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PhD (Economics) V.V. Lymar

Institute of Industrial Economics, National Academy of Sciences of Ukraine, Ukraine

 The modern integration views of Ukraine

One of the main tendencies of the international economic relations development is an economic globalization nowadays. The stage has begun when economic, social, politic and other processes and events leave national boundaries. It is possible to assess social and economic politics of some countries through the globalization prism.

On the modern stage of Ukraine’s economy development there is a question about integration interests of the country. The main question is: the European Union (EU) or the Commonwealth Independent States (CIS).

The position of Ukraine in its integration interests is ambivalent. On the one hand, it develops economic relations with many countries of the world and makes efforts of more active participation in forming international integration grouping. And on the other hand, its national economy continues to be the part of the post-Soviet economic system that has been forming during existence of single country.

So, it is needed to examine the international trade relations of Ukraine with the EU and CIS countries (fig. 1).

Fig 1. Dynamic of international trade balance of Ukraine in 2008-2012, mn US dollar [1]

This figure shows the active international trade both with the CIS and the EU countries. And in both cases it is visualized the domination of imports above exports. The negative balance shows this tendency. It is necessary to conclude that both the CIS and the EU countries are very important Ukraine’s trade partners.

Integration mechanisms in the CIS are perceived not unambiguously by many politicians and scientists because of many causes. A lot of documents and coordinating institutes in the CIS didn’t lead to the development of integration processes. The instruments of international economic interaction are not effective and aren’t worked through. The countries of a region are afraid to be in dependence from Russian economy and look for the new trade partners among distant foreign countries.

As to experts, they say that the integration of Ukraine to the Customs Union allows to save from 3 to 6 billion US dollar for Russian oil and gas annually. The most dependent branches from prices on resources – metallurgy, machinery and chemistry will get a new impulse of development under preferential prices. Besides contacts widening with post-Soviet partners will open new opportunities to Ukrainian business. As a result of this the increase of new jobsites quantity will be.

Next it is seen the goods structure of Ukraine’s exports to the Russian Federation (table 1).

Table 1.

The goods structure of Ukraine’s exports to the Russian Federation in 2012, mn US dollar[2]

¹

Goods group under the IAGUC

Exports in 2012, mn US dollar

Total

totheRussianFederation

The part in total exports, %

1

Live animals and livestock products

961,32

599,55

62

2

Plantproducts

9213,90

115,98

1

3

Animal or plant fats and oils

4211,46

110,37

3

4

Finishedfoodindustryproducts

3493,92

1157,54

33

5

Mineralproducts

7650,42

1332,29

17

6

Products of chemical and allied industries

5058,92

1242,45

25

7

Polymericmaterials

999,58

507,54

51

8

Raw leather and curry leather

135,63

4,64

3

9

Wood and articles of wood

1060,61

85,22

8

10

Paperbalkofwood

1132,08

810,33

72

11

Textilesmaterials

783,84

149,98

19

12

Footwear, hats, umbrellas

175,91

40,29

23

13

Productsfromstone

582,78

330,16

57

14

Pearls, preciousstones

139,78

10,09

7

15

Basemetals

18889,85

3737,82

20

16

Machines, equepmentandmechanisms

7026,67

5963,47

85

17

Ground, oil and water transport facilities

5963,47

3339,27

56

18

Opticalapparatus

296,46

140,89

48

19

Differentindustrialproducts

609,04

254,15

42

20

Artarticles

0,35

0,026

7

 

As it is seen from this table 85% (5963,47mn US dollar) of exports to the Russian Federation  machines, equipment and mechanisms compose. Big parts of exports to the Russian Federation belong to the live animals and livestock products goods group (599,55 mn US dollar or 62%), polymeric materials (507,54 mn US dollar or 51%), wood and article of wood (85,22 mn US dollar or 63%), paper balk of wood (810,33 mn US dollar or 72%),  products from stone (330,16 mn US dollar or 57%) and ground, oil and water transport facilities (3339,27 mn US dollar or 56%).

Since it was Ukraine that insisted that the “new enhanced agreement” were an association agreement, the EU rightly expects that the Ukrainian side fully understands the meaning of the “association relations” concept and is ready to follow it. Above all – those association agreements are the most advanced type of international treaties that the EU may conclude with third countries – the countries with which the EU is ready to develop strong long-term alliance relations based on mutual trust and respect for common values [3].

It is necessary to note on the possibility of associating membership of Ukraine in the EU. In the basic European Commission documents there is no definition such as “associating membership”. There are some variants of agreement about association with the EU. The first – is the agreement about stabilization and association which has been subscribed with several west-Balkan countries. Another variant of agreement that gives the prospect of the EU membership is the European agreements which have been subscribed between Brussels and Central and Eastern Europe countries which later became the EU members. Other agreements don’t give the prospect of the EU membership. In any case using the “associating membership” isn’t correct. These countries are the participants of some process but they aren’t the members of the EU.

Only Ukraine among the post-Soviet countries negotiates with the EU about the association agreement. But as say the European Commission experts this future agreement doesn’t give the prospect of the EU membership.

Conclusion. The integration of Ukraine to the Customs Union allows to save fund on importing resources and put in order cooperating relations with the CIS countries which were lost after the USSR reintegration.

References

 

1.                 Ãåîãðàô³÷íà ñòðóêòóðà çîâí³øíüî¿ òîðã³âë³ Óêðà¿íè òîâàðàìè [Åëåêòðîííèé ðåñóðñ]. – Ðåæèì äîñòóïó: www. ukrstat.gov.ua

2.                 Òîâàðíà ñòðóêòóðà çîâí³øíüî¿ òîðã³âë³ Óêðà¿íè [Åëåêòðîííèé ðåñóðñ]. – Ðåæèì äîñòóïó: www. ukrstat.gov.ua

3.                 EU-Ukraine association agreement: guideline for reforms [Åëåêòðîííèé ðåñóðñ]. – Ðåæèì äîñòóïó: http://eeas.europa.eu/images/top_stories/140912_eu-ukraine-associatin-agreement-quick_guide.pdf