Milan Vošta

University of Economics, Prague

Czech Republic

milan.vosta@vse.cz

Ukraine-EU Deep and Comprehensive Free Trade Area as part of  Eastern Partnership initiative

Svitlana Musiyenko

University of Economics, Prague

Czech Republic

svitlana.musiyenko@vse.cz

Josef Abrhám

University of Economics, Prague

Czech Republic

abrham@vse.cz

Abstract. The article analyzes the key issues of bilateral cooperation between the EU and Ukraine in the framework of the Eastern Partnership initiative. Special attention is paid to political and economic components of this interaction, and in particular ─ good governance, signing of association agreements and formation of Deep and Comprehensive Free Trade Area (DCFTA). The results of the research show that even despite the pressure from Russia’s side and EU's high dependence on energy importfrom Russia, the EU has demonstratedits wiliness to support Ukraine in stabilizing its economy, encouraging judicial, political and economic reforms and further  economic integration with the EU. Ukraine, in its turn, has also demonstrated itsinterest in intensifying cooperation with the EU and, comparing to other EaP countries, has demonstrated thehighest results in the areas of political dialogue, trade and economic integration. However, turbulent and unpredictable political situation in Ukraine is negatively affecting the cooperation between  Ukraine and the EU: Ukraine's trade performance and signing  DCFTA with the EU has been negatively affected by war conflict with Russia, which caused not only  economic slowdown, falling commodity prices, high inflation, but has also negatively affected Ukrainian exporters’ ambitions and innovation development due to worsening  investment climate in the country

Received: June, 2015

1st Revision: September, 2016

Accepted: November, 2016

DOI: 10.14254/2071-8330.2016/9-3/2

JEL Classification: F13, F15, F51, F59

Keywords: economic integration, the Eastern Partnership, Deep and Comprehensive Free Trade Area, Association agreement, political stability