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Is Crimea a part of Ukraine’s sovereign territory? The European Union says it is, since it doesn’t recognise either Crimea’s independence or, obviously, Crimea’s annexation to Russia.

This may sound straightforward, but it does present some problems both for Brussels and for the member state capitals, since “the devil is in the details”.

The European Union has earmarked a €11 billion package of loans and grants for Ukraine according to its decision on 5 March. It certainly is unclear how and when these will be disbursed. On 11 March, the Commission also decided to extend special trade benefits to Ukraine, essentially meaning that Ukrainian exports to the EU will be duty free.  

Last Wednesday, the Vice President of the Commission, Olli Rehn, announced an immediate macro-financing assistance package for Ukraine amounting to €1.6 billion. 

All this seems absolutely straightforward, but there is a catch. Even if the monies are disbursed to Ukraine, a very convoluted process by itself, which will be the Ukraine that will receive them, the territory they will be spent upon?

True, Olli Rehn said that “The European Union has made clear that it does not recognise the outcome of the illegal and illegitimate referendum in Crimea and that the EU will not recognise the annexation of Crimea and Sevastopol to the Russian Federation, which indeed goes against the principles of the UN Charter and the CSCE/OSCE Helsinki final Act.” 

 But it is almost beyond reason to expect the European and other Western assistance to reach a de facto Russian Crimea. But then, since both the EU and other Western powers including the USA consider Crimea to still be a part of Ukraine, what will be the mechanism that will exclude Crimea and on what terms?

New Europe put these questions to the European Commission, but no answer has been received.

Obviously, there are technical ways to go about this situation, some of them very simple. For example, Ukrainian exports to the EU will have to be recognised as such only if accompanied by the paperwork issued by the relevant competent authorities in Kiev. 

Monies will obviously be disbursed to the Kiev government.  But they will come together with very strict caveats, instructions and oversight. EU, European and other international institutions involved are therefore shouldering a large part of the responsibility.

Speaking to New Europe on behalf of the Greek Presidency, Deputy Foreign Minister Dimitris Kourkoulas noted that the EU has some experience with handling similar situations and mentioned the case of Cyprus, a EU member state whose northern part is under Turkish occupation.


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