MINSK, Oct. 7 – Belarus, a founding member of the Moscow-led Customs Union, said it sees “no problem” with Ukraine’s signing of free trade and political association agreements with the European Union next month.

The comment, made by Belarusian President Alexander Lukashenko at a meeting with Prime Minister Mykola Azarov, is in stark contrast with remarks made by top Russian officials predicting a financial catastrophe for Ukraine.

“Frankly speaking I do not see any problems in this step of cooperation with the EU,” Lukashenko told Azarov. “What’s important is that this agreement must not shut the cooperation with the Customs Union.”

Russian President Vladimir Putin repeatedly tried to discourage Ukraine from signing the agreements with the EU and to join the Customs Union instead.

Putin warned Moscow would restrict imports of goods from Ukraine if Kiev signs the agreement with Brussels. He said the measures were needed to protect the Russian market from cheaper and quality products that may find their way via Ukraine to Russian markets.

The warning suggests that there is potential for a major escalation of a trade war between Russia and Ukraine that may economically destabilize the region.

Azarov said that Kiev will try to use Minsk as an intermediary in its escalated relations with Moscow to try to prevent the worst case scenario.

"We hope that the leadership of Belarus will also be able to convey our position with our partners, including Russia," Azarov said in an interview with Belarus 1 television.

Minsk’s new role may come handy after Ukraine’s attempts to normalize relations have failed in August after Russian Deputy Prime Minister Igor Shuvalov said it was “pointless” to continue the talks.

Lukashenko said: “We should proceed from realities. The fact is that Ukraine’s signing of the association agreement with the European Union, it is almost a fait accompli, if you believe statements from Brussels and Kiev."

“It is Ukraine’s right to choose in which direction to go,” Lukashenko said. “Our right is to respect the right of Ukraine and to understand that this is a sovereign and independent state.”

“That’s why in the near future we have to cover a very long way on finding a normal cooperation with Ukraine,” Lukashenko said. “We understand that. We – I mean members of the Customs Union.”

Azarov praised Lukashenko for his “balanced” position.

"We are very grateful to the leadership of Belarus for a balanced, calm assessment of our plans to sign an association agreement with the European Union,” Azarov said. This shows that “Belarus has a constructive look at the process and makes absolutely correct conclusions.” (tl/ez)