Ukraine not ready for membership, rules EU

The European Union today dashed Ukraine's hopes for any quick membership in the bloc, saying that neither Ukraine nor the EU were ready for it to join.

"Ukraine is not ready, and we are not ready," European Commission President Jose Manuel Barroso said.

"Ukraine still has reforms to do… and today in the European Union, the member states are not ready to assume new membership obligations."

Mr Barroso said during a news conference with Ukrainian president Viktor Yushchenko, however, that his comments should not be interpreted by Ukraine as a "negative signal".

"On the contrary, it is to encourage them to go ahead with their reforms - to overhaul the judiciary, fight corruption and improve the business climate," Mr Barroso said, adding that the EU was encouraged by progress in the talks for Ukraine to become a full member of the WTO.

Mr Yushchenko, who was in Finland to meet European leaders at an annual EU-Ukraine summit, had hoped for signs that EU accession talks for his country could begin in 2008.

No such timetable was discussed in Helsinki, but the two sides agreed to launch negotiations next year on a new economic and political cooperation agreement, and signed an agreement on cross-border cooperation.

After admitting 10 new countries in 2004 and preparing to absorb Romania and Bulgaria on January 1, there has been a growing wariness in the EU about further expansion.

Mr Yushchenko denied he was disappointed that accession talks were not discussed, and expressed satisfaction that they had decided to open talks on a new partnership agreement.

"Our goal is to transfer this partnership and cooperation to a level of political association and integration," Mr Yushchenko said.

"The formats, days (timetable) and nuances on how it will happen will be a question for negotiations."

The two sides also discussed energy cooperation, particularly Russian gas supplies, which were disrupted last year after Moscow temporarily cut off supplies to Ukraine, triggering shortfalls in Western Europe, after a disagreement on pricing.

Mr Yushchenko said a new price deal with Russia, signed on Tuesday, would guarantee a flow of natural gas.

"We welcome all new agreements made by Ukraine and Russia in terms of gas supplies. In fact, it seems the situation is improving. We do not anticipate any problems for this year," Mr Barroso said.

The new agreement to be discussed next year would include a "free trade area as an important element," a joint EU-Ukraine statement said. But Mr Barroso said that Ukraine must first become a WTO member.

"Completion of the WTO accession will a first priority. This is vital for the negotiations of a free trade area," Mr Barroso said.

At the meeting, Ukrainian foreign minister Borys Tarasyuk and EU external relations commissioner Benita Ferrero-Waldner signed an agreement easing visa requirements and the readmission of illegal migrants.

The pact gives greater freedom of travel to various groups, including businessmen, students and teachers, and allows multiple entry visas lasting up to five years. It also facilitates the return to Ukraine of illegal migrants arriving through that country into the EU.

The agreement requires ratification before being adopted.