UK Relations with Ukraine

Simon Hughes Excerpts

Tuesday 10th December 2013 Westminster Hall

[Mr Swire]

Not to date, but we—together with our EU partners—had hoped that the EU-Ukraine relationship would enter a new and fundamentally different phase following signature of the association agreement, which includes a deep and comprehensive free trade area, at the Eastern Partnership summit in Vilnius on 28 and 29 November. What we have made a study of is the benefit that the agreement would bring to Ukraine and Ukrainian companies. It would give Ukrainian companies access to a market of 500 million consumers. Reliable studies have shown that GDP and wages would rise, and closer economic integration through the deep and comprehensive free trade area would be a powerful stimulant to Ukraine’s economic growth.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

I am fully supportive both of the people in the Ukraine and their democratic rights, and of the policy of Her Majesty’s Government here. However, does the Minister accept that there is some understandable nervousness—I can see it in the Government of Ukraine—that to suddenly change the relationship with the EU to one where there are much more open trading agreements could force tariffs in relation to the trade with Russia, and that therefore the right way forward, given where we are now, is to encourage negotiation between all the parties so that there is an agreed policy, with Russia, Ukraine and the EU growing together in the future?

[Mr Swire]

My hon. Friend the Member for Maldon mentioned the economic troubles in Ukraine at the moment and it is our assessment that an early benefit would be brought about by Ukraine signing this agreement, which would far outweigh any negative impact in resulting loss of trade—as he sees it—with Russia. Approximation to EU legislation, standards and norms will result in higher-quality products and improved services for citizens, and will improve Ukraine’s ability to compete in international markets.

As I say, my hon. Friend mentioned the economic challenges that Ukraine faces at the moment. I hope that the Ukrainian authorities can reach an agreement with the International Monetary Fund on a new stand-by arrangement. That is in Ukraine’s hands, and it is in Ukraine’s interests to entrench fiscal and financial stability by advancing structural reforms. Doing so will increase Ukraine’s ability to withstand external pressures.

The Government and, I am sure, Members from all parties in this House look to the Ukrainian Government—working collaboratively with opposition parties, civil society and business—to show the necessary political will and commitment to enable signature of the association agreement to go ahead in the near future. That means continuing with the reforms that are already under way, and ensuring that the parliamentary elections that will be rerun on 15 December are conducted in accordance with international standards.

When Ukraine is ready to sign, under this Government or a future Government, it will find the UK to be a willing partner that is ready to lend support and assistance on the road to a closer relationship with the EU. As the Prime Minister and other EU leaders made clear to President Yanukovych at Vilnius, the EU’s door remains open; it is Ukraine’s choice whether to walk through it.

Before I close, let me touch on Russia’s role. We have all seen and read reports about the pressure that Russia has been bringing to bear on Ukraine and many of its businesses. Any such pressure is unacceptable. In the modern world, every country should respect the sovereignty of others and their right to enter into the agreements that they consider appropriate. And I hope that Russia can understand that this is not a zero-sum game. The association agreement will help Ukraine to modernise and transform its institutions and economy. Ukraine will become more prosperous. That is in everyone’s interests, including Russia’s.

We continue to follow developments in Ukraine very closely, and we are in touch with the EU institutions and with other member states. As my hon. Friend the Member for Maldon will be aware, Baroness Ashton, Vice-President of the European Commission and EU High Representative for Foreign Affairs, has travelled to Kiev and will encourage all parties to engage in constructive dialogue. And as my right hon. Friend the Minister for Europe set out in his written ministerial statement earlier today, the Government continue to urge all parties to remain calm and to avoid actions that could lead to an escalation of the situation or the restriction of personal freedoms.