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March, 30 2010 INFORMATION On the EU-Ukraine Association Agenda implementation

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Page 1: ІНФОРМАЦІЯ - kmu.gov.ua · Web viewDevelopment of the Ukrainian legislation on technical regulation, standardisation, conformity assessment, market surveillance, metrology

March, 30 2010

INFORMATION

On the EU-Ukraine Association Agenda implementation

To be considered at the Association Agenda Joint Committee at Senior Officials Level Videoconference

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Information on the EU-Ukraine Association Agenda implementation

European integration remains for Ukraine the key priority in its foreign policy and the strategy for carrying out our strategic social and economic reforms. This was proved during the meetings of the President of Ukraine Viktor Yanukovich with the leaders of the EU (1 March 2010, Brussels).

Taking into account the exceptional importance of the process of European integration, Prime Minister of Ukraine Mykola Azarov will personally supervise the negotiations between the governments of Ukraine and the EU. The Government Committee on Reforms has been established under his leadership. It includes Vice-Prime-Ministers, Minister for Foreign Affairs, Minister of Economy, Minister of Finance, Minister of Justice, Minister of Labor and Social Policy, Minister of the Cabinet of Ministers and deputy ministers of industrial and agricultural policy (resolution of the Cabinet of Ministers of Ukraine of 17 March 2010, № 460).

Government of Ukraine made a decision that the Vice-Prime-Minister of Ukraine Serhiy Tyhypko would coordinate the policy of Ukraine’s integration into the EU. His competence also includes the issues of Euro Atlantic integration, cooperation with Council of Europe, approximation of the Ukrainian legislation to that of the EU, cross-border cooperation, etc (resolution of the Cabinet of Ministers of 17 March 2010, № 456).

POLITICAL DIALOGUE

Strengthen the stability, independence and effectiveness of institutions guaranteeing democracy and the rule of law and in particular:

1. Promoting an inclusive constitutional reform process designed to further develop a constitutional system of effective checks and balances between state institutions, in the light of the relevant recommendations of the Venice Commission

Election program of the President of Ukraine Viktor Yanukovich provides that the constitutional reform will be intended on the democracy development, local self-government, protection of rights and freedoms of citizens. The agreement about the establishment of the coalition of deputy’s fractions “Stability and reforms” in the Verkhovna Rada of Ukraine of the sixth convocation foresees the improvement of government’s mechanisms, strengthening the foundation of parliamentarianism and democracy.

Measures are being taken to provide the efficient interaction of the Government of Ukraine with the President of Ukraine and the Parliament with the view of creating a qualitatively new condition for the system reforms implementation.

2. Work closely together in reforming and enhancing the capacity of the public administration system in Ukraine on the basis of an assessment by SIGMA, including an effective fight against corruption

The Coalition agreement of deputy’s fractions “Stability and reforms” foresees the increase of level of the government’s effectiveness.

The Cabinet of Ministers of Ukraine distributed the competences between the First Vice-Prime-Minister, Vice-Prime-Ministers and the Minister of the Cabinet of Ministers (resolution of the Cabinet of Ministers of Ukraine № 456 of 17.03.2010).

Particularly, the Vice-Prime-Minister of Ukraine Serhiy Tyhypko competence includes the issues of the public administrations reforms; Vice-Prime-Minister of Ukraine Viktor Tykhonov competence – administrative-territorial reform; executive bodies and local self-government bodies’ reforms at the local and regional level.

The competence of the Minister of the Cabinet of Ministers Anatoliy Tolstoukhov includes the following issues: conduction of the administrative reform; improvement of the public administration; implementation of the e-government technologies and of the European standards in the executive bodies’ activity, promotion of usage of the best world and European practices in the organization of public administration.

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Government of Ukraine has established 9 governmental committees, in particular on the reforms; economic fields; economic policy; national security, defense, law-enforcement activity and the activity of the military-industrial enterprises; regional policy, building and housing communal services; agricultural policy; humanitarian, social and science-innovation development; ecology, youth, sport and tourists policy; preparation to the final part of the Euro-2012 Football Championship in Ukraine (resolution of the Cabinet of Ministers of Ukraine № 460 of 17.03.2010)

Draft laws “On Ministries and Other Central Executive Authorities” and “On State Service” (new version), “On the Administrative Services” prepared during the year of 2009 undergo another circle of approval by the new Government of Ukraine.

It is planned to receive the SIGMA mission to Ukraine with the purpose of assessment of the state funds sector management (6-9 April 2010).

3. Ensuring the effectiveness of the electoral framework and environment so as to continue the conduct of presidential and parliamentary elections in accordance with international standards for democratic elections and the recommendations made by OSCE/ODIHR

“According to the results of two tours of elections (17 January and 7 February 2010) international observers noted that, in general, they were fair and transparent, in accordance with the European and international democratic principles”.

International Election Observation Mission: statement on the preceding results and conclusions of the presidential elections

in Ukraine in 2010, 8 February 2010.

Observers mission’s representatives of the OSCE, PACE, European Parliament and the NATO Parliamentary Assembly recognized that the elections of the President of Ukraine held in February 2010 responds to the majority of international obligations undertaken by the state.

For the purpose of ensuring the right of free expression of each citizen during the presidential elections lists of voters were composed and specified on the basis of extracts from the State Registry of Voters. The lists were presented to the citizens of Ukraine also for the purpose of correction of personal information.

Election law improvement, establishment of the institutional mechanism of ensuring the elections, in particular functioning of the central and regional bodies of maintenance of the new State Registry of Voters, were being conducted.

The draft of Election code (registration number № 4234-1, of 14 April 2009) is being considered by the Ukrainian Parliament. The main goal of the draft is to set up unique and unified legal base for the preparation and conducting of elections, prescribed by the Constitution of Ukraine.

In the structure of the new government the issues of organization of the work of the executive bodies concerning the regulatory and legal settlement of the issues of election process and establishment of the State Registry of Voters refer to the competence of the Vice-Prime-Minister Viktor Tykhonov (by the resolution of the Cabinet of Ministers of Ukraine of 17 March 2010, № 456).

Concerning the rule of law

By the decision of the International Coordinating Committee of the National Human Rights Institutions of the UN Human Rights Council in May 2009 the Ombudsman Institution of Ukraine has been given the highest (among three existing) “A” accreditation status. The activity of the Ukrainian Parliament Commissioner for Human Rights completely complies with the approved by the General Assembly of the United Nations on 20 December 1993 Principles (so-called Paris Principles) relating to the status of national human rights institutions (resolution 48/134). Taking into account the mentioned fact, this priority is considered to be implemented.

Ensure the independence of the judiciary and the effectiveness of the courts and of the prosecution as well as of law enforcement agencies, and in particular:

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4. Continuing reform of the judiciary and of the court system so as to further strengthen the independence, impartiality, and professionalism of the judiciary and courts, notably by enhancing the training of judges, court officials and prosecutors as well as support staff and law enforcement agencies staffFor the purpose of acceleration of the process of fulfillment of the judicial reform and provision of

independency, impartiality and efficiency of judicial power in Ukraine the Tentative Special Commission of the Verkhovna Rada on the preparation of the concept of judicial reform has been established on 23 December 2009 (Decree of Verkhovna Rada № 1789).

Draft Law “On Public Prosecution” has been sent on 5 February 2010 for the consideration by the scientific institutions and the General Prosecutor’s Office. In the nearest time the conduction of public discussion and submitting it for the expertise to the Venice Commission is planned.

Conclusions of the European experts concerning the state of play with the reforming of the judicial system of Ukraine and legislative initiatives in this field were discussed on 5 February 2010 in the Ministry of Justice during the round table.

Within the framework of the EU Programme “Transparency and Efficiency of the Judicial System of Ukraine: Component of the State Service” the trainings for the heads of the offices of the general courts of appeal “Efficient Communication” were held (22-24 February 2010). With the view of promoting more efficient management and administration in Ukrainian courts the training program for the heads of the general courts of appeal was launched on15 March 2010.

Within the framework of the EU Programme “Support to the Academy of Judges of Ukraine”: the seminar “Administration in the Local and Administrative Courts of Ukraine” was held (28-29 January 2010); study visits of judges of the Supreme Court of Ukraine to the Portuguese and Romania (31 January – 6 February 2010) and to the Austria and the Netherlands (21-21 February 2010) were conducted; the trainings of the judges concerning the procedure of selecting the candidates for the office of judges and the assessment of the level of knowledge, granting the support to the elaboration of tests for the candidates selection are in the process of conduction.

The Working Group on the Judicial Reform headed by the President of Ukraine was established on 24 March 2010 (decree of the President № 440).

The meeting of the Working Group on the Judicial Reform headed by the President of Ukraine Viktor Yanukovich took place on 25 March 2010. As a result, the decision concerning the necessity of adoption of the majority of the laws on the judicial reforms in the 1st half-year period of 2010 was taken. Also it was stressed that it is necessary to take into account the recommendations of the Venice Commission.

5. Effective implementation and enforcement of the civil, criminal and administrative codes and their corresponding procedural codes, based on European standardsThe elaboration of the Government draft Code on Economic Justice in Ukraine (№ 2777) is in

process. Its objective is to improve legal regulation of economic justice, taking into consideration European standards regarding the judicial protection of violated rights and interests of persons, and also to unify with the norms the other procedural codes, namely in the part of the main grounds of the fulfillment of justice.

The Draft of the new Criminal Procedural Code of Ukraine prepared during the 2009 undergoes another circle of approval by new Government of Ukraine. Ensure respect for human rights and fundamental freedoms by comprehensive cooperation on the protection of human rights and fundamental freedoms, covering both individual cases and issues concerning international law instruments on human rights. This cooperation includes, inter alia:6. Following up on the implementation of the judgments of the European Court of Human Rights

and promoting the evolving jurisprudence of the Court as a major source of international human rights law, with the support of the EUOn 11 February 2010 the Government of Ukraine agreed the Plan of the priority measures

concerning the removal of the systematic faults which leads to the non-implementation of the decisions of the national courts (the resolution of the Cabinet of Ministers № 222). It is aimed at the ensuring of the implementation of the European court of human rights decisions of 15 October 2009 “Yuriy Mykolayovich Ivanov vs. Ukraine”.

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Freedom of Expression, Assembly and AssociationThe Verkhovna Rada of Ukraine is elaborating the draft law “On Changes to Some Laws of Ukraine

Concerning the Public Participation in the Formation and Implementation of the State Policy, Solving the Issues of a Local Significance” (adopted in the first reading, register № 3654), which will give the opportunity at the legislative level to establish appropriate mechanisms of realization by the citizens both directly and through the institutes of civil society of its constitutional rights of the participation in the management of the state’s affairs.

Draft law “On the Concept of the Public Information Policy” prepared during the 2009 undergoes another circle of approval by the new Government of Ukraine.

7. Exchanging best practices on measures to protect minorities from discrimination and exclusion in accordance with European and international standards, with the objective of developing a modern legal framework. Developing close cooperation between the authorities and representatives of minority groups

Executive power bodies are ensuring the implementation of the Action Plan of combating Racism, Xenophobia and Discrimination in Ukrainian society for 2010-2012.

Implementation of the state ethno-national policy is being carried out in the cooperation with the public organizations of national minorities. Under the State Committee on Nationalities and Religions the advisory body – Council for All-Ukrainian Public Organizations of National Minorities of Ukraine – operates.

8. Further strengthening of efforts to improve the legal basis and practice in the area of detention, in particular as regards pre-trial and administrative detention in order to address effectively the issue of arbitrary detentionOn 21 January 2010 the Verkhovna Rada of Ukraine adopted the Law of Ukraine “On the Changes

to the Criminal Executive Code of Ukraine Concerning the Ensuring of the Rights of Convicts in the Places of Detention” (№ 1828), which is aimed at the establishment of the efficient mechanism of ensuring the protection of the rights of convicts in the places of detention, humanization of criminal penalty and the conditions of detention, democratization and humanization and also the ensuring of the adherence to the international obligations of Ukraine in the field of execution of punishments.

9. Improve the conditions of detention for all prisoners whether in pre-trial detention or after conviction with the aim of eliminating ill-treatment and implement the recommendations of the UN Committee against Torture and the European Committee for the Prevention of TortureThe State Department of Ukraine for Execution of Punishment has been carrying out the

organizational and practical measures concerning the reform of the criminal execution service.Within the framework of the project “Development of National Preventive Mechanisms of

Prevention of Tortures and Other Forms of Cruel Treatment in the Work of the State Department for Execution of Punishment” and with the support of the project coordinator of the OSCE in Ukraine the visit to the places of execution of punishments by working groups consisting of representatives of law-enforcing institutes was held.

The Center of Preventive Monitoring and Protection of Human Rights in the Work of the Bodies and Institutions of Criminal Executive Service was established.

There was a meeting in Kyiv on 9 February 2010, in which 20 psychologists of the institutes of the State Criminal Execution Service of Ukraine, who work with the people imprisoned for life took part (within the framework of the project “Support of the Penitentiary Reforms in Ukraine” with the support of the Swiss agency of development and cooperation).

On 22 March 2010 State Department for Execution of Punishment submitted for the public consideration the draft of the State Target Program of Reform of the State Criminal Execution Service for the period to 2017, which is aimed at the improvement of the work of criminal execution service by establishing the conditions of correction and re-socialization of convicts, obtaining education and occupation by them, their social adaptation in the society, development of material and technical basis of the places of detention and solitary confinement cells, organization of the criminal execution inspection on the basis of probation.

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10. Consider the establishing of an independent police complaints mechanism

Ministry of Interiors analyses the legislation to define the possibility of establishing the independent mechanism of making complaints to the authorities responsible for the internal affairs.

Joint EU-Ukraine trainings carried out on 17 March 2010 in the framework of the Twinning project “Implementation and Development of Qualified Control in Ukrainian Police” were completed. Ukrainian specialists examined the work of their colleagues in France, Spain, Italy, Great Britain and Portuguese.

Ensuring Equal Treatment

Within the framework of “The Programme for the Equal Opportunities and Rights of Women in Ukraine” (common project of the EU and the UN Programme of development in Ukraine) the memorandum on the cooperation with three national universities was signed, on the basis of which the educational gender centers were established.

Trainings on entrepreneurship “Initiate and Improve Your Business” for 500 women were held during January – February 2010 within the framework of the EU project and the International Bureau of Labor “The Equality between Women and Men in the World of Labor”.

Declaration of Respect was signed on 3 March 2010 between the Delegation of the EU in Ukraine and the Ministry of Ukraine for Family, Youth and Sport, within the framework of the EU project “The Rights of Women and Children in Ukraine – Communicational Component”. It is aimed at the cooperation regarding the support for the equal rights and possibilities of women and men and also rights of children in Ukraine.

Ensuring respect for Children’s Rights

TAIEX seminars “Use of the Convention on the Civil and Law Aspects of International Child Abduction” and “Practice and Mechanism of Implementation of the European Convention on Extradition of 1957 and Others International Treaties on Extradition” were held on 25-28 January 2010

Combating Corruption

11. Implementation of the National Anti-Corruption Action Plan, in cooperation with relevant EU bodies

President of Ukraine has established Anti-Corruption Committee as a consultative and advisory body under the head of state for essential improvement of situation in the field of fighting against corruption in Ukraine, guaranteeing of coordinated actions of law-enforcement authorities in this sphere, carrying out the real steps for resuming the confidence of citizens in governance (decree of the President № 275 of 26 February 2010).

On 12 March 2010 President of Ukraine Viktor Yanukovich held the coordination meeting with the heads of the law-enforcement authorities “On the state of play with prevention of the crimes and corruption”. Participants of the meeting have agreed a set of joint measures aimed at strengthening of combating crimes and corruption in the country.

On 17 March 2010 the Government of Ukraine established new office of Deputy Minister of Cabinet of Ministers – Governmental Commissioner of t for Anticorruption Policy.

The measures on the implementation of 25 GRECO recommendations are being taken.The President of Ukraine on 26 of March 2010 gave an order to the Ministry of Justice to

prepare urgently “The anticorruption package” which would be based on the best world and EU practices and took into consideration Venice Commission opinion.

The implementation of the Action Plan on Realization of the Concept of Fighting against Corruption in Ukraine “On the path to virtue” and the state anticorruption policy till 2011 is under way.

It was planned to review annually full enforcement of the laws “On the Administrative Services”, “On Principles of Preventing and Fighting against Corruption” and other legal acts on administrative service and prevention of corruption in executive authorities. (Resolution of the Cabinet of Ministers dated February 3, 2010 № 192).

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FOREIGN AND SECURITY POLICY

Further strengthen convergence on regional and international issues, conflict prevention and crisis management ; work jointly to make multilateral institutions and conventions more effective, so as to reinforce global governance, strengthen coordination in combating security threats and address development related issues

12. Continue the practice of jointly identifying opportunities for Ukraine to participate in future ESDP operations, building on the good experience of Ukraine’s participation in EU operations in the Balkans, as well as the current discussions relating to Ukraine's possible participation in EU naval operation Atalanta

Taking into consideration numerous cases of seizure by Somali pirates of the merchant vessels with Ukrainian crew, Ministry of Foreign Affairs has been providing its efforts to free Ukrainian sailors from captivity as well as to prevent new captures.

On 20 January 2010 decision of the President on Ukraine’s participation in the EU mission “ATALANTA” was adopted (Decree of the President № 41). On 21 January 2010 letter of the Minister for Foreign Affairs about decision to join EU Mission “ATALANTA” was sent to High Representative of the EU for Foreign Affairs and Security Policy C. Ashton. Official invitation to take part in the Mission was received on the 29 of March 2010.

Legal and financial aspects of the Ukraine’s participation in the EU Mission “ATALANTA” were discussed during the visit of the mission’s head-quarter delegation to Ukraine, which took part during 17-19 March 2010.

As for today 5 representatives of the Ministry of Interior of Ukraine are sent to the EU Police Mission in Bosnia and Herzegovina. Joining of Ukraine to the EU Military Operation “ALTHEA” in Bosnia and Herzegovina is under consideration.

The work on the elaboration of aspects of perspective joining of forces and facilities of the Military Forces of Ukraine to the EU Tactical Battle Group “HELBROC” (Greece, Bulgaria, Romania, Cyprus), which will assume rotation in the second-half period of 2011, is being carried out.

The issue of possible joining of forces and facilities of the Military Forces of Ukraine to the Italian-Hungarian-Slovenian Tactical Battle Group, which will assume rotation in the second half of 2012, is consideration.

13. Further implement “Seville” Arrangements for Consultation and Co-operation between the EU and Ukraine in EU-led crisis management operations, including continued participation of Ukraine in relevant crisis management exercises and ESDP-related training activities.

Ukraine has acceded to 90 percents of applications and common EU positions (2322 to 2594).The measures are being taken to renew bilateral consultations on using of Ukraine’s capabilities

in the sphere of the EU long distances air transport. The issue is also under consideration at the bilateral level with individual EU member states (The Agreement on the Strategic Air Transport between the Defense Ministries of Ukraine and the Czech Republic was concluded, appropriate agreements with the Italian Republic, Latvia, the Republic of Lithuania, Slovak Republic, Hungary are being elaborated).

In 2010 Ukraine plans to participate in the EU trainings on the crisis situations management in case of obtaining the appropriate invitations.

The priorities of the Armed Forces of Ukraine development and of the EU-Ukraine military-political dialogue were discussed in the framework of the working meeting of the Chief of General Staff - Chief of the Armed Forces of Ukraine with the Chairman of EU Military Committee on 26 January 2010. An agreement was reached on the participation of Chief of General Staff - Chief of the Armed Forces of Ukraine in the EU Military Committee at Chiefs of EU Member States (4 May 2010) and the Chairman of the EU Military Committee visit to Ukraine (approximately on 21-23 October 2010).

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Further develop co-operation in addressing common security threats, including combating terrorism, non-proliferation of weapons of mass destruction and illegal arms exports

14. Cooperate in the enhancement of bio-security and bio-safety standards in the laboratories, other facilities and during the transport of dangerous bio-agents, in particular in light of the ongoing dialogue on possible cooperation on bio-safety and bio-security in the Ukrainian Anti-plague station (AR Crimea, Simferopol).

During 25 – 26 January 2010 EU experts visited Ukraine with the aim of further development of cooperation in the sphere of biological protection and preparation of the projects on physical security systems strengthening as an integral part of biological security of Ukrainian state institutions. It is planned to implement the project on building of a new security element within the complex of Ukrainian Sanitary-Epidemiological Station in Crimea as well as providing the personnel trainings on biological security issues (the amounts of funds for the project – EUR 3 million).

During 15 – 17 February 2010 Bohomoletz Institute of Physiology of the National Academy of Sciences of Ukraine conducted the international conference “Bio-security and Bio-protection: Implementation of Recommendations”.

CO-OPERATION ON JUSTICE, FREEDOM AND SECURITY ISSUES

In the context of the commitments contained in the 2007 EU-UA revised JLS Action Plan, cooperation in this area shall focus on the following priorities:

15. Support in developing a Ukrainian system of Protection of Personal Data upon ratification of the Council of Europe 1981 Convention on Protection of Personal Data and the Additional Protocol thereto and its implementation. This should serve as one of the prerequisites for concluding agreements with Europol and Eurojust, including exchange of operational information

Preparation for ratification of the Council of Europe Convention on Protection of Individuals with regard to Automatic Processing of Personal Data and Additional protocol is ongoing.

The Working Group is working on preparation of the draft law “On Personal Data Protection” for the second reading by the Parliament. One of its tasks is to take into account the comments made by European Commission (№ 2273).

Ukrainian ministries and other central executive authorities conduct the consultation on the practice of establishing and functioning of appropriate independent body with the competence which covers control over adherence to the legislation in the sphere of personal data protection as it was foreseen by Additional Protocol to Convention on Protection of Individuals with regard to Automatic Processing of Personal Data.

Agreement with Europol on strategic cooperation was signed on 4 December 2009. It allows to coordinate the work in the sphere of fighting against international organized crime and to improve the information exchange with member-states on these issues.

16. Development of an appropriate legislative and institutional framework related to migration management with the aim of fighting illegal migration, smuggling and trafficking in human beings, with the support of the EU

The State Migration Service as a specially authorized central executive body in the sphere of migration, citizenship, immigration, registration of natural persons was established in June 2009 by the Government (resolution of the Cabinet of Ministers № 643).

On 16 February 2010 the Verkhovna Rada adopted the draft law “On the Concept of State Migration Policy of Ukraine” in the first reading (№ 5085-1). Draft law assumes principles of state migration policy of Ukraine and trends of its realization, mechanisms of state governing of migration processes.

On 17 March 2010 the agreement on cooperation for consolidation of efforts in developing and implementing the joint programs and projects in the sphere of social work with families, children and youth, in particularly concerning the traffic of human beings, was concluded between State Social Service of Family, Children and Youth and International Labor Organization.

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17. Practical implementation of the 1951 UN Convention relating to the status of refugees and i.a. its 1967 Protocol including the right to seek asylum and respect for the principle of "non-refoulement" and the 2000 UN Convention against Trans-national Organized Crime with the aim of combating and preventing criminal activities, organized or otherwise

The Action Plan on the integration to the Ukrainian society of persons who were granted a refugee status for the period up to 2012 was approved by the Government of Ukraine (resolution of the Cabinet of Ministers № 853dated by July 22, 2009).

Since 2009 center for temporary staying of refugees for 160 people is operating in Zakarpattya region (Perechin city).

On 1 February 2010 Ministry of Interior jointly with law-enforcement authorities of Austria, Great Britain, Italy, Canada, Netherlands, Byelorussia and the US stopped an illegal activity of criminal organization which was involved in producing, selling and spreading child pornography by the use of high information technologies. This organization was spreading child pornography in the EU countries and the US.

18. Actively pursue the visa dialogue, developing the relevant conditions, with the long-term perspective of establishing a visa-free regime between the EU and Ukraine, as agreed at the EU-Ukraine Paris Summit of September 2008 with special attention to issues such as document security, illegal migration including readmission, public order and security, and external relations

During 2009 the visa-free dialogue for preparing a “roadmap” which defines criteria and requirements for establishing visa-free regime with the EU Member States were being held, in particular during the meeting of the Troika EU-Ukraine on the level of Ministers of the Interior and Justice, on the sessions of Joint Committee of Experts on implementation of Visa Facilitation Agreement, meetings of the working groups and the Senior Officials meeting. On 4 December 2009 during the Ukraine-EU Summit the Joint Statement concerning the main directions of further visa-free dialogue was presented.

On 25 February 2010 the European Parliament approved the Resolution on the situation in Ukraine which appeals into the EU Council to mandate the European Commission to revise EU-Ukraine Visa Facilitation Agreement, including the intermediate objective of abolishing the existing visa fees, and to work on a roadmap on establishing visa-free regime between the EU and Ukraine.

On 22 March 2010 during the Foreign Affairs Council meeting the proposals package which the EU could offer Ukraine in return for implementing internal reforms, in particular a “roadmap” towards a visa-free regime was discussed.

It was planned to continue the discussion concerning a “roadmap” of establishing visa-free regime during the next Senior Officials meeting within the visa-free dialogue (tentatively in April 2010).

19. Ensure the full implementation of both the visa facilitation and readmission agreements between Ukraine and the EU

On 25 November 2009 at the meeting of the Joint Committee of Experts on the Agreement on Visa Facilitation the understanding was reached to expand the categories of Ukrainian citizens who take advantage of visa facilitation and free of charge and multiple visits. The proposals on the Agreement on Visa Facilitation amendments prepared by the Ukrainian side will be considered in April 2010.

On 4 February 2010 the International Organization for Migration presented research "Readmission in Ukraine: Analysis of Legal and Institutional Framework, Lessons from the EU”. The main aspects of the Agreement between the European Community and Ukraine on Readmission of Persons were discussed during this event.

The Ministry of Interior holds consultations with EU member states and international organizations on readmission interaction issues within the Soderkoping process. On 26 February 2010 the Soderkoping

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process Secretariat sent to the Ministry and other state authorities of Ukraine the Joint Activities Plan for 2010.

Negotiations on the implementing protocols to the Agreement on readmission between Ukraine and the EU received from the EU member-states and the building of temporary residence for foreigners and stateless persons are in progress.

The following measures supported by the EU project "Capacity Building and Technical Assistance to the Ukraine Authorities for Effective Combat against Irregular Transit Migration" in February 2010 were taken:

Special detention centers for foreign offenders in the departments of border services "Mid Buda" (Sumy region) and "Great Pysarivka” were established;

EC delivered technical equipment for the security installation in the temporary detention points for illegal migrants in Rozsudiv (Chernihiv region). A system of internal and external security is being established in detention point in Zhuravychi (Volyn region).

20. Develop, implement and upgrade the strategy, legal basis and procedures of integrated border management, including with the comprehensive support of the EU, to be jointly defined

The implementation of the State Target Law-enforcement Program “State Border Development and Reconstruction for the Period until 2015” is in progress.

EU Border Assistance Mission to Ukraine (EUBAM) works with its mandate extended until December 2011.

The Law of Ukraine “On Border Control” defines mechanism of border control in Ukraine and specific border crossing procedures for separate categories and transportation (The Law of Ukraine of November 5, 2009 № 1710).

The integrated interministerial information and telecommunication system for persons, vehicles and cargo control is being developed (“Arkan”).

On the first panel session “Integrated Border Management” in the frame of the thematic platform № 1 „Democracy, Good Governance and Stability” of the Eastern partnership the position document on the integrated border management program was approved. It was also agreed (on October 2009 in Odessa) to hold the number of seminars before launching the flagship project.

The work on resumption/establishing customs-border control at the border entry points of Ukraine with the EU-member-states is in progress.

The procedures for the enforcement of the amendments to the Treaty between the Cabinet of Ministers and the Government of Poland on the Cooperation at the Execution of Control of People, Goods and Vehicles Crossing Ukraine-Poland State Border are at the final stage.

The expert consultations on consideration of the text of a similar treaty with the Slovak Republic were held. Following the meeting the European Commission has recommended to the Ukrainian side to refrain from the treaty conclusion until necessary amendments are introduced to the Schengen Borders Code.

On 27 January 2010 Ukrainian-Hungarian expert consultations on the agreement text issues were held. The second negotiation round is to be held on April 2010.

The negotiations with Romania on local border traffic Agreement were temporarily suspended until the evaluation of Schengen regulations implementation by Romania is completed (till November 2010).

On 16 February 2010 the trilateral meeting of the heads of the Security Service of Ukraine, Service of Information and Security of Moldova and the EU Boarder Assistance Mission for Ukraine and Moldavian Republic (EUBAM) took place in Odessa.

The activities aimed at attraction of the EU technical assistance for infrastructure development at the border entry points of Ukraine with the EU Member States are being carried out. Joint working groups were established within the framework of cross-border cooperation programs of European Neighborhood and Partnership Instrument (CBC ENPI) 2007-2013. A number of projects proposals have been already prepared and approved for participation in project tenders.

During 1-2 March 2010 the TAIEX seminar “The EU Legislation on Establishing of Common Control on the EU-Ukraine External Borders” was conducted in Kyiv.

On 3 March 2010 the first stage of the international joint operation “Jupiter-2010” in the frontier regions of Ukraine, Poland, Slovakia, Hungary and Romania has begun.

21. With the technical support of the EU, continue the process of demarcation of Ukraine’s borders in accordance with international standards in cooperation with the authorities of the respective

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neighboring countries as appropriate

On the 8th meeting of “Ukraine-Moldova-EU” on customs and cross-border cooperation the EU declared support to attract EUBAM representatives as observers to the demarcation process of the central part of Ukraine-Moldova border (22 January 2010, Brussels). There is ongoing work on the practical solution of the issue of technical assistance providing for demarcation of the central part of Ukraine-Moldova border.

On 29 January 2010 the first frontier sign was installed on the central part (Transnistria) of Ukraine-Moldova border on the territory of Velyka Kosnyca village in Vinnytsia region.During 22-23 February 2010 joint Ukraine-Moldova consultations at the level of Deputy Ministers for Foreign Affairs were held. During these consultations the contractual and lawful matters of the Ukraine-Moldova common border execution were discussed.

22. To minimize security and safety risks at EURO 2012, existing law enforcement and judicial cooperation will be reinforced with a view to exchanging relevant expertise and data on violent fans based on existing mechanisms of information exchange. The EU network of National Football Information Points will be closely associated in the undertaken initiatives.

On 26 January 2010 presentation of the international project “Eurolang 2012” was held. It is aimed at giving language and cultural support to the football fans, which will come to Poland and Ukraine on the final put of the European Football Championship “Euro 2012”. The representatives of five EU member-states (Poland, Belgium, Germany, Bulgaria and Italy) are involved in the project.

On 27 January 2010 Ambassador of Germany to Ukraine handed to the Ministry of the Interior 180 safety helmets for militiamen; including 14 bulletproof helmets (overall 230 personal safety sets and computer equipment were handed in the context of rendering assistance to the conducting of the final tournament of the European Football Championship ‘Euro 2012’).

Working meeting of the Head of the Security Service of Ukraine and the Head of the Agency of the Interior Security of the Republic of Poland was held on 19-21 of February 2010 in Warsaw. During the meeting the parties have agreed further steps aimed at determined the measures for providing the security in the framework of preparations to the EURO 2012.

ECONOMIC COOPERATIONOn 17 March 2010 Committee for Economic Reforms as a consultative and advisory body was

created under the President of Ukraine, in order to implement structural economic reforms aimed at economic and financial recovery, ensuring the sustainable economic development of Ukraine as a basis for increasing prosperity of its population (Decree of President of Ukraine № 355 dated by March 17, 2010)

On 22 March 2010 during the first meeting of Committee for Economic Reforms headed by President of Ukraine its participants determined five main chapters of the draft Program of Economic Reforms: ensuring the stable economic growth and establishing of a favorable business climate and attracting of investments; technological modernization of the economy and infrastructure development; creating conditions for economic development; formation of new quality of international integration and economic cooperation, social sector reform.

New government is preparing the anti-crisis Program of the Cabinet of Ministers’ Activity, the Program of Social and Economic Development for 2010 and the draft law of Ukraine "On the State Budget of Ukraine for 2010" which are expected to be submitted to Verkhovna Rada of Ukraine in April 2010.

On 11 March 2010 international rating agency Standard & Poor’s increased sovereign rating of Ukraine on liability in foreign and national currencies.

On 17 March 2010 international rating agency Fitch increased the forecast of Ukraine’s ratings from “negative” to “stable”.

The increasing of sovereign ratings on the international scale occurred in early March was due to the creation of the new government in Ukraine and our suggestions that this could lead to more coherent strategy and the improvement of relations with the official creditors

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Information of Fitch agency

An active work on the renewal of the cooperation with the IFO is being carried out. The IMF technical mission visited Ukraine during 15-19 March 2010 for the purpose of the state’s budget and the financial conditions assessment. The IMF Mission visited Kyiv on the March 23 – April 2, 2010. As a result of its work the conditions of the IMF cooperation renewal, aimed not only on the overcoming of the consequences of the world economic and financial crisis, but also on the gradual growth of the economy, will be defined (new Programme of cooperation is to be agreed).

Draft law “On the Amendments to Some Legal Acts of Ukraine Concerning the National Bank of Ukraine Activities” prepared during 2009 is under additional circle of approval by the new Government.

New Twinning project “Strengthen the Potential of the National Bank of Ukraine by the Approximation the Central Bank Activities to the EU Standards” had been launched on 10 February 2010.

TRADE AND TRADE RELATED MATTERS

The tenth round of the EU-Ukraine negotiations on the FTA took place in Brussels during 1-5 March 2010. In the framework of 10 working subgroups the draft texts of the appropriate sections according to the cooperation directions were discussed: tariff proposal preparation, administrative cooperation in the customs area, services trade, competition, state aid, antimonopoly legislation, intellectual property rights protection, geographic indications safety, sustainable development and trade, trade aspects of the energy cooperation, transparency and disputes management. In general, the positive dynamic of negotiations was noted.

The eleventh round of the negotiations is planned to take place during 25-28 May 2010 in Kyiv.

Technical regulations on industrial products, standards and conformity assessment procedures

23. Development of the Ukrainian legislation on technical regulation, standardisation, conformity assessment, market surveillance, metrology and accreditation concerning the provisions, regulating circulation of industrial products in line with the EU acquis in order to eliminate trade barriers between the Parties

During the first quarter of 2010 two technical regulations were adopted, based on the relevant EU directive. Altogether, 30 technical regulations have been adopted in Ukraine.

National standards are being harmonized to the international ones, those European in particular. As of 25 March 2010 6396 national standards harmonized to the international ones, including those of the EU, are introduced in Ukraine. Since the beginning of 2010 the State Consumer Standard Committee introduced one national standard harmonized to the international one.

Under the Programme of Reviewing the Standing Interstate Standards (GOST) in Ukraine, developed in 1992, and bringing them into conformity with the WTO Agreement on Technical Barriers in Trade, 31 interstate standards have been annulled since early 2010. Altogether, within the period of 2006 to 2010 3501 outdated interstate standards were invalidated.

Under the State Programme of Standard Base Development for 2009-2010, 60 state and 70 supplementary standards were included into the State Register of Standards.

122 items for the low-risk products have been exempted from the List of Goods subject to Mandatory Certification in Ukraine, including 24 declaration-certifiable items.

The Twinning project “Augmentation of the Ukraine Accrediting National Agency” is being implemented. The technical assignment for the Twinning project “Further Augmentation of the Ukraine Accrediting National Agency” is being elaborated.

24. Take actions in line with the benchmarks agreed between the Parties for the EU budgetary support projects in standardization in 2010-2012

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9 The Agreement on financing the program “Promoting Mutual Trade by Removing Technical Barriers in the Field of Trade between Ukraine and the European Union” was concluded in 2009 (financial resources – EURO 45 million). The decision on the joint group on monitoring and use of budgetary funds received from the EU is under preparation. It will be approved by the Government after the adoption of the Law of Ukraine “On State Budget of Ukraine for 2010”.

Sanitary and Phytosanitary Measures

In view of ensuring a gradual approximation of the Ukrainian SPS food and feed, animal health and welfare legislation and practice to that of the European Union, the EC will support Ukraine inter alia through available instruments, to:

25. Develop a comprehensive strategy for reform of the SPS, food and feed, animal health and welfare policy of Ukraine. The strategy will include a time table involving intermediate stages and financing plan for its implementation and set clear priorities for areas in which rapid progress can be made. It will address, inter alia, legislative approximation, capacity building and implementation, among others in the area of food and feed safety, animal health and welfare, traceability, and audits exercised by the controlling bodies

In order to maintain a safe level of basic food products: the Law of Ukraine "On Identification and Registration of Animals” to control the epizootic

situation in Ukraine and predict animal products markets (№ 1445 dated by June 4, 2009) was adopted; National Target Economic Program to monitor the residues of veterinary drugs and contaminants

in live animals and animal products, and in feed and food under the control of veterinary service for 2010-2015 was adopted (Law of Ukraine № 1446 dated by June 4, 2009).

In order to prevent poor-quality products on the consumer market, the specialists in veterinary medicine are constantly providing the state veterinary and sanitary control and supervision over all objects which are under control, in particular: official position of doctors in 3546 processing enterprises were created, state agencies of veterinary medicine specialists are assigned, inspections on 10244 enterprises were executed, for 1539 food markets 1262 state laboratories of veterinary-sanitary examination are functioning.

Within the EU project "Implementation by Ukraine of its Commitment to Implement the Neighborhood and Membership Policy in WTO in the Agriculture Sector" a draft of the National Programme for sustainable development of rural areas by 2020 is under development.

The Twinning project «Support to Ukrainian Veterinary Services to Strengthen the Legal and Technical Aspects of Food Safety Monitoring” is being implemented.

Public Procurement

T he Parties shall pay particular attention to cooperation in taking the following measures:

26. Work towards the establishment of an independent review body in line with Directive 89/665 as amended by Directive 2007/66 and ensure that it has sufficient administrative capacity to provide effective remedies

27. Work towards further harmonization of the Ukrainian public procurement legislation with the EU acquis as set out in Directives 2004/17 and 2004/18.

On 11 February 2010 the Ukrainian Parliament adopted the Law of Ukraine “On Public Procurement of Goods, Works and Services” (№ 2263-1) which provisions provoked criticism of the European Commission and of the World Bank.

The President of Ukraine Victor Yanukovich imposed a veto on this Law and sent the proposals aimed at improvement of the mentioned law to the Verkhovna Rada.

CompetitionOn 13 January 2010 the Conception of Reformation of the State Aid to the Business Entities,

which is aimed to increase transparency in the functioning of state aid, minimize its negative impact on

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competition and international trade, adapt Ukraine's legislation to the EU legislation was approved (Cabinet of Ministers resolution № 81).

Intellectual PropertyStrengthen cooperation on the protection of the IPR by exchange of experience and organization of joint actions on the IPR issues as well as continue a dialogue on IPR issues in order to:28. Take effective measures against counterfeiting and piracy and ensure effective implementation

of the enforcement legislation and of sanctions for infringements of intellectual property rightsState inspectors on intellectual property held 269 workshops and meetings during the 2009 with

the specific categories of actors, using intellectual property rights in their work, also 60 publications and presentations in the media were produced.

State inspectors on intellectual property held 49 inspections of business entities during the February 2010, as a result 29 protocols on administrative violations were compiled and sent to the courts, 71 835 copies of counterfeit goods worth 1,6 million UAH were seized. All the counterfeit products were destroyed according to the courts decisions.

The XI meeting of the Ukraine-American Cooperation Group on enforcement of legislation in the sphere of intellectual property called "Anti-Piracy on the Internet." was held on 10 February 2010 at the State Department of Intellectual Property premises.29. Strengthen coherent and comprehensive enforcement capacity at public authorities level

(administrative, judicial and operational authorities), in particular strengthen the number of State Inspectors at SDIP and increase the enforcement resources regarding internet piracy within the Ministry of Interior

The Program of Coordinated Actions on the law-enforcement and regulatory bodies to combat the illegal manufacture, distribution and sale of audio and video, CD-ROMs, and other objects of intellectual property rights and for protection of UEFA rights, which will facilitate a uniform policy in combating violations of intellectual property rights on the territory of our state, is being implemented.

Trade Facilitation and CustomsThe Parties shall pay particular attention to cooperation in taking the following measures:30. Elaborate and implement a comprehensive strategic plan with EU support upon Ukraine's

request for the Customs Service, including structures, procedures, resources, IT support and implementation plan. The EU Modernized Customs Blueprints may be used as a benchmark

The State Customs Service of Ukraine is accomplishing the drafting of the Strategy of Customs Service of Ukraine Development for 2010-2015, which includes the recommendations of TACIS project’s experts "Support for the Development of the Long-term Strategy of the State Customs Service of Ukraine Modernization” and EUBAM mission.31. Assess the feasibility of the establishment of mechanisms for exchange of data, inter alia on

goods and vehicles, in line with relevant data protection standards and regulationsThe issue of information exchange mechanism was discussed during the meetings of the EU -

Ukraine bilateral bodies (Subcommittee № 5 "Customs and Cross-border Cooperation and Cooperation Committee), and conferences of the European Region of the World Customs Organization. According to the EU the accession of Ukraine to the pilot project, implemented in Russia is premature, and the introduction of such a project with Ukraine is possible only after evaluating the results of the implementation of the pilot project with Russia. Currently, the exchange of information with customs authorities of the EU Member States is not launched yet due to the regulatory restrictions in the EU Member States in the presentation to customs authorities of neighboring countries of personalized information.

The seminar “Exchanging of a Preliminary Information in Moving Goods across the Border” will be held for customs and border authorities of the countries - partners of the Eastern Partnership in April 2010 in Kyiv.

ENERGY CO-OPERATION INCLUDING NUCLEAR ISSUES

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The Parties have positively assessed the development of energy cooperation which is reflected in the 4th joint report on implementation of the EU-Ukraine Memorandum of Understanding on Energy Cooperation (the report was made public on 4 December 2009 during the 13th EU-Ukraine Summit in Kyiv).

The Meeting of the Ukraine-EU Subcommittee №4 «Energy, Transport, Nuclear Safety and Environment» was conducted in Kyiv on 22-23 March 2010. During the meeting Parties discussed the current state of affairs and further prospects within the framework of the Subcommittee.

Integration of energy markets :

32. Work towards rapid accession of Ukraine to the Energy Community Treaty

The Energy Community Ministerial Council on 18 December 2009 adopted the Decision of the Ministerial Council on Ukraine and Moldova accession to the Energy Community.

The accession to the Energy Community will be effective when the Law “On the framework of the Natural Gas Market Functioning” will be adopted by the Verkhovna Rada. The draft Law is under another circle of approval by the new Government.

33. Strengthening of the capacity and independence of the National Electricity Regulatory Commission (NERC), including setting up the legislative framework necessary for this purpose

In January 2010 the representatives of National Energy Regulatory Committee (NERC) took part in 11th meeting of ECRB (Energy Community Regulatory Body) Customer Working Group and in Workshop on Quality of Services Study.

The Draft Laws “On the National Energy Regulation Committee of Ukraine” and “On the State Regulation of Energy” (№ 1372 and № 0889) aimed at strengthening of capacity and independence of NERC.

The Twining project “On Regulatory and Legal Capacity Strengthening of Natural Gas Regulation in NERC” is being carried out. In the framework of this project the seminar “On Experience of Member States on Implementing the EU Gas Directive into National Legislation” was conducted on 20 January 2010.

34. Continue reform of electricity tariff and gas pricing and measures to ensure full payments for providing electricity and gas

Within the framework of the Twining project “On Regulatory and Legal Capacity Strengthening of Natural Gas Regulation in NERC” the following seminars were conducted during January-February 2010:

- “Experience of the EU Member States on implementing the EU Gas Directive into National Legislation”;

- on issues of obligatory provision of public services to citizens and social defense mechanisms, related to electricity and gas supplies in the EU member-states.

35. Take all necessary steps for the entry into force of the law of Ukraine on the Principles of the Functioning of the Market in Natural Gas which should be in line with the relevant EC norms (Directive 2003/55/EC, Regulation EC 1775/2005)

After the change of the Government the Law “On the framework of the Natural Gas Market Functioning” was withdrawn on 11 March 2010 (according to the Rules of Procedure of the Verkhovna Rada).

36. Fully implement the Joint Declaration of the investment conference on the rehabilitation and modernization of the Ukrainian gas transit network of 23 March 2009

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In order to implement the provisions of the Joint EU-Ukraine International Investment Conference on the Modernization of the Gas Transit System of 23 March 2009 the action plan is being implemented; the Conception of the Gas Market Development is being elaborated.

Confidentiality Agreements between NJSC “Naftogaz of Ukraine” and EBRD, the World Bank and the European Investment Bank were signed.

In cooperation with IFO the Terms of Reference for “Feasibility Study on Transit Corridors for Natural Gas and Underground Storages of Gas of Ukraine” and the technical specification for the elaboration of “Ecological Estimation and Management Plan for the “A” Category Project on Modernization of Transit Corridors for Natural Gas and Underground Storages of Gas of Ukraine” were completed and approved.

Tender procedures for appointment of Contractor for feasibility studies on modernization and reconstruction of Ukraine’s natural gas transit system facilities were conducted. The development of feasibility study based on the master plan is in its final stage. The feasibility study concerns top priority projects for modernization of the Ukrainian gas transit network such as reconstruction of transit gas pipelines ‘Soyuz’, ‘Urengoy-Pomary-Uzhgorod’, ‘Progress’; modernization and reconstruction of Bilche-Volyck-Ugersk and Bogorodchansk underground storages of gas, transit corridor for natural gas Yelec-Kremenchug-Kriviy Rig-Ananyv-Izmayl, gas measuring stations Uzhgorod, Beregove, Drozdovichy, Tekove, Orlivka.

37. Accelerate work towards integration of the united power system of Ukraine into the central European electricity network, in accordance with the requirements of UCTE (Union for the Coordination of the Transmission of Electricity)

In the framework of further implementation of the Project on Joining of Ukraine and Moldova to the European Transmission System Operators for Electricity (ENTSO-E) the draft Contract between the Ministry of Energy and Fuel and ENTSO-E is being considered. It will lead to the establishment of the Catalogue of measures necessary for the integration of the united energy system of Ukraine into the central European electricity.

Energy security:

38. Continue developing and implementing strategic oil stocks

Ukrainian Government approved the Conception on Minimum Oil and Oil Products Stocks Creation till 2020 (resolution № 1498 of 8 December 2009).

Energy efficiency, renewable energy and environmental aspects:

39. Exchange of expertise and best practices in order to prepare, adopt and implement sub-sectoral energy policy documents on energy efficiency and renewable energy

In 2009 the Agreement on the Financing of the Program "Support of the Energy Strategy of Ukraine for Energy Efficiency and Renewable Energy" with the volume of financing of 70 million euros was signed. The decision on creation of a joint monitoring group and the use of budgetary funds received from the EU is under preparation and will be approved by the Government after the adoption of the Law of Ukraine "On the State Budget of Ukraine for 2010".

National Agency of Ukraine for Efficient Use of Energy signed the memorandum of understanding on energy efficiency with the Greek Centre of renewable energy sources (5 January 2010) and the Austrian Energy Agency (17 March 2010). Seminar on “The Energy Efficiency and Renewable Energy: Energy Efficiency Measures and Political backgrounds.” was conducted.

Project “Energy Efficiency in Sevastopol, on the Basis of the Existing Positive Experience” was launched on 19 February 2010 in the framework of Joint Cooperation Initiative in the Crimea of the EU.

TAIEX seminar “Financial Mechanisms and Public-private Relations in Energy Efficiency in Houses” was held during 25-26 February.

40. Take all necessary steps to enable Ukraine's participation in the Intelligent Energy-Europe programme

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Precondition for Ukraine’s participation in the programme is the conclusion of the EU-Ukraine Framework Agreement on general principles of Ukraine’s participation in the Community Programmes draft of which is under consideration of the EU Side. After the conclusion of the agreement Parties will have a possibility to launch the negotiation process on the financial conditions of the Ukraine’s participation in the programme.

41. Advance in assessing the technical and financial feasibility of implementing methane capture and clean coal technologies and their promotion

Ministry of Coal Industry in cooperation with industrial institutes has conducted a monitoring of the investment projects related to existing mines degasification and the extraction and use of methane gas from coal deposits, including those being not under development. 8 projects showed that the degasification efficiency is 60-70%, the total cost of works is 239 million UAH and the payback period is 2-3 years. Their implementation will ensure the replacement of traditional organic fuel, in the case of use of coalmine methane as a fuel.

Attracting investments activities are undertaken to implement these projects under the Kyoto Protocol mechanism. Contracts on projects on reconstruction of drainage and utilization of coalmine methane in two mines were signed; agreements regarding works in the other 3 mines are under preparation.

The tender for projects for cooperation in the field of "clean coal technology and collection of methane" was announced on 16 March 2010 in framework of the EU Thematic Programme on the environment and sustainable management of natural resources, including energy.

Nuclear safety:

42. Continue cooperation on the EC-IAEA-Ukraine Joint Project on nuclear safety evaluation of Ukrainian nuclear power plants

Meeting of the Joint Working Group Ukraine - European Commission on implementation of the roadmap "Nuclear Safety" within the Memorandum of Understanding between Ukraine and EU on cooperation in the energy sector was held on 10 February 2010.

Implementation of the joint project of the EC-IAEA-Ukraine to assess the safety of Ukrainian nuclear power plants was completed on 19 February 2010. According to the findings of international experts, the safety assessment in all ranges showed in general full compliance with power requirements of international standards of nuclear safety. The assessment confirmed the compliance with IAEA safety standards requirements. Ukrainian nuclear power plants are taking steps to address those issues where partial non-conformity was identified.

TAIEX seminar “Introduction to Approaches and Experience of the EU Licensing New Nuclear Power Plants. European Safety Requirements for New Power Plants” was held on 17 February 2010.

OTHER CO-OPERATION ISSUES

Public Internal Control and External Audit and Control

The Parties shall cooperate with the aim to ensure the development of public internal control and external audit by:

43. Ensuring further improvement of the internal control system in state authorities by means of harmonization with generally accepted international standards and methodologies and EU best practice

Implementation of the Concept of Public Internal Financial Control and Action Plan of Implementation is being ensured.

Ministry of Finance of Ukraine together with European experts is elaborating the draft law “On State Internal Financial Control”, which entails the establishment of internal control, internal audit and enforcement activities on its harmonization.

Main Control and Revision Office of Ukraine is accomplishing the elaboration standards, guidelines and instructions of internal control and internal audit. Elaborating of the strategy on promoting public internal financial control at the regional level was launched.

Taxation

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Coalition Agreement of the Deputy Fractions “Stability and Reform” envisages action aimed at significant improvement of investment climate, including the simplification of administration and reduction of the tax pressure.

44. Elaborating and implementing a comprehensive strategic plan for the State Tax Administration, including structures, procedures, resources and IT support

State Tax Administration had been implementing the World Bank project “Strategic Plan for State Tax Administration”.

Study visit to Estonia “Studying the Development of Methods and Models on Tax Planning for the Budget Based on Existing Tax, Custom and Other Kinds of Legislation in the EU Member-states” was organized during 6–8 January 2010for the experts of Ministry of Finance within the framework of TAIEX.

Working Plan of Cooperation between State Tax Administration and Tax and Custom Administration of the Netherlands for 2010 was signed on 16 February 2010. The seminars “Fighting Corruption. Tax Support of the Bigger Taxpayers” and “Transfer Pricing” were held with participation of the Dutch experts. The seminar “Criminal Tax Violations” is planned to be held in April.

The current issues of the State Tax Administration functioning were discussed during the meeting of the administration of the State Tax Administration of Ukraine and the General Directorship of State Funds of France on 23 March 2010.

Statistics

45. Develop and implement the Action Plan on cooperation with Customs to improve trade statistics through discussion with Commission experts

Within the framework of the joint Plan of State Statistics Committee and the State Customs Service on implementation of the EU recommendations regarding the improvement of the quality of statistic information in Ukraine, the work on data comparison method of "mirror" of statistics of Ukraine with major trading partners is being conducted. The coordination of actions concerning the data processing methods, improvement methods and system of data dissemination from foreign trade statistics is being also conducted.

46. Make the SMIS+ fully operational for Ukraine with deadlines for providing information in a regular cycle. EU to provide hands-on training on SMIS+ to Ukraine and ensure analysis of the pilot results by ESTAT

State Statistical Committee prepared a detailed description of the statistical system of Ukraine at the field of statistics (Theme level) in the format SMIS +. Materials were passed during the Eurostat mission to Ukraine on 17-19 February 2010.

In the second quarter of 2010 State Statistical Committee is expected to prepare a description of the statistical system at the level of statistical segments (Modules level) to pass to the Eurostat for consideration.

Presentation of the EU project „Harmonization of the Official Statistics of Ukraine to the EU standards” was held on 18 February 2010 (budget – EURO 150 000).

Twinning project „Improvement of the Ukrainian Statistics Quality through the Assessment of Official Statistics Efficiency, Harmonization of the Macroeconomic Indexes and Structural Statistics of Enterprises in accordance with the EU standards” is being conducted.

Transport

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The Parties cooperate to support Ukraine in, and to prepare for implementation of EC acquis mentioned in relevant annexes of the Association Agreement : 47. Final review of the newly developed comprehensive national transport strategy of Ukraine with

a view to start implementation from the beginning of 2010The draft of the Transport Strategy of Ukraine developed by the Ministry of Transport and

Communications of Ukraine is passing the procedure of approval by the Government.The Twinning project “Support to Transport Policy Design and Implementation in Ukraine” is

being implemented. 48. Implement relevant international IMO (International Maritime Organization) Conventions,

with particular attention to stepped up efforts in the areas of Port State Control, Flag State Implementation and safety of oil tankers

Ministry of Transport and Communications considered the issue concerning the expediency of Ukraine’s joining to the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage of 1971. As a result, considering discrepancies of some inconsistencies of the provisions concerning financial, tax and other issues with the acting Ukrainian legislation joining of Ukraine to the above mentioned Convention is considered to be anticipatory.

Ministry of Transport and Communications is elaborating the draft law on the Ukraine’s joining to the Salvage Convention of 1989. 49. Infrastructure development, in particular through identification of priority projects of

transnational interest and feasibility studies and the preparation of a 5-year rolling work plan for the development of the network

The Program for development of national network of International transport corridors in Ukraine for the years 2006-2010 and the State Program for the development of country roads of general use are being implemented. 50. Finalize a comprehensive Common Aviation Area Agreement

The 5th round of the negotiations on the Agreement between Ukraine and the EU on Common Aviation Area took place in Kyiv during 22-23 March 2010. The Parties discussed issues of air safety, market access, duration of transitional periods, visa aspects, and terminology as well as the necessity of amendment of the draft Agreement as the Lisbon Treaty came into force on December 1, 2009.

Next round is planned to take place during 31 May – 1 June 2010. It is expected to elaborate a roadmap concerning the establishment of the Common Aviation Area between Ukraine and the EU and also to find a joint solution concerning the issue of mutual recognition of certificates and warrants by the parties, recognition of the aviation products, certified in Ukraine, by the EU and determine the exact date of the market opening.51. Develop and implement the new Air Code of Ukraine

The Ministry of Transport and Communications of Ukraine is working on the draft of the Air Code of Ukraine submitted to the Parliament of Ukraine by the members of the Parliament (№ 6078 of 17 February 2010). Additionally, in terms of the implementation of the section “Transport” tasks:

- in the sphere of the railway transport The State Program for Reforming of the Railway Transport for the years 2010-2015 and the Action

Plan on the development of the intermodal transportation, creation of the competitive environment in the sphere of the activity of the operators of forwarding services, taking the steps on increasing the quality of passenger service and smuggling counteraction in passenger trains are being implemented.

- in the sphere of the road transport: Ukrainian delegation took part in the meeting of the Special Group of Experts on the Introduction

of the Digital Tachometers, organized on 26 February 2010 for the non-members of the EU, who joined to the European Agreement Concerning the International Carriage of Dangerous Goods by Road (ADR).

The Twinning project “Support to Strengthening of Road Freight and Passenger Transport Safety in Ukraine” is being implemented.

Environment

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The Parties cooperate to support Ukraine in, and to prepare for implementation of EC acquis mentioned in relevant annexes of the Association Agreement :

52. Development, adoption and implementation by Ukraine of the National Environment Strategy for the period till 2020 and the National Environment Action Plan for 2009-2012 in order to be able to take measures to implement budgetary support

A draft law of Ukraine “On the Strategy of the National Environmental Policy till 2020” is on another circle of approval by the new Government of Ukraine.

53. Further development and implementation of Ukrainian environmental legislation, strategies and plans, in particular on environmental impact assessment, strategic environmental assessment, access to environmental information, and public participation

The Action Plan on Implementing the Decision of the Parties to the Aarhus Convention and the Strategy for the Convention on Environmental Impact Assessment for 2010-2011 are being implemented.

TAIEX seminar on “The EU Countries Regulations Regarding the Role of Mountain Forests in Flood Prevention” took place on 3 February 2010.

54. Development of national implementation instruments in line with multilateral environment agreements signed and ratified by Ukraine and the European Community, as enlisted in the Annex

The EU technical assistance projects “Support to Ukraine in Implementation of the Danube River Protection Convention and the Ramsar Convention” and “Support to the Ministry of Environment and Natural Resources of Ukraine in Espoo and Aarhus Conventions Implementation” are being implemented.

55. Promoting the implementation of the Bucharest Convention and its Protocols and working together with the Parties of this Convention to promote the accession of the European Community to the Convention

With a view of providing the implementation of the Bucharest Convention by Ukraine the State Program of the Black and Azov Seas Protection and Rehabilitation for 2001-2010 is being implemented.

Ukraine actively takes part in the development of regional policy of environmental protection for the Black Sea, in particular by its participation as a member in the governing body of the Convention (Commission on the Protection of the Black Sea Against Pollution) as well as in its working and advisory groups.

The Ukrainian party reiterated officially about its support of the EU Membership according to the procedures defined in The Bucharest Convention (on 17 April 2009 at the meeting of the Commission on the Protection of the Black Sea against pollution).

56. Exploring the participation of Ukraine in selected European Environment Agency activities on information collection and dissemination

Following the results of the study conducted by the Ukrainian party to define the possible prospects for participation in the European Environment Agency activities the possibilities for cooperation on the regional level were found out.

During the 5th meeting of the 4th Subcommittee “Energy, Transport, Nuclear Safety and Environment” (22-23 March 2010, Kyiv) the EU side informed the Ukrainian side about the designation of the communication contact point in the Agency.

The Ministry of Environment and Natural Resources of Ukraine is cooperating with the Agency in the context of preparation of the “Assessment of the European environment” for the ministerial conference “The Environment for Europe” (autumn 2011, Astana, Kazakhstan).

57. Establishing the REC-Ukraine, inter alia to raise environmental awareness and promote the role of the civil society on environmental matters

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Taking into consideration absence of the possibility to support the establishment of the regional environmental center in Ukraine, it was proposed by the EU side on the Fifth meeting of the 4 Subcommittee “Energy, Transport, Nuclear Safety and Environment” (22-23 March 2010, Kyiv) to establish an Office of the Regional Environmental Center in Ukraine (Turkish example). Ministry for Environmental Protection of Ukraine is considering this option.

Company Law, Corporate Governance, Accounting and Auditing

The Coalition Agreement of Deputy Fractions Coalition “Stability and Reforms” stipulates the aim of the simplification of the licensing system and lessening of pressure on business by regulatory authorities.

58. Improve functioning of company law through constant review, modernization of relevant legislation and its application, including in particular the Joint Stock Company Law

59. Simplify rules and procedures on registration of legal persons, including companies, and natural persons, including entrepreneurs, to set up and liquidate business

Through amending some laws of Ukraine on simplification of terms of business, the unified standards and terms of issuing licensing documents are established (Law of Ukraine, dated 15 December 2009, № 1759).

TAIEX seminar “Procedure of Establishment and Organization of Joint-Stock Companies, Issuing Securities in Reorganization” was held on 25 January 2010.

On 11 February 2010 the Law of Ukraine “On Licensing System in Economic Activity” (Law of Ukraine № 1869) was amended to improve the licensing procedure according to the European standards.

Namely, the principle of organizational unity of licensing at the regional level has been propagated, and the unified norms as to the licensing procedure have been established.

Securities and Stock Market State Commission adopted “The Provision on the Procedure of Changing the Certificate (Certificates) of Registration of Issuing the Emissive Securities Due to the Alternations of the Name of the Joint-stock Company” (the decision of the Commission № 1638 of 30.12.09).

60. Develop further corporate governance policy and promote compliance with the code on corporate governance in line with international standards as well as gradual approximation with the EC rules and recommendations in this area

Aiming to improve the banking supervision, the standards of corporate governance in banks in particular, the National Bank of Ukraine has undertaken to improve the Law “On Amending the Law of Ukraine“ (on features of corporate governance in banks) which took into consideration the provisions of the Law of Ukraine “On Joint Stock Companies”.

61. Introduce relevant international auditing standards at national level

Through the Decision of the Audit Chamber of Ukraine № 122 dated by 18 April 2003, International Standards on Audit, assurance and ethics are adopted as national auditing standards.

With the view of implementing the above mentioned decision on the regular basis the renewal (translation of the new edition) of the Standards of Audit and Ethics of International Federation of Accountants is being concluded and the appropriate decision of the Audit Chamber of Ukraine on the obligatory use by the subjects of the auditing activity as a National Standards of Auditing of International Standards of Auditing is being approved, granting the confidence and ethic since exact period (the decision of the Auditing Chamber of Ukraine № 168/7 dated by 30.11.06).

62. Promote the application of international accounting standards by all listed companies at national level, notably by introducing a mechanism to this end.

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The Parliament is elaborating the draft law "On Amending the Law of Ukraine "On Accounting and Financial Reporting in Ukraine", which foresees the implementation of the norms of the EU Regulations of 19 July 2002, № 1606/2002 on direct application of international accounting standards and financial reporting by the public joint stock institutions, banks, insurers, investment and other legal entities of public value (№ 5435). On 19 January 2010 the Verkhovna Rada of Ukraine postponed the consideration of the bill.

The Advisory Board on the accounting and audit on the securities market was established under the State Commission on Securities and Stock Market.

At the third meeting of the Working Group on Implementation of International Financial Reporting Standards in Non-banking Financial Institutions the Strategy on Transitions of Non-bank Financial Institutions to the Application of International Financial Reporting Standards was adopted on 18 January 2010.

The draft of the Order of Disclosure of the Activities of Public Corporations based on international standards of financial reporting and its submission to the State Commission on Securities and Stock Market was issued on 19 February 2010 on the website of the SCSSM for public consideration.

Financial Services63. Cooperate to ensure the effective implementation of a prudential regulatory frame-work for

financial markets and supervision equivalent to that existing in the EUThe Draft Law “On Depository Accounting System of Securities” undergoes another circle of

approval by the new Government of Ukraine. It provides effective implementation of prudential regulatory framework for the financial markets and supervision, taking into account the frameworks existing in the EU.

The draft Concept Introduction of Prudential Supervision of Non-bank Financial Institutions and the Program of the Development of Prudential Supervision of Non-bank Financial Institutions System is published on the web site of the State Committee for Financial Services for public at large.

The National Bank of Ukraine is drafting the amendments to the Law of Ukraine “On Banks and Banking Activity” (relating to supervision on a consolidated basis) with the EU project experts participation “Strengthening the Financial Services Sector of Ukraine”.

The seminar “Prudential Supervision for the Mediators in the Field of the Securities Trade and the Stock Markets” was held on 24 March 2010.64. Cooperate to improve the administrative capacity of supervisory authorities in accordance with

internationally recognised standardsWith the aim of improving legislation on financial services regulation on improving the

administrative capacities of supervisors the draft Law “On Amendments and Supplements to Some Laws Concerning Advertising in Financial Services Sphere” on the establishment of effective mechanisms on the preventing dissemination of facts of unfair advertising on the financial services markets is under preparation.65. Develop national legislation on prevention and counteraction against money-laundering and

financing terrorism, in particular by implementing the 40 Recommendations plus 9 Special Recommendations of the Financial Action Tasks Force (FATF) as well as the relevant EU anti-money laundering and combating the financing of terrorism legislation (inter alia the provisions of Directive 2005/60/EC on prevention of the use of the financial system for the purpose of money laundering and terrorist financing; Directive 2006/70/EC; EC Regulation 1781/2006; EC Regulation 1889/2005)

The Verkhovna Rada of Ukraine is elaborating the Draft Law “On Amending the Law of Ukraine “On Prevention and Counteraction of the Money Legalization (Laundering) Gained through Crime Committing"(№ 3062).

The State Committee for Financial Services published on 23 February 2010 on its web site the amendments to the Regulation on conducting financial monitoring by financial institutions for public consideration.66. Enhance cooperation with FATF, the Council of Europe, MONEYVAL, as well as relevant

authorities in EU member states and sign Memoranda of understanding between financial

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intelligence authorities of Ukraine and EU member statesState Committee for Financial Monitoring participated in a joint plenary session of FATF -

MENAFATF (Group on Developing Measures to Money Laundering Counteraction in the Middle East and North Africa) and working groups FATF sessions (14 - 20 February 2010).

According to a plenary session of FATF (17 - 19 February 2010) Ukraine was included in the black list of states that have serious deficiencies in the national regimes and expressed their intention to improve them.

The work on signing memorandums of understanding on cooperation between SCFM and the FIUs of European countries, including Monaco and San Marino was conducted. The work was continued on preparation of the relevant memorandum with Hungary.

TAIEX seminar “Introduction of Supervision over Primary Financial Monitoring Subjects, Based on Risk Assessment for the Money Laundering of Proceeds from Crime and Terrorist Financing” was held on 11 - 12 February 2010.

Information SocietyThe Parties cooperate to support Ukraine in, and to prepare for implementation of EC acquis mentioned in relevant annexes of the Association Agreement, in particular by:67. An assessment on the conformity of the new draft law on electronic communications submitted to

Parliament in December 2008 with the EC acquis in this area, throughout the legislative processNew draft law «On the Telecommunications» (№ 3460-1) was prepared. Ministry of Transport and

Communications addressed to the Council of Europe Directorate General of Human Rights and Legal Affairs to make an examination of the acting Law of Ukraine “On the Telecommunications” on the conformity with the European legislation in the framework of TAIEX in the second half-part period of 2010.

Agriculture and Rural DevelopmentThe Parties cooperate to support Ukraine in, and to prepare for implementation of EC acquis mentioned in relevant annexes of the Association Agreement, in particular through enhanced activities of the established agricultural dialogue, in particular by: 68. Improving the competitiveness of agricultural production, including by cooperation on the

implementation of quality schemesIn the framework of the EU technical assistance project «Implementation of Ukraine's

Commitment to Implement the European Neighborhood Policy and the WTO Membership in the Agriculture Sector» the measures concerning the harmonization of Ukrainian legislation with the European legislation are being conducted, in particular in the field of food products and the veterinary control; analyzing of the institutional basis of the food products safety and the elaboration of the recommendations concerning its improvement are being conducted; it is planned to purchase the necessary equipment for the laboratories and organize the trainings for the specialists; the assistance in organization of access to the veterinary databases of European organizations is being granted; the translation and spreading of the informational bulletin DG SANCO is being conducted; it is expected to conduct the measures aimed at the agreement (validation) of three standards of the food products safety.

Science and Technology69. Renew and activate the EC-Ukraine S&T cooperation agreement, in order to enhance the

participation of Ukrainian research entities in FP7 projectsThe negotiations on the algorithm for the prolongation of the EU-Ukraine Agreement on

Cooperation in Science and Technology are being conducted. Ukrainian Party sent the proposal regarding the postponing of the first meeting of the Special Committee on the Cooperation in Science and Technology (for the period of May-June 2010)

The mandate of the Delegation of Ukraine to hold negotiations with the EC on Ukraine's participation in the EU Seventh Framework Programme for research and technological development was granted.

According to the information of the National Information Center for Ukraine-EU cooperation in science and technology on February 2010 for Ukraine's participation in the EU Seventh Framework Programme submitted 69 scientific and technical proposals with the participation of 102 Ukrainian participants - mostly research centers, universities, enterprises.

Social Co-operation The Parties cooperate in order to:

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Develop a strategic approach to employment in order to ensure:70. Better matching skills and jobs on the Ukrainian labour market and its efficiency

During the formation of the state order for high and vocational-technical schools for employees’ preparation the following information is taken into account: concerning the number of persons, who were looking for a job and the number of the vacancies granted by the employers in the context of occupations and offices.

Professional retraining of unemployed by occupations, which are demanded at the labor market, is being conducted. In January 2010 professional education according to the direction of the public service of employment received 25 thousand people according to professions and specialties, which are demanded at the labor market.

The issue of the expediency of introducing of independent qualification and certification of graduates of higher and vocational-technical education is being considered.

The work on the stimulation of interest of employers in the raise of the professional level and stimulation of the workers, who are raising their qualification, is being conducted.71. Strengthening capacity of administration in charge of employment policy

The preparation of the new Law of Ukraine "On Employment" was launched. On 26 - 27 January 2010 the international conference "Global Crisis: the Role of European Public

Employment Services" was organized by the State Employment Service of Ukraine and the Secretariat of the World Association of Public Employment Services (WAPES). An exchange of experience in employment services of the States Parties in crisis conditions, introduction of anti-crisis results of the European employment services.72. Promoting decent work and the transformation of the informal sector into formal work and

implementing the decent work country programmes between the ILO and UkraineAfter the completion of the Report on Assessment of the decent work in Ukraine and adoption of

indicators of decent work at a meeting of the ILO Administrative Council that will be given to Ukraine, Ukraine with the support of the EU will be ready to start the application of defined indicators.73. Promoting anti-discrimination and ensuring equal opportunities, in particular for people with

disabilities, notably in the context of employmentThe project of employment model for the people with disabilities which take into account

international experience of equal opportunities of persons with disabilities in the labor market was developed in the framework of a joint project of UNDP, ILO and the State Employment Center "Social Integration of People with Disabilities by Ensuring Access to Employment". Pilot testing of the model began on 1 March 2010 in Kyiv and Chernihiv regions.

The elaboration of anti-discrimination draft law on employment of persons with disabilities in accordance with the provisions of EU Council Directive 2000/78/EU on 27 November 2000 is being conducted.74. Promote the conclusion of agreements between Ukraine and EU Member States on the

coordination of social security for workers of Ukrainian nationality legally employed in EU Member States

The agreements on the social welfare between Ukraine and Portugal Republic and on the settlement and regulation of the labor migrations flows between Ukraine and Spain were signed.

Public HealthThe Parties will cooperate in:

75. Preventing and controlling of communicable diseases in particular HIV/AIDS, tuberculosis, sexually transmitted infections, and hepatitis C and B

Nationwide program of HIV prevention, treatment, care and support HIV and AIDS for 2009-2013 is being implemented.

At the end of February 2010 the Global Fund to Fight AIDS, Tuberculosis and Malaria agreed to grant Ukraine 100 million dollars to fight the epidemic of tuberculosis.

76. Participating in the EU public health related networks and working parties such as the annual network meeting on health information and the HIV/AIDS Think Tank

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The Ukrainian Party will carry out the activities to participate in the networks and working groups of the EU in the field of health care. The issue of financing of the participation of Ukrainian experts is being considered due to limited budget financing of such expenditures by the Ukrainian side and procedures EC, which provides appropriate reimbursement for travel costs only for the next three months after the event.

Education, training and youthNational Tempus Office assisting in implementation of the programs Tempus, Erasmus Mundus

and Jean Monnet was established in Ukraine. Tempus Regional Seminar on University Governance in Eastern Europe was organized on 1 - 2 March 2010 in Kyiv by the EU Executive Agency for Education, Audiovisual and Culture (EACEA).

According to European Commission proposals the issue of holding the seminar in Ukraine (Kyiv) by Jean Monnet Program on sharing experience of European Studies under the platform 4 "Contacts between People" of the Eastern Partnership is being considered.

The initiative of the Ukrainian Party to establish the Black Sea College of European studies in Ukraine is being considered. To the Ministry of Foreign Affairs of Germany order German scientist prepared a draft of a working conception on establishment and functioning of the institution under the working title "The Institute for Black Sea and European Studies” in Ukraine. The EC is considering the possibility to support the feasibility study of the project.

Culture

Verkhovna Rada adopted on 20 January 2010 the Law of Ukraine "On Ratification of the UNESCO Convention on Protection and Promotion of Diversity of Cultural Expressions". Entry into force of the Convention provides an opportunity for Ukraine to participate in the EU Program "Culture" and a special cultural program of the Eastern Partnership. The Ukrainian delegation took part in the enlarged meeting of contact persons of the EU Program "Culture" on 18 March 2010.

Cross-border and Regional Cooperation

77. Implementation of the Memorandum of Understanding for the Establishment of a Dialogue on Regional Policy and Development of Regional Cooperation

The Action Plan for the Implementation of the Memorandum in 2010 was approved by both sides on 17 February 2010.

There is also ongoing process on the carrying out a full scale OECD territorial review in Ukraine and drafting the Ukraine’s proposals to the designing the EU Danube Strategy.

Four Financial Agreements on Joint Operational Programmes within CBC ENPI 2007 – 2013 were signed, in particular: “Poland-Belarus-Ukraine”, “Romania-Ukraine-Republic of Moldova”, “Hungary – Slovakia – Romania – Ukraine”, “Black Sea Basin”.

The “Joint Cooperation Initiative in Crime”, which is aimed at the accelerating of social and economic development of that region, is in the process of implementation.

Participation in Community Programs and Agencies

78. The Parties will conclude a framework agreement which enables Ukraine’s participation in European Community programmes and cooperate closely to implement it through specific working arrangements.

The Representative of Ukraine to the EU was authorized to sign the EU-Ukraine Framework Agreement on the General Principles of Ukraine’s Participation in the EU Programmes (the decree of the President of Ukraine № 10 of 29 January 2010). The draft treaty is under consideration of the EC services.

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