The EU's response to the crisis in Ukraine - EPP Group Policy Paper

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EPP Group Policy Paper

      The EU’s response
      to the crisis in Ukraine

EPP Group
in the European Parliament
Th e EU ’s re s p o n s e to th e c ris is in U k ra in e
                                      EPP Group Policy Paper

EPP Group Policy Paper

The EU’s response
to the crisis in Ukraine
Th e EU ’s re s p o n s e to th e c ris is in U k ra in e
                                                                                             EPP Group Policy Paper

    Table of Contents

       Introduction                 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �             5

       1. Supporting the reform efforts                                                   � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �   7
       2. Restrictive measures � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 11
       3. Strengthening security                                       � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �      13
       4. Enhancing energy security � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 17
       Conclusion              � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �      19

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Th e EU ’s re s p o n s e to th e c ris is in U k ra in e
                                                            EPP Group Policy Paper

    Introduction
    > > The people of Ukraine spoke clearly and decisively in favour of peace, stability,
        and a European, pro-reformist course for their country in the early parliamentary election
        of 26 October. The Ukrainian authorities received double legitimacy this year through
        the presidential and parliamentary elections and a mandate to pursue this course with
        determination. The parliamentary election was pluralist, conducted orderly, fairly and
        in accordance with internationally-recognised standards.

    >> Today, Ukraine has again a unique opportunity to modernise, develop, prosper and
       establish a genuine democracy and rule of law. Citizens of Ukraine expect their leaders
       to deliver and cooperate pragmatically, not to engage in paralysing quarrels as was the
       case in the not very distant past. The swift constitution and the participation of all pro-
       European and pro-reformist parties in the new government is a very positive signal.

    >> The European Union is at a critical juncture. Russia’s aggressive and expansionist policy
       constitutes a threat to the unity and independence of Ukraine and to the European Union
       itself. Considering the latest developments in Ukraine, the EU should not be naive and
       must be ready to provide a strong and effective answer to the crisis. The principle of
       international law agreed by all European countries, including Russia, is the respect of the
       right of any sovereign country, including Ukraine, to have full freedom to decide about its
       political association and economic integration without external interference. Freedom,
       democracy, sovereignty, territorial integrity and the rule of law are not negotiable.

    >> In the coming months, Ukraine faces the following main challenges: the occupation and
       annexation of some parts of its territories, the implementation of the Minsk Agreements,
       and an ambitious reform agenda. The role of the European Union is to actively engage in
       supporting and assisting in this substantial reform effort. The end goal is for Ukraine to
       come out of the current crisis as a showcase of successful reforms which will benefit the
       people and change their lives for the better.

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                                                              EPP Group Policy Paper

    1. Supporting
         the reform efforts
    > > Ukraine needs to introduce necessary                > > In this difficult war environment,
        deep and comprehensive economic, social                 Ukraine will have to tackle the
        and political reforms on the basis of                   substantial reform agenda in parallel
        a social market economy. The country                    to the crisis situation in the East.
        needs a competitive economic system                     The reform programme proposed by
        which provides a level playing field for                President Poroshenko, including laws
        everyone. It needs a justice system which               on anti-corruption, decentralisation and
        follows the letter and spirit of the law                amnesty, is a step in the right direction
        and is independent. A new constitution                  and needs to become a reality.
        should strengthen transparency and
        clearly distinguish the competences of              >> Ukraine’s financial situation is of critical
        the main authorities, thus avoiding an                 importance. A country that is under
        unnecessary power struggle. The process                external attack and at the same time needs
        of decentralisation must not destroy the               to drive forward deep and comprehensive
        unity of the country and the authority                 reforms needs substantial support to
        of the central government in crucial                   tackle its expenditure. The EU’s 11 billion
        issues such as internal and external                   Euro package will support Ukraine over
        affairs, economic order and policy.                    the next few years, including the Macro
        The country’s financial system will give               Financial Assistance and the loans
        more competence and responsibility to                  from the IMF, the World Bank and
        the regions and in effect bring decisions              the EU-based International Financial
        closer to the people. A main priority is               Institutions. Financial assistance should
        to eradicate systemic corruption. It is the            be provided in a more flexible and swift
        cancer in the fabric of Ukrainian society              manner thus adjusting their conditions
        and political life.                                    to the specific circumstances of Ukraine.
                                                               However, it should be firmly dependent

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                     EPP Group Policy Paper                                                                                                                 EPP Group Policy Paper

    on the achievements of conditions against              the EU acquis that is part of the AA/       bilateral assistance by EU Member                      whilst Ukrainian authorities should set
    which the reform progress would be                     DCFTA.                                      States’ parliaments.                                   up an EU Integration and Assistance
    measured. In this context, we call for                                                                                                                    Coordination Ministr y base d on
    an international donor conference in                >> The EPP Group stands ready to step        >> Swifter and more substantial technical                similar experience in Central European
    December 2014 and the setting-up                       up the involvement of the European           assistance should be provided by the                  countries. Such an office should be
    of a new “European Marshall Plan for                   Parliament in supporting the work            European Commission’s “Ukraine                        vested with sufficient implementing
    Ukraine”.                                              of the Verkhovna Rada on European            Support Group”. Reform can only be                    and administrative powers to monitor,
                                                           affairs. The activities of the future        enforced when administrative capacities               sup er vise and ana lyse the reform
> > T h e A A / D C F TA i s r a t i f i e d . It          Parliamentary Association Committee          are streng thened. To this end, EU                    progress. The visibility, accountability
    cannot and will not be changed. The                    should aim at strengthening democracy        Institutions and Member States should                 and transparency of using the EU’s and
    implementation of the AA/DCFTA                         and the visibility of the EU in Ukraine      deploy as many technical advisers as                  international donors’ assistance must be
    should constitute the roadmap for                      and could provide a framework for            possible to assist in its implementation,             ensured.
    reform in Ukraine. It is regrettable
    that the Russian leadership has so far                                                                                                                >> The European Union needs to strength-
    perceived the EU-Ukraine AA/DCFTA                                                                                                                        en the Ukrainian civil society. It already
    as a threat to its own interests. On the                                                                                                                 functions as an effective watchdog ,
    contrary, the agreement represents                                                                                                                       exerting necessary pressure and assist-
    potential gains for Russia through                                                                                                                       ing the authorities in delivering on their
    increased trade and economic activities                                                                                                                  promise of reforms.
    and a more stable neighbourhood. Given
    the agreed timeline for implementing                                                                                                                  >> It is important for the EU, along with
    the AA/DCFTA, Russia has no grounds                                                                                                                      the Ukrainian authorities, to devote
    to criticise the EU-Ukraine Agreement                                                                                                                    further attention to the humanitarian
    or to react with unjustified trade                                                                                                                       crisis in Ukraine resulting from Russia’s
    restrictions and military aggression.                                                                                                                    aggression. The EU should provide
    The prolongation of the autonomous                                                                                                                       further funding to cope with the dire
    trade measures is a de facto deepened                                                                                                                    humanitarian conditions, in particular
    asymmetrical implementation of the                                                                                                                       the situation of Internally Displaced
    agreement. Ukraine should make best                                                                                                                      Persons in Ukraine.
    use of the time until 31 December 2015
    to speed up the implementation of

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     2. Restrictive                 measures

     >> Russia’s military intervention and occu-               illegitimate “vote” in parts of Donbas on
        pation of Ukrainian territory is in breach             2 November, following the principle of
        of international law and Russia’s own                  “more for more”.
        commitments resulting from the UN
        Charter, the OSCE Helsinki Final Act               >> The European Union should work on a
        and the Budapest Memorandum.                          communication strategy to counter the
                                                              Russian propaganda campaign directed
     >> As long as Russia does not fully respect              towards Europe, Ukraine and Russia it-
        and deliver on its Minsk commitments                  self.
        and does not change its course of action
        in Ukraine, the EU will maintain its               >> In the light of the international investi-
        restrictive measures against it. The Minsk            gation led by the Netherlands into the
        commitments include, in particular, the               downing of the Malaysia airlines flight
        full and unconditional withdrawal from                MH17 on Thursday 17 July, the EU
        Ukraine of all Russian troops, illegal                should continue to insist on all parties
        armed groups, military equipment,                     involved to guarantee immediate, safe
        militants and mercenaries, the permanent              and unrestricted access to the MH 17
        monitoring and verification of the                    crash site.
        Ukrainian-Russian border by the OSCE
        Special Monitoring Mission and the
        exchange of prisoners, including Nadiya
        Savchenko. The EU should be ready
        to step up its restrictive measures and
        broaden its scope, in case of any further
        Russian escalation and destabilisation
        of Ukraine, such as the illegal and

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                                                               EPP Group Policy Paper

     3. Strengthening                            security

     >> On 16 July, the Council of the European                  forces need a substantial overhaul. In
        Union lifted the arms embargo on                         this regard, the transformation of the
        Ukraine. There are now no objections,                    armed forces of the EU Member States
        including legal restrictions, for Member                 who belonged to the former Warsaw Pact
        States to provide arms to Ukraine, which                 provides a wealth of experience. The EU
        could be based on a “lend-lease” style                   could assist the Ukrainian authorities in
        arrangement.                                             conducting this task, notably within the
                                                                 framework of the CSDP which already
     > > The immediate task is to strengthen                     provides training missions for armed
         Ukraine’s defence capabilities as requested             forces in other parts of the world.
         by its authorities. This includes: soldier
         protection and individual equipment,                > > The work of the O SCE Spe cia l
         weapons, anti-tank missile systems,                     Monitoring Mission is of crucia l
         munitions, surveillance, intelligence,                  importance for reducing tensions and to
         communications, enhancement of the                      help foster peace, stability and security.
         navy to be able to defend the Black Sea                 Its effects on the ground however have
         coast, and air defence systems including                to be stepped up in order to provide
         anti-aircraft and combat training                       effective control and verification of
         facilities. The EU should explore ways to               the Ukrainian-Russian border while
         support the Ukrainian Government in                     upholding the objectivity of its actions.
         enhancing its defence capabilities.
                                                             >> The foreseen deployment of the CSDP
     >> Ukraine can only function properly once                 EU Advisory Mission to Ukraine is a
        effective law enforcement, intelligence                 first step towards providing assistance
        and defence sectors are in place. The                   to the civilian sector reform, including
        Ukrainian defence structures and armed                  police and the rule of law. The EU

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T h e E U’s r esponse to the cr isis in Ukr aine   Th e EU ’s re s p o n s e to th e c ris is in U k ra in e
                    EPP Group Policy Paper                                                   EPP Group Policy Paper

     should deploy, if requested by the
     Ukrainian authorities, an EU monitoring
     mission to provide an effective control
     and monitoring mechanism of the
     Ukrainian-Russian border.

> > The EU should update its Security
    Strateg y to respond to the new
    geopolitical situation, especially with
    regard to a new threat of hybrid war, as
    well as enhance the CSDP cooperation
    with its Eastern partners.

>> At the last NATO Summit, the Allies
   reaff irme d NATO’s supp or t for
   ‘Ukraine’s sovereignty, independence
   and territorial integrity’. The EU should
   significantly enhance the coordination of
   its security response with that of NATO
   which remains a decisive framework for
   action.

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Th e EU ’s re s p o n s e to th e c ris is in U k ra in e
                                                             EPP Group Policy Paper

     4. Enhancing
               energy security
     >> The EU’s only viable answer to Russia’s            >> The radical enhancement of the EU’s
        threat is to stand together and speak with            energ y security by decreasing its
        one voice. This also includes a genuine               dependency on Russia and increasing
        Common External Energy Policy as well                 its resilience to external pressure is of
        as the creation of a European Energy                  the utmost importance. This includes
        Union. The agreement between the EU,                  the strengthening of indigenous energy
        Russia and Ukraine under the leadership               sources, energy efficiency and renewables
        of the then European Commissioner for                 as well as import diversification through
        Energy, Günther Oettinger (EPP) on                    partnerships with, among others, the
        the winter package of 30 October 2014,                US, Norway and the Mediterranean.
        represents a crucial and binding step                 The development of infrastructure and
        which should secure the delivery of gas               interconnectors, among Member States
        by Russia until March 2015. However,                  and our neighbourhood countries, is
        the public statements of Russian                      a priority project of common interest.
        Energy Minister Alexander Novak that                  Furthermore, reverse flow technology
        the agreement was not binding, are                    is key to establishing a g enuinely
        unacceptable.                                         independent EU energy market.

                                                           > > As a result of Russia’s pressures on
                                                               Ukraine, the Ukrainian gas market is in
                                                               a desperate state. EU financial assistance
                                                               should be provided to Ukraine to rebuild
                                                               and modernise its pipeline network.
                                                               The Ukrainian Government should be
                                                               encouraged to reform its energy sector
                                                               in order to increase energy efficiency and
                                                               phase out wasteful subsidies.

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                   EPP Group Policy Paper                                                                                                                               EPP Group Policy Paper

                                                                                                               Conclusion

>> Pipeline projects in our neighbourhood                countries to the EU, independently from               > > Russia is a party to the UN Charter,               > > Europe today, having drawn lessons
   have to undergo a critical review that                Russian gas geopolitics.                                  the Helsinki Final Act, the Budapest                   from the dark past of the world wars,
   takes the current political situation                                                                           Memorandum and the Russia-NATO                         is founded on the principle of respect
   fully into account. The South Stream               > > L a s t l y, w e h a v e t o s e e k t h e f u l l       Founding Act and a member of the                       for international law. It is confronted
   project is politically not viable and                  enforcement of the internal common                       Council of Europe. It is a country                     with a conflict that has revived the
   should be stopped. Instead, projects                   energy market, including the 3rd Energy                  firmly rooted in international legal                   tragic memories of years long gone
   that create diversification of energ y                 Package. The pending court case against                  commitments and obligations. There                     when democracy and freedom could
   supply have to be given priority. This                 Gazprom needs to be immediately                          is no argument for the use of military                 not be taken for granted. This is why
   entails the resurrection of the Nabucco                pursued and the ruling enforced without                  force in Europe in defence of so-called                an EU response based on appeasement
   pipeline and further projects that can                 exception.                                               historical and security reasons or for                 would encourage Russia to expand its
   link the South Caucasus, the Middle East,                                                                       the protection of one’s minority living                hybrid war tactics to other neighbours.
   the Mediterranean and Central Asian                                                                             abroad. This policy cannot be accepted                 In this regard, the re-enactment of the
                                                                                                                   in the 21st century.                                   Crimean scenario in Transnistria must
                                                                                                                                                                          be prevented.
                                                                                                               > > Ukra ine is facing an unde clare d
                                                                                                                   hybrid war waged by Russia. It is a                > > There cannot be growth in the EU
                                                                                                                   multidimensional conflict which blends                 without stability around us. Our master
                                                                                                                   elements of cyber warfare, use of regular              plan has to include strategies to turn
                                                                                                                   and irregular forces, propaganda, economic             the current “ring of fire” into a “ring of
                                                                                                                   pressure, energ y blackmail, political                 friends”. In these adverse circumstances,
                                                                                                                   destabilisation and diplomacy. The illegal             the need for solidarity among Member
                                                                                                                   annexation of the Crimean Peninsula                    States is more important than ever and
                                                                                                                   was the first case of the forceful change              should also be reflected in the readiness
                                                                                                                   of borders and incorporation of a part of              of practical support for those frontline
                                                                                                                   one country by another in Europe since                 Member States which might face the
                                                                                                                   World War Two.                                         same threat.

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T h e E U’s r esponse to the cr isis in Ukr aine
                    EPP Group Policy Paper

>> The new HR/VP Federica Mogherini,
   together with Commissioner Hahn,
   should undertake ever y step and
   initiative within their power to facilitate
   a political solution of the Ukraine crisis
   respected by all parties involved and
   which avoids a frozen conflict scenario
   in Eastern Ukraine and Crimea.

> > By providing support for Ukraine,
    the EU provides support and security
    for itself. The credibility of the EU
    diplomatic effort must be coupled with
    the determination to de-escalate the
    conflict while remaining firm on our
    values by helping Ukraine to sustain its
    independence, sovereignty, unity and
    territorial integrity.

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EPP Group
in the European Parliament

Published by:	EPP Group in the European Parliament
               Press and Communications Service
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Copyright:	EPP Group in the European Parliament
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