The trade agreement between the EU and Ukraine will come into force until 15 months. If the EU is going to Russia, which withdraws its threat of import duties.
EU Trade Commissioner Karel De Gucht | © Julien Warnand / dpa
The European Union wants to postpone the implementation of the free trade agreement with Ukraine by 15 months. The treaty would enter into force until the end of 2015, EU Trade Commissioner Karel de Gucht said after talks with Russian Economy Minister Alexei Ulyukayev and Ukrainian Foreign Minister Pawel Klimkin. Ukraine will continue until then have a privileged access to the EU market.
The EU reacted to Russia’s criticism of the Free Trade Agreement. Russia had threatened to impose tariffs on imports from the Ukraine when the Convention enters into force on 1 November. Previously goods from Ukraine can largely be exported duty-free to Russia. The government in Moscow is concerned that future might goods from the EU, imposed duties on Russia, then come via Ukraine duty-free into the country. This would represent a loss of revenue of around two billion euros according to their calculations.
According to de Gucht, the Ukrainian economy is expected to benefit up to the implementation of the Free Trade Agreement of an expansion of preferential tariffs on Ukrainian goods. These are based on the Association Agreement between the EU and Ukraine, to be ratified according to the Ukrainian leaders Petro Poroshenko on Tuesday. Precisely that association agreement is rejected by Russia, as it considers that it has squeezed out of the export market.
With the postponement of the free trade agreement, the EU wants to go to Russia and use the time for further negotiations. The three-party talks on trade were part of a “comprehensive peace process in Ukraine,” De Gucht said. The dialogue will continue over the next 15 months, also said Ulyukayev. Should, however, be in breach of agreements, Russia will take protective measures.
In the new sanctions by the EU and the USA, the Russian government reacted with outrage. Ulyukayev announced, according to the news agency Ria, file a complaint with the World Trade Organization. He also threatened that his country would respond to import bans for equipment and products from the petrochemical industry. Countermeasures could include import restrictions for compressors, refrigerators or similar devices, the minister said. However, the elaboration of Russian sanctions still need time. Also an import ban on cars and the restriction of overflight rights for Western Airlines is the Russian leadership According talking.
Vladimir Putin called the new sanctions the West “not very effective”. They are “anti-Russian” and would not contribute to the solution of the conflict, Putin said. Otherwise, the Kremlin chief was left: “The less our government officials and business leaders to travel abroad, the more they instead take care of the current business, the better.”
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