Ukraine has accepted the fact of the formation of the Customs Union and expects the latter to come to terms with the prospect of the creation of a free trade area between Ukraine and the European Union after the signing of the Association Agreement, Ukrainian Prime Minister Mykola Azarov has said.

"The fact that within a year a new formation - the Customs Union of Russia, Belarus and Kazakhstan emerged on our borders we perceive as reality in which to work. We also accept the fact that from January 1, 2015 this union will come to a higher level of integration and will become the Eurasian Economic Union, as an objective factor of economic relations," Azarov said while opening a government meeting on Wednesday.

According to the prime minister, at present the government and business in Ukraine are actively adjusting their actions to ensure that there should be no restrictions in mutual trade with the Eurasian Economic Community.

"Ultimately, one similarly needs to accept as reality the fact that after the signing of the Association Agreement with the European Union, Ukraine will create a free trade area with the EU," Azarov said.

The premier believes that Ukraine and Russia should consistently use the WTO principles to find best possible solutions to their disputes.