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October 20, 2006

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Reference ID Created Released Classification Origin
06KYIV4063 2006-10-20 16:39 2011-08-30 01:44 CONFIDENTIAL Embassy Kyiv

DE RUEHKV #4063/01 2931639
P 201639Z OCT 06

C O N F I D E N T I A L SECTION 01 OF 02 KYIV 004063 
E.O. 12958: DECL: 10/20/2016 
REF: KIEV 3569 
Classified By: Political Counselor Kent Logsdon for reasons 1.4(b,d) 
1. (C) Summary:  With just a week to go, the EU and Ukraine 
are still working to finalize a key document to be initialed 
at the October 27 Ukraine-EU summit in Helsinki -- a visa 
facilitation agreement and an associated readmission 
agreement.  Ukrainians are insisting that the provisions of 
the readmission agreement be suspended for a three-year 
transitional period; the EU is insisting on two years.  With 
the long process of government formation after the March 
parliamentary elections, the EU and Ukrainian MFA did not 
have the normal lead-time to prepare for the summit.  In 
addition to the visa facilitation and readmission agreements, 
the EU and Ukraine will note completion of a memorandum of 
cooperation on agriculture and agreements supplementary to 
the Ukraine-EU memorandum on energy signed at the 2005 
summit.  In another sign of governmental discord, the 
Ukrainian MFA has still not provided the EU presidency of 
Finland's embassy with its delegation list.  During his 
October 19 visit to Kyiv, EU High Representative Solana 
stressed the importance of WTO accession as a key step toward 
establishment of a Ukraine-EU free trade agreement.  End 
Schedule and Delegation 
2. (C) Finnish Embassy 2nd Secretary Jukka Pajarinen provided 
an update during an October 20 meeting on preparations for 
the October 27 Ukraine-EU summit to take place in Helsinki. 
President Yushchenko would arrive in Helsinki on the evening 
of October 25, make a bilateral visit October 26, and then 
the summit with the EU would take place October 27 as a 
two-hour meeting, followed by lunch and a press conference. 
Yushchenko and his delegation would return to Ukraine the 
same evening.  Pajarinen noted the Ukrainian government had 
yet to provide the delegation list, but it should include 
representation from the Ministry of Economy, probably the 
Minister, and the Minister of Health, who would take part in 
a health-related meeting that would take place in Helsinki 
along with the summit meeting.  Pajarinen opined the 
delegation might not apply to the Finnish Embassy for visas 
until the morning of the very day that the delegation would 
Sticking Points 
3. (C) At an October 18 lunch, Ukrainian DFM Andriy 
Veselovskiy pleaded with EU Special Representative for 
Moldova Adriaan Jakobovitz de Szeged for EU flexibility and 
agreement on issuing a joint communique after the summit.  He 
said such communiques were a useful listing of 
accomplishments between Ukraine and EU over the past 12 
months; communiques had been issued after summits for a 
decade, and the absence of a communique would be interpreted 
as a downgrading of the relationship.  Prime Minister 
Yanukovych had made two trips to Brussels in a short space of 
time, and the Ukrainian government needed to demonstrate that 
his special effort had been productive.  Veselovskiy said he 
was particularly concerned at how the Russian media would 
distort the change in procedure. 
4. (SBU) EU Secretariat staffer Annika Weidemann, also in the 
conversation, pointed out to Veselovskiy that the EU was 
increasingly moving away from joint communiques and, in fact, 
had stopped the practice after EU-Russia meetings several 
iterations ago.  She rejoined that the Ukrainian government 
could play the absence of a communique as a move that brought 
Ukraine on a parity with Russia.  Pajarinen said later that 
both sides are working on a text, with a decision to be made 
on whether the text would be a "communique" or a press 
5. (C) Veselovskiy also offhandedly noted the readmission 
agreement, which is part of a package that includes a visa 
facilitation agreement (see reftel), was nearly completed and 
included a suspension of the agreement's provisions for a 
two-year period.  He mildly remarked that the transition 
period was less than the three years given the Russians. 
Pajarinen said the Ukrainians were still continuing to insist 
on a three-year transitional period, arguing that the similar 
Ukraine-Russia agreement was not going to enter into force 
for three years.  If the Ukraine-EU agreement were to become 
effective earlier, Ukraine would not be able to repatriate 
illegals to Russia that had transited Ukraine into the EU. 
6. (C) Pajarinen said, if the Ukrainians did not agree to two 
KYIV 00004063  002 OF 002 
years, the agreement would probably not be initialed in 
Helsinki.  The EU was arguing that, since the Russia 
readmission agreement had been signed earlier, the Russian 
and Ukrainian agreements were likely to become effective at 
about the same time.  A second three-year transition period 
would set a bad precedent for ongoing EU discussion with 
Balkan countries and Pakistan.  Pajarinen said the EU 
position was that
the visa facilitation provisions were more 
favorable to Ukraine than the equivalent Russian agreement, 
so the total package was better for Ukraine.  The EU was 
prepared to provide the 170 million euros that Ukraine said 
would be necessary to prepare additional detention facilities 
and upgrade border controls, but this sum would be taken out 
of the existing assistance pot for Ukraine. 
Solana's Visit 
7. (C) Pajarinen said EU High Representative for the Common 
Security and Foreign Policy Javier Solana's October 19 visit 
to Kyiv had touched only tangentially on the upcoming summit. 
 Solana met with newly appointed NSDC Secretary Vitaly 
Haiduk, of whom he formed a good impression, had a meeting 
and lunch with PM Yanukovych, met with opposition politician 
Yuliya Tymoshenko, received a Ukrainian government award, and 
then dined privately with President Yushchenko.  He left 
early on October 20. 
8. (C) Solana reported to EU ambassadors that he had a frank 
discussion with Yanukovych, who Solana thought was working 
earnestly to improve Ukraine's economic conditions.  Solana 
had emphasized the importance of Ukraine's joining WTO, a 
prerequisite to any discussion of establishing a Ukraine-EU 
free trade agreement.  Yanukovych had responded he hoped to 
obtain passage of WTO-related legislation by the end of 
November with the hope of joining WTO by March 2007.  In 
general, Solana had the impression that Ukraine needed 
greater political stability and less influence of business 
interests in forming government policy. 
9. (C) According to Pajarinen, during his meeting with 
Yanukovych, Solana had stressed the importance of getting an 
agreement on visa facilitation and readmissions, since the 
package would be the only tangible deliverable for the 
summit.  In an interview with the weekly, English-language 
Kyiv Post, EC Representative to Ukraine Ian Boag also noted 
preparation of a memorandum of cooperation in agriculture, 
which would fill in an area not addressed in the Ukraine-EU 
Action Plan, and a follow-up to the memorandum of 
understanding on energy.  Pajarinen told us the memorandum on 
agriculture had been signed earlier during the week of 
October 16 in Brussels, which fact would be noted at the 
10. (U) Visit Embassy Kyiv's classified website: 



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