From November 25, 2013 – 07:16 PM Der Spiegel :
This tug-of-war began four years ago, when the EU proposed an "eastern partnership" with Ukraine as well as Armenia, Azerbaijan, Georgia, Moldova and Belarus. The EU offered cooperation, free trade and financial contributions in exchange for democratic reforms. Officials in Brussels spoke enthusiastically about the emergence of an historic Eastern European policy not unlike former German Chancellor Willy Brandt's rapprochement with the Warsaw Pact countries in the 1970s. The planned partnership agreements were intended to facilitate visa-free travel, reduce tariffs and introduce European norms. The only thing that was not offered was EU membership.
The EU's other goal, even though it was not as openly expressed, was to limit Russia's influence and define how far Europe extends into the east. For Russia, the struggle to win over Ukraine is not only about maintaining its geopolitical influence, but about having control over a region that was the nucleus of the Russian empire a millennium ago. The word Ukraine translates as "border country," and many feel the capital Kiev is the mother of all Russian cities.
This helped create Cold War-style grappling between Moscow and Brussels. The Russian president, hardened by his fights in the Kremlin, is more adept than EU bureaucrats at manipulating people with venality and affections. None of the top European politicians made a serious effort to win over Ukraine, with neither German Chancellor Angela Merkel nor European Commission President José Manuel Barroso flying to Kiev to convince its wavering president.
http://www.spiegel.de/international/europe/how-the-eu-lost-to-russia-in-negotiations-over-ukraine-trade-deal-a-935476.html
Its certainly a scam with regard exports / import. The current value of EU exports to the Ukraine are $10billion pa higher than imports. In some respects EU loans will do no more than help fund that gap i.e its providing finance to sell its own goods.
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