Ukraine Halts Preparations to Sign EU Association Pact Next Week

Ukraine halted preparations to sign a trade accord with the European Union next week.

The government said today on its website that the decision is aimed at “renewing lost production volumes, lost trade and economic relations with Russia and other members of the Commonwealth of Independent States.”

The former Soviet republic will renew dialog with Russia and the other members of Russia’s customs union to improve trade and economic ties, according to the resolution.

European governments had been urging Ukraine to meet EU demands so it can finalize an association and free-trade pact at a Nov. 28-29 summit in the Lithuanian capital of Vilnius. The chance of signing the accord is less than 50 percent, Polish Foreign Minister Radoslaw Sikorski said yesterday.

The yield on the government’s 2023 dollar bond jumped 20 basis points, or 0.2 percentage point, to 9.858 percent at 3:28 p.m. in Kiev, having been lower than yesterday earlier in the session. The cost to insure Ukrainian debt against non-payment for five years with credit-default swaps rose 13 basis point to 973 percent, according to data complied by Bloomberg.

To contact the reporters on this story: Daryna Krasnolutska in Kiev at dkrasnolutsk@bloomberg.net; Kateryna Choursina in Kiev at kchoursina@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

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