You're reading: Azarov to Brussels: Ukraine making ‘consistent progress towards European integration’

Editor's Note: The following is an English-language transcript of Ukrainian Prime Minister Mykola Azarov's speech before the European Parliament in Brussels on May 16.

Let me start by extending my thanks to all present and for your interest in the promotion of good relations between Ukraine and the European Union. Please allow me as well to express my special gratitude to our partners in the Progressive Alliance of Socialists and Democrats for the organisation of today’s meeting.

In my speech I would like to describe briefly the results we have managed to achieve over the last two years, but also focus on what still needs to be done. I understand only too well that many of you present here today are concerned about developments in the domestic political situation in Ukraine, and I am ready to discuss these issues later. It is en vogue these days to criticise Ukraine, and to let rip short-term emotions and long-held stereotypes. The image of Cato the elder, the Roman Commander, and his famous bywords ’Carthage must be destroyed’ come readily to mind.

Isolation, denial of political contacts, or their suspension – all lead to a dead-end, and as such are not among the choices we should make. I have always been and continue to be of the opinion that dialogue is the sole means of resolving pressing problems. I, as the Prime Minister of Ukraine, stand ready to discuss the most difficult problems in our relationship.

It is no secret that the current state of Ukraine’s relations with the European Union is far from the best it can be.

The very wide spectrum of our previous relations has narrowed to become hostage to just one sole issue. This is both counter-productive and short-sighted. It is perhaps not worthwhile going over old ground, noting how previous Ukrainian administrations, busying themselves with squabbles and feuds, failed to undertake any reforms.

We, those who live in Ukraine, are well aware of this.

At the same time, it is worth emphasising that our political opponents would very much like Europe to forget about the series of reforms that we have achieved: – the Association Agreement, which is unprecedented in its importance and is the fruit of efforts over many years by Ukrainian and European politicians and experts; – the Initiative, undertaken by the President of Ukraine, to form the Constitutional Assembly as the first step towards constitutional reform, the foundation of modernisation of the Ukrainian state; – the reform of criminal justice, and adoption of the new Criminal Procedure Code; – the reform of the judicial administration (law courts) to move away from the post-Soviet legacy and implement new European standards.

(Reforms include texts on the 2legal profession and legal practice and on the independence of the judiciary. The working group on judicial reform, set up by the President of Ukraine, is also developing a draft on public prosecutor’s office); – the legislative confirmation of Ukraine’s European aspirations into our national ‘Law on the principles of domestic and foreign policy of Ukraine’.

These are the most important steps, but that are many more – all undertaken thanks to our political will. In just a little over two years we have managed to achieve more in conducting reform than over the previous twenty years of Ukraine’s independence. It is precisely this record that exasperates our political opponents. They clearly understand that if they fail to find ways to undermine stability in Ukraine today, tomorrow they will struggle to remain on the political scene. Adoption of anti-corruption legislation and efficient implementing mechanisms are allowing us to fight corruption systematically.

As you are undoubtedly aware, an absolute majority in the parliament approved new election laws. Our absolute priority is to conduct elections to Ukrainian Parliament on 28 October in line with international democratic standards.

I would like to emphasise the absolute openness of the election process for international observers, whom we have already invited. We invite you to come, observe, and verify how democratic our election process is. This is vital for us to ensure the legitimacy of the election results.

We as establishing new relationships between the authorities and civil society, as stipulated in the new ‘Law on social organisations’, and by the State Policy Strategy for civil society development, approved by the President of Ukraine. A draft law on the right to peaceful assembly (meetings, rallies or demonstrations) is being updated in the parliament according to the conclusions of the Venice Commission. The ‘Law on access to public (open) information’ allows society to control the activities of government bodies. We have restored the Ukrainian economy to its previous state after the most severe crisis. In 2011, GDP growth amounted to 5.2%, industrial growth reached 7.3%, and inflation was 4.6%, the latter indicator being the lowest in the last nine years. These results were achieved against the backdrop of the deep economic crisis in Europe, the highest ever gas prices, and the absence of IMF financial support.

The recent adoption of new Tax and Customs Codes substantially improves the investment and business climate in Ukraine. We do recognise that we still face many problems, but the most important steps have now been taken. All of the above reforms provide incentives to business development and brought new revenues to the State Budget. State Budget revenues in 2011 were 31% more than in 2010. We have also implemented the system of automatic refunds for VAT. In 2011, taxpayers were automatically refunded around UAH 16 billion, which is almost one third of the total volume of refunds. We will continue to improve on this mechanism.

Timely VAT refunding remains one of the Government’s priorities. Measures undertaken to improve investment climate have resulted in the increase of foreign direct investment (FDI). FDI increased by 10% in 2011, and amounted to USD 49.36 billion. A significant growth in investments was registered from EU countries. The management of public (state) finances is being improved. It includes medium-term planning, budgetary expenditures optimisation and state debt management. In October 2011, the Financial Action Task Force (FATF) stopped its monitoring of Ukraine. Negotiations with the International Monetary Fund are underway regarding cooperation under the Standby Arrangement (the IMF mission to Ukraine is planned to take place from May 21 to May 28). Ukraine has met practically all the programme conditions with the exception of raising gas and housing-utility prices, which are very sensitive issues for the Ukrainian people. The Government is currently seeking mutually-acceptable mechanisms to resolve these issues. The Cooperation Council meeting of yesterday provides more proof of the ambitious agenda in our bilateral relations. Key objectives are involved here. These include signing the Association Agreement, mutual access to markets within deep and comprehensive free trade area and the introduction of a visa-free regime for short-term trips by Ukrainian citizens to the EU.

Ukraine’s development over the next decade depends on whether we progress along each of the stated directions. Unfortunately, our strategic advance in relationships with the EU took place as Europe and the rest of the world had to face a series of new challenges. These include institutional changes in the EU, austerity measures to overcome the Eurozone financial crisis, and developments in the Middle East and Northern Africa. Many people call this current crisis the most complicated one in the history of the European Union. At the same time, and let me emphasise this again, Ukraine’s choice of European integration has been confirmed and consolidated in our legislation, and we shall not turn off this road. The EU remains the best integration project and path towards development for all of its partners. The EU expansion process continues despite the current crisis, and last December’s signing of the Accession Agreement with Croatia is the best evidence of this continuing process. The Croatian example inspires Ukraine.

The key objective along this road is now to ensure the early signing of the Association Agreement between Ukraine and the EU, already initialed on 30 March in Brussels. It is not only political elites who are greatly interested in witnessing this signature. Business circles are also committed and increasingly voice their opinion openly from Kyiv, Brussels, and from other important European capitals. The Association Agreement for us also serves as a comprehensive road-map for modernisation of Ukraine, for the development of civil society, and for the operation of an open and liberal economy. We are undertaking as many responsibilities and commitments as other EU candidate countries, and in the integration process, we hope for adequate support from our European partners. We have begun the step-by-step integration of Ukraine into the EU internal market – a market of practically unlimited opportunities for the Ukrainian economy.

But Ukraine too represents an enormous market for European business. Our country also offers natural resources, a highly-educated work force and a strong scientific tradition. We have already begun preparatory work for the implementation of the Association Agreement, which includes both the Government’s approval of both an action plan and agenda for the adaptation of Ukrainian legislation to EU requirements. We are also ready to take the priority steps envisaged in the 2011 EU recommendations to Ukraine as part of the European Neighbourhood Policy.

The next objective is the introduction of visa-free regime with the EU, which will serve as the best example of European integration by bringing advantages to millions of individual Ukrainians. The Action Plan on EU visa liberalisation regime for Ukraine is identical, content-wise to the ‘road-maps’ of the Western Balkans countries. They all mean not only the notion of free movement of people, but also the introduction of European standards in the sphere of justice and freedom as well. We have already approved over 90% of the legal documents necessary to finalise the first ‘legislative’ stage of the Action Plan. Draft texts covering biometric passports, the fight against discrimination and personal data protection will soon be discussed by the Ukrainian parliament.

Ukraine takes an active part in the energy community and meets its responsibilities on reforming and ensuring that the energy sector functions in line with European standards. Amendments to the ‘Law on pipeline transport’ allow for reforms in the oil and gas sector. Equal access to the Ukrainian gas-transportation system is ensured for participants in the natural gas market when either transiting energy to Europe, or selling them within the Ukrainian domestic market. We are ready to cooperate most actively with the EU and European energy companies on setting up a gas consortium to manage the Ukrainian gas-transportation system jointly with the Russian Federation. We intend to promote integration in other sectors, including transport, the environment and healthcare. To sum up our achievements, it is possible to say that many topics that used to be simply Euro-rhetoric have now become a reality.

I would like to stress again that in a little over two years we have managed to achieve more than in the previous twenty years since Ukraine’s independence. As the Head of the Party of the Regions, I remain certain that our efforts to reform the country will in time be duly recognised – by both the Ukrainian people and the European Union. Great accomplishments are often better appreciated from a distance. I am convinced that we shall overcome temporary difficulties created by our political opponents, unscrupulously misinforming and deluding you, using certain corresponding manipulative techniques and hired provokers-professionals.

We have never stepped back from conducting a dialogue with you on any “sensitive issue” of the agenda. It is clear that the status of s politician, member of parliament or even former prime minister must not be used as an excuse to commit crimes.

Our government has initiated many legal proceedings against corrupt officials.

Only a small percentage of these have been introducedagainst the so-called opposition.

Investigations are under way against dozens of officials who came to power together with our own political party.

We do support the need to differentiate between political and criminal responsibility in line with European standards. In the case of Yulia Tymoshenko, not all defende procedures have been exhausted. The High Specialized Court of Ukraine is considering the appeal lodged on May 15. I would also like to stress that Ms Tymoshenko’s health remains under constant attention.

We took the unprecedented decision to invite foreign experts to conduct her medical examination and treatment in the Kharkov hospital. According to the German doctors, this hospital has all the necessary facilities.

Ladies and Gentlemen, In response to the main question of today’s conference, please allow me to express my certainty that Ukraine, with the active support of the EU, or even without such a support, continues its consistent progress towards European integration. This is our choice, supported by the Ukrainian people.

It would be nice to progress hand-in-hand with the EU, to benefit from the European perspective, and to enjoy its political and financial support. But as the saying goes, the more difficult the path, the more precious and valuable the result. Responding to some of my colleagues in the European institutions and their remarks to the media, I would like to say that here, in Europe, I do not feel an alien – Ukraine is part and parcel of Europe, it is an important integral component. Let me emphasize once again that we are all in favour of dialogue, no matter how difficult that dialogue. And it is with the purpose of dialogue that I am here in Brussels today.

Thank you for your attention.