The Federation Council approved the law on the suspension of FTA agreement with Ukraine

The Federation Council approved the law on the suspension of FTA agreement with Ukraine


The Treaty on free trade Zone with Ukraine is suspended due to the fact that from 1 January 2016 starts to work the trade and economic section of the Association agreement between Ukraine and the European Union.

MOSCOW, 25 Dec. The Federation Council approved the law on suspension of 2016 the agreement on the free trade Area (FTA) with Ukraine.

The document was submitted for consideration the lower chamber by the Russian President Vladimir Putin.

Speaking at a meeting of the Council of Federation, Chairman of the house Committee on international Affairs Konstantin Kosachev said that if no decision was taken about the suspension of the Treaty, the damage to the Russian budget was approximately $ 3.5 billion.

The agreement on free trade zone was signed by States-participants of CIS on 18 October 2011.

In connection with the application from 1 January 2016 the trade and economic section of the Association agreement between Ukraine and the European Union has been a fundamental change of circumstances which were significant for Russia at the conclusion of the FTA.

It is noted that to date Ukraine is designed and executed more than 50 normative acts on the implementation of the rules and regulations of the European Union in the spheres of technical regulation, phytosanitary and veterinary measures, simplified customs administration and customs control, passed by the legislative decisions that are the basis for institutional reform, aimed at full-scale Association with the EU.

Tariff liberalization under the agreement on Association of Ukraine with the EU will cause significant damage to the Russian economy, noted in the relevant Committee. In addition, the obligations of Ukraine on trade and economic section of the agreement in conflict with Ukraine’s obligations named in the contract, which provides for, along with duty-free trade commitments on a range of multilateral and bilateral agreements in the framework.

This situation makes necessary the adoption of urgent measures to suspend the Russian Federation of the Treaty on the FTA in respect of Ukraine, stated in the explanatory notes.