Ukraine has set its face towards Russia again

The Prime-Minister of Ukraine started talking about collapse of the Ukrainian economy if it were to associate with the European Union and insistently recommended renewing friendship with Russia.

According to the speech of head of the Ukrainian government Nikolay Azarov delivered at the opening of a regular meeting of the Cabinet of Ministers, 25 percent decrease of export to Russia bears the threat of closing of the Ukrainian enterprises, mass layoffs, drop in budget income and decrease of social standards.

"You can add sky-high gas prices, prices for oil and the export duties for it, which brought the domestic oil processing to a halt. And it is obvious for every person, who feels responsibility for the fate of Ukraine, that normalization of the relations with Russia is the issue of top priority for the national politics," said the Prime-Minister.

Azarov has emphasized that nobody has offered a compensation for loss of this market and never will.

"Russia increasingly fences itself off from the Ukrainian goods with protective duties, which are, according to the conditions of joining the World Trade Organization, about two times higher than the ones we have. Consequently appeal to the WTO intermediation will not necessarily help in this case," added Azarov.

The Prime-Minister mentioned that meetings at the level of the presidents of Ukraine and Russia were devoted to settlement of the problems in bilateral relations.

"This is the main position of all my negotiations with the chairman of the government of the Russian Federation. The last negotiations resulted in mutual understanding that the existing situation does not correspond to the long-term interests of either Ukraine or Russia. There is an agreement of settlement of several problems," added Azarov.

He has emphasized that the President Viktor Yanukovych commissioned the government with taking several measures to unblock the cooperation with the Russian Federation.

"First of all we must accelerate the harmonization of the customs rules and technical rules of procedure, norms of defining the country of origin of the goods and the other technical issues. It is necessary to do the inventory of the Ukrainian-Russian agreements in the sphere of the foreign economic activities and actualize them, considering the mutual benefits and protection of our national interests," said Azarov.

Earlier, when the government of Ukraine voiced the intentions of signing the association agreement with the European Union, it has ignored the solid arguments of the voluntary group activists and the managers of enterprises that economic shocks await Ukraine.  Yesterday, 17 days before the meeting in Vilnius, the industrialists and entrepreneurs during the meeting with Viktor Yanukovych asked him to postpone signing the association agreement, justifying their request with trade problems and unreadiness to compete with Ukrainian goods at the European market.

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