Putin predicted the deterioration of economic relations with Ukraine from January 1

Putin predicted the deterioration of economic relations with Ukraine from January 1


Moscow. December 17. Russian President Vladimir Putin predicts the deterioration of economic relations with Ukraine in connection with the cancellation from January 1 of the free trade regime within the CIS.

Online press conference Putin

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“From 1 January, unfortunately for us, we expect the deterioration in our economic relations, because we are forced to make a decision that from 1 January will not work with Ukraine as a member of the free trade area of the CIS”, – said Putin at a press conference on Thursday in Moscow.

He stressed that Russia has no plans to impose sanctions against Ukraine. “We are not going to impose on Ukraine any penalties, I want it to be heard. We are moving on to the most favoured nation treatment in trade”, – said Putin.

The day before he signed the decree on suspension from 1 January 2016 to the Treaty on the free trade area (FTA) in Ukraine. The decree was signed “in view of exceptional circumstances affecting the interests and economic security of the Russian Federation and require urgent measures”.

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

Prime Minister of Ukraine Arseniy Yatsenyuk said that 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.