GORKI, December 21. Prime Minister of Russia Dmitry Medvedev announced that he had signed a decree on the introduction of most favored nation regime is the Treaty on free trade zone with Ukraine, as well as the use of counter-sanctions against this country from 1 January 2016.
“From 1 January 2016 in respect of Ukraine will be applied import duties under the common customs tariff of the EEU, that is, Ukraine will apply the most favoured nation treatment without any exceptions.
Putin signed a decree suspending the Treaty on free trade zone with Ukraine
“All preferences are in the past, benefits will not” – said Putin at a meeting with his deputies.
He also added that “from January 1, 2016 Ukraine will be circulated retaliatory economic measures in connection with its accession to the anti-Russian sanctions of the European Union and the United States.” “The corresponding decree of the government, I just signed,” – said Medvedev.
Medvedev also noted that Kyiv and Brussels was not ready to sign binding agreements regarding the Association of Ukraine and EU with regard to the interests of the Russian Federation.
“We have told the Ukrainian authorities that the implementation of the economic part of the Association agreement with the EU affects our interests and creates a risk of economic security for our country. Were conducted several rounds of negotiations, but they have not given, – stated the Chairman of the Cabinet of Ministers of the Russian Federation. – Both Ukraine and the EU not ready to sign a legally binding agreement that would take into account the interests of the Russian Federation”.
Termination of the agreement
Earlier the President of Russia Vladimir Putin has signed a decree on terminating the Agreement on free trade with Ukraine with January 1, “in view of exceptional circumstances affecting the interests and economic security of the Russian Federation and require urgent measures”, after which the bill for the suspension of the Treaty was made the head of state for consideration in the state Duma.
Putin predicts deterioration of economic relations with Ukraine next year
In accompanying documents it is noted that “the Ukrainian side has actually refused development of trade and economic cooperation within the CIS and chose the path of progress towards a comprehensive integration with the European Union”.
It is noted that tariff liberalization under the integration agreement between Ukraine and EU, “will inflict considerable damage to economy of Russia”. It is also specified that the commitments of Ukraine on Association with the European Union contradict the provisions of the agreement on free trade in parts duty free.
Ukraine has already commented on the signing by the President decree. Thus, the head of Ukraine Petro Poroshenko at a joint briefing with European Commission President Jean-Claude Juncker , that Kiev is willing to abolish free trade with Russia for the sake of a free trade zone with the EU.
Poroshenko: Ukraine will take “adequate solution” in the case of the introduction of Russia’s predamage
“A year of negotiations have shown that Russia is not aimed at achieving agreement and to veto integration of Ukraine”, – said Poroshenko. “Ukraine was aware of this decision (Russia) and will suffer a loss to its economy. We are willing to pay this price for the introduction of free trade regime with the EU, which cannot be deferred”.