The Ministry of economy of Ukraine: businesses lose up to $1.1 billion from restrictions on trade with Russia

The Ministry of economy of Ukraine: businesses lose up to $1.1 billion from restrictions on trade with Russia

KIEV, January 29. Ukrainian enterprises in 2016, will lose 0.8 to $1.1 billion in revenue from trade restrictions imposed by Russia. This was stated at a meeting of the Verkhovna Rada of Ukraine, Minister of economic development and trade of Ukraine aivaras abromavicius.

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“We expect that as a result of embargo, most favoured nation and limitation of transit from the Russian side the loss of revenues of Ukrainian enterprises will be from $800 million to $1.1 billion,” he said.

From 1 January this year, Russia banned the import of agricultural products, raw materials and food from Ukraine.

The European Union and Ukraine adopted a decision on implementation from 1 January 2016, the economic section of the Association agreement EU – Ukraine. Therefore, Russia decided to apply in respect Ukraine’s counter-sanctions, similar to those prevailing in the EU. Such a measure is necessary to protect the domestic market and domestic producers, noted earlier, Prime Minister Dmitry Medvedev.

In addition, from 2016 entered into force, the decision to suspend actions in respect of Ukraine to the Treaty on the free trade zone. Regarding Ukraine will apply import duties at the rates for all countries, supplying its products to the territory of the Eurasian economic Union, which along with Russia includes Belarus, Kazakhstan, Armenia and Kyrgyzstan.

With 10 January in Ukraine entered into force a government decree, which introduced restrictions on trade with Russia. According to the resolution, ban to 5 August 2016 on the import into the customs territory of Ukraine “of goods originating from the Russian Federation under the list”.

The Ministry of economic development and trade of Ukraine has prepared earlier a list of Russian food products, import of which to the country will be banned from January 29 to February. There are 43 categories of goods. In particular, it is prohibited to import bakery, pastry, chocolates, meat, fish, coffee, black tea, baby food, filter cigarettes, beer, vodka, herbicides, locomotives, as well as a number of other goods.