12:13 04.07.2016

Economy ministry: Putin order threatens transit of goods from Ukraine across Russia

2 min read
Economy ministry: Putin order threatens transit of goods from Ukraine across Russia

Ukraine's Economic Development and Trade Ministry has said that transit of goods from Ukraine across Russia could be stopped in full due to the issue of a new order regarding the transfer of these goods by Russian President Vladimir Putin.

According to the ministry's report, on July 3, 2016 Putin's order dated July 1, 2016 was published. It amends its order on measures to provide for economic security and national interests of the Russian Federation in international transit of cargos from the territory of Ukraine to the territory of Kazakhstan across the Russian Federation issued on January 1, 2016.

The new order introduces additional restrictions for transit of Ukrainian goods via Russia.

The current transit restrictions for goods going to Kazakhstan apply to transit to Kyrgyzstan. The full ban of transit of goods on which embargo has been imposed is introduced (according to the approved list).

"The above-mentioned changes could result in temporarily full stoppage of transit of goods from Ukraine via Russia not only to Kazakhstan and Kyrgyzstan, but also to third countries," the ministry said.

The ministry said that the introduction of transit restrictions by Russia for Ukrainian goods is economically unviable and unjustifiable. It would entail the artificial worsening of the condition of Ukraine's trade with third countries, in particular, in the Central Asia.

"Russia's restrictions are non-transparent, unjustifiable and of a discriminative character. They violate liabilities taken with the World Trade Organization (WTO) and the agreement on the free trade area," the ministry said.

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