Pavel Zakharov: Ukraine and Moldova’s Agreements with the European Union on Free Trade Area Shall Create Serious Obstacles for Pridnestrovie’s Foreign Trade


It was stated today by leading research fellow of the Department for Economy of Foreign Countries of the Russian Institute of Strategic Research Pavel Zakharov who made a report during the expert meeting ‘Europe and Post-Soviet Space: Topical Aspects of Economic Cooperation' which took place in Tiraspol. According to Russian expert, Ukraine and Moldova clearly defined their strategic course aimed at European integration and are going to achieve this goal.

Pavel Zakharov extensively informed participants of the meeting about numerous risks which Ukrainian economy shall face after signing the DCFTA Agreement with the European Union. “Different forms of state functioning are regulated in the Ukraine-EU agreement, including politics, economy, system of justice, human rights, customs procedures, functioning of police and different ministries and agencies, up to monetary policy”, – expert explained. Pavel Zakharov noted that official Kiev is ready to implement more than 3000 directives and regulations of the European Union which means radical revision of Ukrainian legal framework, probably not in Ukraine's favor. “All the provisions of the Agreement are legally binding and non-reversible. It means that if Kiev shall agree to make amendments in its legal framework it won't be able to cancel them. Otherwise sanctions shall be applied. In practice Ukraine is losing significant part of its sovereignty, especially in economic sphere”, – Russian guest pointed out. And thus, according to him, Ukraine is playing role of a pupil while European Union is playing teacher who can appraise success of his ward and if everything is going on well, the latter can have some bonuses.

It should also not be forgotten that huge losses shall suffer Ukraine's budget because in order to implement all the reforms official Brussels prescribes significant financial expenses are needed. Budgetary problems shall worsen due to increasing pressure on Ukrainian producers by their European rivals. “The necessity to redevelop under technical norms which are prescribed under the Agreement shall become the major challenge for Ukrainian producers. Ukraine is obliged to abolish its National State Standards norms which are contradicting standards of the European Union and all Ukrainian producers will have to abandon geographical indications, etc.”, – Pavel Zakharov said. He specified that provisions of the Agreement apply to absolutely all Ukrainian goods. Those producers who shall not reform won't be able to sell their products event in Ukraine, not to mention European market.

According to Russian expert Ukrainian industry also shall also be seriously harmed due to inability to compete with EU's industry. Industry sector producing finished products shall fall into risk zone. Thus Ukraine will be able to export only limited nomenclature of goods to European market.

Pavel Zakharov expressed his opinion that European Union shall make steps to force Pridnestrovie to adjust to joint regional free trade regime. “In case Ukraine and Moldova join DCFTA Pridnestrovie becomes an enclave surrounded from all sides by countries in which rules and norms of EU are implemented. Thus the republic is going to be pin down to accomplished fact of forced entry into the DCFTA with all its obligations. From the other side, the European Union can regard Pridnestrovie as separate economic entity with its own rules”, – the expert believes.