From the end of the 18th century, most of Ukraine was the first part of the Russian Empire. Subsequently, Western Ukraine was part of the Austro-Hungarian Empire and then passed to the Second Polish Republic until the Soviet invasion of Poland in 1939.  Ukraine joined the Soviet Union (russian and Ukrainian SSR united in the Soviet Union from 1922) until Ukraine was independent of the Soviet Union on 24 August 1991.  Independent Ukraine (since 1991) originally maintained close relations with Russia and, as such, the Ukrainian economy was integrated into the Russian economy.   Russian President Vladimir Putin has warned that members of the Customs Union of Belarus, Kazakhstan and Russia could impose safeguards in the event of trade liberalization between Ukraine and the EU.  [j] The EU condemned Russia`s threats and called them unacceptable.  Ukrainian Prime Minister Mykola Azarov urged Russia to “accept the reality that Ukraine signs the EU agreement” and condemned all artificial barriers as unnecessary.  Before the treaty was signed, about one third of Ukraine`s foreign trade with the European Union (EU) another third was with Russia.  This significant change in Ukraine`s trading partners does not appear to have led to sectoral change. To address this issue, we have exhausted merchandise trade under the World Bank`s H2 classification for the World Integrated Trade Solution (WITS), which divides products into 99 categories. The rules of origin and methods of administrative cooperation established in the Protocol on Rules of Origin of Origin and its seven annexes are based on the Pan2 model for Euro-Mediterranean Europe.
This will allow the accumulation of materials from the EFTA states, Ukraine and other Pan-Euro Med Member States as soon as the corresponding agreements between these countries and Ukraine are in force. The agreement provides several for the implementation of political dialogue. The EU-Ukraine summit is the highest level of political dialogue. At the ministerial level, dialogue is conducted within the Association Council. The political dialogue aims to improve the legal framework for EFTA and Ukrainian investors investing in other countries` markets in sectors not covered by the trade in services chapter. The agreement provides for both non-discriminatory access to the direct investment market and fair, fair and non-discriminatory treatment of existing investments. In some areas, the parties have expressed reservations on the basis of restrictions imposed by their national legislation (Annex XI and XII). Therefore, the EU considers that the continuation of a permanent ban on exports of sawn timber since 2005 is contrary to the provisions of the agreement. The dispute settlement mechanism, the agreement clearing mechanism, is based on the WTO dispute settlement mechanism, with a faster process. The consultation will follow if it has not been concluded by referring to a panel of arbitration composed of three experts randomly selected by the parties on an agreed list. Kostiantyn Yelisieiev, Ukraine`s ambassador to the EU, reacted in February 2013 by rejecting any EU preconditions for signing the AA.
 However, on 22 February 2013, 315 of the 349 registered members of the Verkhovna Rada adopted a resolution indicating that Parliament will ensure that the “recommendations” of the Foreign Affairs Council of 10 December 2012 are implemented “within its powers”.  At the 16th EU-Ukraine Summit on 25 February 2013, European Council President Herman Van Rompuy followed the Foreign Affairs Council`s December 2012 statement and reiterated the EU`s “demand for decisive action and tangible progress in these areas – no later than May of this year.”  On the same day, President Yanukovych declared that Ukraine would “do its best” to meet the EU`s requirements.  At the time, President Yanukovych was also in talks with Russia to find the “right model” of cooperation with the Customs Union of Belarus, Kazakhstan and Russia.  But on Feb 25