This page has been archived and commenting is disabled.

Europe Folds To Russian Demands, Delays Ukraine Free Trade Deal By Over A Year

Tyler Durden's picture




 

While the world was poring through the details of the latest round of preannounced western sanctions against Russia - a round which Russia commented would have virtually no actual impact - and just as excitedly awaiting the Kremlin's retaliation which Putin warned is coming shortly, far from the glare of the center stage Europe quietly folded to a bigger Russian demand namely to delay the implementation of a Ukraine free trade deal by more than one year until the end of 2015 and likely beyond.

As AFP reported, EU Trade Commissioner Karel de Gucht said, after talks with Russian and Ukrainian ministers, that the free trade agreement which Ukraine and its imploding economy had hoped would be implemented in the immediate future, will instead be delayed. Perhaps the date of the provisional launch has something to do with it: EU sources said the trade deal was to have taken effect on November 14, i.e. in the middle of Europe's cold, snowy, GDP-sapping winter. The European Council of 28 members states must now sign off on the delay.

De Gucht said that once Kiev ratifies the EU Association Accord, expected next week and which was negotiated at the same time as the Deep and Comprehensive Free Trade Agreement, then Brussels would offer "additional flexibility" in the hope of meeting Russian concerns that its economy would suffer if the DCFTA deal went ahead.

This would be done as part of efforts to "fully support the stabilisation of Ukraine," he said after talks with Ukraine Foreign Minister Pavlo Klimkin and Russian Economy Minister Alexi Ulyukayev. "Such flexibilty will consist in the delay until 31 December 2015 of the provisional application of the DCFTA," he said.

Additional flexibility? That sounds very close to what Obama promised Putin's right hand guy, Dmitry Medvedev, nearly three years ago.

Sometimes glitches in the matrix such as this one make one wonder just how much of what is going on right now between the "west" and Russia has been long pre-agreed and pre-approved by the "feuding" sides, and what is really going on behind the scenes.

But back to what the data available for popular consumption: in effect while Russia and the West are engaging in populism-happy trade and capital flow wars what is taking place at a higher level is far more nuanced, and it is here that a far more pragmatic EU is certainly concerned about pushing Russia too far.

The reason why Moscow is against the Ukraine free trade agreement is because Russia sees it as bolstering Kiev and potentially harming its own economy by allowing an influx of cheaper/better EU goods into the country, an important Russian market. Equally damaging, Moscow said these goods could then be sold on into Russia itself, damaging domestic industry.

Of course, with Europe launch sanction after meaningless sanction, in a world that is all about leverage and optics, the last thing the EU could afford is to be perceived as folding to the Kremlin in a matter which could really hurt the Russian economy. So instead DeGucht presented the delay as win-win for all sides, saying the preferential tariffs addressed "the very difficult economic situation in Ukraine" while the delay in implementing the deal leaves "15 months for either party to make remarks, proposals."

One can just imagine the remarks and proposals that Putin would have uttered had Europe not delayed the agreement.

What's more interesting, Russia may just win another major round in the political war that is taking place just behind the surface: the preferential tariffs announced in March and due to expire in October offered Ukraine significant reductions in customs duties worth about 500 million euros per year, the commission said.

Still, had the free trade deal passed today, it would have allowed the economically devastated Ukraine, whose economy is rapidly imploding, to boost its exports to Europe by one billion euros per year, according to the commission.

In June, the EU and Ukraine signed the long-delayed Association Agreement, the very deal whose 11th-hour refusal last year by then president Viktor Yanukovich plunged the former Soviet country into chaos. It sparked a wave of pro-European protests that eventually toppled the Kremlin-backed Yanukovich in February and ushered in a pro-Western government that deeply angered Moscow.

What goes unsaid is that the signed agreement was merely yet another optical pseudo intervention: in reality is provided nothing to Ukraine but simply sent signals to the global community that the "west" had the upper hand when it comes down to Kiev realpolitik.

If only for now. 

But once the Ukraine people have been forced to go through a full winter with no benefit from the Russian bear, it remains to be seen just how enthusiastic they will be about the ongoing western-backed (and funded, and orchestrated) revolution.

As for Europe's true "leverage" vis-a-vis Russia, the following quote from AFP encapsulates it best:

"If you want to solve a conflict, you have to be flexible," a European source said when asked about the delay in the trade deal.

And speaking of memorable quotes, one my want to timestamp these:

In Kiev, Poroshenko thanked the EU for the new sanctions. "A friend in need is a friend indeed," Poroshenko said.

 

"I feel a full part of the European Union family," he added.

Let's all check back on how Ukraine, and whoever is its president then, feels about being part of the European Union "family" in a year. Or less.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 09/12/2014 - 17:26 | 5212273 order66
order66's picture

Me and Europe like friends.

http://bit.ly/1AHxt1N

Fri, 09/12/2014 - 17:29 | 5212293 Newsboy
Newsboy's picture

What happened to "Look Natasha, I have moose and squirrel on string"?

Fri, 09/12/2014 - 17:37 | 5212308 X.inf.capt
X.inf.capt's picture

well, i think this is starting to de-escalate

alittle...hopefully...

Fri, 09/12/2014 - 17:48 | 5212334 knukles
knukles's picture

Pussies.

Fri, 09/12/2014 - 17:54 | 5212352 johngaltfla
johngaltfla's picture

Europe replies to Obama:

It's gonna be cold here you dumb bitch!

Fri, 09/12/2014 - 18:21 | 5212430 Looney
Looney's picture

Ain’t it exactly what the overthrown Ukrainian president did – delayed the association with the EU until December of 2015?

Our Golfer-in-Chief needs to start re-arranging his strawberry-flavored checkers. Again! ;-)

Looney

Fri, 09/12/2014 - 18:40 | 5212481 skepsis101
skepsis101's picture

Did I just hear someone say "fuck the USSA"!

Fri, 09/12/2014 - 22:33 | 5213140 palmereldritch
palmereldritch's picture

Does this make Putin The Boss ?

Teardrops on the city
Bad Scooter searching for his groove
Seem like the whole world walking pretty
And you can't find the room to move
Well everybody better move over, that's all
'Cause I'm running on the bad side
And I got my back to the wall
Tenth Avenue freeze-out
Tenth Avenue freeze-out

http://www.youtube.com/watch?v=BL-HL3ELvFI

Sun, 09/14/2014 - 02:46 | 5215527 matrix2012
matrix2012's picture

There are also early snowfalls at Cut Bank, Montana; Rapid City, South Dakota; and Calgary, Alberta.

Check the pics here:

http://www.accuweather.com/en/weather-news/photos-snow-whitens-montana-t...

Fri, 09/12/2014 - 18:03 | 5212369 MarsInScorpio
MarsInScorpio's picture

I said when this all began that it would end like Hungary in 1956: Lots of talk from the West, but when Russia moves in to kill the revolution, the West will pussy out and leave the revolutionaries hanging (probably literally in this case).

 

And because the revolutionaries in this instance are slimeball Nazis, I am all for them hanging - "Until you are Dead, Dead, Dead." (Gavel slams loudly, and the Death Sentence is levied.)

-30-

Fri, 09/12/2014 - 19:26 | 5212631 Volkodav
Volkodav's picture

1956 was USSR

Soviet is defunct

 

Fri, 09/12/2014 - 19:26 | 5212634 angel_of_joy
angel_of_joy's picture

Exactly ! The new version of this old song would be "NATO is going to defend us", a popular (and equally delusional) hit in most of Eastern Europe. Like the US & Western Europe will start a nuclear exchange with Russia in order to defend Estonia, or something...

Fri, 09/12/2014 - 17:43 | 5212323 El Oregonian
El Oregonian's picture

Putin be play'in Obola like a fine-tuned top...

Fri, 09/12/2014 - 23:27 | 5213265 Wahooo
Wahooo's picture

You mean, like a fine-tuned bottom...

Fri, 09/12/2014 - 17:29 | 5212294 HedgeAccordingly
HedgeAccordingly's picture

Paulson stays with Gold ETF as prices recover .. confidence eh..

http://hedgeaccording.ly/2014/09/paulson-stays-with-gold-etf-as-prices-r...

Fri, 09/12/2014 - 17:32 | 5212297 Pooper Popper
Pooper Popper's picture

This is just Fucking embarrassing......

Do you think we could get Putin in next years draft?

Maybe we could trade obama for a urinal cake?????

Nahhh,who would be dumb enough to make that deal?

Fri, 09/12/2014 - 17:41 | 5212304 Bunghole
Bunghole's picture

Yep.  That's an insult to urinal cakes.

Fri, 09/12/2014 - 23:01 | 5213209 bonin006
bonin006's picture

How about using Obama as a urinal cake?

Fri, 09/12/2014 - 17:32 | 5212300 Wile-E-Coyote
Wile-E-Coyote's picture

Europe will fuck Obama in the ass

Fri, 09/12/2014 - 17:45 | 5212330 ghengis86
ghengis86's picture

And that upsets Obama? Maybe makes Reggie Love jealous...

Fri, 09/12/2014 - 17:22 | 5212275 Newsboy
Newsboy's picture

"Think for yourself, 'cause I won't be there with you"

 

Fri, 09/12/2014 - 17:24 | 5212278 22winmag
22winmag's picture

Eurpoe... a collection of sad, defeated nations doing what sad, defeated nations do.

Fri, 09/12/2014 - 17:35 | 5212305 Wile-E-Coyote
Wile-E-Coyote's picture

Said like a true ignorant patriot.

Fri, 09/12/2014 - 17:28 | 5212286 ebworthen
ebworthen's picture

Europe needs the Russian Natural Gas, period.

Fri, 09/12/2014 - 18:19 | 5212422 Kirk2NCC1701
Kirk2NCC1701's picture

Correct.  And Nietsche was right with his aphorism:  "That which does not kill me, only makes me stronger"

The Neo-Ziocons are only making Russia and China stronger, insofar it is forcing the two super powers even closer together:  Economically and Militarily.  Their combined landmass, natural resources, wealth, war/nuke/space capabilities and population/markets leave the deeply indebted European and American powers in the dust.

The US needs to do the right thing to heal itself and the world:  DROP THE FUCKING DOLLAR AS THE GRC!!!  Have a RESET (and DEBT JUBILEE), and START OVER with clean slate, by rebuilding USA with sound monetary and economic policies.  Time for REAL CAPITALISM, NOT CASINO/CRONY CAPITALISM of the FED.

America, please kick out the treasonous crooks, fools and scumbags in Nov. elections, and put Real Adults into power, to start cleaning house -- top to bottom. 

And SOMEBODY please put those Satanic imperialist Global-Zionists into a "permanent time out" -- whatever that involves.  The world has had more than enough of them, and should have to tolerate it No more.  As a first step, I'd criminalize Zionism across the globe, making it the hate-crime political movement that it is.  Israel and Jews everywhere can and should exist just fine, and will exist far better without the cancerous disease that is Zionism.

Fri, 09/12/2014 - 19:08 | 5212573 JR
JR's picture

Gold-Eagle:

China, Russia, and South Africa together produce nearly 40 percent of the world’s gold, which could play a role if the BRICS countries decide to establish a gold-backed currency to challenge the dollar. -- Ron Paul,  August 16, 2014, US Sanctions on Russia May Sink the Dollar http://www.gold-eagle.com/article/us-sanctions-russia-may-sink-dolla

 

24/7 Wall St:

Combined, Russia and Iran account for more than 40% of the world’s natural gas…. Iran also has the third-largest amount of oil in the world, with 136.2 billion barrels of proved reserves. …

Russia is the world’s richest country when it comes to natural resources. It leads all other nations in the size of both its natural gas and timber reserves. The country’s vast size is both a blessing and a curse since economical transportation for gas (pipelines) and for timber (railroads) are significantly costly to build. In addition to having such large gas and timber reserves, Russia has the world’s second-largest deposits of coal and the third-largest deposits of gold. Additionally, it has the second-largest estimated deposits of rare earth minerals, although none are currently being mined.
Read more: The World’s Most Resource-Rich Countries - 24/7 Wall St. http://247wallst.com/special-report/2012/04/18/the-worlds-most-resource-rich-countries/#ixzz3D93mKpuu

Fri, 09/12/2014 - 19:30 | 5212641 ThroxxOfVron
ThroxxOfVron's picture

Russia and the United States would unquestionably rule the world if they quit fighting one another and became steadfast allies and trading partners.

I consider the Russo/American with the very same suspicion that I view the Dem/Rep duopoly/opposition.

Christianity, dual failed experiments with socialism, and dual failed experiments with limited imperialism should unite these great nations rather than cast them against one another.

China and the UK and the EU could not together challenge the immense might of the Eagle and the Bear united and of one intent.

Fri, 09/12/2014 - 19:22 | 5212615 Volkodav
Volkodav's picture

"That which does not kill you makes you stronger"

Except for Bears

Bears will kill you

 

"That which will kill a German

is good for a Russian" 

 

"This War is just started"

           -Kutuzov

Fri, 09/12/2014 - 20:56 | 5212890 7.62x54r
7.62x54r's picture

A Pole was granted three wishes. He wished three times for a Mongol invasion.

When asked why, he said: "They had to cross Russia six times to do it.".

Fri, 09/12/2014 - 20:55 | 5212881 7.62x54r
7.62x54r's picture

You won't need a jubilee.

The dollar will be so worthless that you can repay dollar denominated debts with less than  the price of a cup of coffee.

Fri, 09/12/2014 - 17:32 | 5212299 Joe Tierney
Joe Tierney's picture

Doh!Bamma is losing control of his euroce bith-ches - oh no!

Fri, 09/12/2014 - 17:46 | 5212309 Bankster Kibble
Bankster Kibble's picture

"had the free trade deal passed today, it would have allowed the economically devastated Ukraine, whose economy is rapidly imploding, to boost its exports to Europe by one billion euros per year"

 

I suspect Europe is actually protecting itself, not just caving in to the Russians.  Europe has purchased a region that cannot afford to buy European goods and desperately needs to sell goods into the EU market.  In other words, Europe had hoped to dump goods into Ukraine and is now afraid the flow will be reversed.

Fri, 09/12/2014 - 19:19 | 5212608 JR
JR's picture

I just love Putin. He just sits there, says nothing, while the EU officials, Obama, NATO and Kiev deliver a brave false statement everyday, running in circles, red-faced and angry, planning and insulting and charging while Putin remains silent, thoughtful and waits for the dust to die down and then issues a decisive final pronouncement.

And then like clockwork they all are running around once more, gasping, Oh, he's attacking again!!!  While in Kiev, they have a full time job just making up statements.

Fri, 09/12/2014 - 22:44 | 5213171 Freddie
Freddie's picture

I am watching what is happening to Stelkov closely.  He is the RUssian who turned it around for NovoRussia and is angry about this ceasefire. He gave a press conference yesterday that was astonishing.

He is a Russian patriot and has said that Putin is surrounded by Fifth Column traitors in Russia and needs to be very careful.   Putin should bring Strelkov in to protect his back.  Every day there is a rumor that Strelkov has been killed and today one that he hung himself.  Putin has enemies in his midsts. He needs patriots like Strelkov watching his back.

Sat, 09/13/2014 - 03:37 | 5213555 basho
basho's picture

maybe he has.

Fri, 09/12/2014 - 17:39 | 5212311 Tachyon5321
Tachyon5321's picture

 

 

After being spanked, Obama still bent over ask "Sir Putan, May I have Another". 

 

 

Fri, 09/12/2014 - 17:39 | 5212312 Spastica Rex
Spastica Rex's picture

Maybe we should bomb Europe? Have they beheaded anyone, lately? That could be a plus.

Fri, 09/12/2014 - 17:39 | 5212314 q99x2
q99x2's picture

Until you see a move by Russia to go after Blankfein it is a show to steal money from the less fortunate oligarchs.

Fri, 09/12/2014 - 17:43 | 5212320 Wile-E-Coyote
Wile-E-Coyote's picture

The USA is nothing more than a plague on the world, a cancer that needs excising.

The people of America are basically descent, but they elect corrupt politicians every term. Therefore they are implicitly to blame for the malaise we are in.

 

Fri, 09/12/2014 - 17:50 | 5212342 Joe Tierney
Joe Tierney's picture

This generation inherited a Cadillac which they didn't deserve, don't know how to run and drive, don't care if they maintain, and have no use for it because it's too complicated.

 

The Cadillac is the country with its laws, government and capitalism. Americans are clueless today. They're running everything into the ground, and they're totally oblivious.

Fri, 09/12/2014 - 17:57 | 5212363 Circle of DNA
Circle of DNA's picture

Elections ???...In the US ???....Total, utter illusion. Different names, different parties, different slogans but exactly the same agenda and cheques signed by the same people.

Fri, 09/12/2014 - 17:59 | 5212371 Grumbleduke
Grumbleduke's picture

so all the guns don't change shit, you say?

Fri, 09/12/2014 - 19:34 | 5212651 ThroxxOfVron
ThroxxOfVron's picture

"The people of America are basically descent, but they elect corrupt politicians every term"

 

You are an IMBECILE.  The popular vote has never elected a president and I doubt that congressional elections are anything but pantomimes of the real deal.

THE AMERICAN CITIZENRY DID NOT ELECT OBAMA; THE ELECTORAL COLLEGE DID.

Fri, 09/12/2014 - 21:00 | 5212900 paint it red ca...
paint it red call it hell's picture

I wish it was just corrupt politicians, countries haver survived them since the first politician. There is an evil behind all this that knows no borders, dark with purpose.

Fri, 09/12/2014 - 17:45 | 5212329 kchrisc
kchrisc's picture

The pols and crats know that cold is hard to spin.

An American, not US subject.

Fri, 09/12/2014 - 18:20 | 5212426 tony wilson
tony wilson's picture

easy solve for obarme he already did a pivot flip back to syriana.

depleted uranium bunker busters with assads name on them with full rabbi kosher certifications.

 

we should pray assad has some s300s and  iskander if not he toast and putin did a deal with satan

Fri, 09/12/2014 - 18:32 | 5212455 litemine
litemine's picture

It's too bad the American Economy isn't stimulated by building infrastucture and enviromental clean up. Medica.treatment for all the babies , now grown up from USA's bombing campaigns..... lots of work......and the world would like a "POSITIVE"  helping hand .     Sorry ....That ain't going to happen.

Fri, 09/12/2014 - 19:17 | 5212601 Son of Captain Nemo
Son of Captain Nemo's picture

It's too bad the American Economy isn't stimulated by building infrastucture and enviromental clean up. Medica.treatment for all the babies , now grown up from USA's bombing campaigns.....

Ditto.

What a wonderful world it would be!

Fri, 09/12/2014 - 19:13 | 5212591 Son of Captain Nemo
Son of Captain Nemo's picture

we should pray assad has some s300s and  iskander if not he toast and putin did a deal with satan

Agree t

But this changes the calculus considerably and demonstrates along with the announcement earlier that Germany and the U.K. would not be taking part in the U.S./Israeli backed illegal use of sovereign Syrian airspace.

I think the rest of the campers are getting restless and are starting to understand just how deranged and out of control the U.S./U.K./EU banking establishment is and that Spain and Scotland may not be isolated cases much longer.

Natives restless and should have been long before we got to the place we are at now!

Sat, 09/13/2014 - 00:22 | 5213369 Freddie
Freddie's picture

Yes indeed.  Hopefully the Northern League in Italy will split along with Venice.

The Europeans really need to do something inspired to save the day.  Perhaps they can give their hero Obama another Nobel Prize.    Another one for Al Gore and Krugman could not hurt,

Putin needs to make sure Syria and Syria's friends get S300s, Iskanders, Kornet anti-tank missiles and other tools to beat Satan.

Fri, 09/12/2014 - 19:18 | 5212539 Son of Captain Nemo
Son of Captain Nemo's picture

To ZeroHedge

Thanks for being one of the first to report on this.  It's by far the best news and gift we've received all year!

Let's cross our fingers and and get on bended knee for a prayer that another 9/11 is NOT in our midst to scuttle it!

As I've said many times before... The next best gift is if Germany gives the U.S. DoD a "pink slip" to pull their bases out of Country for good and tells Kerry that after 70 years of occupation we're starting over on our own and without you "up our ass"!

 

Fri, 09/12/2014 - 19:08 | 5212567 trader1
trader1's picture

the humanitarian side won this round.

better to preserve your own selves during a cold winter rather than die over idiotic ideas. 

 

Fri, 09/12/2014 - 19:37 | 5212659 jefferson32
jefferson32's picture

It's a quote from Placebo. In full:

A friend in need is a friend indeed
A friend with weed is better

No joke

Sat, 09/13/2014 - 02:03 | 5213482 ThirdWorldDude
ThirdWorldDude's picture

a friend with breasts and all the rest

a friend who's dressed in leather...

 

It's actually a very good tune, check it out.  :)

Fri, 09/12/2014 - 19:48 | 5212707 atthelake
atthelake's picture

If you have relatives, in affected countries, this may be a good time to invite them to stay, with you, in America.

Fri, 09/12/2014 - 20:23 | 5212804 Jack Burton
Jack Burton's picture

"potentially harming its own economy by allowing an influx of cheaper/better EU goods into the country, an important Russian market. Equally damaging, Moscow said these goods could then be sold on into Russia itself, damaging domestic industry."

This of course is why the EU was hell bent on getting Ukraine in and thus getting around any restrictions of tariffs into the Russia market. As if Russia was SO STUPID as to let a light slight of hand allow EU free access to Russia without and measures to level the playing field. Russia was NEVER going to let Ukraine be a  middle man to dump duty free EU goods into Russia and wipe out domestic manufactureres and service provides. Just so silly to even think that scheme was going to work!

Sat, 09/13/2014 - 00:33 | 5213389 Freddie
Freddie's picture

The Russians have seen endless scams by people like Yullia and other scum trying to skim gas from the pipeline. The Poles reverse flowing and other bullshit.  The Russians are not supid.

Fri, 09/12/2014 - 20:29 | 5212823 the not so migh...
the not so mighty maximiza's picture

oh snap obama, now you have to bomb all of europe for that insult.

Fri, 09/12/2014 - 20:56 | 5212891 paint it red ca...
paint it red call it hell's picture

Does this mean NATO riding to the rescue of the ukraine nazi's and blackstone mercs is on hold????

Sat, 09/13/2014 - 01:00 | 5213423 Freddie
Freddie's picture

Blackstone.  LOL!  Blackrock, Blackstone, Blackwater, Carlyle Group = all the same.

Sat, 09/13/2014 - 03:33 | 5213552 basho
basho's picture

UE can't stand on its own.

It needs EU cash to stay afloat.

What would it cost for UE to meet EU trade stds.?

Who would be paying for it?

How is UE going to import EU goods? Kill its own industry?

What are UE's major exports?

RU has already sanctioned EU food products. These products coming through UE would not be happening.

RU has already stopped importing UE products. The list will just get longer.

RU is supposedly going to sanction 'other goods' this time 'round. How would they get through UE to RU?

This idioitc landgrab by the ussa/eu zionists is collapsing like a house of cards.

The next thing happening is that porky the chocolate pig is going to trade eastern UE for peace in Kiew.

This isn't over. Kolomosky still lives, for now.

UE will soon be broken up again. The zionist robber barons have their israhell passports in hand.

 

 

Sat, 09/13/2014 - 05:48 | 5213604 vyeung
vyeung's picture

All fascist/Nazis are liars at heart and they cannot stop their perverted urges. As they say you cannot do good business with BAD PEOPLE. Demonstrated over and over again during the Ukraine crisis.

No wonder countries only give lip service to DC nowadays. They are both liars, murderers, hypocrites and worse of all Unipolar world promoters.

Sat, 09/13/2014 - 06:02 | 5213613 Jano
Jano's picture

a wave of pro-European protests ....

No, Maidan was not a proeuropean protest.
It was at least to 90% anticorruption and anti oligarchs protest.
However, the result turned out to be even about more corruption and more oligarchs.

Sat, 09/13/2014 - 16:47 | 5214439 Last of the Mid...
Last of the Middle Class's picture

Putin  6    Obama 0   EU  -8     yeah they'll be flexible come late January, like our gay black male prostitute packer in chief

Do NOT follow this link or you will be banned from the site!