The Ministry of economic development concerning the impact of the cessation of free trade with Ukraine

Moscow. December 16. Suspension of the Treaty on the free trade area (FTA) with Ukraine since January 1, a decree which was signed by President Vladimir Putin meant not only the transition to the standard regime of bilateral trade (the so-called “most favoured nation”, MFN), and the abolition of preferences on a range of issues reported in the Ministry of economic development.

“It is not only the rejection of preferential treatment within the FTA within the CIS, i.e. the establishment of MFN tariff rates, but also the deprivation of their preferences in other areas – sanitary and phytosanitary measures, customs, migration, services, investments, etc.” – said the representative of the Ministry.

From 1 January enter into force of the economic part of the Association of Ukraine with the EU. Russia believes that it may have a negative impact on its economy.

As stated earlier, Prime Minister of Ukraine Arseniy Yatsenyuk, in the case of introducing trade embargoes of Ukrainian exports to Russia in 2016, according to preliminary data, will be reduced by $600 million.

According to the state statistics service of Ukraine, exports of goods from Ukraine to Russia for the first 9 months of 2015 fell by almost 2.3 times, or by $a 4.53 billion to us $3,61 billion, while imports decreased by more than 1.9 times, or by $5,02 billion to us $5,47 billion.

Overall, Ukrainian exports for the first 9 months of 2015 decreased by 32.7% to $28,11 billion, whereas import – by 33.6%, to $27,38 billion.