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| Putin aide calls Ukraine head 'Nazi' | |
| (about 7 hours later) | |
| Ukraine's President Petro Poroshenko is set to sign a landmark free trade agreement with European leaders, slashing import tariffs with the European Union and committing the country to an ambitious programme of political and economic reform. | Ukraine's President Petro Poroshenko is set to sign a landmark free trade agreement with European leaders, slashing import tariffs with the European Union and committing the country to an ambitious programme of political and economic reform. |
| It is a momentous occasion for Ukrainians, marking not just a major step towards European integration, but also a culmination of the country's recent political upheavals. | It is a momentous occasion for Ukrainians, marking not just a major step towards European integration, but also a culmination of the country's recent political upheavals. |
| Hundreds of thousands of Ukrainians took to the streets in November to protest against then President Viktor Yanukovych's abrupt decision to cancel the agreement's original planned signing. | Hundreds of thousands of Ukrainians took to the streets in November to protest against then President Viktor Yanukovych's abrupt decision to cancel the agreement's original planned signing. |
| Although he claimed the treaty was merely being postponed, his actions were widely seen as something more permanent - a rejection of Europe and a move towards Russia. | Although he claimed the treaty was merely being postponed, his actions were widely seen as something more permanent - a rejection of Europe and a move towards Russia. |
| The demonstrations grew in size and anger until they resulted in Mr Yanukovych fleeing the country in February. A pro-EU government replaced him. | The demonstrations grew in size and anger until they resulted in Mr Yanukovych fleeing the country in February. A pro-EU government replaced him. |
| Kremlin fears | Kremlin fears |
| Only seven months have passed since the first protests, and Ukraine appears to be a different country. The deal Mr Yanukovych rejected is being signed by his successor. | Only seven months have passed since the first protests, and Ukraine appears to be a different country. The deal Mr Yanukovych rejected is being signed by his successor. |
| But some things haven't changed. Russia remains unwavering in its opposition to the agreement. | But some things haven't changed. Russia remains unwavering in its opposition to the agreement. |
| The Kremlin maintains that once the treaty comes into effect, European exports could find their way into Russia duty-free, since Kiev has its own beneficial trade conditions with Moscow. Or less expensive European goods could force Ukrainian goods out of their own market and into Russia. | The Kremlin maintains that once the treaty comes into effect, European exports could find their way into Russia duty-free, since Kiev has its own beneficial trade conditions with Moscow. Or less expensive European goods could force Ukrainian goods out of their own market and into Russia. |
| As a result, Russian officials say they could very likely raise tariffs on Ukrainian imports, and thereby restrict business between the two countries. | As a result, Russian officials say they could very likely raise tariffs on Ukrainian imports, and thereby restrict business between the two countries. |
| The threat has serious implications. Russia is Ukraine's single largest export market, accounting for nearly a quarter of the country's international trade. | The threat has serious implications. Russia is Ukraine's single largest export market, accounting for nearly a quarter of the country's international trade. |
| The Kremlin has already taken a number of steps that are widely viewed as attempts to punish Ukraine. Various items have been deemed unsafe and blocked from the Russian market: chocolate, cheese and potatoes, for example. The government in Moscow has also drastically raised the price Ukraine pays it for natural gas. | The Kremlin has already taken a number of steps that are widely viewed as attempts to punish Ukraine. Various items have been deemed unsafe and blocked from the Russian market: chocolate, cheese and potatoes, for example. The government in Moscow has also drastically raised the price Ukraine pays it for natural gas. |
| In addition, Russia's annexation of Ukraine's southern region of Crimea and the ongoing pro-Russia insurgency in Ukraine's east are both viewed widely by Ukraine and its allies as payback for the Kiev government's pro-Western stance. | In addition, Russia's annexation of Ukraine's southern region of Crimea and the ongoing pro-Russia insurgency in Ukraine's east are both viewed widely by Ukraine and its allies as payback for the Kiev government's pro-Western stance. |
| Many observers ask: "What more can Russia do?" | Many observers ask: "What more can Russia do?" |
| Ukraine also faces a number of dangers closer to home. The country's economy is in a brittle state. Growth has plummeted and the government owes billions of dollars to international investors. | Ukraine also faces a number of dangers closer to home. The country's economy is in a brittle state. Growth has plummeted and the government owes billions of dollars to international investors. |
| In the long term, the EU agreement is supposed to bring a boost. The country's producers will have free access to the world's biggest free trade area. | In the long term, the EU agreement is supposed to bring a boost. The country's producers will have free access to the world's biggest free trade area. |
| EU rules and stipulations should also improve Ukraine's business climate as a whole. The country will be required to introduce wide-ranging reforms - increasing transparency, reducing corruption and raising the quality of its output. | EU rules and stipulations should also improve Ukraine's business climate as a whole. The country will be required to introduce wide-ranging reforms - increasing transparency, reducing corruption and raising the quality of its output. |
| But in the short term, this will cause a great deal of pain and disruption, as local businesspeople struggle to make the change. Complicating matters is the fact that many don't know what exactly they will need to do. | But in the short term, this will cause a great deal of pain and disruption, as local businesspeople struggle to make the change. Complicating matters is the fact that many don't know what exactly they will need to do. |
| Sergiy Klymenko - who owns a local lingerie producer, Yanser - accepts Ukrainian businesses will initially suffer, and European businesses will enter the market and create stiff competition. But he believes "there's no alternative" to the path to Europe. | Sergiy Klymenko - who owns a local lingerie producer, Yanser - accepts Ukrainian businesses will initially suffer, and European businesses will enter the market and create stiff competition. But he believes "there's no alternative" to the path to Europe. |
| "It's a question of the movement and development of society," he said amidst stacks of multi-coloured women's underwear at his company's design studio in Kiev. "The freedoms that the EU represent are very important for our country." | "It's a question of the movement and development of society," he said amidst stacks of multi-coloured women's underwear at his company's design studio in Kiev. "The freedoms that the EU represent are very important for our country." |
| "It's like diving into the water," he adds. "Whether you succeed or not depends on the ability of each individual athlete." | "It's like diving into the water," he adds. "Whether you succeed or not depends on the ability of each individual athlete." |
| "Some people will swim," he says. "And some will drown." | "Some people will swim," he says. "And some will drown." |