OnWednesday, 18 September 2013, the Ukrainian Government approved the draft EUAssociation Agreement (EUAA) - a hugely important agreement for Ukraine, and anagreement which, if signed, will open up trade with the EU, potentially alsoserving as Ukraine's road map to EU membership.

Whilst the Government’s approval of the draft EUAA is amajor milestone, signing of the agreement nevertheless remains subject toUkraine proving that it abides by EU principles. Consequently, the agreementwill likely only be signed by the EU if Ukraine can demonstrate that it iscommitted to implementing deep structural reforms in such areas as the rule oflaw, the economy, and in politics more generally. 

If signed, then the EUAA will be the most extensiveinternational agreement to be signed by Ukraine in recent times, and willsignificantly raise the country's investment attractiveness. It covers a numberof areas, in particular with respect to EU common values, enhancing thepolitical dialogue between Ukraine and the EU, supporting peace in the regionand worldwide, improving economic relations, opening up free trade with the EU,strengthening the rule of law, and harmonizing EU and Ukrainian legislation. Assuch, the agreement will impact all sectors, including energy, taxation,transportation, environment, industrial policy, tourism, healthcare, education,culture and many others. As the President of Ukraine stated, this will be themost significant event in Ukraine since independence in 1991.

All eyes are accordingly focused on whether the Governmentwill implement the necessary structural reforms in the coming months, with aview to the EUAA hopefully being signed in vilnius in November of this year. Weare monitoring further developments.