CELEX: 52004PC0791
Language: en
Date: 2004-12-09
Title: 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

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
 ---pagebreak---                              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
        COM(2003)104
2
        COM(2004)373
                                                2
 ---pagebreak--- The Commission therefore requests the Council to adopt the attached proposal for a Council
Decision.
                                          3
 ---pagebreak---                                         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)    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;
(2)    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
 ---pagebreak--- Done at Brussels,
                  For the Council
                  The President
                    5
 ---pagebreak---                                               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)     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.
(2)     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.
(3)     The Parties to the Partnership and Cooperation Agreement have agreed on the text of
        the EU-Ukraine Action Plan.
(4)     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.
(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 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
 ---pagebreak---                                             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
 ---pagebreak--- • 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
 ---pagebreak--- • 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)
              elections, in accordance with OSCE standards and OSCE/ODIHR
              recommendations, including on the media;
           – Ensure that any further legislative reforms be conducted in line with international
              standards;
                                                 9
 ---pagebreak---       – 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
 ---pagebreak---       – 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
 ---pagebreak---        – 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
 ---pagebreak---       – 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
         financial modalities for possible participation by Ukraine in EU crisis
         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
 ---pagebreak---          – 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
            economic operators to ensure transparency (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 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
 ---pagebreak--- 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
 ---pagebreak--- (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
 ---pagebreak---        – 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 international trade related
           documentation and control starting by increased 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 Ethics Policy based on internationally
           recognised standards (Arusha Declaration).
                                             17
 ---pagebreak---        – 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
 ---pagebreak---          – Analyse legislation and administrative procedures in order to identify and
           progressively remove discrimination 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 (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
 ---pagebreak--- 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 information on 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.
          – Encourage adoption of a code on corporate governance.
                                                20
 ---pagebreak--- 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
 ---pagebreak--- 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
 ---pagebreak--- 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
 ---pagebreak---          – 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
 ---pagebreak--- 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
 ---pagebreak---          – 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
 ---pagebreak---       – 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
         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 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
 ---pagebreak---        – 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
 ---pagebreak---        – 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
 ---pagebreak--- (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
 ---pagebreak---         – 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
 ---pagebreak--- 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
 ---pagebreak--- 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
 ---pagebreak---           – 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.
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 ---pagebreak--- 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:      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 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
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