EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 9.12.2004 
COM(2004) 791 final 
  
Proposal for a 
COUNCIL DECISION 
on the position to be adopted by th e Communities and its Member States  
within the Cooperation Council established by the Partnership and Cooperation 
Agreement establishing a partnership betw een the European Communities and its 
Member States, of the one part, and Ukraine,  of the other part, with regard to the 
adoption of a Recommendation on the implementation of th e EU-Ukraine Action Plan 
 
 2    EXPLANATORY MEMORANDUM  
The 2002 Copenhagen European Council, closing accession negotiations with ten new States, 
recognised that enlargement presented an importa nt opportunity to take forward relations with 
neighbouring countries based on shared values , and stated that the Union remained 
determined to avoid new dividing lines in Eur ope and to promote stability and prosperity 
within and beyond the new borders of the Union. 
The Commission Communication “Wider Eur ope - Neighbourhood: A New Framework for 
Relations with our Eastern and Southern Neighbours” of March 20031 proposed the 
establishment of Action Plans with partner countries. On 16 June 2003, the Council welcomed 
this Communication and invited the Commission, with the contribu tion, where appropriate, of 
the High Representative, to pr esent proposals for Action Plans fo r all countries concerned as 
appropriate, commencing with Ukraine, Moldova,  and Southern Mediterranean partners with 
Association Agreements. 
On 14 June 2004, the Council welcomed th e Commission Communi cation “European 
Neighbourhood Policy – Strategy Paper”2. The Council also welcomed the Commission 
proposal to pursue the European Neighbourhoo d Policy (ENP) through Action Plans to be 
agreed jointly with the nei ghbouring countries concerned a nd invited the Commission to 
propose such Action Plans. Action Plans should have a minimum durati on of three years and 
be subject to renewal by mutual consent. Th ey should be based on co mmon principles but be 
differentiated, as appropriate, taking into account the specificities of each neighbour, its 
national reform processes and its relations with the EU. Action Plans should be comprehensive but at the same time identify cl early a limited number of key priorities and 
offer real incentives for reform. Action Plans should also contribute, where possible, to 
regional cooperation. The Council also defined how to advance and monitor implementation 
of action plans.  
The Commission, in close cooperation with th e Presidency and the High Representative on 
issues related to politi cal cooperation and the CFSP, has held  exploratory talks with Ukraine 
which have resulted in agreement on a draft Acti on Plan. It covers a timef rame of three years. 
Its implementation will help fu lfil the provisions in the Partnership and Cooperation 
Agreement and will contribute to an increasi ngly close relationship wi th Ukraine, involving a 
significant degree of economic integration and a deepening of political co-operation. 
Implementation of the Action Plan will significantly advance the approximation of Ukraine’s legislation, norms and standards to  those of the European Union. 
The Action Plan is a broad tool for economic an d political co-operation, carrying to a further 
stage the commitments and objectives cont ained in the Partnership and Cooperation 
Agreement. 
In accordance with the Council Co nclusions of 14 June 2004, stip ulating that the Action Plans 
will be approved by the Council and subsequently  endorsed by the respective Association or 
Co-operation Councils, the Commission attaches the text of a proposal for a Council Decision 
on the position to be taken by the Communities and their Member States within the EU-
Ukraine Cooperation Council w ith regard to th e adoption of a Recommendation on the 
implementation of the Action Plan in annex.  
                                                
 
1 COM(2003)104 
2 COM(2004)373 
 
 3    The Commission therefore requests the Council to adopt the attached proposal for a Council 
Decision. 
 
 4    Proposal for a 
COUNCIL DECISION 
on the position to be adopted by th e Communities and its Member States  
within the Cooperation Council established by the Partnership and Cooperation 
Agreement establishing a partnership betw een the European Communities and its 
Member States, of the one part, and Ukraine,  of the other part, with regard to the 
adoption of a Recommendation on the implementation of th e EU-Ukraine Action Plan 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to Article 2 (1) of the Council and Commission Decision on the conclusion of 
the Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, a nd Ukraine, of the other part,  
Having regard to the Treaty on European Union, in particular Article 15 thereof; 
Having regard to the proposal from the Commission;
3 
Whereas: (1) The Partnership and Cooperation Agreement establishing a partne rship between the 
European Communities and their Member States, of the one part, and Ukraine, of the other part, was signed on 14 June 1994 a nd entered into force on 1 March 1998; 
(2) The Parties intend to agree on an EU-Ukr aine Action Plan, wh ich will support the 
implementation of the Partnership and C ooperation Agreement through the elaboration 
and agreement of concrete steps to wards attainment of its objectives. 
HAS DECIDED AS FOLLOWS: 
Sole Article 
The position to be adopted by the Communities and their Member States within the 
Cooperation Council established by the Partnershi p and Cooperation Agreement establishing 
a partnership between the European Communities and their Member States, of the one part, 
and Ukraine, of the other part, with regard to the implementation of the EU-Ukraine Action 
Plan shall be based on the draft Recommendati on of the Cooperation Co uncil annexed to this 
Decision. 
                                                
 
3 OJ C […] […], p. […] 
 
 5    Done at Brussels,  
 For the Council 
 The President   
 
 6    ANNEX  
draft 
RECOMMENDATION 
on the implementation of th e EU-Ukraine Action Plan  
 
The EU/Ukraine Cooperation Council, 
Having regard to the Partnership and Coope ration Agreement establishing a partnership 
between the European Communities and their Member  States, of the one part, and Ukraine, of 
the other part, and in particular Article 85 thereof, 
Whereas: (1) Article 85 of the Partnership and Coope ration Agreement give s the Cooperation 
Council the power to make appropriate reco mmendations, for the purposes of attaining 
the objectives of the Agreement.  
(2) In terms of Article 102 of the Partnership and Cooperation Agreement, the Parties 
shall take any general or specific measures required to fulfil thei r obligations under the 
Agreement and shall see to it that the objectives set out in  the Agreement are attained. 
(3) The Parties to the Partnership and Cooperatio n Agreement have agreed on the text of 
the EU-Ukraine Action Plan. 
(4) The EU-Ukraine Action Plan will support th e implementation of the Partnership and 
Cooperation Agreement through the elaborati on and agreement between the Parties of 
concrete steps which will provide prac tical guidance for such implementation. 
(5) The Action Plan serves the dual purpose of setting out concrete steps in bringing 
forward the fulfilment of the Parties’ obligations set out in the Partnership and Cooperation Agreement, and of providi ng a broader framework for further 
strengthening EU-Ukraine re lations to involve a signif icant measure of economic 
integration and a deepening of political c ooperation, in accordance  with the overall 
objectives of the Partnership and Cooperation Agreement. 
HAS ADOPTED THE FOLLOWING RECOMMENDATION: 
Sole Article 
The Cooperation Council recommends that the Parties implement the EU-Ukraine Action 
Plan in annex, insofar as such implementation is  directed towards attain ment of the objectives 
of the Partnership and Cooperation Agreement.  
Done at [...] For the Cooperation Council The President 
 
 7    ANNEX  
 
EU/UKRAINE ACTION PLAN  
1. Introduction  
The enlargement of the European Union on 1 May 2004 has brought a historical shift for the 
Union and Ukraine in political, geographic an d economic terms. The EU and Ukraine now 
share a border and, as direct  neighbours, will reinforce their political and economic 
interdependence. Enlargement offers the opport unity for the EU and Ukraine to develop an 
increasingly close relationshi p, going beyond co-operation, to gradual economic integration 
and a deepening of political c ooperation. The European Union a nd Ukraine are determined to 
enhance their relations and to promote stability, security a nd well-being. The approach is 
founded on shared values, joint ownership and diffe rentiation. It will contri bute to the further 
stepping up of our st rategic partnership. 
The European Union and Ukraine are dete rmined to work together, through the 
implementation of this European Neighbourhood Action Plan, to help ensure that no new 
dividing lines are drawn in Europe. 
Ukraine and the European Union agreed to ente r into intensified polit ical, security, economic 
and cultural relations, including cross border co-operati on and shared respons ibility in conflict 
prevention and conflict resolution.  
The pace of progress of the relationship will ack nowledge fully Ukraine’s efforts and concrete 
achievements in meeting commitments to common values. 
This Action Plan is an important new step in this  process. It covers a timeframe of three years. 
Its implementation will help fu lfil the provisions in the Partnership and Cooperation 
Agreement (PCA) as a valid basis for EU-U kraine cooperation, and will encourage and 
support Ukraine’s objective of further integr ation into European economic and social 
structures. Implementation of the Action Plan wi ll significantly advance the approximation of 
Ukrainian legislation, norms and standards to those of the Europ ean Union. It will also build 
solid foundations for further ec onomic integration, in cluding through joint efforts towards an 
EU-Ukraine Free Trade Area following Ukraine’s accession to the WTO,  on the basis of the 
adoption and implementation of economic and tr ade-related rules and regulations with the 
potential to enhance trade, i nvestment and growth. The Action Plan will furthermore help to 
devise and implement policies and measures  to promote economic growth and social 
cohesion, to raise living standard s and to protect the environmen t, thereby contributing to the 
long-term objective of sustainable development. 
Ukraine and the EU will work together in implementing this Action Plan. As confirmed in the 
EU’s Common Strategy on Ukraine, the Europe an Union acknowledges Ukraine’s European 
aspirations and welcomes Uk raine’s European choice. 
New partnership, economic integrat ion and cooperation perspectives  
The European Neighbourhood Policy opens ne w partnership, economic integration and 
cooperation perspectives. 
 
 8    • The perspective of moving be yond cooperation to a significant degree of integration, 
including through a stake in the EU’s Internal Market, and th e possibility for Ukraine to 
participate progressively in key aspe cts of EU policies and programmes. 
• An upgrade in the scope and inte nsity of political cooperation; 
• The opportunity for convergence of economic legislation, the opening of economies to 
each other, and the continued reduction of tr ade barriers which will stimulate investment 
and growth; 
• Increased financial support: EU  financial assistance for Uk raine will be available to 
support the actions identified in the present document. The Commission is furthermore 
proposing a new European Neighbourhood and Pa rtnership Instrument (ENPI) for this 
purpose, also covering the very important aspects of cross-borde r and trans-national 
cooperation between Ukraine and the Member States. There will also be support through 
the European Investment Bank for projects  involving infrastructure investment; 
• Possibilities of gradual openi ng of, or reinforced particip ation in, certain Community 
programmes, promoting cultural, educational, en vironmental, technical and scientific links; 
• Support for legislative approximation to meet EU  norms and standards,  including technical 
assistance, twinning and targeted  advice and support through a mechanism such as TAIEX;  
• Deepening trade and economic relations, incl uding review of the feasibility of the 
establishment of an FTA following Ukraine’s accession to the WTO. 
• Consideration will be given to the possibility  of a new enhanced agreement, whose scope 
will be defined in the light of the fulfilment of the objectives of this Action Plan and of the 
overall evolution of EU – Ukraine relations . The advisability of any new contractual 
arrangements will be considered in due time. 
Priorities for Action  
This Action Plan sets out a comprehensive se t of priorities in areas within and beyond the 
scope of the Partnership and C ooperation Agreement. Among these priorities, all of which are 
important, particular atten tion should be given to:  
• Further strengthening the stability and effec tiveness of institutions guaranteeing democracy 
and the rule of law; 
• Ensuring the democratic conduct of presidenti al (2004) and parliamentary (2006) elections 
in Ukraine in accordance with OSCE standards; 
• Ensuring respect for the freedom of th e media and freedom of expression; 
• Develop possibilities for enha ncing EU – Ukraine consultations on crisis management. 
• Enhanced co-operation in the field of  disarmament and non-proliferation; 
• Enhanced co-operation in our common neighbour hood and regional security, in particular 
working towards a viable solution to the Transnistria conflict in Moldova, including 
addressing border issues; 
 
 9    • Accession to the WTO; 
• Gradual removal of restrictions and non-tari ff barriers that impede bilateral trade and 
implementation of the necessa ry regulatory reforms; 
• Improving the investment climate, through non-di scriminatory, transparent and predictable 
business conditions, simplified administrativ e procedures and by the fight against 
corruption; 
• Tax reform, improved Tax Administration a nd sound management of Public Finances; 
• Establishing a constructive dialogue on visa f acilitation between the EU  and Ukraine, with 
a view to preparing for future negotiations on a visa facilitation agreement, taking account 
of the need for progress on the ongoing negotiations for an EC-Ukraine readmission agreement. 
• Gradual approximation of Ukrainian legislatio n, norms and standard s with those of the 
European Union; further reinforcing administrative and judicial capacity; 
• Encourage dialogue on employme nt issues and best endeavour s, in accordance with the 
PCA, to ensure that treatment of migrant wo rkers does not discriminate on grounds of 
nationality. 
• Full implementation of the Memorandum of  Understanding on the closure of the 
Chernobyl nuclear power plant, including completing and starting-up of the ‘K2R4’ 
nuclear reactors, in compliance with the inte rnationally accepted nuclear safety standards;  
Progress in meeting these priorities will be  monitored in the bod ies established by the 
Partnership and Cooperation Agreement. 
2.1. Political dialogue and reform 
 
Democracy, rule of law, human rights and fundamental freedoms 
In line with Ukraine’s international commitment s and its strategic goal of further European 
integration, Ukraine will continue its internal  reforms based on strengthening democracy, rule 
of law, respect for human rights, the princi ple of separation of powers and judicial 
independence, democratic election in accordance  with OSCE and Council of Europe norms 
and standards (political pluralism, freedom of  speech and media, respect for the rights of 
persons belonging to national minorities, non discrimination on grounds of gender, and on 
political, religious and ethnic grounds).  
(1) Strengthen the stability and effectiveness of institutions guaranteeing democracy and 
the rule of law 
– Ensure democratic conduct of presid ential (2004) and parliamentary (2006) 
elections, in accordance with OSCE standards and OSCE/ODIHR recommendations, including on the media; 
– Ensure that any further legislative reform s be conducted in line with international 
standards; 
 
 10    – Continue administrative reform and st rengthening of local self-government, 
through appropriate legislation, in line w ith those standards, contained in the 
European Charter on Local Self Government  
(2) Further judicial and legal reform, so as to  ensure the independence of the judiciary 
and strengthen its administrative capacity, and to ensure impa rtiality and effectiveness 
of prosecution 
– Ensure implementation of recent reforms of  civil, criminal and administrative 
codes and codes of procedure, based on European standards;  
– Continue the reform of the prosecution system in accordance with the relevant 
Council of Europe Action Plan (and supported by the European Commission/ 
Council of Europe Joint Programme); 
– Address reported shortcomings in the wo rk of the law enforcement organs and 
prosecution; 
– Complete and implement reform of the court system to ensure independence, 
impartiality and efficiency of the judiciary; 
– Effective implementation of ECHR judgements; 
– Enhance training of judges, prosecutors a nd officials in judiciary, administration, 
police and prisons, in particular on human rights issues (and supported by the 
European Commission/Council of  Europe Joint Programme); 
– Implement relevant actions envisaged in the EU-Ukraine Action Plan on JHA 
matters and the implementation scor eboard (see below, section 2.4) 
(3) Ensure the effectiveness of the fight against corruption 
– Join the Council of Europe Group of St ates Against Corruption (GRECO) and 
implement relevant recommendations, in cluding a revision of the Ukrainian 
national strategy for the fi ght against corruption; 
– Promote transparency and accountability of the administration, in particular 
concerning the reform of the civil se rvice based on European standards; 
– Implement relevant measures as foreseen under the JHA scoreboard 
(4) Ensure respect of human rights and fundamen tal freedoms, in line with international 
and European standards 
– Promote adherence to and ensure impl ementation of core UN and Council of 
Europe Conventions and re lated optional protocols.4 
(5) Foster the development of civil society. 
                                                 
4 Including signature and ratification of: CCPR-OP2-DP, CAT - Declar.Art.21, Declar.Art.22, CAT-OP, 
MWC, 1951 CSR, 1967 CSR-Prot., and ratification of: CEDAW-OP; CRC-OP-AC. 
 
 11    – Ensure respect of freedom of  association and involvement  of the citizens in the 
decision making process, including through civil society organisations;  
(6) Ensure respect for the freedom  of the media and expression. 
– Further improve and enforce the legal a nd administrative framework for freedom 
of media. taking into account releva nt Council of Europe recommendations; 
– Ensure effective respect of freedom of media, in cluding journalists’ rights. 
(7) Ensure respect for rights of pers ons belonging to national minorities  
– Continue efforts in designing relevant le gislation and effectively protecting the 
rights of persons belonging to national minorities, based on European standards;  
– Continue close cooperation between governme nt authorities and representatives of 
national minorities; 
(8) Prevention of ill-treatment and torture 
– Further improvement of the legal basis and practice in the sphere  of detention, in 
particular pre-trial deten tion, in order to address e ffectively the problem of 
arbitrary detentions, detention conditions  and ill-treatment of detainees by law 
enforcement officials, including th rough provision of training. Implement 
European Committee for the Prevention of Torture (CPT) recommendations; 
– Enhance the human rights training of police;  
(9) Ensure equal treatment 
– Continue efforts to ensure the equali ty of men and women in society and 
economic life; 
(10) Ensure respect of Children’s rights 
– Implement the recommendations by the UN Committee on the Rights of the Child 
of 2002; 
– Ensure full implementation of juvenile justice standards in line with relevant 
international standards; 
– Exchange of information on the results of the implementation of the UN and 
Hague Conventions on protecting the rights of  the children in the EU and Ukraine.  
(11) Ensure respect for trade unions’ rights and core labour standards 
– Continue efforts to ensure trade unions’ ri ghts and core labour standards, based on 
European standards and in accordance with relevant ILO conventions.  
(12) Ensure international justice 
– Enhance co-operation to promote inte rnational justice and fight impunity, 
including through further support to the International Criminal Court and the 
establishment of a consultation mechan ism on ICC’s activities and functioning; 
 
 12    – Establishing close cooperation aimed at elaboration of appropriate draft laws, 
necessary for ratification of the Rome Statute; 
– Signing and ratification on the agreement on privileges and immunities of the 
ICC; 
– Maintain co-operation within the framew ork of the Special Working Group on the 
Crime of Aggression and other special groups. 
Regional and international issues, cooperation on fore ign and security policy, WMD 
non-proliferation and disarmament, confli ct prevention and crisis management;  
(13) Further strengthen and focus political di alogue and co-operation on foreign and 
security policy issues  
– Improve working methods in established political dialogue formats, including 
through more focused and result-oriented agendas; 
– Work with the EU to make multilate ral institutions and conventions more 
effective, so as to reinforce global  governance, strengthen coordination in 
combating security threats and a ddress related development issues; 
– Continue dialogue on implementation of  the European Security Strategy; 
– Develop possibilities for enhanced EU  – Ukraine consu ltations on crisis 
management.  
(14) Strengthen co-operation on re gional and international issu es, conflict prevention and 
crisis management  
– Ukraine will continue its constructive effort s as mediator in the settlement process 
to solve the Transnistr ia conflict in Moldova; 
– Further EU involvement in supporting the OSCE and medi ators, including 
Ukraine, in the conflict resolution process on Transnistria, towards a viable solution;  
– Ukraine will develop co-operation with  Moldova on border questions, covering 
the entire Ukraine – Moldova border, includ ing effective exchange of information 
about flow of goods and people across the common border.  
– Active engagement in, and practical follo w-up to, the trilateral expert talks 
involving Ukraine, Moldova a nd the European Commission; 
– Further build on the good expe rience of Ukraine’s participation in the EUPM in 
Bosnia and Herzegovina and EUPOL in  FYROM. Jointly identify opportunities 
for Ukraine’s participation in future ESDP operations. 
– Further implement “Seville” Arrangements  for Consultation and Co-operation 
between the EU and Ukraine in EU-led crisis management operations, including 
Ukraine’s participation in relevant  crisis management exercises; 
 
 13    – Continue consultations on th e possible EU use of Ukrain e’s long haul air transport 
capacities. 
– Conclude negotiations on an EU-Ukraine “Security Agreement” (procedures for 
the exchange of classified information); 
– Conclude negotiations on an EU – Ukra ine Agreement establishing a framework 
for the participation of Ukraine in EU crisis management operations (legal and 
financial modalities for possible participation by Ukraine in EU crisis management operations); 
– Conduct consultations on sa nctions applied by the EU. 
(15) Further develop co-operation in addressi ng common security threats, including 
combating terrorism, non-proliferation of  weapons of mass destruction and illegal 
arms exports  
– Develop EU-Ukraine co-operation on th e fight against and prevention of 
terrorism, in particular through implementation of the Justice and Home Affairs Action Plan. 
– Co-operate to reinforce the role of the UN in the multilateral fight against 
terrorism, including through implementa tion of UNSC Resolutions 1373/01 and 
1267/01, through implementation and enforcement of the UN Convention for the Suppression of the Financing of Terrorism 
– Implement the standards laid down in th e FATF’s recommenda tions on terrorist 
financing; 
– Ensure respect for human rights in the fight against terrorism; 
– Ukraine to take due account  of the content and princi ples of the EU Code of 
Conduct on Arms Exports;  
– Further develop co-operation in the fight against the trafficking of firearms and 
nuclear materials;  
– Cooperate on non-proliferation of wea pons of mass destruction , including on 
aspects related to the acce ssion to and implementation of relevant international 
instruments and export control regimes, in the light of the EU WMD Strategy 
adopted by the European Council in D ecember 2003 and the GAERC conclusions 
of 17 November 2003; Further improve an  effective system of national export 
control controlling export and transit of WMD related goods, including WMD end 
use control on dual use technologies; 
– Take steps to achieve ratification by Uk raine of the Convention on the Prohibition 
of the Use, Stockpiling, Production and Transfer of Anti-Personnel Mines and 
Their Destruction;  
– Jointly address threats for security, public health and environment, posed by 
Ukrainian stockpiles of old ammunition, inter alia anti personnel land mines;  
 
 14    – Develop EU – Ukraine co-operation with regard to risk based customs control 
ensuring safety and security of goods  imported, exported or in transit. 
2.2. Economic and social reform and development  
Functioning Market Economy 
(16)  Continue progress in the establishmen t of a fully functioning market economy, 
including price-forma tion, control of state aid, and a legal environment that ensures 
fair competition between economic operators. 
(17) Further advance in gradual approximation of basic legislat ive and regulatory 
framework to that of EU, and ensu re its effecti ve implementation. 
– Implementation of a strategy for approxi mating legislation on priority areas 
identified under PCA§51, including improve ment of quality and consistency of 
drafting. 
– On a basis of common unde rstanding, finalise joint work for preparation of a 
scoreboard and on prioritisation for m onitoring and assisting implementation. 
– Eliminate inconsistencies in the ex isting economic and civil codes.  
(18) Improve investment climate, including by  ensuring transparency, predictability and 
simplification of regulat ion and its application. 
– Carry out consultation with domestic and foreign economic operators on drawing 
up a work programme for further implement ation of regulatory reform, aimed at 
reduction of administrative barriers to the development of business.  
– Ensure uniform application of regulati ons across Ukraine at central and sub-
central levels 
– Adopt and implement a system of imp act assessment of regulatory measures, 
consultation of stakeholders, and prior notification of regulatory changes to 
economic operators to ensure transpar ency (predictability of regulatory 
environment). 
– Ensure full application of GATT Article X (referenced in PCA Article 16) and in 
particular:  
• that Ukrainian authorities (including all administrative bodies) apply trade 
and investment legislation in an unifo rm way across the territory of Ukraine 
without discrimination between operators,  
• that judicial review for trade and inve stment issues is streamlined, notably 
through the allocation of more resour ces to economic courts and through 
improved training of specialised judges, to allow for prompt, impartial and uniform review of administrative actions  and appeal procedures for trade and 
investment issues. 
 
 15    Monetary, exchange rate and fiscal policies  
(19) Consolidate progress in macro-economi c stabilisation and gr owth policies. 
– Strengthen the independence of the Na tional Bank of Ukraine including, if 
necessary, by amending the ‘Law on the Natio nal Bank’ so as to bring it in line 
with EU standards. 
– Reinforce fiscal sustainability, incl uding by implementing tax reforms and by 
taking measures to address medium-term trends in the pension system. 
Structural reforms  
(20) Undertake consistent and far-reaching stru ctural reform programme to further 
consolidate the functioning of market economy. 
– Implement privatisation programme, incl uding large-scale privatisation, and 
increase transparency of privatisation process.  
– Reduce the involvement of st ate in setting prices with  a view to avoiding trade 
and economic distortions. 
– Strengthening banking regula tion and supervision. Inte nsify financial sector 
reform, including improvement of the f unctioning of the State Savings Bank. 
– Develop the domestic securities markets and further improve the regulatory and 
supervisory framework for non-bank financial institutions. 
– Adopt a new Joint Stock Company la w improving the definition of the 
responsibilities of director s, managers and shareholders’ meetings, strengthening 
disclosure requirements, and increasing the protection of mi nority-shareholder’s 
rights. 
– Adopt the accompanying legislation necessa ry for the effective implementation of 
the new Land Code. Remove current restricti ons in article 82 of  the Land Code to 
non-agricultural land ownership by Ukra inian legal entities with foreign 
stakeholders, including those w ith 100% foreign ownership.  
Social situation, employment, poverty reduction 
(21) Strengthen dialogue and co-operati on on social matters (as prov ided for in article 1 of 
the PCA); ensure a closer approximation of Ukraine to EU standards and practices in 
the area of employment and social policy. 
– Engage in a dialogue on empl oyment and social policy wi th a view to developing 
an analysis and assessment of the situat ion and to identifying key challenges and 
ways of bringing Ukraine’s policies and pr actices closer to EU standards (social 
and civil dialogue, health and safety at  work, gender equali ty, labour law, 
employment policy, social protection, includi ng social security issues and social 
inclusion). 
– Monitor relevant legislative and policy development. 
 
 16    (22) Introduce effective employment creation and poverty reduction measures, aimed at a 
significant reduction in the number of people with income  below the poverty line and 
improved social cohesion, in cluding sustainable systems for education, health and 
other social services with access for all.  
Regional Development 
(23) Reducing regional imbalances and impr ove local development capacities 
– Introduce strategic planning at the nationa l and regional levels in Ukraine and 
elaborate a draft State stra tegy of regional development up to 2015; and establish 
a legislative basis for promotion of regi onal development, including depressed 
territories. 
Sustainable development 
(24) Promotion of sustainable development 
– Take further steps towards completion of ad ministrative structur es and procedures 
to ensure strategic pla nning of sustainable development and co-ordination 
between relevant actors. 
– Complete and adopt a national strategy on  sustainable development, and take 
steps to ensure its implementation. Take steps towards completion of a long-term 
strategy.  
– Take further steps for the integration of environmental considerations into other 
policy sectors, particularly industry, en ergy, transport, regional development and 
agriculture. 
2.3. Trade, market and regulatory reform  
– Undertake first assessment of the impact of EU enlargement on trade between the 
EU and Ukraine during 2005 and regular ly thereafter as appropriate. 
2.3.1. Movement of goods  
Trade Relations (25) Full implementation of PCA commitmen ts in sphere of trade in goods. 
– Gradual removal of all export and import rest rictions in the spirit of PCA title III 
and, following Ukraine’s accession to the WT O, ensure compliance, inter alia, 
with the provisions of GATT Articles XI, XII, XIV, XIX, XX, XXI. 
– Gradual liberalisation of trade in steel  products and gradual removal of export 
duties on ferrous scrap in line with the EU-Ukraine bilateral steel agreement, ahead of full liberalisation upon Uk raine’s accession to the WTO. 
(26) Accession to the WTO  
– Implementation of Ukraine’s bilateral co mmitments and of requirements of WTO 
rules (action defined below under specific sections) 
 
 17    – Address specific non-tariff issues rais ed by the EC, including through the 
appropriate commitments in th e WTO Working Party report.  
(27) Advance and implement the necessary adm inistrative and macro-economic reforms 
envisaged under the PCA (sec tions 2.2 and 2.3 of the action plan refer). In accordance 
with article 4 of the PCA, and in the lig ht of advances in economic reform and 
implementation of PCA commitments, consider jointly the feasibilit y the establishment 
of a Free Trade Area following Ukraine’ s accession to the WTO. 
– Undertake review of the 1999 joint economic feasibility study on the 
establishment of a free trade agreement between the EU and Ukraine; and a review of progress on implementa tion of measures (July 2002). 
– On completion of this review, hold consulta tions to agree next steps for both sides 
towards the above mentioned objective and to set out the priorities for the 
deepening of EU-Ukraine trade and economic relations. 
Customs  
(28) Elaboration and implementation of customs legi slation aligned with international and 
EU standards 
– Finalize implementing legislation for the Customs Code, in line with the 
internationally recognised st andards especially WTO agreements, in particular in 
the area of customs value, and w ith the EU Customs legislation. 
– Further revision of the Customs Code, ta king into account EU legislation and 
recommendations already made.  
– Ukraine to adopt and keep up to date the Harmonised System in use, with a view 
to adopting the Combined Nomenclature in the longer term, as agreed in the PCA. 
– Implement the principle of risk based customs control and set the necessary 
organisational framework 
– Preparation and entry into force of cust oms-related legislation: provisions on 
customs control of precursors, counter feit and pirated goods, dual use goods, and 
cultural goods. 
(29) Improve functioning of customs service; si mplify and modernise customs procedures 
at borders and inland 
– Develop a single window approach fo r all internationa l trade related 
documentation and control starting by incr eased co-operation between all agencies 
working at the border. 
– Set up a mechanism to ensure regular consultation/ information of the trade 
community on import and export regulations and procedures. 
– Adopt and implement a Customs Ethi cs Policy based on internationally 
recognised standards (Arusha Declaration). 
 
 18    – Provide additional training to customs officials, strengthen the computerisation of 
the customs administration and upgrade Customs laboratories. 
Standards, technical regulations and conf ormity assessment (EU harmonised areas) 
(30) Continue the alignment of Ukraine with  the EU and international regulatory and 
administrative practices and prepare for Ukra ine’s participation in  the EU internal 
market in selected prio rity industrial sectors  
– Jointly identify priority sectors for alignm ent with EU and international regulatory 
practices and possible inclusion in an Agreement on Conformity Assessment and 
Acceptance of Industrial products, (ACAA) , including through consultations with 
producers and exporters. 
– Harmonise the necessary framework and sect oral legislation with  the EU technical 
regulations in the priority sectors.  
– Ensure transparency and predictability of the regulatory environment to the 
economic operators. 
– Continue the revision of existing Ukrainian standards, providing for 
harmonization with international and Eu ropean standards and for voluntary 
application. 
– Reinforce institutional capacity on standa rdisation, accreditation, conformity 
assessment, metrology and market surv eillance, integrating the Ukrainian 
institutions, to the extent possible, into the European and international structures. 
Continue the revision of institutional a rrangements to avoid the concentration of 
functions within a single institution and related conflic ts of interest. 
– Approximate legislation on liability fo r defective products and general product 
safety. 
– Gradually simplify procedures  of conformity assessment of industrial products, in 
accordance with the requirements of the Technical Regulations (EU Directives), 
and with the objectives of avoiding compulsory certifi cation of non-risk products 
and multiple testing of products. 
– Consolidate and develop the market su rveillance capacities of the Ukrainian 
institutions based on best pr actice of EU Member States. 
Elimination of restrictions and streamlined administration (EU non-harmonised areas) 
(31) Facilitate the movement of goods through i) prevention of quantitative restrictions, ii) 
gradual elimination of import licences and iii) progressive removal, and prevention of 
new discriminatory measures. Improve institutional and administrative co-operation. 
– Gradually eliminate non- automatic licensing requirements for certain goods, 
which are not justified under PCA article 20 or GATT articles XX and XXI. 
– Harmonise remaining import licensing and registration requirements with those of 
the EU. 
 
 19    – Analyse legislation and administrative procedures in order to identify and 
progressively remove discriminati on against imported products. Begin by 
reviewing national measures covering the weight, composition, labelling 
manufacture and description of products. 
– Ensure effectiveness and training of enforcement authorities, including of the 
central administrative unit responsible for implementation of movement of goods. 
– Ensure that interested parties (importe rs, exporters and manufacturers) are given 
an opportunity to identify problems and comment on draft legislation. 
– Nominate a contact point to facilitate co -operation and improved information flow 
between the EU and Ukraine on national m easures and obstacles that could hinder 
the movement of goods. 
Sanitary and phytosanitary issues 
(32) Increase food safety for consumers and facilitate trade through reforms and 
modernisation of the sanitary and phytosanitary sectors. 
– Ensure implementation of the WTO Agreement on the Application of Sanitary 
and Phytosanitary Measures upon Ukraine’ s accession to the WTO, including by 
nominating a central enquiry point and creating a rapid information system. 
– Accede to the Codex Alimentarius Commission and the International Plant 
Protection Convention.  
– Carry out a comparative assessment of the sanitary and phytosanitary control 
systems in Ukraine and the EU.  
– Review list of measures to be take n for gradual convergence towards the 
principles of the EU sanitary and phytosa nitary control legislation and institutions, 
accompanied by timetables and a financing plan. Advance effective reform in this area (e.g. clear division of competences of  institutions, principles of Directives 
96/22/EC on prohibition of substances and 96/23/EC on monitoring the residues 
of substances). 
– Conduct comparative assessment of EU and Uk rainian legislation in the sphere of 
food hygiene, including food processing. If necessary draw up measures for 
legislative approximation in this ar ea, accompanied by a financing plan. 
– Progress in convergence with EU food traceab ility legislation; general food safety 
principles and requirements (Regulat ion (EC) No 178/ 2002); effectively 
implement the Hazard Analysis Critical C ontrol Point system at enterprises and 
controlling bodies, includ ing the fish industry. 
– Review the national laborat ory network and identify  the national reference 
laboratories in the sanitary  and phytosanitary sectors with special attention given 
to the necessary equipment and appropriate methods of analysis (residue testing) 
and prepare for their accreditation in  compliance with ISO standards. 
– In the light of progress on the above, join tly define steps towards veterinary and 
phytosanitary agreements. 
 
 20    2.3.2. Right of establishment; company law and services  
Establishment and company law 
(33) Full implementation of Title IV, Chapter II of the PCA, and in particular of the most 
favoured nation and national treatment princi ples (Conditions affecting establishment 
and operation of companies) 
a) Operation of companies: 
– Establish a suitable environment for companies, e.g. adopt and implement 
effectively competition and bankruptcy legislation. 
– Abolish discriminatory measures affec ting the operation of EU and Ukrainian 
companies.  
b) Establishment: 
– Ensure full and effective implementati on of most favoured nation and national 
treatment. 
– Ensure that the conditions under which companies invested are maintained. 
– Ensure that EU and Ukrainian subsidiaries or branches receive a treatment not less 
favourable than that granted to its own nationals (national treatment). 
– Complete a review by Ukraine of nationa l legislation to identify barriers to 
establishment with the aim of abolishing them. 
– Remove progressively restri ctions on establishment. 
– Ensure effectiveness of a central co-ordinating body facilitating establishment. 
c) Ukrainian legislation in the automobiles sector: 
– Alignment of Ukrainian legislation in the automobiles sector with the PCA 
provisions, taking into account releva nt WTO commitments of Ukraine.  
d) Company law: 
– Improve the competence and independence of auditors . 
– Converge with and ensure e ffective implementation of key principles in relevant 
international and EU rules and standards. 
– Create the unified state register of legal pers ons and physical persons-
entrepreneurs companies and ensure  publication of information on the 
organisation and financial situation of co mpanies. Define and ensure effective 
activity of an administrative author ity, which ensures the control of the 
incorporation of a company or the legality of certain acts. 
– Encourage adoption of a code  on corporate governance. 
 
 21    Services  
(34) Gradual abolition of restrictions  to progressively allow the supply of services between 
the EU and Ukraine in certain sectors, in  line with PCA commitments in Title IV, 
Chapter III (Cross-border supply of services). 
– Preparation for the implementation of Ukraine’s commitments on services in 
WTO accession negotiations. 
– Complete a review of national legislation by Ukraine to identify barriers to the 
provision of services. Removal of obstac les identified, taking into account WTO 
services commitments. 
– Ensure co-ordination between all relevant administrative entities in order to 
facilitate the supply of services and to eliminate barriers to trade in services. 
– Ensure effective implementation of legislation that sets out basic principles of 
non-discrimination, introducing more deta iled secondary or sector-specific 
legislation as necessary. 
– Financial services: 
• Comply with the recommendations of the IMF's Financial Sector Assessment 
Program (FSAP) of November 2003. 
• Put into place and ensure effective implementation of a prudential regulatory 
framework for financial markets and superv ision equivalent to that existing in 
the EU. 
• Ensure effective implementation of inde pendent and well-trained supervisory 
authorities in accordance with inte rnationally recognised standards. 
• Put into place and ensure effective implementation of adequate company law, 
accounting and governance rules.  
2.3.3 Movement of capital and current payments  
(35) Full implementation of PCA commitments under Title V (cu rrent payments and 
capital). 
– Ensure the free movement of capital re lating to direct in vestments or other 
investments made in accordance with th e provisions on establishment (Chapter II 
of Title IV) and ensure a pplication of the standstill clause of Article 48.3; 
– Guarantee the protection of foreign inve stments as well as the liquidation or 
repatriation of these investments and of any profits stemming there from. 
– Hold consultations on the goa l of liberalisation of othe r capital movements in line 
with Article 48.4. 
 
 22    2.3.4 Movement of persons including movement of workers  
Equal treatment of migrant workers (employment and working conditions) 
(36) Full implementation of commitments under Article 24 of PCA (Labour conditions) 
– Ensure full application of the best  endeavour clause  by abolishing all 
discriminatory measures based on nationality which affect migrant workers, as regards working conditions, remuneration or dismissal. 
Co-ordination of social security systems 
(37) Full implementation of provisions on co-ord ination of Social S ecurity under Articles 
25 and 26 of PCA. 
– Continue process of concluding Agreements with Member States on the full 
application of provisions on c oordination of social security  as contained in Article 
25 and subject to the conditions of Article 26 of PCA. 
2.3.5 Other key areas
 
Taxation 
(38) Development and implementation of tax syst ems and their institutions based on 
international and European standards. 
– Carry out tax reform, including: 
• Adoption and implementation of VAT and excise-duty legislation compatible 
with the PCA and WTO norms;  
• Ensure the compatibility of Free Zone s with WTO rules in accordance with 
Ukraine’s WTO commitments, and begin process of alignment of Ukrainian 
legislation on Free Zone s with EU legislation. 
• Solving the issue of current VAT refund backlog and preventing re-
accumulation of arrears, including through ensuring efficient procedures and allocating sufficient resources. 
• Eliminate discriminatory treatment in the use of promissory notes, including 
through the appropriate le gislative amendments. 
– Implement a comprehensive strategic plan for the State Tax Administration, 
defining the necessary administrative stru ctures and procedures, identifying its 
needs in terms of financial, huma n, logistic and IT resources.  
– As Ukraine comes closer to the internal market, adoption of and compliance with 
the principles of the EU Code of Conduct for Business Taxation. 
 
 23    Competition policy  
(39) Implement, and build upon, commitments on state ai d under Art.49.2.2 and 49.2.3 of 
the PCA, and develop legislation and control re gime compatible with that of the EU 
– Draft and adopt state aid legisl ation, including in particular: 
– a definition of state aid compatible with that of the EU; 
– a principle of prohibition of state aids  which distort trade between Ukraine 
and the EU.  
– the establishment of transparency as regards state aid granted in Ukraine 
(particularly by establishi ng a list of all aid gran tors and an independent 
surveillance body, a regular report on th e amounts, types and recipients of 
aid). 
(40) Implement, and build upon, the commitmen t under Article 49.2.1 of the PCA by 
ensuring adequacy and compatibility with  the EU, of the domestic anti-trust 
legislation and control regime. 
– Assess adequacy, and compatibility with EU , of current legislative framework, in 
practice, in particular its respect of  the principles of non-discrimination, 
transparency and procedural fairness; 
– Continue to reinforce independence of the Anti-monopoly Committee, ensure 
adequate legal powers and resource s; and reinforce staff training. 
Intellectual and industr ial property rights 
(41) Ensure a level of protection similar to t hat in the EU, including effective means of 
enforcement, in line with provisions in Article 50 of the PCA. 
– Ensure implementation and effective enfo rcement of TRIPS compliant legislation 
upon Ukraine’s accession to the WTO. 
– Enforce legislation on trade mark s and geographical indications. 
– Continue harmonisation of legislation to  EU legislation in the sphere of 
intellectual and industrial property rights protection. 
– Ensure effective implementation of sanctio ns of infringements of intellectual and 
industrial property rights. 
– Encourage the establishment and the e ffective functioning of the necessary 
associations of rights holder s and establish a dialogue w ith them and the users of 
IP. 
– Strengthen enforcement authorities (adminis trative and judicial) and ensure proper 
access to judicial review. 
– Improve administrative co-operation be tween relevant Ukrainian national 
authorities and with thir d country authorities. 
 
 24    – Take effective measures against counterf eit/pirated goods in sp ecifically targeted 
sectors. 
Public procurement 
(42) Develop conditions for open and competitive award of contracts, in particular through 
calls for tenders, in line with the provisions of Article 55 of the PCA. 
– Improve the functioning of the current system through increased transparency, 
information and training, limited use of exceptions, access to judicial review and appropriate legislative adjustments. 
– Continue approximation to EU legislati on on public procurement in order to 
ensure effective implementation of th e key principles of transparency, non-
discrimination, competition and access to le gal recourse. These principles should 
apply to procurement for goods, services  and works across all relevant public 
bodies at all levels.  
– Ensure the possibility of independent/judi cial review in the event of disputes. 
– Ensure that contracting au thorities and the business community are well informed 
about public procurement procedures, including through the publication of all 
relevant legislation a nd administrative rulings. 
– Effective dissemination of tendering opport unities and time-limits (above agreed 
thresholds), which allow EU as well as domestic suppliers to prepare and submit tenders. 
– Enhanced co-operation through exchanging of  experience, information about best 
practice and regulatory frameworks. 
– Co-operation with the EU in the applicati on of modern e-tender ing technologies in 
public procurement. 
– Facilitate the effective, reciprocal a nd gradual opening of the public procurement 
markets 
Statistics 
(43) Adoption of statistical methods  fully compatible with European standards in relevant 
areas and advance the institution building of the State Statistics Committee of Ukraine 
– Elaborate a short and medium term deve lopment strategy for harmonisation with 
European standards in re levant statistical areas; 
– Ensure that statistical legislation in cludes the fundamental principles of 
impartiality, reliability, transparency and confidentiality of individual data; 
– Improve the quality and coverage of the business register, by including also 
individual entrepreneurs ; 
– Introduce priority European statistical classifications and implement them in all 
statistical domains; 
 
 25    Financial Control 
(44) Sound management and control of public finances 
Treasury Accounting: 
– Improve transparency of public finan ce management, including by developing and 
starting implemention of a strategy to modernize th e Treasury accounting system . 
– Take further steps to integrate the extra-budgetary funds into the Budget. 
Public Internal Financial Control: 
– Development of the concept of developmen t and restructuring of the system of 
public financial control and audit in Ukraine.  
– Establish legislative framework for pub lic internal financial control.  
– Gradual harmonisation with the interna tionally agreed st andards (IFAC, IIA, 
INTOSAI) and methodologies, as well as w ith EU best practice for control and 
audit of public income, expend iture, assets and liabilities. 
External Audit and Control 
– Ensure the adequate functioning of th e Supreme Audit Institution (Accounting 
Chamber) in line with the internationa lly accepted external audit standards 
(International Organisation of Supreme Audit Institutions).  
– Promote the development of sufficient administrative capacity  to prevent and fight 
effectively against fraud and other ir regularities affecting national and 
international funds, including the establishment of well- functioning co-operation 
structures involving all re levant national entities.  
– Ensure effective cooperation with the re levant EU Institutions and bodies in the 
case of on-the-spot checks and inspections  related to the management and control 
of EU funds.  
Enterprise policy 
(45) Develop a dialogue on enterprise policy aiming at the improvement of the 
administrative and regulatory environmen t of companies; develop the Ukrainian 
legislative and administrative framework for SME promotion, in line with art.73 of the 
PCA 
– Implement a national registration system fo r companies, based on best practice in 
EU Member States and possibly leadi ng to the accession of Ukraine to the 
European Business Register. 
– Launching of a dialogue, i nvolving the Commission and Ukrainian administration, 
business and academia, aiming at the exchange of information, best practices, and identification of difficulties in a few priority areas of enterprise policy. This dialogue should be based on a common polic y reference framework, such as the 
European Charter for Small Enterprise  
 
 26    – Promote the exchange of experience and of  best practice on enterprise policy, 
aiming at developing benchmarking and ev aluation exercises on specific sectors 
(e.g. education and training for entrepre neurship; facilitation of access to 
financing for SMEs; promotion of inve stment and innovation; improvement of 
administrative and regulatory environment).  
– Promote the exchange of experience on i ndustrial restructuring, especially on the 
social effects of restructuri ng and state aid best practice. 
– Explore possibility of opening of one or more Euro-Info-Correspondence Centres 
(EICC). 
2.4. Co-operation in Justice and Home Affairs  
A specific EU Action Plan on Justice and Home  Affairs with Ukraine of 10 December 2001 
defines the areas for co-operation in this field. As provided for by that Action Plan, a 
Scoreboard has been se t up in consultation with the Ukra inian authorities as a tool for 
implementation, monitoring, evaluation and definition of annual priorities.  
Co-operation in the field of Justice and Ho me Affairs in the context of the European 
Neighbourhood Policy will be based on this EU Action Plan on Justice and Home Affairs 
with Ukraine and it’s implementing Scoreboard. 
The priorities for co-operation in the field of  Justice and Home Affa irs are defined on an 
annual basis by the EU-Ukraine JHA Ministeria l Troika meeting. The first EU-Ukraine JHA 
Ministerial Troika of Novemb er 2002 assigned priority in cooperation on Justice and Home 
Affairs to readmission and migration, border management, money laundering, trafficking in 
human beings, drugs as well as  corruption, preventing and fi ghting sexual exploitation of 
women, children and child pornography. 
In the context of EU enlargement and the European Neighbourhood Policy,  a constructive 
dialogue on visa facilitation betw een the EU and Ukraine will be established, with a view to 
preparing for future negotiations on a visa faci litation agreement, taking account of the need 
for progress on the ongoing negotiations for an EC-Ukraine readmission agreement. 
According to the JHA Action Plan, the EU Counc il should review the operation of this Action 
Plan towards the end of 2005, and may decide to car ry out further reviews in relation to this 
matter. Based upon such reviews and developments in Ukraine,  new objectives and actions 
could be considered to be added to the Action Plan with Ukraine in the context of the European Neighbourhood Policy. 
2.5. Transport, energy, informat ion society and environment 
 
Transport  
(46) Elaborate and start implementing a national transport strategy, including transport 
infrastructure development 
– Further elaborate a concept for a nationa l sustainable transport policy for the 
development of all transport modes, coherent with the EU’s White Paper on transport.  
 
 27    – Develop an infrastructure policy in order to identify and evaluate the priority 
infrastructure projects in various sector s and continue partic ipation in the joint 
development of the Pan-European Co rridors and Areas as well as in the 
TRACECA programme.  
– Identify and commit sources of financing and adopt financing st rategies, also in 
light of the decision for the extensi on of EIB lending. Address issues of 
infrastructure financing (e.g. Public/Pri vate Partnerships, shadow-tolling, etc.).  
– Develop co-operation in satellite navigation  (including joint research actions and 
applications)  
(47) Implement selected measures and refo rms in the road transport sector 
– Ensure that international and national transport sector is regulated in terms of 
access to the profession; Introduce and enfo rce mandatory driving times and rest 
periods in the international transport sector complying with international standards. 
– Adopt and start implementation of an action plan for improving road safety. 
(48) Implement selected measures and reform s in the railway transport sector 
– Improve efficiency of frei ght transport services (inc luding issues of border 
crossing procedures). Promote multi-modal services, address issues of interoperability. 
– Further develop OSJD/OTIF co-operation. 
(49) Implement selected measures and reforms in the aviation sector 
– Determine an effective model of negotiations on bilateral aviation agreements 
concluded with EU Member States in or der to include the Community designation 
clause, taking into account the horizo ntal mandate given to the Commission. 
– Obtain full member status in the Eur opean Joint Aviation Authorities (JAA), 
explore possibilities for arrangements in the field of aviation safety with a view to 
the stated Ukrainian objective to  become a member of EASA. 
– Co-operate on safety and security issues 
(50) Implement selected measures and reform s in the maritime and inland waterway 
sectors 
– Co-operate with EU with a view to  aligning maritime safety policies. 
– Encourage the restructuring of the state-ow ned port sector (sep arating operational 
and commercial functions).  
– Implement relevant international IMO (International Maritime Organisation) 
conventions; pursue effective enforcement in the areas of Port State Control and Flag State implementation as well as resolutions of the Maritime Environment Protection Committee on tanker safety.  
 
 28    – Participate actively in the promotion of  the Danube aiming at fully using its 
potential as one of the backbones of European inland waterway transport. 
Energy  
(51) Adoption of an overall energy policy conver ging towards EU energy policy objectives. 
– Prepare and adopt, by the appropriate instance, sub-sect oral energy policy 
documents with an indication of possibl e financing sources for implementation 
– Reinforce EU-Ukraine energy policy co-operation  
– Explore the possibility for participa tion in the Intelligent Energy -Europe 
programme 
(52) Gradual convergence towards the principles of the EU internal electricity and gas 
markets. 
– Establish a list of measures for gradual convergence towards the principles of the 
EU internal electricity and gas mark ets, including regarding the regulator, 
accompanied by time schedules and a financing plan. Reciprocity issues to be addressed appropriately (m arket opening, environmenta l norms, internationally 
accepted nuclear safety standards) 
– Price developments towards convergence of  the Ukrainian and the EU markets.  
– Adopt and implement a law developing the National Electricity Regulatory 
Commission. 
– Further develop an internal ga s sector restructuring plan.  
– Further restructure the electricity sector including debt restru cturing and adoption 
of the relevant debt law. 
– Participation in EU related energy ev ents as appropriate, including gradual 
involvement in the European Gas and Electricity Regulatory fora.  
(53) Progress regarding energy networks. 
– Increase performance of networks and reduction of network losses (oil, gas, 
electricity). 
– Develop infrastructures for the diversificat ion of oil and gas supplies. This should 
include, inter alia, the Odessa-Brody-Po land oil pipeline (Ukraine Poland 
Agreement should be implemented further).  
– Feasibility analysis of el ectricity interconnection of  Ukraine with the UCTE 
synchronous network. 
(54) Progress in the transit of natural gas 
– Increase performance, safety and se curity of the gas transit network. 
 
 29    – Further explore the possibilities for the fina ncial and legal restructuring of the gas 
transit business including unbundling; and unbundling and transparency of 
accounts (cf Gas Directive 2003/55/EC). 
(55) Advance in the restructuring of the solid fuels mines. 
– Further implement Ukraine's mine restructuring plan. Reduce mine accidents, i.a. 
by gradually applying EU mine safety standards and practice.  
– Advance in assessing the technical and fi nancial feasibility of implementing clean 
coal technology and promotion of it. 
(56) Progress on energy efficiency and the use of renewable energy sources. 
– Adopt Action Plans for improving energy e fficiency and enhancing the use of 
renewable energy, for reinforcing the inst itutions, accompanied by financing plans 
and timetables for implementation. Further implement existing plans in this area. 
– Cooperation regarding energy conservation projects. 
(57) Continue co-operation on nucle ar energy and nuclear safety. 
– Comply with the internationally accepted nuclear safety standards in completing 
and starting-up of the “K2R4” nuclear re actors; fully implement the Memorandum 
of Understanding on the closure of the Chernobyl nuclear power plant. 
– Further strengthen the State Nuclear Regulatory Committee of the Ukraine. 
– Take the necessary measures to ensure th e entry into force and implementation of 
the agreement concluded with EURATO M on peaceful uses of nuclear energy. 
– Make progress in decommissioning of Chernobyl NPP. 
– Continue work on the Shelter Implementati on Plan in order to transform Unit 4 of 
Chernobyl NPP into an environmentally safe site 
– Adopt a nuclear waste strategy. 
Information Society 
(58) Accelerate progress in electronic co mmunications policy and regulation 
– Adopt and start implementing the national concept for the development of 
electronic communications. 
– Adopt regulations concerning licensing, in terconnection, numbering and generally 
accessible telecommunications services in accordance with the Law of Ukraine on 
Telecommunications. 
– Establish the National Communications Regulatory Commission in accordance 
with the Law of Ukraine on telecommunications. 
– Ensure fair competition in the electronic communications markets. 
 
 30    (59) Accelerate progress in the development of Information Society services and in the 
integration of Ukraine into the IST research programme 
– Adopt the State Programme “e-Ukraine” fo r the development of the Information 
Society and explore possible support by the EU for its implementation.  
– Promote the widespread use of the new technologies by business and 
administration, in particular in the health and the edu cation sectors (e-commerce, 
e-government, e-health, e-learni ng), via the provision of advanced infrastructures, 
the development of local content and the in troduction of pilot pr ojects, e.g. for the 
mutual recognition of electronic signatures. 
– Improve the use of Internet and online services by the citi zens via computer 
training programmes for the general public. 
– Adopt a specific plan to promote the partic ipation of Ukraine in the IST part of the 
6th Framework Programme. 
– Develop EU – Ukraine co-operation regard ing the preparation of the second phase 
of the World Summit on the Informa tion Society in Tunisia in 2005.  
Environment  
(60) Take steps to ensure that conditions fo r good environmental go vernance are set and 
start implementing them 
– Take further steps towards completion of ad ministrative structur es and procedures 
to ensure strategic planning of envir onment issues and co -ordination between 
relevant actors.  
– Establish procedures regarding access to  environmental information and public 
participation, including implementation of  Aarhus Convention, particularly by 
establishing structures and procedures for ensuring an acceptable level of service 
to those wishing to have access to information.  
– Reinforce structures and procedures to carry out environmental impact 
assessments, including in rela tion to trans-boundary issues.  
– Establish communication strategies on th e benefits of environmental policy; 
support civil society actors and local authorities  
(61) Take active action for prevention of deterior ation of the environment, protection of 
human health, and achievement of rational use of natural resources,  in line with the 
commitments of Johannesburg Summit 
– Develop framework legislati on and basic procedures and ensure planning for key 
environmental sub-sectors identified in  National Strategy for the Environment; 
take first steps towards their implementation.  
– Enhance administrative capacities including those for permitting as well as for 
enforcement and inspections.  
 
 31    – Enhance/adopt national programmes and pl ans for key environment sub-sectors 
including priorities for investments in each sub-sector  
(62) Enhance co-operation on environmental issues 
– Implement provisions under the Kyot o Protocol and the UN Framework 
Convention on Climate Change  
– Participate actively in the Danube – Black Sea Task Force to implement trans-
boundary approach to water management; ensure active participation in the 
Eastern European, Caucasus  and Central Asia com ponent of the EU Water 
Initiative  
– Possible participation in selected Eur opean Environment Agency activities  
– Active participation in ac tivities of the Joint Ukra ine – EU Working Group on 
Climate Change 
– Identify possibilities with neighbouri ng countries for enha nced regional co-
operation , particularly in relation to trans-boundary impacts  
2.6. People-to-people contacts  
Science and technology, research and development 
(63) Prepare Ukraine’s integration into  the European Research Area  
– Finalise the specific “Action plan to  enhance cooperation between EU and 
Ukraine in the field of Science and Technology” . 
(64) Develop Ukraine’s research and technological development capabilities in the service 
of the economy and the society  
– Reinforce Ukraine’s human, material and institutional potential with the objective 
of improving the capabilities of natural and legal persons i nvolved in RDT and 
Innovation,  
– Promotion of an environment favourab le to the exploitation of results, 
(65) Promote Ukraine’s integration in high-level scien tific exchanges 
– Stimulate Ukrainian participation in Marie Curie international fellowships and 
establish appropriate return mechanisms,  
– Reinforce the exchange of research pers onnel within joint projects and promote 
the participation of Ukrainian scientists in international fora and debates  
– Make further progress in co- operation in the space sector  and continue support for 
the joint space work ing group under the PCA  
– Support distribution of information on th e European Research Area through the 
Ukraine national S&T information centre.  
 
 32    Education, training and youth 
(66) Reform and upgrade the education and training systems and work towards 
convergence with EU standards and practices 
– Work towards convergence in higher e ducation by implementing measures that 
will enable Ukraine to adhere  to the Bologna process. 
– Involve civil society stakeholders and so cial partners in hi gher education; and 
VET reform; 
– Address accreditation and licensing procedures;  
– Use the existing programme Te mpus III to explore the pos sibility of fostering the 
development of human resources and hu man capital, and in particular of 
promoting the reform and development of the lifelong learning system in Ukraine; 
– Establish chairs for European studies and European law through the Action Jean 
Monnet and support studies opportun ities for young researchers.  
(67) Enhance co-operation in the field of education, training and youth 
– Establish a policy dialogue between EU and Ukrainian authorities in the field of 
education and training  
– Increase exchange opportunities for Ukra inians through participation in the 
Erasmus Mundus programme 
– Reinforce Ukrainian participation to th e programme Tempus III and use it to 
explore the possibility of extending co -operation in the areas of vocational 
education  
– Enhance youth exchanges and cooperation in  the field of non-formal education for 
young people and promotion of interc ultural dialogue through the YOUTH 
programme 
Culture and audio-visual issues 
(68) Enhance cultural and audio visual co-operation 
– Consider support to cros s border cultural links 
– Develop a dialogue on cultural diversity, incl uding in the contex t of the relevant 
negotiation in UNESCO 
– Approximate relevant audiovi sual legislation in full compliance with European 
standards (with a view to a possible futu re participation in the Media programme 
if prerequisites are fulfilled). 
– Investigate the possibilities for co-opera tion in the framework of EU programmes 
in the field of culture. 
 
 33    Civil society co-operation 
(69) Promote civil society co-operation 
– Take necessary actions to encourage local and regional own-initiative approach to 
establish and develop cr oss-border co-operation 
Cross-border and regional level co-operation 
(70) Enhance contacts and cooperation at th e cross-border and regional level with 
neighbouring new EU member states by ta king up the opportunities and challenges 
arising from EU enlargement. 
– Provision of support to the regions and participation in th e preparation and 
implementation of the Neighbourhood Programmes involving Ukraine. 
– Ensure development and implementation of  efficient legislation on cross-border 
and regional co-operation. 
– Increase effectiveness of projects and pr ogrammes in the sphere of cross-border 
and regional co-operation by providing active support and involvement of the 
local and regional level; 
Public health 
(71) Increase the level of health security and epidemiological safety in Ukraine in line with 
EU legislation and in co-operation and with  the support of the WHO. Develop links 
between the information system of Ukrain e and the health indicator process underway 
in the EU. Integrate Ukraine in the EU PHIN health information and knowledge 
system.  
Health information and knowledge: 
– Exchange of information and know-how on h ealth indicators and data collection; 
– Invite relevant Ukrainian authorities as observers in the meetings of the Network 
of Competent Authorities. 
– Explore joint technical and administrati ve measures necessary to integrate 
Ukraine in the EUPHIN system as it becomes fully operational. 
Communicable Disease Surveillance and Health S ecurity (Epidemiological Surveillance and 
Control) 
– Exchange information and technical expertise in order to facilitate participation in 
EU Network for the Prevention and Contro l of Communicable Diseases (Decision 
No 2119/98/EC) 
– Participation in dedicated su rveillance networks, in part icular those collecting data 
and information on HIV/AIDS, sexually tr ansmitted infections, and hepatitis C 
and B. 
 
 34    – Exchange of information and best practi ce in implementing measures to combat 
major communicable disease outbreaks. 
– Exchange information and technical exper tise in order to up grade the laboratory 
capacity to facilitate the networking of relevant laboratories between Ukraine and 
the EU.  
– To enhance the building up of human cap acity to develop and implement joint 
public health projects, which address th e HIV/AIDS epidemic in the country 
according the national strategy. 
3. Monitoring  
The Action Plan will be submitted for formal  adoption to the Co- operation Council between 
the EU and Ukraine. The Action Plan will set out the objectives and actions for the work between the EU and Ukraine for the period of its  duration. Should the n eed arise, on the EU 
side, for specific measures necessitating le gally binding decisions, the Commission will 
recommend to the Council the adoption of the necessary negotiating directives.  
The joint bodies established under the Partnership and Co-operation Agreement will advance 
and monitor the implementation of the Action Plan.  
A first review of the implementation of the Ac tion Plan will be undertaken within two years 
of its adoption. 
The Action Plans can be regularly amended and/ or updated to reflect progress in addressing 
the priorities. 
 
 35    Glossaire  
EASA:  European Aviation Safety Agency 
EUPHIN: European Public He alth Information Network 
EUPM: European Union Police Mission EUPOL: European Union Police Mission  FATF:  Financial Action Task Force on Money Laundering GATT:  General Agreement on Tariffs and Trade ICC:  International Criminal Court IFAC:  International Fe deration of Accountants 
IIA:   Institute of  Internal Audit 
ILO:  International Labour Organisation INTOSAI: International Organisation  of Supreme Audit Institutions 
IST  Information Society Technologies NPP:  Nuclear Power Plant OSJD:  Organisation for Railway Cooperation OTIF:   Intergovernmental Organisati on for International Carriage by Rail 
TRACECA: Transport Corridor Europe Caucasus Asia TRIPS: WTO Agreement on Intellectual Property UCTE  Union for the Co-ordinati on of Transmission of Electricity 
WHO  World Health Organisation WMD:  Weapons of Mass Destruction