17:02 15.08.2013

Svoboda says trade war by Russia will prompt Ukraine to seek new markets

2 min read

The blocking by the Russian customs authorities of imports of Ukrainian goods will prompt the Ukrainian economy to modernize production and seek new markets, MP from the Svoboda All-Ukrainian Union Oleksandr Myrny has said.

"First and foremost, Russia demonstrates its true attitude towards us. Secondly, the owners of plants and enterprises at which the equipment is totally exhausted, including moral resources, will be obliged to turn to more modern technology. The use of new technologies will increase labor productivity, improve the quality of products and resolve serious environmental issues," he said in an interview with Interfax-Ukraine, while commenting on the blocking by Russia of imports of Ukrainian goods.

Myrny said that the equipment used at Ukrainian metallurgical enterprises is not used anywhere else in Europe.

"Even Russia is closing open-hearth furnaces," he said.

"Everything that is happening now pushes entrepreneurs to the search for new markets, as well as the introduction of new technologies. So all of that is done, what is done is done for the better," Myrny said.

The MP said that Ukraine should resolve this problem with the assistance of international agencies.

"I believe that the Ukrainian government is obliged to apply to the WTO to resolve the problem with the termination of imports of goods to Russia," Myrny said, noting that both countries are WTO members.

"Apart from the World Trade Organization, I see no other mechanisms that could protect us," he said.

According to Myrny, "Russia does not consider the Customs Union as an economic union."

"According to statistics, only 11% of the goods manufactured in the Customs Union are used by the Customs Union member countries. For comparison, the percentage of such products in Europe is more than 70%. Generally speaking, the member states of the Customs Union don't need each other," he said.

"But, unfortunately, Russia has imperial ambitions. The leadership of this country lives in the illusion that the number of territories determines a place in global history and on the world map," he said.

Myrny said he was confident that the ban on imports of Ukrainian goods was purely political in nature and did not have any economic justification.

"You know perfectly well that it's not the case that everything goes bad in just one day," he said.

He noted that unlike Russia, Europe adheres to stable rules of the game.