12:41 23.08.2013

Kyiv cannot be expelled from CIS free trade area, but its participants can leave FTA and apply sanctions to Ukraine, says Suslov

3 min read

The participants of a free trade area within the Commonwealth of Independent States cannot expel Ukraine from the community, but they can leave the free trade area and apply sanctions to the country, Ukraine's representative in the Eurasian Economic Commission (EEC), Viktor Suslov, has said.

In exclusive comments to Interfax-Ukraine, he stressed that the articles and provisions of the CIS FTA agreement and other international instruments regulate the settlement of various trade and economic conflicts.

However, according to the expert, Moscow will be able to introduce new duties and radically change its trade and economic strategy towards Ukraine only if Russia leaves the CIS free trade area.

"Do members of the CIS FTA have the right to expel Ukraine? They have no such right. What [Russian presidential adviser Sergei] Glazyev meant by his statement might be Russia's right to withdraw from the agreement [on a free trade area within CIS], and about such a right of other member countries of the Customs Union," Suslov said.

"Yes, if they believe that there is a situation that damages their economies, nobody will be able to hold them, and Ukraine will not be able to hold them, and they will be able to withdraw from the Agreement on the FTA within the CIS. And thus they will have the right to introduce the same duties for Ukraine that exist in the countries of the European Union for instance. Such a possibility is legally real," he added.

Commenting on the statement by Russian President Vladimir Putin that the countries of the Customs Union will introduce safeguard measures for their markets if Ukraine opts for the liberalization of its customs regime with the EU, the expert noted that these statements should be taken very seriously.

"I believe that this statement give an impetus to the negotiation process. Ukraine obviously will have to create some sort of a real system to prevent the re-export of European goods that will enter through the territory of Ukraine with zero duties to the territory of Russia and other countries of the Customs Union," Suslov said.

As reported, Russian President Vladimir Putin said in Rostov-on-Don on August 22 that the Customs Union would take safeguarding measures if Ukraine liberalizes customs regulations with the European Union, since it is possible that cheaper European goods will come to the Customs Union from Ukraine amid such conditions.

"Our experts think that such a threat exists. If our neighbors go for the considerable liberalization of customs regulations with the EU, then products, not bad in terms of quality and price, will inevitable flow to the Ukrainian market… Then member-states of the Customs Union will have to think about protective measures, such a possibility exists," Putin said.

AD
AD
AD
AD
AD