Russia to Cancel Duty–Free Trade with Ukraine

As Ria Novosti reports, the duty-free trade deal between Russia and Ukraine is coming to an end. Russia says fundamental changes mean that it will invoke Article 62 of the Vienna Declaration to terminate the understanding.

The move comes  after Ukraine signed the Association Agreement on June 27, which gives Kiev provisions for the creation of a free trade zone and the removal of import tariffs. Russia’s government has stated on multiple occasions that if Ukraine becomes part of a free trade zone with the European Union, Russia will need to protect its internal market from the tariff-free flow of European goods from Ukraine.

RIA quotes a source from the government familiar with the situation  as saying “the circumstances that existed in the time when the CIS free trade area agreements were signed have significantly changed for Ukraine which is historically the main trade partner of Russia being deeply integrated in many areas of the economy”.

The cancellation of the duty-free relationship with Ukraine will lead to higher import tariffs of approximately  7.8 percent.

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