BRUSSELS, Oct. 4 – The European Commission believes that it is "totally incorrect" to say that Ukraine will lose 20% of its state revenues after the creation of a free trade area with the European Union.

"A free trade agreement generates more economic activity by boosting the trade flows between the two partners. Based on experience, it is totally incorrect to say that Ukraine will lose 20% of its state revenues; on the contrary, increased economic activity has the potential to promote increased public revenue," European Commission spokesman John Clancy told reporters in Brussels on Monday.