Ukraine Warned of Missed Chance after Ditching EU Deal

Ukraine on Friday faced accusations from the West it had bowed to Russian pressure and missed a historic opportunity after the government scrapped plans to sign a deal to deepen ties with the European Union.

Hundreds of pro-EU Ukrainians turned out late at night on Independence Square in the capital Kiev to protest the decision, with opposition leaders calling for a mass rally on Sunday which they hope will muster 100,000 people.

The government unexpectedly announced Thursday that it was halting all preparations to sign an Association Agreement with the European Union at a summit in Vilnius next week, a deal which would have marked a historic break from Russia.

The announcement came after lawmakers failed to agree a bill that would have allowed jailed ex-premier Yulia Tymoshenko, the arch political foe of President Viktor Yanukovych, to travel to Germany for treatment, a key condition set by EU leaders for the agreement.

"This is a missed opportunity," British Foreign Secretary William Hague said in a statement, while EU foreign policy chief Catherine Ashton said it was a "disappointment" for both the EU and the people of Ukraine.

The U.S. State Department lamented that there had been still "ample time" to resolve the remaining issues ahead of Vilnius.

The Ukrainian government said that its decree suspending preparations for the summit was forced by national security concerns linked to trade problems with Russia.

Prime Minister Mykola Azarov insisted before parliament Friday that the decision was purely economic in nature and did not change Ukraine's strategy of EU integration.

"The decision was hard, but the only possible one in this economic situation," Azarov said to cries of "shame" from opposition lawmakers who promptly registered a vote of no confidence in his government.

Azarov said the "last straw" was the tough conditions imposed by the International Monetary Fund for extending a new credit to Ukraine to help its struggling economy.

The Kremlin, which wants Ukraine to join a Russia-led Customs Union, had threatened trade retaliation if Ukraine signed the deal. Yanukovych had made a trip to Moscow earlier this month for secret talks with President Vladimir Putin the substance of which has yet to be revealed.

The Association Agreement, which is seen as a first step to eventual EU membership, came with a major free trade deal that would have made Ukraine's membership of the Customs Union impossible.

EU envoys Aleksander Kwasniewski and Pat Cox, who visited Ukraine more than two dozen times to secure the deal, expressed "deep disappointment" at the "unilateral" decision of the Ukrainian government.

"We take note... of the dramatically increased pressure from Russia in recent weeks," they said in a joint statement.

They warned that the "time-out formula" adopted by the Ukrainian government "is likely to last for a considerable time".

EU officials have repeatedly warned that failing to sign the agreement in Vilnius will close a window that may not open again for several years, with the EU Commission set to be renewed in 2014 and Ukraine facing presidential elections in 2015.

Swedish Foreign Minister Carl Bildt, who has been closely involved in moves to integrate Ukraine closer with the EU, bluntly said on Twitter: "Ukraine government suddenly bows deeply to the Kremlin."

'We will change this regime'

Hundreds of Ukrainians protested the decision late Thursday on Independence Square, the hub of the 2004 Orange Revolution that forced the annulment of rigged presidential polls initially claimed by Yanukovych.

Waving Ukrainian and EU flags, several dozen stayed over until the morning, carefully watched by police who did not intervene.

"Viktor Yanukovych: the murder of a dream," headlined the opposition Ukrainska Pravda news website. "Even yesterday, Ukraine stood on the threshold of this goal."

The pro-Tymoshenko opposition, which has accused Yanukovych of treason and called for his impeachment, are hoping for a protest of up to 100,000 people on Sunday to put pressure on the government.

"Together we must prove that Ukraine will be in Europe and will be a democratic state. Together we will change this regime," said the leader of the UDAR (Punch) party, world boxing champion Vitali Klitschko.