Russia will tighten customs procedures, if Ukraine signs EU Association Agreement - Glazyev
The cargo inspections on the Russian-Ukrainian border which have caused difficulties are a non-recurrent action, but if Ukraine signs the Association Agreement with the EU customs administration may be tightened, Russian presidential advisor Sergei Glazyev believes.
"No need for dramatizing. The thing is that the Russian Customs Service conducted preventive measures related to preparations for changes in customs administration in case Ukraine signs the Association Agreement with the EU," Glazyev said answering a question from Interfax.
He said that the agreement contains a provision saying Ukraine pledges to allow European commodities virtually without examination, i.e. without the payment of duty or veterinary checks.
"An enormous amount of European, Turkish and other goods will appear on the Ukrainian market and then flow to us. Therefore we fear reimports in the first place," the advisor said.
He added that even now big quantities of non-Ukrainian meat, cheese and other commodities are crossing the border with Russia.
If the flow becomes a systemic factor in trade relations with Ukraine, the customs will have to work with it the same as with Europe and "strictly check the rules of origin of goods," Glazyev said.
"So far the Russian customs has not assigned a high risk level to Ukraine not wishing to disrupt the operational ties that still remain in our economic cooperation. But if Ukraine signs the Association Agreement with the EU and assumes the obligation to blindly fulfill all norms of European regulation and allow European commodities uncontrolled, this will lead to a new wave of reimportation combined with the ouster of Ukrainian commodities that will not stand the competition," Glazyev said.
He estimated that imports from EU will grow by $4 billion.
"This will kill down the Ukrainian trade balance and lead to Ukraine's default on its foreign economic financial commitments," the advisor said.
He added that in the face of all these problems Ukraine will direct all its capacities to the Russian market, and this should also be administered.
"This inspection [at the customs] was one-time. Conclusions have not been drawn yet, information is being processed. By now the situation has stabilized but for safety's sake we are preparing to tighten customs administration, in case Ukraine takes this suicidal step and signs the Association Agreement with the EU," Glazyev said.
He said that the existing customs system was checked, a new one was not introduced.
Glazyev said that so far the Ukrainian business has had no instrument to influence the decision-making and is only now studying the draft of the Association Agreement with the EU.