Europe Signs Association Agreements with Ukraine, Georgia, Moldova

European leaders signed Association Agreements with Ukraine, Georgia, and the Republic of Moldova on Friday. 

‘When the reforms following from the Association Agreements are completed, it is expected that Georgia will see 4.3% growth per year (€292 million in national income), Moldova’s GDP will be boosted by 5.4% annually, and Ukraine’s income will increase by €1.2 billion per year,’ reads a note released by the British government. 

Despite a clear commitment to honour the agreement, Kiev is perfectly aware of the underlying risks.

“We pursue this path not due to certain risks but because we can receive more than lose. Entering a highly competitive European market (and there is certain risk here) we are forced to improve quality of our goods and services, innovation, marketing. If you have an ability to win on the European market, you can practically win everywhere,” the Minister of Economic Development and Trade of Ukraine Pavlo Sheremeta commented. 

At the same time, it is clear that Russia will take measures, arguing that it needs to protect its economy. Moscow’s decisions could have hefty consequences on the country, as the neighbour is its main trading partners. Russian goods represent 34% of total Ukrainian imports, while Russia buys 27% of total Ukrainian exports.  

For the moment, gas flows from the country remained in normal mode.

‘According to the state at 09:00 (CET), 27 June 2014 related to transmission from East to the European Union, Eustream didn´t record pressure reduction or gas volumes decrease at the Compressor Station Veľké Kapušany on the border with Ukraine,’ reads a note released by Eustream on Friday.