- Ukraine’s new pro-West President Petro Poroshenko has signed The Association Agreement with EU in an attempt to save its economy and better its relations with the West. EU has also signed similar deals with Georgia and Maldova.
- This will increase Ukraine’s exports to the EU by more than a billion per year and also save money in revoked custom duties.
- The move has however angered Russia as it has worked against Putin’s idea of forming a Russia-led alliance to rival the NATO and EU. It has warned of increased trade restrictions on Ukraine.
- Russia is also facing an imminent threat of increased sanctions against it if it fails to support Ukraine in curbing the pro-Russian protesters who recently released two of the Organisation and Security and Cooperation in Europe (OSCE) monitors that they had abducted.
- Analysts believe that it is critical for Russia to maintain preferential trade and economic linkages with eastern Ukraine, and also that Ukraine’s economy will plunge by 5%.
- The EU pact together with IMF deal will facilitate political and economic reforms in Ukraine.
- Read at:http://www.thehindu.com/todays-paper/tp-international/ukraine-signs-landmark-deal-with-eu/article6156993.ece