Ukraine will take retaliatory measures if Russia will enhance the protection of market

Ukraine will take retaliatory measures if Russia will enhance the protection of market


Moscow expresses concern in connection with the entry into effect of the provisions of the FTA with the European Union and fears of an influx of duty-free goods. Russia could even impose in the Ukraine embargo to protect the market.

KYIV, 12 Nov. Ukraine intends to apply retaliatory measures if the Russian Federation will increase from 2016, the level of customs-tariff protection of the market, after the implementation of the economic part of Association agreement Kyiv with the EU, stated trade representative of Ukraine Nataliya Mykolska.

“We won’t sit and wait when the Russian Federation (take measures — ed.). If they apply these measures, they will get a response, because the free trade zone is a two — way process. Just sit and wait we will not” — said the Gaina reporters on Thursday.

Background

Currently Russia and Ukraine are included in the free trade zone of the CIS, whose countries except Azerbaijan, Uzbekistan and Turkmenistan nullified most of the export and import duties in trade among themselves. Each country retained the exemption relating to the most significant for her goods. For Russia, this export duty on 100 items (oil, gas, petroleum), Kazakhstan — more than 40 goods, for Ukraine — about 30.

After Moldova has implemented the agreement on Association with EU, Russia to protect its market, cancelled the preferences and introduced in this country when ordinary trade regime, which is called in international law “most favored nation”.

A year ago Ukraine and the European Parliament ratified the Association agreement with the EU, part of which is the provision on the free trade zone. Russia is concerned with the introduction from 1 January 2016 in the provisions of the FTA and fears of an influx of duty-free goods from the EU through Ukraine. In addition, Ukraine had joined the Western sanctions against Russia.

Then Russia decided not to impose retaliatory measures. But Prime Minister Dmitry Medvedev does not exclude that it will happen in the future. Medvedev also said that the ordinary trade regime in relation to Ukraine will be introduced on 1 January 2016, following the launch of the economic part of the agreement Kyiv-the EU if the three parties fail to agree on the concerns of the Russian Federation for its market.

Earlier, the head of the Ministry of economic development Alexei Ulyukayev confirmed their participation in planned for 1 December in Brussels tripartite Ministerial meeting on the implementation of the economic part agreements on Association Ukraine-EU, however, said that chances to reach the end of the year agreement on the withdrawal risks for Russia on this issue are slim.

Ulyukayev called a very small chance that Russia will not enter the food embargo and customs duties for Ukraine on 1 January 2016, and new sanctions by Kiev, he said, has made them miserable.

Assessment of the impact on farmers of Ukraine

A possible embargo imposed by Russia on food products from Ukraine will affect Ukrainian producers of meat, but overall will not be greatly affected farmers, said Gaina.

“According to our estimates, a significant portion of the goods that fall under the embargo, they are already forbidden on the territory of the Russian Federation by the decision of the sanitary and phytosanitary doctors, technical limitations. Definitely a big influence on our economy we do not see”, — said the Gaina journalists.

“The largest negative impact, on whom it will impact, it’s pork producers and chicken meat”, — said Gaina. She also noted that the problems of Ukraine with Russia in the field of food may relate to the export of products to third countries through the territory of Russia. According to a Gaina, it relates to transit to the CIS countries and China.