Mikhail Margelov (chairman of the Federation Council Committee on Foreign Affairs): Mr Medvedev, we held a committee meeting earlier today, the first meeting of this autumn session. As we reached the miscellaneous part of our agenda, an issue was raised which is being widely discussed these days. Ukraine is moving in seven-leagued strides toward signing a so-called Norwegian-model agreement on associated membership with the European Union. True, this will create a free trade market. The EU is yet unlikely to show a great demand for Ukraine’s usual exports such as metals, coal and cars. They have even learned to make reasonably good lard in Germany, Hungary and Lithuania. So what policies could the Russian Government adopt – including legislative moves – to protect our markets? We are not questioning a sovereign state’s right to join any alliances, not in the least. We are talking about protecting our markets and producers from potential competition.
Dmitry Medvedev: This issue is giving rise to heated debates both in Russia and Ukraine. You have rightly called this Ukraine’s sovereign decision. Not long ago its Government decided to support an agreement on associated membership in the European Union. At the recent forum in the Crimea the Ukrainian President said they are ready to continue their rapprochement with the Customs Union and develop their cooperation. Next he made what I consider to be an impeccable legal remark – he said they would develop it only insofar as it does not contradict their associated membership agreement. At long last, our partners were so straightforward about their readiness to do this only insofar as they don’t violate their commitments to the EU. What does this mean? It means they won’t have a chance to join the Customs Union after they go in for the EU agreement, because the total number of commitments they are assuming… I looked through this agreement especially with Prime Minister Mykola Azarov – to show him the legal positions that will contradict Ukraine’s accession to the Customs Union. For some reason my colleagues had not studied them seriously.
This is a choice, a serious choice and I think our partners should be very frank with the Ukrainian people about this. This is what they should say: “We believe it is much better for our country to strike an alliance with Europe. Once we do this, everything will be well and we’ll develop as other European countries, for instance Greece or Cyprus. This is why we are making this decision. As for the Customs Union, they are no longer waiting for us there and we won’t get anywhere there.”
Regrettably, they are speaking in a somewhat different vein. They are saying they can keep a foot in both worlds, gaining the best advantages from both sides. I’ve discussed this issue with the President today. We recalled what they are saying to us once again – we’ll meet the Russians and explain everything to them; we are good guys and will be friends with you and will join unions here and there. No way! It is not worth cheating people. They should say honestly that this is their strategic choice. The Ukrainian leaders have the right to do this but they shouldn’t feel offended about the consequences that are bound to follow. After the association agreement is signed and enforced, and it reads that… I don’t know whether anyone has read it or not. I’ve read it and you must have read it too as an international expert, right? This agreement is not only binding but has a provision on its immediate entry in force even before ratification. It will become valid instantly and will be implemented in Ukraine even before it is ratified. Hence, the market will be open and quality European goods will flood the Ukrainian market at relatively low prices.
They will also try to enter our market but I’m sorry to say we’ll have to use all protective procedures and protocols that we have the right to use as a WTO member. We’ll simply restrict their access to these goods – both European and Ukrainian. In this case Ukraine will no longer be entitled to the special treatment – partnership treatment so to speak – that it has enjoyed until now. Yes, we’ll be friends and trade partners but we’ll trade with Ukraine in the same way as with our other partners – without any privileges – and, possibly, even with some restrictions considering what I’ve said earlier. Our partners should analyse all these consequences and problems that may be faced by enterprises located in Ukraine, especially its eastern part. Let them sell their produce in Europe – I hope it will be welcomed there. It meets European standards in quality and cost, so let them try to sell it. Nonetheless, sovereignty is important, the struggle for independence was serious, so I hope the Ukrainian people will not regret the decisions they have adopted.