Ukraine Prepares To Sign EU Trade Deal

Ukraine Prepares To Sign EU Trade Deal That Was At The Center Of The Euromaidan Protests -- IBTimes

Ukraine is finally set to sign the trade agreement with the European Union that became the focal point of nationwide protests against pro-Moscow leader and former President Viktor Yanukovych last fall and ultimately led to his ouster, the Associated Press reported Wednesday.

The agreement with the EU, expected to be signed Friday, contains a framework of regulations for Ukraine to follow to reduce corruption and resurrect the debt-ridden economy, AP reported. The EU deal was to be signed by Yanukovych, but he instead made the fateful decision to enter into a bailout agreement with Russia, triggering months of violent protests across the country. The protests led to his ouster in February and eventual flight to Moscow.

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Update #1: Ukraine to Sign EU Deal That Sparked Revolution -- Time/AP
Update #2: Russia Threatens Trade Barriers Against Ukraine -- Moscow Times/Reuters
Update #3: Ukraine's funeral if they sign EU trade deal - Putin economic aide -- RT

My Comment: This issue makes me worry on what will happen next. Russia is Ukraine's number one trading partner .... and they have enjoyed a duty-free and preferred trading status with Russia since the breakup of the old Soviet Union. But Russia has made it very clear that a Ukraine - EU trade deal will abrogate existing trade agreement with Russia .... including the duty-free provisions. I know that if Russia makes good on it's threat to get rid of these duty-free provisions .... the impact will be enormous .... but even with this threat the decision has been made in both Kiev and Western governments that this deal must go through.

What's my prediction .... I know that the EU does not have the billions that will be necessary to offset any Russian retaliation to this trade deal .... as a result ..... Ukrainians should prepare themselves for higher inflation and higher unemployment. And on the flip side .... I regret to say that I do know some Russians and Ukrainians with deep pockets who are waiting for this deal to go through .... knowing that in the short to medium term there will be deals to be made when the economic crisis hits.