Proposal for a Council Decision on the position to be adopted by the Communities and its Member States within the Cooperation Council established by the Partnership and Cooperation Agreement establishing a partnership between 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 the EU-Ukraine Action Plan
Date: 2004-12-09
Institutions: European Commission
Subjects: EU relations, Ukraine, action programme, aid policy, common foreign and security policy, cooperation policy

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 9.12.2004 
COM(2004) 791 final 

Proposal for a 

COUNCIL DECISION 

on the position to be adopted by the Communities and its Member States  
within the Cooperation Council established by the Partnership and Cooperation 
Agreement establishing a partnership between 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 the EU-Ukraine Action Plan 

EN 

   EN 

 
 
 
  
EXPLANATORY MEMORANDUM 

The 2002 Copenhagen European Council, closing accession negotiations with ten new States, 
recognised that enlargement presented an important 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  Europe  and  to  promote  stability  and  prosperity 
within and beyond the new borders of the Union. 

The  Commission  Communication  “Wider  Europe  -  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 contribution, where appropriate, of 
the High Representative, to present proposals for Action Plans for all countries concerned as 
appropriate, commencing with Ukraine, Moldova, and Southern Mediterranean partners with 
Association Agreements. 

On  14  June  2004,  the  Council  welcomed  the  Commission  Communication  “European 
Neighbourhood  Policy  –  Strategy  Paper”2.  The  Council  also  welcomed  the  Commission 
proposal  to  pursue  the  European  Neighbourhood  Policy  (ENP)  through  Action  Plans  to  be 
agreed  jointly  with  the  neighbouring  countries  concerned  and  invited  the  Commission  to 
propose such Action Plans. Action Plans should have a minimum duration of three years and 
be subject to renewal by mutual consent. They should be based on common 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  clearly  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  the  Presidency  and  the  High  Representative  on 
issues related to political cooperation and the CFSP, has held exploratory talks with Ukraine 
which have resulted in agreement on a draft Action Plan. It covers a timeframe of three years. 
Its  implementation  will  help  fulfil  the  provisions  in  the  Partnership  and  Cooperation 
Agreement and will contribute to an increasingly close relationship with 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 and political co-operation, carrying to a further 
stage  the  commitments  and  objectives  contained  in  the  Partnership  and  Cooperation 
Agreement. 

In accordance with the Council Conclusions of 14 June 2004, stipulating 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  with  regard  to  the  adoption  of  a  Recommendation  on  the 
implementation of the Action Plan in annex.  

1 
2 

COM(2003)104 
COM(2004)373 

2 

 
 
  
 
                                                 
The Commission therefore requests the Council to adopt the attached proposal for a Council 
Decision. 

3 

 
 
  
 
Proposal for a 

COUNCIL DECISION 

on the position to be adopted by the Communities and its Member States  
within the Cooperation Council established by the Partnership and Cooperation 
Agreement establishing a partnership between 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 the 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, and 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) 

(2) 

The  Partnership  and  Cooperation  Agreement  establishing  a  partnership  between  the 
European Communities and their Member States, of the one part, and Ukraine, of the 
other part, was signed on 14 June 1994 and entered into force on 1 March 1998; 

The  Parties  intend  to  agree  on  an  EU-Ukraine  Action  Plan,  which  will  support  the 
implementation of the Partnership and Cooperation Agreement through the elaboration 
and agreement of concrete steps towards 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 Partnership 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 Recommendation of the Cooperation Council annexed to this 
Decision. 

3 

OJ C […] […], p. […] 

4 

 
 
  
 
                                                 
Done at Brussels,  

For the Council 
The President 

5 

 
 
  
 
 
 
 
 
ANNEX  

draft 

RECOMMENDATION 

on the implementation of the EU-Ukraine Action Plan  

The EU/Ukraine Cooperation Council, 

Having  regard  to  the  Partnership  and  Cooperation  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) 

(2) 

(3) 

(4) 

(5) 

Article  85  of  the  Partnership  and  Cooperation  Agreement  gives  the  Cooperation 
Council the power to make appropriate recommendations, for the purposes of attaining 
the objectives of the Agreement.  

In  terms  of  Article  102  of  the  Partnership  and  Cooperation  Agreement,  the  Parties 
shall take any general or specific measures required to fulfil their obligations under the 
Agreement and shall see to it that the objectives set out in the Agreement are attained. 

The Parties to the Partnership and Cooperation Agreement have agreed on the text of 
the EU-Ukraine Action Plan. 

The EU-Ukraine Action Plan will support the implementation of the Partnership and 
Cooperation Agreement through the elaboration and agreement between the Parties of 
concrete steps which will provide practical guidance for such implementation. 

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  providing  a  broader  framework  for  further 
strengthening  EU-Ukraine  relations  to  involve  a  significant  measure  of  economic 
integration  and  a  deepening  of  political  cooperation,  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 attainment of the objectives 
of the Partnership and Cooperation Agreement.  

Done at [...] 

For the Cooperation Council 

The President 

6 

 
 
  
 
 
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  and  economic  terms.  The  EU  and  Ukraine  now 
share  a  border  and,  as  direct  neighbours,  will  reinforce  their  political  and  economic 
interdependence.  Enlargement  offers  the  opportunity  for  the  EU  and  Ukraine  to  develop  an 
increasingly  close  relationship,  going  beyond  co-operation,  to  gradual  economic  integration 
and a deepening of political cooperation. The European Union and Ukraine are determined to 
enhance  their  relations  and  to  promote  stability,  security  and  well-being.  The  approach  is 
founded on shared values, joint ownership and differentiation. It will contribute to the further 
stepping up of our strategic partnership. 

The  European  Union  and  Ukraine  are  determined  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 enter into intensified political, security, economic 
and cultural relations, including cross border co-operation and shared responsibility in conflict 
prevention and conflict resolution.  

The pace of progress of the relationship will acknowledge 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  fulfil  the  provisions  in  the  Partnership  and  Cooperation 
Agreement  (PCA)  as  a  valid  basis  for  EU-Ukraine  cooperation,  and  will  encourage  and 
support  Ukraine’s  objective  of  further  integration  into  European  economic  and  social 
structures. Implementation of the Action Plan will significantly advance the approximation of 
Ukrainian legislation, norms and standards to those of the European Union. It will also build 
solid foundations for further economic integration, including 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  trade-related  rules  and  regulations  with  the 
potential to enhance trade, investment 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 standards and to protect the environment, 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 European Union acknowledges Ukraine’s European 
aspirations and welcomes Ukraine’s European choice. 

New partnership, economic integration and cooperation perspectives 

The  European  Neighbourhood  Policy  opens  new  partnership,  economic  integration  and 
cooperation perspectives. 

7 

 
 
  
 
 
•  The  perspective  of  moving  beyond  cooperation  to  a  significant  degree  of  integration, 
including  through  a  stake  in  the  EU’s  Internal  Market,  and  the  possibility  for  Ukraine  to 
participate progressively in key aspects of EU policies and programmes. 

•  An upgrade in the scope and intensity of political cooperation; 

•  The  opportunity  for  convergence  of  economic  legislation,  the  opening  of  economies  to 
each other, and the continued reduction of trade barriers which will stimulate investment 
and growth; 

•  Increased  financial  support:  EU  financial  assistance  for  Ukraine  will  be  available  to 
support  the  actions  identified  in  the  present  document.  The  Commission  is  furthermore 
proposing  a  new  European  Neighbourhood  and  Partnership  Instrument  (ENPI)  for  this 
purpose,  also  covering  the  very  important  aspects  of  cross-border  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  opening  of,  or  reinforced  participation  in,  certain  Community 
programmes, promoting cultural, educational, environmental, 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,  including  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  set  of  priorities  in  areas  within  and  beyond  the 
scope of the Partnership and Cooperation Agreement. Among these priorities, all of which are 
important, particular attention should be given to:  

•  Further strengthening the stability and effectiveness of institutions guaranteeing democracy 

and the rule of law; 

•  Ensuring the democratic conduct of presidential (2004) and parliamentary (2006) elections 

in Ukraine in accordance with OSCE standards; 

•  Ensuring respect for the freedom of the media and freedom of expression; 

•  Develop possibilities for enhancing EU – Ukraine consultations on crisis management. 

•  Enhanced co-operation in the field of disarmament and non-proliferation; 

•  Enhanced co-operation in our common neighbourhood and regional security, in particular 
working  towards  a  viable  solution  to  the  Transnistria  conflict  in  Moldova,  including 
addressing border issues; 

8 

 
 
  
 
•  Accession to the WTO; 

•  Gradual  removal  of  restrictions  and  non-tariff  barriers  that  impede  bilateral  trade  and 

implementation of the necessary regulatory reforms; 

•  Improving the investment climate, through non-discriminatory, transparent and predictable 
business  conditions,  simplified  administrative  procedures  and  by  the  fight  against 
corruption; 

•  Tax reform, improved Tax Administration and sound management of Public Finances; 

•  Establishing a constructive dialogue on visa facilitation 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  legislation,  norms  and  standards  with  those  of  the 

European Union; further reinforcing administrative and judicial capacity; 

•  Encourage  dialogue  on  employment  issues  and  best  endeavours,  in  accordance  with  the 
PCA,  to  ensure  that  treatment  of  migrant  workers  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 internationally accepted nuclear safety standards; 

Progress  in  meeting  these  priorities  will  be  monitored  in  the  bodies  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  commitments  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  principle  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  presidential  (2004)  and  parliamentary  (2006) 
and  OSCE/ODIHR 

accordance  with  OSCE 

standards 

elections, 
recommendations, including on the media; 

in 

–  Ensure that any further legislative reforms be conducted in line with international 

standards; 

9 

 
 
  
 
–  Continue  administrative  reform  and  strengthening  of  local  self-government, 
through  appropriate  legislation,  in  line  with  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 impartiality 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  work  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 and 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 scoreboard (see below, section 2.4) 

(3) 

Ensure the effectiveness of the fight against corruption 

–  Join  the  Council  of  Europe  Group  of  States  Against  Corruption  (GRECO)  and 
implement  relevant  recommendations,  including  a  revision  of  the  Ukrainian 
national strategy for the fight against corruption; 

–  Promote  transparency  and  accountability  of  the  administration,  in  particular 

concerning the reform of the civil service based on European standards; 

–  Implement relevant measures as foreseen under the JHA scoreboard 

(4) 

Ensure respect of human rights and fundamental freedoms, in line with international 
and European standards 

–  Promote  adherence  to  and  ensure  implementation  of  core  UN  and  Council  of 

Europe Conventions and related 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. 

10 

 
 
  
 
                                                 
–  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 and administrative framework for freedom 

of media. taking into account relevant Council of Europe recommendations; 

–  Ensure effective respect of freedom of media, including journalists’ rights. 

(7) 

Ensure respect for rights of persons belonging to national minorities  

–  Continue  efforts  in  designing  relevant  legislation  and  effectively  protecting  the 
rights of persons belonging to national minorities, based on European standards;  

–  Continue close cooperation between government 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  detention,  in  order  to  address  effectively  the  problem  of 
arbitrary  detentions,  detention  conditions  and  ill-treatment  of  detainees  by  law 
enforcement  officials,  including  through  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  equality  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’ rights and core labour standards, based on 

European standards and in accordance with relevant ILO conventions.  

(12)  Ensure international justice 

–  Enhance  co-operation  to  promote  international  justice  and  fight  impunity, 
including  through  further  support  to  the  International  Criminal  Court  and  the 
establishment of a consultation mechanism on ICC’s activities and functioning; 

11 

 
 
  
 
–  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 framework of the Special Working Group on the 

Crime of Aggression and other special groups. 

Regional  and  international  issues,  cooperation  on  foreign  and  security  policy,  WMD 
non-proliferation and disarmament, conflict prevention and crisis management;  

(13)  Further  strengthen  and  focus  political  dialogue  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  multilateral  institutions  and  conventions  more 
effective,  so  as  to  reinforce  global  governance,  strengthen  coordination  in 
combating security threats and address related development issues; 

–  Continue dialogue on implementation of the European Security Strategy; 

–  Develop  possibilities  for  enhanced  EU  –  Ukraine  consultations  on  crisis 

management.  

(14) 

Strengthen co-operation on regional and international issues, conflict prevention and 
crisis management  

–  Ukraine will continue its constructive efforts as mediator in the settlement process 

to solve the Transnistria conflict in Moldova; 

–  Further  EU  involvement  in  supporting  the  OSCE  and  mediators,  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, including effective exchange of information 
about flow of goods and people across the common border.  

–  Active  engagement  in,  and  practical  follow-up  to,  the  trilateral  expert  talks 

involving Ukraine, Moldova and the European Commission; 

–  Further build on the good experience 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; 

12 

 
 
  
 
–  Continue consultations on the possible EU use of Ukraine’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 – Ukraine Agreement establishing a framework 
for  the  participation  of  Ukraine  in  EU  crisis  management  operations  (legal  and 
in  EU  crisis 
financial  modalities  for  possible  participation  by  Ukraine 
management operations); 

–  Conduct consultations on sanctions applied by the EU. 

(15)  Further  develop  co-operation  in  addressing  common  security  threats,  including 
combating  terrorism,  non-proliferation  of  weapons  of  mass  destruction  and  illegal 
arms exports  

–  Develop  EU-Ukraine  co-operation  on  the  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  implementation  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  the  FATF’s  recommendations  on  terrorist 

financing; 

–  Ensure respect for human rights in the fight against terrorism; 

–  Ukraine  to  take  due  account  of  the  content  and  principles  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  weapons  of  mass  destruction  ,  including  on 
aspects  related  to  the  accession  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 December 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 Ukraine 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; 

13 

 
 
  
 
–  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  establishment  of  a  fully  functioning  market  economy, 
including price-formation, control of state aid, and a legal environment that ensures 
fair competition between economic operators. 

(17)  Further  advance  in  gradual  approximation  of  basic  legislative  and  regulatory 

framework to that of EU, and ensure its effective implementation. 

–  Implementation  of  a  strategy  for  approximating  legislation  on  priority  areas 
identified  under  PCA§51,  including  improvement  of  quality  and  consistency  of 
drafting. 

–  On  a  basis  of  common  understanding,  finalise  joint  work  for  preparation  of  a 
scoreboard and on prioritisation for monitoring and assisting implementation. 

–  Eliminate inconsistencies in the existing economic and civil codes.  

(18) 

Improve  investment  climate,  including  by  ensuring  transparency,  predictability  and 
simplification of regulation and its application. 

–  Carry out consultation with domestic and foreign economic operators on drawing 
up a work programme for further implementation of regulatory reform, aimed at 
reduction of administrative barriers to the development of business.  

–  Ensure  uniform  application  of  regulations  across  Ukraine  at  central  and  sub-

central levels 

–  Adopt  and  implement  a  system  of  impact  assessment  of  regulatory  measures, 
consultation  of  stakeholders,  and  prior  notification  of  regulatory  changes  to 
transparency  (predictability  of  regulatory 
economic  operators 
environment). 

to  ensure 

–  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 uniform way across the territory of Ukraine 
without discrimination between operators,  

that  judicial  review  for  trade  and  investment  issues  is  streamlined,  notably 
through  the  allocation  of  more  resources  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. 

14 

 
 
  
 
Monetary, exchange rate and fiscal policies  

(19)  Consolidate progress in macro-economic stabilisation and growth policies. 

–  Strengthen  the  independence  of  the  National  Bank  of  Ukraine  including,  if 
necessary, by amending the ‘Law on the National Bank’ so as to bring it in line 
with EU standards. 

–  Reinforce  fiscal  sustainability,  including  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  structural  reform  programme  to  further 

consolidate the functioning of market economy. 

–  Implement  privatisation  programme,  including  large-scale  privatisation,  and 

increase transparency of privatisation process.  

–  Reduce  the  involvement  of  state  in  setting  prices  with  a  view  to  avoiding  trade 

and economic distortions. 

–  Strengthening  banking  regulation  and  supervision.  Intensify  financial  sector 

reform, including improvement of the functioning 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  law  improving  the  definition  of  the 
responsibilities  of  directors,  managers  and  shareholders’  meetings,  strengthening 
disclosure  requirements,  and  increasing  the  protection  of  minority-shareholder’s 
rights. 

–  Adopt the accompanying legislation necessary for the effective implementation of 
the new Land Code. Remove current restrictions in article 82 of the Land Code to 
non-agricultural  land  ownership  by  Ukrainian  legal  entities  with  foreign 
stakeholders, including those with 100% foreign ownership.  

Social situation, employment, poverty reduction 

(21) 

Strengthen dialogue and co-operation on social matters (as provided 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 employment and social policy with a view to developing 
an analysis and assessment of the situation and to identifying key challenges and 
ways of bringing Ukraine’s policies and practices closer to EU standards (social 
and  civil  dialogue,  health  and  safety  at  work,  gender  equality,  labour  law, 
employment  policy,  social  protection,  including  social  security  issues  and  social 
inclusion). 

–  Monitor relevant legislative and policy development. 

15 

 
 
  
 
(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,  including  sustainable  systems  for  education,  health  and 
other social services with access for all.  

Regional Development 

(23)  Reducing regional imbalances and improve local development capacities 

–  Introduce  strategic  planning  at  the  national  and  regional  levels  in  Ukraine  and 
elaborate a draft State strategy of regional development up to 2015; and establish 
a  legislative  basis  for  promotion  of  regional  development,  including  depressed 
territories. 

Sustainable development 

(24)  Promotion of sustainable development 

–  Take further steps towards completion of administrative structures and procedures 
to  ensure  strategic  planning  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, energy, 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 regularly thereafter as appropriate. 

2.3.1. Movement of goods 

Trade Relations 

(25)  Full implementation of PCA commitments in sphere of trade in goods. 

–  Gradual removal of all export and import restrictions in the spirit of PCA title III 
and,  following  Ukraine’s  accession  to  the  WTO,  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 Ukraine’s accession to the WTO. 

(26)  Accession to the WTO  

–  Implementation of Ukraine’s bilateral commitments and of requirements of WTO 

rules (action defined below under specific sections) 

16 

 
 
  
 
–  Address  specific  non-tariff  issues  raised  by  the  EC,  including  through  the 

appropriate commitments in the WTO Working Party report.  

(27)  Advance  and  implement  the  necessary  administrative  and  macro-economic  reforms 
envisaged under the PCA (sections 2.2 and 2.3 of the action plan refer). In accordance 
with  article  4  of  the  PCA,  and  in  the  light  of  advances  in  economic  reform  and 
implementation of PCA commitments, consider jointly the feasibility 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 implementation of measures (July 2002). 

–  On completion of this review, hold consultations 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 legislation aligned with international and 

EU standards 

–  Finalize  implementing  legislation  for  the  Customs  Code,  in  line  with  the 
internationally recognised standards especially WTO agreements, in particular in 
the area of customs value, and with the EU Customs legislation. 

–  Further  revision  of  the  Customs  Code,  taking  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  customs-related  legislation:  provisions  on 
customs control of precursors, counterfeit and pirated goods, dual use goods, and 
cultural goods. 

(29) 

Improve  functioning  of  customs  service;  simplify  and  modernise  customs  procedures 
at borders and inland 

–  Develop  a  single  window  approach  for  all 

trade  related 
documentation and control starting by increased co-operation between all agencies 
working at the border. 

international 

–  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  Ethics  Policy  based  on  internationally 

recognised standards (Arusha Declaration). 

17 

 
 
  
 
–  Provide additional training to customs officials, strengthen the computerisation of 

the customs administration and upgrade Customs laboratories. 

Standards, technical regulations and conformity assessment (EU harmonised areas) 

(30)  Continue  the  alignment  of  Ukraine  with  the  EU  and  international  regulatory  and 
administrative  practices  and  prepare  for  Ukraine’s  participation  in  the  EU  internal 
market in selected priority industrial sectors  

–  Jointly identify priority sectors for alignment 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 sectoral 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  European  standards  and  for  voluntary 
application. 

–  Reinforce  institutional  capacity  on  standardisation,  accreditation,  conformity 
assessment,  metrology  and  market  surveillance,  integrating  the  Ukrainian 
institutions, to the extent possible, into the European and international structures. 
Continue the revision of institutional arrangements to avoid the concentration of 
functions within a single institution and related conflicts of interest. 

–  Approximate  legislation  on  liability  for  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 certification of non-risk products 
and multiple testing of products. 

–  Consolidate  and  develop  the  market  surveillance  capacities  of  the  Ukrainian 

institutions based on best practice 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. 

18 

 
 
  
 
–  Analyse  legislation  and  administrative  procedures  in  order  to  identify  and 
progressively  remove  discrimination  against  imported  products.  Begin  by 
reviewing  national  measures  covering 
labelling 
manufacture and description of products. 

the  weight,  composition, 

–  Ensure  effectiveness  and  training  of  enforcement  authorities,  including  of  the 
central administrative unit responsible for implementation of movement of goods. 

–  Ensure  that  interested  parties  (importers,  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 measures 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  taken  for  gradual  convergence  towards  the 
principles of the EU sanitary and phytosanitary 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 Ukrainian legislation in the sphere of 
food  hygiene,  including  food  processing.  If  necessary  draw  up  measures  for 
legislative approximation in this area, accompanied by a financing plan. 

–  Progress in convergence with EU food traceability legislation; general food safety 
principles  and  requirements  (Regulation  (EC)  No  178/2002);  effectively 
implement  the  Hazard  Analysis  Critical  Control  Point  system  at  enterprises  and 
controlling bodies, including the fish industry. 

–  Review  the  national  laboratory  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, jointly define steps towards veterinary and 

phytosanitary agreements. 

19 

 
 
  
 
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 principles (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  affecting  the  operation  of  EU  and  Ukrainian 

companies.  

b) Establishment: 

–  Ensure  full  and  effective  implementation  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  national  legislation  to  identify  barriers  to 

establishment with the aim of abolishing them. 

–  Remove progressively restrictions 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 relevant WTO commitments of Ukraine.  

d) Company law: 

–  Improve the competence and independence of auditors. 

–  Converge with and ensure effective implementation of key principles in relevant 

international and EU rules and standards. 

–  Create  the  unified  state  register  of  legal  persons  and  physical  persons-
entrepreneurs  companies  and  ensure  publication  of 
the 
organisation  and  financial  situation  of  companies.  Define  and  ensure  effective 
activity  of  an  administrative  authority,  which  ensures  the  control  of  the 
incorporation of a company or the legality of certain acts. 

information  on 

–  Encourage adoption of a code on corporate governance. 

20 

 
 
  
 
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 obstacles 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  detailed  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 supervision equivalent to that existing in 
the EU. 

•  Ensure  effective  implementation  of  independent  and  well-trained  supervisory 

authorities in accordance with internationally 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  (current  payments  and 

capital). 

–  Ensure  the  free  movement  of  capital  relating  to  direct  investments  or  other 
investments made in accordance with the provisions on establishment (Chapter II 
of Title IV) and ensure application of the standstill clause of Article 48.3; 

–  Guarantee  the  protection  of  foreign  investments  as  well  as  the  liquidation  or 

repatriation of these investments and of any profits stemming there from. 

–  Hold consultations on the goal of liberalisation of other capital movements in line 

with Article 48.4. 

21 

 
 
  
 
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-ordination of Social Security under Articles 

25 and 26 of PCA. 

–  Continue  process  of  concluding  Agreements  with  Member  States  on  the  full 
application of provisions on coordination 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  systems  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  Zones  with  WTO  rules  in  accordance  with 
Ukraine’s  WTO  commitments,  and  begin  process  of  alignment  of  Ukrainian 
legislation on Free Zones 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 legislative amendments. 

–  Implement  a  comprehensive  strategic  plan  for  the  State  Tax  Administration, 
defining  the  necessary  administrative  structures  and  procedures,  identifying  its 
needs in terms of financial, human, 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. 

22 

 
 
  
 
Competition policy 

(39) 

Implement, and build upon, commitments on state aid under Art.49.2.2 and 49.2.3 of 
the PCA, and develop legislation and control regime compatible with that of the EU 

–  Draft and adopt state aid legislation, 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  establishing  a  list  of  all  aid  grantors  and  an  independent 
surveillance  body,  a  regular  report  on  the  amounts,  types  and  recipients  of 
aid). 

(40) 

Implement,  and  build  upon,  the  commitment  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 resources; and reinforce staff training. 

Intellectual and industrial property rights 

(41)  Ensure  a  level  of  protection  similar  to  that  in  the  EU,  including  effective  means  of 

enforcement, in line with provisions in Article 50 of the PCA. 

–  Ensure implementation and effective enforcement of TRIPS compliant legislation 

upon Ukraine’s accession to the WTO. 

–  Enforce legislation on trade marks and geographical indications. 

–  Continue  harmonisation  of  legislation  to  EU  legislation  in  the  sphere  of 

intellectual and industrial property rights protection. 

–  Ensure effective implementation of sanctions of infringements of intellectual and 

industrial property rights. 

–  Encourage  the  establishment  and  the  effective  functioning  of  the  necessary 
associations of rights holders and establish a dialogue with them and the users of 
IP. 

–  Strengthen enforcement authorities (administrative and judicial) and ensure proper 

access to judicial review. 

–  Improve  administrative  co-operation  between  relevant  Ukrainian  national 

authorities and with third country authorities. 

23 

 
 
  
 
–  Take effective measures against counterfeit/pirated goods in specifically 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  legislation  on  public  procurement  in  order  to 
ensure  effective  implementation  of  the  key  principles  of  transparency,  non-
discrimination, competition and access to legal 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/judicial review in the event of disputes. 

–  Ensure that contracting authorities and the business community are well informed 
about  public  procurement  procedures,  including  through  the  publication  of  all 
relevant legislation and administrative rulings. 

–  Effective dissemination of tendering opportunities 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 application of modern e-tendering technologies in 

public procurement. 

–  Facilitate the effective, reciprocal and 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 development strategy for harmonisation with 

European standards in relevant statistical areas; 

–  Ensure 

that  statistical 

legislation 

includes 

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; 

24 

 
 
  
 
Financial Control 

(44) 

Sound management and control of public finances 

Treasury Accounting: 

–  Improve transparency of public finance management, including by developing and 
starting implemention of a strategy to modernize the Treasury accounting system. 

–  Take further steps to integrate the extra-budgetary funds into the Budget. 

Public Internal Financial Control: 

–  Development  of  the  concept  of  development  and  restructuring  of  the  system  of 

public financial control and audit in Ukraine.  

–  Establish legislative framework for public internal financial control.  

–  Gradual  harmonisation  with  the  internationally  agreed  standards  (IFAC,  IIA, 
INTOSAI)  and  methodologies,  as  well  as  with  EU  best  practice  for  control  and 
audit of public income, expenditure, assets and liabilities. 

External Audit and Control 

–  Ensure  the  adequate  functioning  of  the  Supreme  Audit  Institution  (Accounting 
Chamber)  in  line  with  the  internationally  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 
irregularities  affecting  national  and 
international  funds,  including  the  establishment  of  well-functioning  co-operation 
structures involving all relevant national entities. 

–  Ensure  effective  cooperation  with  the  relevant  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  environment  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 for companies, based on best practice in 
EU  Member  States  and  possibly  leading  to  the  accession  of  Ukraine  to  the 
European Business Register. 

–  Launching of a dialogue, involving 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 policy reference framework, such as the 
European Charter for Small Enterprise  

25 

 
 
  
 
–  Promote  the  exchange  of  experience  and  of  best  practice  on  enterprise  policy, 
aiming  at  developing  benchmarking  and  evaluation  exercises  on  specific  sectors 
(e.g.  education  and  training  for  entrepreneurship;  facilitation  of  access  to 
financing  for  SMEs;  promotion  of  investment  and  innovation;  improvement  of 
administrative and regulatory environment).  

–  Promote the exchange of experience on industrial restructuring, especially on the 

social effects of restructuring 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  set  up  in  consultation  with  the  Ukrainian  authorities  as  a  tool  for 
implementation, monitoring, evaluation and definition of annual priorities.  

Co-operation  in  the  field  of  Justice  and  Home  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  Affairs  are  defined  on  an 
annual basis by the EU-Ukraine JHA Ministerial Troika meeting. The first EU-Ukraine JHA 
Ministerial Troika of November 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  fighting  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 between the EU and Ukraine will be established, 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. 

According to the JHA Action Plan, the EU Council should review the operation of this Action 
Plan towards the end of 2005, and may decide to carry 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, information society and environment  

Transport 

(46)  Elaborate  and  start  implementing  a  national  transport  strategy,  including  transport 

infrastructure development 

–  Further  elaborate  a  concept  for  a  national  sustainable  transport  policy  for  the 
development  of  all  transport  modes,  coherent  with  the  EU’s  White  Paper  on 
transport.  

26 

 
 
  
 
–  Develop  an  infrastructure  policy  in  order  to  identify  and  evaluate  the  priority 
infrastructure  projects  in  various  sectors  and  continue  participation  in  the  joint 
development  of  the  Pan-European  Corridors  and  Areas  as  well  as  in  the 
TRACECA programme. 

–  Identify  and  commit  sources  of  financing  and  adopt  financing  strategies,  also  in 
light  of  the  decision  for  the  extension  of  EIB  lending.  Address  issues  of 
infrastructure financing (e.g. Public/Private Partnerships, shadow-tolling, etc.). 

–  Develop co-operation in satellite navigation (including joint research actions and 

applications) 

(47) 

Implement selected measures and reforms in the road transport sector 

–  Ensure  that  international  and  national  transport  sector  is  regulated  in  terms  of 
access to the profession; Introduce and enforce 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 reforms in the railway transport sector 

–  Improve  efficiency  of  freight  transport  services  (including  issues  of  border 
issues  of 

crossing  procedures).  Promote  multi-modal  services,  address 
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 order to include the Community designation 
clause, taking into account the horizontal mandate given to the Commission. 

–  Obtain  full  member  status  in  the  European  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  reforms  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-owned port sector (separating 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.  

27 

 
 
  
 
–  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 converging towards EU energy policy objectives. 

–  Prepare  and  adopt,  by  the  appropriate  instance,  sub-sectoral  energy  policy 
documents with an indication of possible financing sources for implementation 

–  Reinforce EU-Ukraine energy policy co-operation  

–  Explore  the  possibility  for  participation  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  markets,  including  regarding  the  regulator, 
accompanied  by  time  schedules  and  a  financing  plan.  Reciprocity  issues  to  be 
addressed  appropriately  (market  opening,  environmental  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 gas sector restructuring plan.  

–  Further restructure the electricity sector including debt restructuring and adoption 

of the relevant debt law. 

–  Participation  in  EU  related  energy  events  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 diversification of oil and gas supplies. This should 
include,  inter  alia,  the  Odessa-Brody-Poland  oil  pipeline  (Ukraine  Poland 
Agreement should be implemented further).  

–  Feasibility  analysis  of  electricity  interconnection  of  Ukraine  with  the  UCTE 

synchronous network. 

(54)  Progress in the transit of natural gas 

–  Increase performance, safety and security of the gas transit network. 

28 

 
 
  
 
–  Further explore the possibilities for the financial 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 financial 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  efficiency  and  enhancing  the  use  of 
renewable energy, for reinforcing the institutions, 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 nuclear energy and nuclear safety. 

–  Comply with the internationally accepted nuclear safety standards in completing 
and starting-up of the “K2R4” nuclear reactors; 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 the entry into force and implementation of 
the agreement concluded with EURATOM on peaceful uses of nuclear energy. 

–  Make progress in decommissioning of Chernobyl NPP. 

–  Continue work on the Shelter Implementation 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 communications policy and regulation 

–  Adopt  and  start  implementing  the  national  concept  for  the  development  of 

electronic communications. 

–  Adopt regulations concerning licensing, interconnection, 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. 

29 

 
 
  
 
(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” for 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 education sectors (e-commerce, 
e-government, e-health, e-learning), via the provision of advanced infrastructures, 
the development of local content and the introduction of pilot projects, e.g. for the 
mutual recognition of electronic signatures. 

–  Improve  the  use  of  Internet  and  online  services  by  the  citizens  via  computer 

training programmes for the general public. 

–  Adopt a specific plan to promote the participation of Ukraine in the IST part of the 

6th Framework Programme. 

–  Develop EU – Ukraine co-operation regarding the preparation of the second phase 

of the World Summit on the Information Society in Tunisia in 2005.  

Environment  

(60)  Take steps to ensure that conditions for good environmental governance are  set and 

start implementing them 

–  Take further steps towards completion of administrative structures and procedures 
to  ensure  strategic  planning  of  environment  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 relation to trans-boundary issues.  

–  Establish  communication  strategies  on  the  benefits  of  environmental  policy; 

support civil society actors and local authorities  

(61)  Take  active  action  for  prevention  of  deterioration  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 legislation 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. 

30 

 
 
  
 
–  Enhance/adopt  national  programmes  and  plans  for  key  environment  sub-sectors 

including priorities for investments in each sub-sector 

(62)  Enhance co-operation on environmental issues 

–  Implement  provisions  under  the  Kyoto  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  component  of  the  EU  Water 
Initiative 

–  Possible participation in selected European Environment Agency activities  

–  Active  participation  in  activities  of  the  Joint  Ukraine  –  EU  Working  Group  on 

Climate Change 

–  Identify  possibilities  with  neighbouring  countries  for  enhanced  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  involved  in  RDT  and 
Innovation,  

–  Promotion of an environment favourable to the exploitation of results, 

(65)  Promote Ukraine’s integration in high-level scientific exchanges 

–  Stimulate  Ukrainian  participation  in  Marie  Curie  international  fellowships  and 

establish appropriate return mechanisms, 

–  Reinforce  the  exchange  of  research  personnel  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 working group under the PCA 

–  Support  distribution  of  information  on  the  European  Research  Area  through  the 

Ukraine national S&T information centre.  

31 

 
 
  
 
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  education  by  implementing  measures  that 

will enable Ukraine to adhere to the Bologna process. 

–  Involve  civil  society  stakeholders  and  social  partners  in  higher  education;  and 

VET reform; 

–  Address accreditation and licensing procedures;  

–  Use the existing programme Tempus III to explore the possibility of fostering the 
development  of  human  resources  and  human  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 opportunities 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  Ukrainians  through  participation  in  the 

Erasmus Mundus programme 

–  Reinforce  Ukrainian  participation  to  the  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  intercultural  dialogue  through  the  YOUTH 
programme 

Culture and audio-visual issues 

(68)  Enhance cultural and audio visual co-operation 

–  Consider support to cross border cultural links 

–  Develop a dialogue on cultural diversity, including in the context of the relevant 

negotiation in UNESCO 

–  Approximate  relevant  audiovisual  legislation  in  full  compliance  with  European 
standards (with a view to a possible future participation in the Media programme 
if prerequisites are fulfilled). 

–  Investigate the possibilities for co-operation in the framework of EU programmes 

in the field of culture. 

32 

 
 
  
 
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 cross-border co-operation 

Cross-border and regional level co-operation 

(70)  Enhance  contacts  and  cooperation  at  the  cross-border  and  regional  level  with 
neighbouring  new  EU  member  states  by  taking  up  the  opportunities  and  challenges 
arising from EU enlargement. 

–  Provision  of  support  to  the  regions  and  participation  in  the  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  programmes  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 Ukraine and the health indicator process underway 
in  the  EU.  Integrate  Ukraine  in  the  EUPHIN  health  information  and  knowledge 
system.  

Health information and knowledge: 

–  Exchange of information and know-how on health indicators and data collection; 

–  Invite relevant Ukrainian authorities as observers in the meetings of the Network 

of Competent Authorities. 

–  Explore  joint  technical  and  administrative  measures  necessary  to  integrate 

Ukraine in the EUPHIN system as it becomes fully operational. 

Communicable Disease Surveillance and Health Security (Epidemiological Surveillance and 
Control) 

–  Exchange information and technical expertise in order to facilitate participation in 
EU Network for the Prevention and Control of Communicable Diseases (Decision 
No 2119/98/EC) 

–  Participation in dedicated surveillance networks, in particular those collecting data 
and  information  on  HIV/AIDS,  sexually  transmitted  infections,  and  hepatitis  C 
and B. 

33 

 
 
  
 
–  Exchange  of  information  and  best  practice  in  implementing  measures  to  combat 

major communicable disease outbreaks. 

–  Exchange  information  and  technical  expertise  in  order  to  upgrade the laboratory 
capacity to facilitate the networking of relevant laboratories between Ukraine and 
the EU.  

–  To  enhance  the  building  up  of  human  capacity  to  develop  and  implement  joint 
public  health  projects,  which  address  the  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 need arise, on the EU 
side,  for  specific  measures  necessitating  legally  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 Action 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. 

34 

 
 
  
 
Glossaire 

EASA:  

European Aviation Safety Agency 

EUPHIN: 

European Public Health 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 Federation of Accountants 

IIA:  

ILO: 

Institute of Internal Audit 

International Labour Organisation 

INTOSAI: 

International Organisation of Supreme Audit Institutions 

IST 

NPP: 

Information Society Technologies 

Nuclear Power Plant 

OSJD:  

Organisation for Railway Cooperation 

OTIF:   

Intergovernmental Organisation for International Carriage by Rail 

TRACECA:  Transport Corridor Europe Caucasus Asia 

TRIPS: 

WTO Agreement on Intellectual Property 

UCTE   

Union for the Co-ordination of Transmission of Electricity 

WHO   

World Health Organisation 

WMD:  

Weapons of Mass Destruction 

35