Ukraine filed WTO suit because of “commercial aggression” of Russia

The Ministry of economic development of Ukraine has demanded from the world trade organization (WTO) to establish an expert group that will assess Russia imposed restrictions on the transit of Ukrainian goods to Kazakhstan and Kyrgyzstan.

“Trading aggression of the Russian Federation, including illegal actions to limit transit (and de facto almost complete ban) from Ukraine to third countries should have an objective to experts of the WTO, and, of course, should be abolished,” said Deputy economic development Minister of Ukraine Natalia Nikolskaya, words which are contained in the message Department.

Nicholas stressed that the experts of the Department will make every effort to prove his innocence and expressed the hope that the abolition of the transit restrictions will help to eliminate violations of the rights and interests of Ukrainian producers and exporters.

Losses of Ukrainian producers from Russia imposed restrictions in the economic development of Ukraine is estimated at $400 million, and the reduction of export of Ukrainian goods to the countries of Central Asia at 38.3%. According to experts, Russia imposed restrictions affected about 79% of exports from Ukraine to Kazakhstan and 95% of deliveries to Kyrgyzstan.

Request for early consultation on the issue of restrictions on the transit of Russian Ukrainian goods, the Ukrainian authorities sent to the WTO in September 2016, but within the allotted WTO rules 60 days to resolve the dispute failed.

July 3, 2016, Russian President Vladimir Putin has made changes in his decree, which restricts the transit of Ukrainian goods through Russian territory. In particular, the transit of goods subject to food sanctions, have been banned completely. In addition, prohibited the transit of goods in respect of which the applicable import customs duties above zero, established the unified tariff of the Eurasian economic Union (which includes Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia).

In early September the same year the President of Ukraine Petro Poroshenko called the restrictions for Ukrainian goods act of “economic aggression” of Russia and one of the reasons for the falling living standards of Ukrainians.

In January 2017, Ministry infrastructure on European integration Viktor Dovgan said that Ukraine’s losses from restrictions to the transit of goods through Russia exceeded $1 billion.