna Rada of Ukraine created Temporary Investigation Commission for verification of information spread through the media concerning particular officials’ actions of corruption and abuse of their positions

30 September 2005. International videoconference ‘Corruption and organized crime’ was held in Ukraine in the framework of the Programme for fighting corruption in European an Central Asian countries


CONDUCTING JUDICIAL REFORM

20-25 February 2005. 22 judges of the Supreme Court of Ukraine participated in training programme at the European Court of Human Rights

26 May 2005. The President of Ukraine established the Commission for implementation of judicial reform in Ukraine (The Decree of the President of Ukraine N 1066)

26 May 2005. In order to elaborate comprehensive legislative proposals the Ministry of Justice requested the Council of Europe for expertise of the Law of Ukraine ‘On the judicial system of Ukraine’ and the draft Law of Ukraine ‘On introduction of amendments to the Law of Ukraine ‘On the judicial system of Ukraine’. Consultations with Council of Europe experts were held on 4-5 July 2005

6 July 2005. The Verkhovna Rada of Ukraine adopted the Code of administrative legal procedure of Ukraine.

12 July 2005. The draft Law of Ukraine ‘On introduction of amendments to certain legislative acts’ (concerning exclusion of military courts from the system of general jurisdiction) has been submitted to the Verkhovna Rada. The purpose of developing the above draft Law is bringing relevant legislation to conformity with the Constitution of Ukraine

ENSURING THE EQUALITY and RESPECT OF

CHILDREN’S RIGHTS

3 February 2005. The amendments to the Law of Ukraine ‘On childhood protection ’ concerning the ban of involvement of children to the worst forms of children labour

21 April 2005. Cabinet of Ministers approved the decision concerning birth allowance increase (in the amount of children’s up to 6 years old living wage multiplied by 22.6)

7 June 2005. The issue of ensuring the rights of children in Ukraine, protection of motherhood and childhood was discussed by the Verkhovna Rada of Ukraine during the Parliamentary hearings

8 September 2005. The Verkhovna Rada adopted the Law of Ukraine ‘On ensuring equal rights for women and men and equal opportunities for their realization’

The following decrees of the President were adopted:

On immediate measures concerning protection of children’s rights (of 11.07.2005 № 1086)

On improvement of central and local bodies of executive power activities concerning ensuring equal rights and opportunities for women and men (of 26.07.2005 № 1135)


DEVELOPING CIVIL SOCIETY

The following measures towards increase of authority’s publicity are undertaken.

15 January 2005. The Government determined the procedure of involving the NGOs representatives into monitoring of price, tariffs and salaries changes. This involvement is reached by means of participation in work of public expertise boards and other consultative bodies under the Cabinet of Ministers or regional states administrations (Resolution of the Cabinet of Ministers of Ukraine № 39)

6 April 2005. The Government determined the procedure of monitoring of activity outcomes of the Cabinet of Ministers of Ukraine and local executive bodies (Resolution of the Cabinet of Ministers of Ukraine № 263)

April 2005. The project ‘Public education in Ukraine’ is launched. Holding of seminars and public discussions on society’s renovation of the soul is envisaged.

18 May 2005. To ensure participation of civil society in public administration the Government provides for establishing public boards under the Prime Minister of Ukraine, the First vice-prime-minister, vice-prime-ministers, ministers, heads of other central and local bodies of executive power (Resolution of the Cabinet of Ministers of Ukraine № 356)

31 August 2005. The Government approved Methods for evaluation of activities of local bodies of executive power (Resolution of the Cabinet of Ministers of Ukraine № 835)

31 September 2005. The President of Ukraine determined the set of measures directed to people’s involving into state policy developing and implementation. The Strategic Council for state police development was established. (The Decree of the President of Ukraine N 1276)`

REFORMING LAW ENFORCEMENT BODIES

23 May 2005. Interministerial Commission for law enforcement bodies reforming has been created. Its main task is elaboration of proposals on improvement law enforcement bodies activities with regard to international standards and principles. (The Decree of the President of Ukraine N 834)


ENSURING FREEDOM OF THE MEDIA

AND EXPRESSION

3 March 2005. A new wording of the Law of Ukraine ‘On the National Council of Ukraine for television and broadcasting’ was adopted. It contains legal basis for functioning of the National Council as a special supervision and regulatory state body in the field of television and broadcasting

Prospects of launching public television and broadcasting in Ukraine was discussed during the Verkhovna Rada Parliamentary hearings (13.04.2005)

Processing of a new wording of the draft Law of Ukraine ‘On information’ is underway. 25 April 2005. The Cabinet of Ministers of Ukraine submitted to the Verkhovna Rada the draft

Law of Ukraine ‘On television and broadcasting’, which would allow to increase the share of foreign capital in statutory funds of TV and- radio broadcasting companies from 30% to 35%.

11 May 2005. The Government established an Interministerial Commission for development of information sphere (Resolution of the Cabinet of Ministers of Ukraine № 146)

8 July 2005. The draft Law of Ukraine ‘On introduction of amendments to the Law of Ukraine ‘On system of public television and broadcasting’ (new wording) has passed the first reading in the Verkhovna Rada.

6 September 2005. The Verkhovna Rada adopted the Law of Ukraine ‘On introduction of amendments to article 12 of the Law of Ukraine ‘On television and broadcasting’. It specifies the status of state television and broadcasting companies and procedure of their financing


CO-OPERATION ON FOREIGN

AND SECURITY

POLICY

13 April 2005. The list of dual-purpose goods, which can be used for production of chemical, bacteriological (biological) and toxic weapon, was brought to conformity with the Control List of the ‘Australian group’ regime (Resolution of the Cabinet of Ministers of Ukraine № 274)

14 April 2005. A meeting in frame of Triyka of the Working Group on Global Disarmament, Arms Control and Non-Proliferation was held

21 April 2005. During the 20th Plenary session of Australian group in Sydney, Ukraine became its member (in international regime of control over transfer of dual-purpose goods which can be used for the production of chemical and biological weapon)

18 May 2005. The Verkhovna Rada of Ukraine adopted the Law of Ukraine ‘On ratifying the Convention on prohibition of the use, stockpiling, production and transfer of anti-personnel mines and their destruction’ (Ottawa Convention)

18 May 2005. Consultations on foreign policy planning between the Ministry of Foreign Affairs of Ukraine and the Political Department of the General Secretariat of the Council of Ministers of EU were launched.

26 May 2005. Ukraine obtained the right to join the statements made on behalf of the European Union within the UN, including the declarations in the General Assembly and its committees, Security Council and Economic and Social Council and, also, within the framework of international conferences convoked under the aegis of UN.

13 June 2005. During the meeting Ukraine-EU Co-operation Council in Luxemburg the following documents have been signed:

Security Agreement between Ukraine and the EU (regarding the security procedure for the exchange of classified information);

An agreement between the EU and Ukraine establishing a framework for the participation of Ukraine in the EU crisis management operations.

27 July 2005. The Cabinet of Ministers of Ukraine submitted to the Verkhovna Rada the draft Law of Ukraine ‘On ratification of Additional Protocol to the Agreement between Ukraine and International Agency for Nuclear Energy on application of guarantees in connection with the Agreement on non-proliferation of weapons

7 September 2005. The Verkhovna Rada ratified the Convention on Cyber-crime14 September 2005. During Ukraine-EU Triyka regular consultations on the level of Political Directors issues

of Ukraine-EU co-operation for securing regional peace and stability, ways of implementation of Ukrainian Plan for Transnistrian conflict settlement (including establishing international monitoring mission at the Ukraine-Moldova border), regional development (namely within CIS and GUAM) were discussed

19 September 2005. Regular Ukraine – EU Troika meeting at the level of ministers for foreign affairs was held


STRENGTHENINGOF

REGIONAL COOPERATION

21-22 April 2005. During the GUAM Chisinau summit: The President of Ukraine announced the Plan for Transnistrian conflict settlement called ‘To settlement

through democracy’. Chisinau, Tiraspol, Moscow, Washington and Vienna positive reaction is to be considered as a starting point for a new stage of conflict’s settlement;

Protocol on co-operation of operational bodies between Administration of the State Border Guard Service of Ukraine and the Frontier Troops Department of Republic of Moldova was signed.

10-11 May 2005. Special EU representative on Transnistrian conflict settlement visited Ukraine

12 May 2005. Ukraine and Moldova reached an agreement to establish joint customs and border check-points at five common border cross points

25 May 2005. Heads of diplomatic missions of EU, USA, Russian Federation and Romania visited Tansnistrian section of Ukrainian-Moldavian border. The efforts of Ukraine for strengthening security in this sector were highly appreciated.

2 June 2005. In the course of negotiations between Ukraine and Moldova with the participation of the President of Ukraine V.Yuschenko and the President of Moldova V. Voronin Typical technological scheme (of joint control) of transferring persons, vehicles and other properties over Ukrainian-Moldavian state border has been signed

Since 1 July 2005 the joint control at five Ukrainian-Moldavian border check-points is being executed

Ukrainian-Moldavian border demarcation proceeds, namely: 430.4 km. of the state border is demarcated; over 1176 border marks are installed; border demarcation in the north district is almost completed (Chernivtsi region, partially Vinnitsa region),

border demarcation in the south district (Odessa region) proceeds, Ukraine-Transnistrian region border demarcation remains the most problematic issue

16 September 2005. The President of Ukraine appointed Special Representative of Ukraine on Transnistrian settlement as a step towards Ukraine’s initiatives and international arrangements (The Decree of the President of Ukraine N 1279)

26-27 September 2005. In the course of Ukraine-Russian Federation-OSCE-Republic of Moldova and Transnistrian Republic meeting a decision of EU and USA involvement into Transnistrian settlement process was taken

16 October 2005. Foreign affairs EU Commissioner B. Ferrero-Waldner is planning to sign Memorandum of understanding between EC, Ukraine and Moldova which would be the basis for EU Border Mission. Mission is going to commence on 1 December 2005. Its mandate is valid for 2 years and can be extended. Cost of Mission is 7 mln. euros

BASIC ECONOMIC DEVELOPMENT INDICATORS

GDP*GDP*

Industrial manufacture*Industrial manufacture*

Consolidated budget revenueConsolidated budget revenue (% (% toto GDPGDP))****

Consolidated budget expensesConsolidated budget expenses (% (% toto GDPGDP))****

Consumer price index Consumer price index (August-December(August-December 2004 2004))

ForeignForeign ddirect investmentirect investment ((blnbln. . US $, as of 1 July 2005)US $, as of 1 July 2005)

Exports of goods**Exports of goods**

ImportsImports of goods**of goods**

Foreign trade balanceForeign trade balance ((blnbln. . US $, as of 1 July 2005)US $, as of 1 July 2005)

3,5%3,5%

32.7%32.7%

6.7%6.7%

9,19,1

24,3%24,3%

1,91,9

2.8%2.8%

7,6%7,6%

* January – August 2005

** January – July 2005

31,3%31,3%

2.2. ECONOMIC AND SOCIAL REFORM AND DEVELOPMENT

MARKET ECONOMYSTATUS

In April-June Ukraine passed EC all the documents for taking relevant decision

As a result of the work done, the following issues are considered to be resolved:

1) bankruptcy peculiarities of urban fringes’ and state enterprises

2) influence on pricing of memoranda of mutual understanding between the Ukrainian Government and enterprises of mining and metallurgical industries on pricing stabilization in internal market (the abolition of these memoranda has been declared during the Government’s seating on 3 March 2005)

3 June 2005. Minister of economy has addressed the letter to the General Director of the European Commission’s DG Trade concerning the guarantees of non-signing memoranda on pricing in particular fields in the future.

17 September 2005. The Cabinet of Ministers of Ukraine submitted to the Verkhovna Rada the draft Law of Ukraine ‘On introduction of amendments to certain laws of Ukraine (concerning improvement of enterprises’ bankruptcy procedures)’ which envisages the abolishment of the moratorium for bankruptcy of mining enterprises and also forced sales of property

20, 26 September 2005. In the curse of consultations it was clarified that relevant set of documents is being completed by EC services. Provision of additional information from Ukrainian side is not required.

It is expected that in the nearest future EC will submit its opinion for EU member states consideration and Ukraine will be informed on decision taken by the end of October.

STABILITY OF FISCAL SYSTEM

30 March 2005. Obligatory 50% sale of foreign exchange export revenues has been cancelledThe Ukrainian currency gained its real value in financial market. The Government waived the artificial support

of USD-UAH exchange rate, balanced country’s financial system by means of market instruments and strengthened confidence in national currency

Exchange rate - 5.05 for 1 USD (average, August)


STRUCTURAL REFORMS AND DEVELOPMENT

21 June 2005. The draft Law of Ukraine ‘On mortgage securities’ aimed at creating legal basis for attracting long-term financial resources through stock market instruments has passed the first reading in the Verkhovna Rada

6 July 2005. The draft law ‘On introduction of amendments to the Law of Ukraine ‘On banks and banking activity (concerning affiliates of foreign banks)’, allowing foreign banks to establish affiliates on the territory of Ukraine, has passed the first reading in the Verkhovna Rada

6 July 2005. The Verkhovna Rada adopted the draft Law of Ukraine ‘On introduction of amendments to the Law of Ukraine ‘On audit activity’ (concerning legal securing of equal conditions for obtaining auditor’s certificate for all persons irrespective of their citizenship)

14 July 2005. The draft Law of Ukraine ‘On securities and stock market’ aimed at transparency of securities transactions, improving protection of rights of stock market players, reaching conformity to Civil and Economic Codes of Ukraine

6 September 2005. The Verkhovna Rada adopted the draft Law of Ukraine ‘On introduction of amendments to the Law of Ukraine ‘On stock market state regulation in Ukraine’

COMMUNICATIONWITH

BUSINESS

During January-June foreign direct investments make up $491,3 mln. (increased 5.7% since the beginning of 2005) Business Council Forum was created under the Cabinet of Ministers which is the first try of carrying out open

on-line dialogue on entrepreneurship policy.Regular meetings with representatives of European Business Association are held. 11 April 2005. The expert commission with a main task to prepare proposals on improving legislation concerning the

investment activity in Ukraine has been created within the framework of Consultative board for foreign investments (President’s decree №625)

16-17 June 2005. The International Investment Forum ‘Extraordinary roundtable on Ukraine - 2005’ involving top foreign and Ukrainian investors was conducted in co-operation with the Secretariat of the Global Economic Forum (Switzerland)

11 March, 25 May, 8 September 2005. Meetings of ‘Power and business’ forum has been conducted in Kyiv with the participation of the President of Ukraine and the Prime-minister of Ukraine


ENTREPRENEURSHIP DEVELOPMENT

4 May 2005. Derzhspozhyvstandart removed 25 items with low risk level from the List of products that fall under mandatory certification.

12 May 2005. President of Ukraine issued a number of orders aimed at business activity liberalization and state support of entrepreneurship (Decree of the President of Ukraine N779)

25 May 2005. The forum “Regulatory policies as ground for open and transparent authorities” having the President of Ukraine, Prime-minister of Ukraine, heads of state executive bodies, businessmen participating, held.

1 June 2005. President of Ukraine approved the actions on assurance of effective state regulatory policies aimed at improvement of state regulation of business relations as well as at achievements in regulatory activities of balance of interests among businessmen, citizens, and state (Decree of the President of Ukraine N 901)

6 June 2005. The Government and Board of Entrepreneurs approved an Action plan on improvement of business activities, that focuses, in particular, at:

review of specific regulatory acts which restrain business activities in Ukraine proposals development aimed at simplification of business launching in Ukraine

11 June 2005. A number of Working Parties established in order to perform review of regulatory acts which restrain business activities in Ukraine (Decree of the President of Ukraine N 901)

As a result of the Working Parties’ efforts, 5057 regulatory acts by state executive bodies and 160 Cabinet of Ministers’ acts that restrain business activities had been abolished.

25 July 2005. The Council on Foreign Economic Activities to the Cabinet of Ministers of Ukraine established.

6 September 2005. Verkhovna Rada adopted the law “On free-will system in business activities” (the law aimed at improvement of system of relations between the state and businesses, harmonization of Ukraine’s legislation on business activities with EU norms, engagement of population in business activities) (Law N2806)


PRIVATIZATION

The following measures are performed:- optimization of the state sector of economy, specification of state executive bodies functions 8 September 2005. Verkhovna Rada adopted the Law of Ukraine “On State Property Fund” (new

version, N2858), which awaits President’s approval.

- legality on conducting the privatization process of certain strategic enterprises renewed The Government initiated a series of lawsuits concerning some of the earlier privatized property due to

infringement of state and society interests. According to the courts’ decisions illegally privatized in 2004 stocks of “Krivorizhstal” (preparation

for conducting in late October 2005 another tender concludes) and “Nikopol ferroalloy works” had been returned to the state ownership

- actions aimed at improvement of state property privatization procedures are being taken The Government works on a new version of Privatization Program 3 August 2005. The Government approved a list of open stock companies for sale and state companies that

are to be sold and privatized in 2005-2006 (Resolution of the Cabinet of Ministers N318-p)


TAXATION

23 February 2005. The State Tax Administration approved the Methodical recommendations on division of taxpayers by attention categories and their monitoring by the State Tax Administration bodies (Order N78)

The Law of Ukraine of 25.03.05 N2505 “On the amendments to the Law of Ukraine “On State Budget of Ukraine for 2005” and some other legislative acts of Ukraine” introduced changes to tax legislation and envisaged:

- introduction of the 5 year moratorium on granting new and enhancing existing tax benefits- cancellation of benefits granted upon field or territorial criteria for investment and innovation

activity bodies including ones: at the priority development territories and special economic areas (concerning the land tax, tax on

income, import tariff and value added tax) in the automobile, aircraft, and space industries, etc- improvement of VAT administering mechanisms, increasing their transparency, introducing the

single procedure for VAT reimbursement- cancellation of discriminatory conditions for businesses with foreign investments concerning the

right to issue a tax anticipation bills when importing goods on customs territory of Ukraine

FINANCIAL CONTROL

24 May 2005. The Government adopted the Concept of State Internal Financial Control Development (Resolution of the Cabinet of Ministers of Ukraine N158-p)

2.3. TRADE, MARKET AND REGULATORY REFORM

FREE TRADE AREA

April 2005. The work on revision of research for economic conditions for establishing an FTA started.

Ukrainian part of the Working Party on preparation of materials for conducting the research

an independent expert on conducting the research was selected at a tender (Center for European and Political Research, Brussels)

Ukraine and EU approved the requirements specifications for the research and agreed that the independent expert would conclude the research by the end of December 2005, and make an official presentation of research results in January 2006.

TRADE RELATIONS

9 March 2005. The Agreement between Ukraine and the EU on trade in textile products signed in Brussels

11 May 2005. The Government abolished the coal-tar pitch exports quoting regime, as well as meat and meat products, and iron-ore exports licensing regime (Resolution of the Cabinet of Ministers N326)

14-15 July 2005. Ukraine-EU Contact Group on Coal and Steel meeting with participation of Ukrainian industries was held in Kiev. Next meeting, according to the proposal of the European Party, is planned for January 2006.

27 July 2005. The Agreement between EC and the Government of Ukraine on trade in certain steel products in 2005-2006 signed.

On 12 September 2005 total value of issued import licenses for Ukrainian rolled metal imported to EU constituted 415,501 thousand tons or 42,4% of increased quota for 2005.


EVALUATION OF THE EU

ENLARGEMENT IMPACT ON UKRAINE

3 August 2005. Proposals on format and matter of the evaluation of the EU enlargement impact on Ukraine-EU trade relations forwarded to the EC Besides, parties performed statistical data exchange. Experts having used these data conduct general evaluation of the EU enlargement impact22 September 2005. Parties discussed the issue of the EU enlargement impact on Ukraine-EU trade relations at the Subcommittee Ukraine-EU “Trade and Investment” meetingMinistry of Economy of Ukraine along with the other executive bodies is performing the work on evaluation of : - market access of Ukrainian products within the enlarged EU (including metallurgy, chemical industry, pharmaceutical industry, machine building, agriculture, food industry, power industry) - impact of technical barriers to trade on trade relations, application of the trade defence measures (antidumping) to Ukrainian goods imported to the new EU member-states - losses from abolishment of the FTA agreements between Ukraine and Baltic states, as well as future Bulgaria and Romania EU membership

The preliminary conclusions on the impact of the EU enlargement on Ukraine-EU trade relations are under preparation in order to be discussed at the Committee Ukraine-EU meeting (19 October 2005, Kyiv)

2.3. TRADE, MARKET AND REGULATORY REFORMS

WTO ACCESSION

22 March 2005. 14th meeting of the Working Party on Ukraine’s accession to the WTO held. The draft Report of the Working Party is agreed for 80%.

15 June 2005. Multilateral meeting on technical barriers to trade (TBT) held. 30 June-8 July 2005. Informal meeting of the Working Party on Ukraine’s Accession to the WTO,

multilateral meeting on sanitary and phytosanitary measures, and another round of bilateral negotiations with 10 countries (USA, EU, Croatia, Norway, Egypt, China, Australia, Peru, Indonesia, Iceland) held.

4-6 October 2005. Bilateral negotiations between Ukraine and the US on agriculture are held in Geneva

36 bilateral protocols on goods and services market access signed On 1 October 2005 Ukraine had signed bilateral protocols with Mexico, Uruguay, New Zeland,

Canada, Republik of Korea, Slovenia, Latvia, Georgia, India, Hungary, EU, Czech Republic, Slovakia, Bulgaria, Cuba, Israel, Poland, Estonia, Brazil, Thailand, Switzerland, Malaysia, Paraguay, Lithuania, Argentina, Sri-Lanka, Turkey, Honduras, Dominican Republic, Mongolia, El Salvador, Moldova, Norway, Iceland, Indonesia, and Japan

Completed the negotiations with Romania and Morocco. The negotiations with Croatia, Egypt, Panama, Columbia, and Peru are close to conclusion. The protocol with China was ratified and awaits to be signed. The negotiations with Australia, USA, and others are underway. Armenia’s position is not to start bilateral negotiations, but to conclude the multilateral negotiating process

Agreed up to 95% of Ukraine’s consolidated tariff offer The countries of the Working Party declared their readiness to solve the problems simultaneously

with the preparation of the Report of the Working party and Protocol of Accession to the WTO 6 June 2005. Ukraine and the EU held consultations on Ukraine’s accession to the WTO A possibility of introducing Ukraine’s accession to the WTO at agenda of the WTO Ministerial

Conference in Hon-Kong in case of Ukraine’s fulfilling its commitments is being considered. Next 15th official meeting of the Working Party and Multilateral meeting on agriculture would take

place in the first half of October 2005.


WTO ACCESSION

Verkhovna Rada adopted the following decisions aimed at Ukraine’s accession to the WTO:

adopted in whole Law of Ukraine “On amendments to the Law of Ukraine “On rates of export tariff for oil seeds

and other types of oil products” Law of Ukraine “On certain issues of importing vehicles to the customs territory of Ukraine” Law of Ukraine “On amendments to the Law of Ukraine “On development of automobile

industry in Ukraine” Law of Ukraine “On amendments to the article 22 of the Law of Ukraine “On insurance” Law of Ukraine “On amendments to certain laws of Ukraine” Law of Ukraine “On amendments to import tariff rates for agricultural products” Law of Ukraine “On amendments to the Law of Ukraine “On auditing” Law of Ukraine “On amendments to the Law of Ukraine “On quality and safety of food products

and food stuffs”

adopted in first reading draft Law of Ukraine “On amendments to the Law of Ukraine “On protection of national

producer from dumping import” draft Law of Ukraine “On amendments of Law of Ukraine “On implementation of special

measures to goods imported to Ukraine” draft Law of Ukraine “On ban abolishment for export of ferrous metal scraps, color metal

scraps, and semi-finished products” draft Law of Ukraine “On amendments of the Law of Ukraine “On banks and banking activity” draft Law of Ukraine “On general safety of products”


WTOACCESSION

26 May 2005. The Government has adopted a range of decisions to ensure the WTO accession of Ukraine. In particular:

Approved the Consolidated tariff proposal of Ukraine on access to the goods market, the specific access commitments of Ukraine to the services market and commitments of Ukraine in the course of bilateral negotiations (the Regulation of the Cabinet of Ministers of Ukraine of 30 May 2005 №171)

Approved the Procedure of fees payment for deeds connected to the intellectual property objects protection, which envisages the application of national regime and regime of most favored nation clause when paying dues for deeds concern intellectual property rights protection under Articles 3 and 4 of TRIPS (a single range of dues has been established for all categories of applicants; a 25% decrease in the amount of fees for developing countries has been established)

National information center for processing of the WTO member-states’ inquiries, on information on WTO issues has been created within the Ministry for Economy in order to ensure the transparency (the Decree of the Cabinet of Ministers of Ukraine of 31.05.05 № 408)

The amendments have been introduced to the Model agreement on implementation of investment project within the territory of priority development and within the special (free) economic area (in the chapter “Investor’s obligations” the provisions concerning the exports share total productive output have been cancelled, as well as provisions concerning the attribution of priority to goods and services of Ukrainian production being used for the implementation of investment projects) (the Decree of 30.05.05 № 404)

The procedure of registering oil export contracts has been cancelled (the Decree of the Cabinet of Ministers of Ukraine of 28.05.05 №406)

The possibility of using minimal prices mechanism to national and imported alcohol drinks has been cancelled (the Decree of the Cabinet of Ministers of Ukraine of 28.05.05 №407)


WTOACCESSION

29 June 2005 The Decree of the President of Ukraine ‘On invalidation of a range of Decrees of the President of Ukraine’ was signed (the Decree of the President of Ukraine of 26.06.2005 concerning the registration of foreign trade contracts was recognized as invalid)

In order to ensure to the WTO accession of Ukraine a range of important decisions have been approved:

26 May 2005 The Government of Ukraine has approved the legislative drafts concerning: Tariff decrease on cattle hides and cancellation of tariff on cattle; Introduction of the exports tariff on sunflower, flax and colza seeds in amount of 16% with further decrease by 1%

annually up to the 10% rate (after the WTO accession of Ukraine). Cancellation of ban on export of nonferrous metals and introduction of export tariffs on mentioned products Decrease of export tariffs on ferrous scrap metals from 30 to 25 EUROS per ton starting from 2006 and to 18 EUROS

starting from 2007. Cancellation of ban on import of vehicles (busses and trucks) being used more than 5 years (the threshold has been

shifted to 8 years); the increase of ecological and technical requirements to imported vehicles being used more than 5 years.

Cancellation of requirements of obligatory use of national utilities in motor-car industry. Cancellation of requirement of obligatory export of sugar, produced from the imported crude sugar, and cancellation of

B and C quotas within the existing quota system which is not in use and contradicts to the WTO agreement on agriculture.

Carrying out of sanitarian and phytosanitarian measures, namely introduction of amendments to the relevant laws of Ukraine:

‘On amendments to the Law of Ukraine ‘On the quality and safety of food products and food stuff’

‘On amendments to the Law of Ukraine ‘On the veterinary medicine’ Approximation of national legislation on elaboration and implementation of standards, technical regulations and

procedures concerning the assessment of conformity, to the WTO Agreement rules on technical barriers to trade (TBT). Establishment of the legal and organizational groundwork to ensure the safety of products in the market Providing an effective access of non-resident insurance companies’ affiliates to the insurance market after 5 years

following the the WTO accession of Ukraine.

3 September 2005 The Government of Ukraine has approved the legislative drafts concerning: Approximation of the Customs Code of Ukraine concerning the country of consignment and the customs value Approximation of national legislation to the WTO rules (a range of amendments are envisaged to be introduced to the

eight Laws of Ukraine)


CUSTOMSCO-OPERATION

In order to ensure the improvement of customs and border control, as well as development of information exchange between the law-enforcement and controlling bodies the Government of Ukraine has undertaken the measures directed to:

Optimization of tariff rates, excise duties and taxation (the Law of Ukraine ‘On amendments to the Customs tariff of Ukraine’ of 15 March 2005 N 2470)

Improvement of customs check-points operation Establishing the integrated information system of record of goods transfers across the border.

13 April 2005 In order to facilitate the customs procedures, the Government of Ukraine approved the decision to conduct sanitary-epidemiological, veterinary, phytosanitary, ecology, radiology control and the one concerning the movement of cultural values in a form of preliminary documentary control at the check-points across the Ukrainian border (the Regulation of the Cabinet of Ministers of Ukraine N 269).

19 April 2005 The State Customs Service ensured effective operation of the customs control risks management system for the imported goods.

‘The single office’ principle has been introduced into the check-points operation since 1 May 2005.

18 May 2005 The additional duty for the customs procedures was cancelled (the Decree of the Cabinet of Ministers of Ukraine N355 )

10 June 2005 Interministerial Mobile Group on smuggling prevention was established (the Decree of the Cabinet of Ministers of Ukraine N439 )

6 July 2005 The Verchovna Rada adopted the Law of Ukraine ‘On some issues concerning the import of vehicles in Ukraine’ (The Law of Ukraine N 867)

5 September 2005 The Rules and Procedures of Application of Budgetary Funds for Development and Modernization of the Customs objects was approved (the Decree of the Cabinet of Ministers of Ukraine N 867 )

6 September 2005 The Disciplinarian Statute of the Customs Service of Ukraine was approved


INTELLECTUAL

PROPERTY

26 May 2005 The IFPI representatives noted the improvement of IPR protection in Ukraine during the presentation of the executive bodies’ activity in the field of IPR protection in Brussels.

6 липня 2005 The Verkhovna Rada of Ukraine adopted the Law of Ukraine ‘On amendments to some Laws of Ukraine (pertaining to regularizing of operations associated with production, export and import of laser disks, equipment and materials for their production)’ All the proposals of the International Federation of Phonographic Industry has been taken into consideration in the Law.

Taking into account the results of the public discussion the State Department of Intellectual Property will develop the legislative drafts on amendments to some Laws of Ukraine, namely:

‘On Copyright and Allied Rights’ ‘On Protection of Rights on Invention and Useful Models’ ‘On Protection of Rights on Trademark, Geographical Signs and Trade Name ’ ‘On Protection of Rights on Topography of Integral Micro Schemes’ ‘On Protection of Rights on Industrial Specimens’

2.4. CO-OPERATION IN JUSTICE and HOME AFFAIRS

SIMPLIFICATION OF

VISA REGIME –READMISSION

31 March 2005 The temporary visa-free regime was introduced for citizens of the member-states of the European Union and Swiss Confederation (for the period from 1 May 2005 till 1 September 2005) (the Decree of the President of Ukraine N 569)

The consultations with the European Commission concerning the simplification of visa regime were held on 20–21 April 2005. The parameters of the mandate of the European Commission for preparation of the draft of the Agreement between Ukraine and the EU on the Simplification of the Visa Regime were discussed during mentioned consultations

The consultations with the European Commission concerning the preparation of the draft of the Agreement between Ukraine and the EU on the Readmission were held on 5 June 2005

26 July 2005 The visa-free regime was introduced for citizens of the member-states of the European Union, Swiss Confederation and Principality of Liechtenstein (the Decree of the President of Ukraine N 1131)

5 September 2005 The draft of the mandate of the European Commission for the negotiations with Ukraine concerning the simplification of visa regime was subject to consideration of the Visa Group of the EU member states.

12 September 2005 The discussion of the mandate project of the EC for the negotiation with Ukraine concerning the simplification of visa regime was held within the meeting of the Visa Group of the EU member states.

The internal procedures of the EU on approving the mandate are expected to be accomplished before the Ukraine-EU Summit.(1 December 2005)

2.5. TRANSPORT, ENERGY, INFORMATION SOCIETY AND ENVIRONMENT

TRANSPORT

The consultations between Ukraine and the EU concerning the cooperation in aviation were held in April 2005 3 June 2005 The President of Ukraine authorized the Head of State Aviation Security Supervision Service Of

Ukraine to sign the Agreement on Certain Aspects of Air Communication between Ukraine and the EU (the Regulation of the President of Ukraine N 1077)

The Agreement was initialed on 3 April 2005 during the visit of Director General of the EC Directorate General Transport and Energy F.Lamoureux to Ukraine. The Agreement is planed for signature during the Ukraine-EU Summit in October 2005.

3 June 2005 The President of Ukraine authorized the Deputy Minister for Foreign Affairs O.Shamshur to initial the Agreement on Cooperation Concerning the Civil Global Navigation-Satellite System (GNSS) between Ukraine and the EU and its member-states (the Regulation of the President of Ukraine N 1078).

The Agreement was initialed on 3 April 2005 during the visit of Director General of the EC Directorate General Transport and Energy F.Lamoureux to Ukraine. The Agreement is planed for signature during the Ukraine-EU Summit in October 2005.

18 August 2005 The Memorandum on Mutual Understanding between the Cabinet of Ministers of Ukraine and the Supreme Command of the Joint Armed Forces of the NATO in Europe on utilization of the strategic transport aircraft of Ukraine in operations and martial exercises of the NATO was submitted to the Verkhovna Rada for ratification (the Memorandum was signed on 7 June 2004 in the city of Warsaw) (the Decree of the Cabinet of Ukraine N 784)

7 September 2005 The Verchovna Rada adopted the Law of Ukraine ‘On accession to the European Agreement on work of crews of vehicles operating an international road haulage’ (the Law of Ukraine N 2819)

In order to strengthen the role of Ukraine as a transit state within the Danube transport schemes the relevant actions are being taken concerning further development of the sea economy complex potential and in particular the OJSC ‘Ukrainian Danube Steamship Line’ (the enterprise conducts more than one thirds of the general amount of transportations within the main European thoroughfare, c'est-à-dire Danube River)

2.5. TRANSPORT, ENERGY, INFORMATION SOCIETY and ENVIRONMENT

ENERGY

The support project for integration of incorporated energy system of Ukraine into trans-European energy network was included in the ТACIS National Action Program for 2004.

In March – April 2005 - trilateral working group "Ukraine-Poland-EU" renewed its activity.

EC has unblocked the grant for carrying out the feasibility study of Brody-Plotsk oil pipeline construction (2 million EURO)

In March the Statement of intentions on project TACIS which recipient is SP "Sarmatiya" joint venture was signed.

On 5 April 2005 the Verkhovna Rada of Ukraine adopted the Law “On cogeneration, and utilization of discharged power potential” (n.2509).

On 20 April 2005 - the President of Ukraine created delegation for negotiations with EBRD concerning preparation of the project " Financings Ukrainian EESC" (II phase).

On 16 -19 May 2005 -The negotiations were held in London concerning signing the credit agreement between government of Ukraine and EBRD "Financing Ukrainian Energy-Efficient Service Company (EESC) " (II phase).

In April – May 2005 - consultations with European Commission concerning the creation of High Level Groups for energy issues were held during the visit to Ukraine of the EU Commissioner on Energy A.Piebalgs (April 2005) and the Director General of DG Energy and Transport F.Lamoureux (June 2005).

On 18 May 2005 - the Government approved composition of the Commission reforming and development of energy branch (Resolution of the Cabinet Ministry of Ukraine № 152).

On 21 May 2005 - the President of Ukraine created the Working group on processing proposals related to problem-solving in coal industry under the guidance of Minister of Fuel and Energy of Ukraine (Decree of the President of Ukraine № 1061)

On 21 July 2005 - the Government has defined the preparatory measures related to the construction of new power units of Khmelnytska Nuclear Power Plant (including state ecological assessment, state assessment of nuclear safety of the projects prepared, consultations with neighboring countries on impact of launching new power units, and public hearings on these issues). (Regulation of the Cabinet of Ministers n.281 – r.)


ENERGY

On 7 July 2005 – the Government adopted measures aimed at implementation of “Ukrainian coal” Program for 2005/

On 7 September 2005 – the Verkhovna Rada of Ukraine ratified the Guarantee Agreement between Ukraine and EBRD on modernization of power units of Khmelnytska and Rivnenska NPP after their completion (Law n.2817)

On 7 September 2005 – the Verkhovna Rada of Ukraine ratified Agreement between Ukraine as a guarantor and Euratom as a creditor regarding the Agreement on credit granting mechanisms for enhancing the safety of H2 and R4 power units (Law n.2818)

NUCLEAR SAFETY

The law of Ukraine “On State Budget of Ukraine for 2005" provides funding to the State Ministry of Fuel and Energy of Ukraine under the budgetary program “Ukrainian contribution to Chernobyl fund “Shelter" on implementation of SIP program" of total 34 687 000 grn.

On 28 April 2005 – the Cabinet of Ministers of Ukraine and Euratom signed the Agreement on cooperation in the field of peaceful uses of nuclear energy.

In May –- during the Donors conference (London) the agreement concerning accumulation of $ 220 million for filling in the SIP fund was reached.

On 27 May – the Government submitted to the Verkhovna Rada of Ukraine for further ratification the Additional protocol to the Agreement between Ukraine and IAEA on application of safeguards related to the Non-proliferation Treaty


ENVIRONMENT

On 20 April 2005 - the President of Ukraine took the decision about improvement of the system of executive power bodies which participate in formation and implement the state policy in the field of environment preservation, the use of mineral resources and the further development of the state system of the integrated resource management, maintenance of ecologically pure balanced development of the state (the decree of the President of Ukraine № 675)

On 14-15 July – the regular meeting of the Ukraine – EU Working group on climate change was held in Brussels.

On 17 August 2005 – the draft Law on definition of the Cabinet of Ministers as a national authority for consideration, adoption and implementation of joint projects, and their further monitoring, verification and other related procedures was approved at the Government’s meeting.

On 18 August 2005 – the Government adopted the National action plan for implementation of Kyoto Protocol provisions to UN Framework Convention on Climate Change (Regulation of the Cabinet of Ministers n. 346 – r.)

On 1 September 2005 – there was created the Centre for Climate Change Research (in order to fulfil the requirements of the UN Framework Convention on Climate Change) (Order of the Ministry of Environmental Protection n.313)

On 7 September 2005 – the Verkhovna Rada of Ukraine ratified the European landscape Convention (Law n.2831)

On 12 September 2005 – the Ministry of Environmental Protection of Ukraine was defined as a coordinator of actions aiming at Ukraine’s compliance with commitments under the UN Convention on Climate Change and Kyoto Protocol (Decree of the President of Ukraine n.1239).

On 6-7 October 2005 – Odessa will host country-scale Scientific conference on ecological issues of sustainable development in Ukraine.

Starting from 2006 Ukraine will introduce the Euro – 2 European ecological norms.

2.6. PEOPLE-TO-PEOPLE CONTACTS

EDUCATION,TRAINING

ANDYOUTH

14 – 15 April 2005 - the Deputy Minister of Education has taken part in joint session of the countries-members of EU and the countries-partners of Tempus program

April 2005 - Federation of employers of Ukraine, Ministry of Education & Science and Ministry of Labour conducted Ukrainian forum during which the issues of position and prospects of professional development of labour potential of Ukraine were discussed

19 May 2005 - The application of Ukraine for joining to Bologna process was accepted in Bergen (Norway)

May, 2005 - Day of the Europe in Ukraine (in Kiev – on the 14th of May, Odessa - on the 19th of May, Donetsk – on the 21th of May) was held.

On 17 June 2005 - there were held the consultations on Ukraine’s participation to Erasmus – Mundus program.

On 3 September 2005 – the Ministry of education and science of Ukraine was authorized to sign the Agreement on credit between Ukraine and IBRD. (Project “Equal access to quality education in Ukraine”). (Decree of the President of Ukraine n.1156).

SCIENCE

Work concerning the coordination with EU and the European Space Agency of the list of common projects in the sphere of space researches proceeds, in particular, within the limits of Global monitoring for the sake of environment safety (GMES) three research projects in the sphere of space researches of the Earth are realized (ERUNET, OSCSAR, FEMINE).

The following seminars were conducted for Ukrianian scientists:- New INTAS competitions- INCO competitions of the VI EU Framework program on research and development – new

opportunities for Ukrainian scientists- « Marie Curie » mobility program for scientists- INCO grants for yourng scientistsOn 3 October 2005 – the President of Ukraine created Working group for elaboration of the concept of

schience development. (decree of the President of Ukraine n.1183)

2.6. PEOPLE-TO-PEOPLE CONTACTS

CROSS-BORDER AND REGIONALCOOPERATION

April, 2005 - preparation of programs for neighbourhood Ukraine-Poland-Byelorussia, Ukraine-Hungary- Slovakia, CADSES is finished. Preparation of the program Ukraine-Romania proceeds

Local executive power bodies elaborated and implement their own actions regarding the implementation of Ukraine-EU action plan 2005

11 May 2005 - the government approves of position about the order of carrying out of competitive selection of projects (programs) of cross-border co-operation (the Regulation of the Cabinet of Minister of Ukraine № 339)

30 May 2005 – the Government amended Provision 3 of Typical agreement (contract) for the implementation of investment project in the territory of priority development, in special (free) economic area, and thus brought this document in accordance with WTO Agreement on subsidies and compensations (Resolution of the Cabinet of Ministers n.404).

3 June 2005 - Ukrainian seminar European integration in the context of The Second International forum of investments and innovations at participation of representatives of the regional state administrations was held in Odessa, where the questions of cross-border and regional co-operation were discussed

8 September 2005 – the Verkhovna Rada of Ukraine adopted the Law “On encouraging development of regions” (Law n. 2850, takes effect on 1 January 2006).

NEW PROSPECTS FOR PARTNERSHIP

INCREASING ACCESS TO EIB LOANS

14 June 2005 – Ukraine and EIB concluded the Framework Agreement 22 – 23 April 2005 - EIB delegation visited Ukraine; there was held a seminar on definition of

conditions of cooperation and procedure of attraction and allocation of credits. The participants also discussed the priorities of cooperation of executive power bodies of Ukraine with EIB.

The Government prepares the projects to implement with attraction of EIB loans.

INCREASE IN THE TECHNICAL ASSISTANCE

April, 2005 - the Ukrainian counterpart signed the following agreements: about financing the National program of actions TACIS for 2004 about financing the regional program of actions TACIS for 2004 about financing the Program of actions TACIS of border cooperation for 2004 about financing the TACIS Action Program on nuclear safety

On 14-24 June 2005 - with the purpose of identifying potential TWINNING projects within the frameworks of TACIS Action programs for 2004 and 2005 the representatives of Ukrainian central executive power bodies held a series of meetings with group of independent expert.

On 15–17 June 2005 - the Mission of the DG of EC “The EuropeAid” visited Ukraine with the purpose to discuss the procedural matters and barriers in implementation of the TWINNING projects.

On 5 October 2005 – under the decision of the Cabinet of Ministers the Minister of Economy signed the Agreement (by letters exchange) on amending the National TACIS programs for 2002, 2003, and 2004. This has created legal preconditions for introducing TWINNING in Ukraine.

PROSPECTS FOR 2005• Establishing of the rule of law state • Overcoming shadow economy and corruption• Ukraine will obtain the market economy status• Ukraine’s admission to WTO • mutual access to the markets of Ukraine and EU • liberalization of a visa regime between Ukraine and EU • development of trans-European networks • strengthening institutional abilities regarding the

European integration • formation of the pro European majority within Ukraine

and positive international image abroad

Documents

CARRYING OUT EU-UKRAINE ACTION PLAN