New co-operation agreement with Ukraine 

On his first visit to Brussels since he took office, Prime Minister Viktor Yanukovich discussed Ukraine’s political situation, the prospects for developing bilateral cooperation, cooperation in the areas of energy, as well as the main objectives of the new co-operation agreement.

The Commission on 13 September 2006 proposed negotiating directives for a new agreement with Ukraine, which will extend the Partnership and Cooperation Agreement in place. External Relations Commissioner Benita Ferrero-Waldner welcomed the proposal for the new agreement and said this would "help reinforce our partnership with Ukraine and bring us closer together by stepping up our co-operation in a wide range of areas".

As a condition for the opening of negotiations on a Free Trade Area, the Commission wants Ukraine to adopt the remaining legislation necessary for its WTO accession. Ukraine started negotiating its membership with the WTO in 1994. Trade Commissioner Peter Mandelson said "The new agreement will aim to build on Ukraine’s forthcoming accession to the WTO with an FTA that creates a strong foundation for closer trade and economic relations between the EU and Ukraine."

The proposed negotiating directives will now go to the Council for approval, with a view to beginning negotiations early in 2007.

Following a meeting with NATO's Secretary General Jaap de Hoop Scheffer, Yanukovich said that he preferred to put the plans on hold, due to public scepticism, as well as concerns about Ukraine's relations with Russia. He said "because of the political situation with Ukraine we will now have to take a pause, but the time will come when the decision will be made".